Growth at Greggs has suffered in the third quarter as a summer heatwave suppressed consumer appetite for hot pastries.
Like-for-like sales were up just 1.5% in the 13 weeks to 27 September, compared with the 2.6% registered in the first half. Total sales growth in the quarter came in at 6.1%.
Greggs said trading improved in August and September following a “heat-affected” July.
The high street bakery chain added in the trading update that its outlook for cost inflation in 2025 had “marginally improved”.
Board expectations for full-year results remained unchanged, with operating profit forecast to be modestly below the level achieved in 2024.
Greggs extended the availability of its frozen ‘bake at home’ range through a new relationship with Tesco this month, with an initial launch of five products.
The range is now available in 930 Iceland and 820 Tesco stores across the UK.
Greggs also opened further supermarket locations in the tird quarter in partnership with Tesco and Sainsbury’s.
For the year as a whole, Greggs expected to open around 120 new net stores, which was slightly lower than its previous estimate.
“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 group said in the update.
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