Greggs raises profit forecast as sales jump 12.4%

Bakery chain Greggs has upped its profit forecast for 2019 after it reported “very strong trading” as its total sales jumped 12.4% in the six weeks to 9 November.

On a like-for-like basis sales in the company’s managed shops also increased by 8.3%, up from 4% when compared with the previous year. It added that in the year-to-date, total sales have increased by 13.4% and like-for-like sales by 9.2%.

In a trading update the company said: “Sales growth continues to be driven by increased customer visits and has been stronger than we had expected given the improving comparative sales pattern that we saw in the fourth quarter last year.

“Operational costs remain well controlled and, whilst the comparative sales become stronger still in the balance of the year, the board now anticipates that full year underlying profit before tax (excluding exceptional charges) will be higher than our previous expectations.”

The company, which has more than 2,000 stores across the UK saw shares rise as high as 15% following the announcement. Following the release of its now infamous vegan sausage roll Greggs reported total of over £1bn for the first time last year.