LONDON (ShareCast) - (Sharecast News) - High Street baker Greggs reported a rise in full year profits but warned winter storms in the UK had caused a significant slowdown in February sales and an cited uncertain outlook due to the coronavirus.
The company, which has bucked the retail sector's woes with sales of its popular vegan sausage roll, said pre-tax profits rose to ?108.3m from ?82.6m on a 13.5% rise in sales to ?1.16bn.

The total dividend rose 25.8% to 44.9p and Greggs said it would consider capacity for a special dividend at the time of its interim results.

"We made a very strong start to 2020 in January, but in February saw a significant slowdown in sales growth as a result of the storms that have affected the UK," said chief executive Roger Whiteside, referring to flooding that has devastated parts of the UK.

"There is some uncertainty in the outlook, particularly given the potential impact of coronavirus. This aside we expect to make year-on-year progress and will do so from a strong financial position, supporting our investment for further growth whilst also delivering good returns for all stakeholders."

Whiteside added that company-managed shop like-for-like sales grew by 7.5% and total sales were up 11.7% in the nine weeks to February 29 this year.

"The flooding that resulted from the storms temporarily closed our supply site in Treforest, South Wales, and our teams there and across the business have done a terrific job in re-establishing operations," he said.

"As previously indicated, cost increases are likely to present a stronger-than-normal headwind in 2020, with wages and pork commodities driving cost inflation. We intend to invest some of the margin generated by our strong performance in 2019 to protect customers from these costs."

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