Greggs warns on profits after warm weather hits sales
The baker’s share price has fallen over 40% in the year to date as a result of concerns around its slower sales growth and rising costs
Greggs has revealed that it expects its full-year operating profit to be “modestly” below FY24 after the heatwave in June caused its sales to fall.
The baker stated that cost inflation and wage tax pressures, which caused the company to increase the price of its sausage rolls, were factors which weighed on its profitability, although said its cost inflation outlook for 2025 remains unchanged.
The company reported that its total sales were up 6.9% to £1.03bn for the 26 weeks ended 28 June 2025, with like-for-like sales up 2.6%.
However, Greggs saw its sales take a hit in June alongside a heatwave as footfall fell despite an increase in cold drink sales.
The company believes that it is on track for between 140 and 150 net openings for the full year with 87 gross new shops opened, 31 net openings and 2,649 shops now trading.
Greggs has also completed 108 refurbishments so far with around 50 more in the pipeline, biased towards the first half of the year.
The baker’s share price has fallen over 40% in the year to date as a result of concerns around its slower sales growth and rising costs.
It comes after Greggs posted sales of £2.01bn during 2024, for the 52 weeks ended 28 December, the first time the company has passed the £2bn mark.
During that period, the company saw its sales increase 11.3% but it warned that it would increase its prices which it promptly did.
