Greggs cautious on outlook as FY profits drop

(Sharecast News) - Greggs reported a drop in full-year profit on Tuesday as it struck a cautious note on the outlook. In the year to 27 December 2025, total sales rose 6.8% to £2.2bn, with like-for-like sales in company-managed shops up 2.4% on the year.

However, underlying operating profit declined 4% to £187.5m and underlying pre-tax profit was 9.4% lower at £171.9m. Greggs pinned the blame on volume pressure and increased fixed costs related to manufacturing, logistics and technology capacity.

Greggs also said it was seeing some emerging shifts in dietary preferences, with certain consumers seeking greater choice in areas such as increased protein, more fibre and smaller portions.

As far as current trading is concerned, LFL sales in company-managed shops rose 1.6% year-on-year in the first nine weeks of 2026, with total sales up 6.3%.

The bakery chain reiterated its full-year guidance for profits at a similar underlying level to 2025, with any year-on-year improvement contingent on a recovery in the consumer backdrop.

Chief executive Roisin Currie said the company had delivered a "resilient" performance, growing market share, alongside continued strategic progress.

Looking to the year ahead and Greggs said it expects market conditions to "remain challenging" for the consumer.

"We continue to stay focused on value and are significantly ahead of our competitors on this metric," it said.

"Greggs value proposition makes it relatively resilient in the face of cyclical pressure on consumers, and we will continue to focus on this through strong cost control and structural efficiency opportunities.

"At the same time we are successfully increasing access to Greggs through the extension of our own shop estate alongside partnerships with grocery, franchise and delivery partners."