Greggs’ profit expectations have been upgraded as total group and managed shops like-for-like sales soared.
The high street baking chain reported a 12.4% increase in total sales for the six weeks to November 9, 2019, while company-managed like-for-like shop sales soared 8.4%.
As a result of its strong performance during the period, and across the entire financial year, Greggs said it now anticipated full-year profit before tax to be “higher than our previous expectations”.
“Trading performance in the fourth quarter to date has continued to be very strong, despite the strengthening comparators seen in 2018,” Greggs said in its trading update. “Sales growth continues to be driven by increased customer visits and has been stronger than we had expected given the improving comparative sales pattern that we saw in the fourth quarter last year.
“Operational costs remain well controlled and, while the comparative sales become stronger still in the balance of the year, the board now anticipates that full-year underlying profit before tax will be higher than our previous expectations.”
This trading update follows on from a solid set of third-quarter numbers, where the convenience food retailer reported a total sales increase of 12.4% for the 13 weeks to September 28.
In the year to date, Greggs has opened 56 net new stores, including the chain’s 2,000th outlet in August.
It said it had also “made good progress” with the construction of its southern distribution centre at Amesbury, Wiltshire.
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