Greggs, the high street bakery chain, has reported a 3.2% rise in like-for-like sales in the 26 weeks to 28 June, and said it expects to report operating profits of £16-17m at its interim results, up from £11.5m in the comparative period last year.
Total sales grew 3.1% during the period, in which it opened 26 new sites, closed 36, and refitted 131 outlets - it plans to undertake 200 during 2014. The company announced property gains on disposal of £1.4m (2013: £0.2m).
The like-for-like growth in the period compares with a 2.9% like-for-like sales decline in the same period last year.
Greggs said it has “continued to trade well through the first half of the year”.
“Whilst our year-on-year performance has benefitted from comparison with a period of weak trading in 2013, sales growth is also being driven by initiatives that have further improved our products, availability, service and value.”
Greggs, which had 1,661 sites at the period end, expects shop numbers to be “broadly flat” for the year
“Given the encouraging trading performance in the first half of the year, along with good cost control and the benefit of property disposal profits, we expect to show operating profits of around £16-17 million when we report our interim results on 30 July 2014 (2013: £11.5 million).
“Sales comparables strengthen in the second half although the risk of further input cost inflation appears to be reducing. Overall, we expect to deliver an improved financial result for the year and further progress against our strategic plan.”
