Greggs sees pre-tax profits fall 14.3% to £63.5m

Greggs has revealed that its pre-tax profit fell 14.3% to £63.5m, down from £74.1m, for the 26 weeks ended 28 June 2025.

Alongside this, the company saw its operating profit fall 7.1% to £70.4m, down from £75.8m.

Despite this, the company’s total sales rose 7% to £1.03bn, up from £960.6m. The company stated that the first half was impacted by challenging market footfall, more weather disruption than in 2024, and phasing of cost headwinds.

Greggs also confirmed that its company-managed shop like-for-like sales increased 2.6% while its franchised shop LFL sales jumped 4.8%.

It also stated that the evening remained the company’s fastest growing daypart, up to 9.3% of company-managed shop sales, compared with 8.4% in H1 2024, driven by strong demand in higher-footfall locations.

The bakery chain also opened 87 new shops in the first half with 56 closures, including 27 relocations, resulting in 31 net openings, growing its estate to 2,649 shops trading as at 28 June 2025.

Greggs confirmed that its new frozen manufacturing and logistics site in Derby is now built and work is progressing to install the stock management and picking automation, along with the first production line. The site is expected to be operational in the first half of 2026

CEO Roisin Currie said: “After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead. Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers.

“The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth. The board’s expectations for the full year are consistent with the guidance provided in our last trading update on 2 July.”