Greggs raises profit outlook after stronger sales

Greggs has increased sales following the launch of new ranges of hot drinks and sandwiches, confirming its status as a growing rival for the nation’s coffee shops.

The bakery chain, which has nearly 1,700 stores, reported that sales grew 5.2% in the six months to 13 December, ahead of expectations.

Greggs has introduced a range of freshly made sandwiches with fewer than 400 calories, and less salt and sugar, in a bid to compete with Pret a Manger-style chains. It has also changed its coffee blend in the hope of tempting customers with a “smoother” taste and launched breakfast meal deals. Greggs said customers were responding well to products, value and investment. The chain has also benefitted from fairly consistent weather, unlike 2013 when a record-breaking freeze deterred customers from visiting its stores.

“Trading conditions have remained helpful but there is no doubt that customers are also responding to improvements in our product and service offer and to the investment we are making in the shop environment,” said Roger Whiteside, Greggs chief executive.

“Whilst there is still much to play for over the final few weeks of the year we currently anticipate that full-year profits will be ahead of analysts’ expectations.” The market had pencilled in £54m in full year profits for Greggs.

The company will make a further trading update in early January.