Despite the tough trading conditions on the high street, Greggs has reported a 4.2% rise in sales for the past six months.
The baker grew total sales to £335m for the 26 weeks to 2 July, up from £321m in 2010. But like-for-like sales were up just 0.4%, as Greggs opened a record 39 new shops during the period.
Operating profits stood at £17.3m – although Greggs said it had taken a one-off £2m hit due to the extra number of bank holidays in the period. It generated profits of £18.5m for the equivalent period last year.
Chief executive Ken McMeikan said trading had proved “more challenging than we had expected”.
“We do not anticipate that the second half will bring any alleviation of the tougher consumer spending environment with disposable incomes remaining under pressure.
“We continue to experience substantial increases in commodity prices and are continuing to work hard to mitigate the impact on customers through business efficiencies and targeted promotional activity.”
Greggs warned over threat of lunchboxes (6 August 2011)
McMeikan on a roll: The Grocer meets the Greggs boss (9 July 2011)