Baker issues a warning on profit despite growth

NORTH

- COREENA FORD

East bakery chain Greggs is toasting growth in its market share against a backdrop of challenging trading, but has warned of flat profits in the year ahead as a result of lower consumer confidence.The company has published a trading update for its fourth quarter, highlighting a total sales rise of 7.4%, with company-managed shop like-for-like sales up 2.9%. It said market conditions remain challenging but it is outperforming the wider market, resulting in gains in market share, at breakfast and in the evening.

The gains come at a time when consumer confidence was last year at a two-year low, with the disposable income tracker also showing that it is under more pressure now than it has ever been, with people trying to save what disposable income they do have.

Against the subdued trading background, total sales for the full year ended December 27 were £2.15bn, an increase of 6.8% compared with 2024, while like-for-like sales in company-managed shops was 2.4% higher than those seen in 2024.

Sales in the quarter were boosted by new and returning products and offers, including the launch of its three-part breakfast deal and the lunchtime ‘£5 Big Deal’ offer.