High street baker Greggs has reported an 11.9% increase in full-year pre-tax profit to £49m on sales up 6.4% at £586m, but warned it was facing “substantial pressure” from rising energy and ingredients costs.

“Like every other business in our sector, we are continuing to face substantial pressure from rises in the cost of energy and in our key ingredients, including flour, vegetable oils, and protein,” warned chairman Derek Netherton.

“We will work hard to mitigate the impact of cost increases through greater efficiency, and in recovering higher costs in the market place, shall take account of consumer confidence and the competitive environment,” he added.

Like-for-like sales for the year to 29 December rose 5.3%. Like-for-like sales for the 10 weeks to 8 March rose 6.2%.