Greggs issues profit warning
The hot start to the British summer has led to a fall in sales of steak bakes and sausage rolls at Greggs, with the bakery issuing a profit warning.
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Tuesday afternoon was the hottest day of the year so far with 35C highs following similar temperatures on Monday, giving Wimbledon its warmest ever first day of play.
Greggs has been feeling the pinch as well as the heat and has said that while sales of cold drink sales are up there has been a decline of overall footfall.
“Sales in June were impacted as very high temperatures affected the UK, increasing demand for cold drinks but reducing our overall footfall,” a statement read.
Total sales were up 6.9 per cent year on year to £1bn and Greggs is still targeting opening 140 to 150 shops this year to add to the 2,085 already in operation.
Shares in the bakery chain fell almost 13 per cent, or 256p to 1719p and are now down 40 per cent so far this year, according to an unscheduled trading update.
It comes after a strong 2024, which saw pre tax profits of £203m, up 8 per cent from the year before.
The statement added: “For the full year, our cost inflation outlook remains unchanged and planned cost mitigation measures are expected to enhance second half performance.
“Whilst acknowledging that comparative like for like sales are less demanding in the second half of the year, in light of the current trading conditions the Board now anticipates that the full year operating profit could be modestly below that achieved in 2024.”
What is on the Greggs summer menu
Greggs has said that the following items are on its summer menu:
- Chicken, Sweetcorn & Red Onion Pizza: Focaccia-style base topped with pizza sauce, cheeses, sliced chicken, sweetcorn, and red onion,
- Red Pepper, Feta & Spinach Bake: Diced red pepper, feta, and spinach wrapped in golden puff pastry,
- Lemon Meringue Muffin: Lemon cake with lemon pieces and a lemon filling, topped with fondant and meringue pieces,
- Fat‑Free Greek Style Yoghurt with Strawberry Compote: Thick and creamy fat-free Greek-style yogurt layered with strawberry compote,
- Caramelised Biscuit Latte (Hot): Freshly ground coffee blended with steamed milk and caramelised biscuit-flavoured syrup, topped with cream and cinnamon dusting,
- Iced Caramelised Biscuit Latte: Iced latte made with Fairtrade coffee, semi-skimmed milk, and caramelised biscuit-flavoured syrup.