Greggs reports slowdown in sales but backs FY expectations

(Sharecast News) - Bakery chain Greggs reported a slowdown in sales on Wednesday, pinning the blame partly on a "heat-affected" July, but reiterating its outlook for the full year. In the 13 weeks to 27 September, total sales were up 6.1%, down from 7% growth in the first half.

Meanwhile, company-managed shop like-for-like sales rose 1.5%, down from 2.6% growth in H1.

Greggs said that while unusually high temperatures persisted throughout July, holding back its performance during the month, trading improved in August and September in more stable conditions. Year-to-date total sales are up 6.7%, with LFL sales 2.2% higher, it said.

"Greggs continues to make progress despite challenging market conditions, evolving its offer further and making the brand more convenient for a wider range of customers through disciplined estate expansion," the company said.

"Our two new distribution centres in Derby and Kettering are on track to open in 2026 and 2027 respectively and will support the next phase of this growth. Operational costs have been well managed and the outlook for cost inflation in 2025 is marginally improved. The board's expectation for the full year outcome is unchanged and we remain clear on the strategic opportunities that lie ahead."