Greggs profits jump 14.2% to £63.7m in H1

Bakery retailer Greggs has revealed that its underlying profit before tax excluding exceptional items increased 14.2% to £63.7m in the 26 weeks ended 1 July. 

This comes as the group’s total first-half sales increased 21.5%, with company-managed shops experiencing a like-for-like increase of 16%. 

Meanwhile, an underlying earnings growth of 4.5% also reflected the increase in the rate of corporation tax. 

According to the group, its strong cash position of £139m will be supporting its plans for future investment in growth. 

During H1, Greggs opened 94 new stores, while closing 44 other sites. As of 1 July, the group trades from a total of 2,378 shops, with plans to open an additional 150 stores before the end of the year. 

Roisin Currie, chief executive of Greggs, said: “Greggs strong performance continued in the first half of 2023 as we delivered on our strategic growth plan. With consumers remaining under pressure, we continue to offer exceptional value, which is reflected in our performance and growing market share.

“In the period we continued to open further new shops, extended trading hours into the evening and saw increased participation in the Greggs App.” 

She added: “Our ambitious plans for growth are on track and our amazing teams are committed to realising the opportunity to become a significantly larger, multi-channel business.”

Whilst uncertainties in the economic outlook persist, the group maintains that it continues to trade in line with its plan, and as such, the board’s expectations for the full year outcome are unchanged.