Poor footfall and costs weigh on Greggs profits

FIRST-HALF sales at high street bakers Greggs have passed £1bn but operating profits have fallen.

- TOM KEIGHLEY Business Writer [e-mail]

New interim results for the North East-based food-on-the-go firm show sales of £1.02bn in the 26 weeks to June 28, up from £960.6m in the same period of 2024, amid continued expansion of its store network.

But the sausage roll seller said poor footfall and cost headwinds hampered operating profits, which were down to £70.4m, from £75.8m in the same period last year.

As well as additional costs from its expanded manufacturing and distribution operations, the FTSE250 retailer said overall cost inflation for the first half had been 5.4%, with 6% expected for the whole year.

The chain has opened 87 new shops during the period with 56 closures, and 27 relocations. Shares in the firm have fallen since it revealed earlier this month that hot weather in June had impacted sales, in addition to difficulties caused by heavy snow and wind in January.