GREGGS the baker expected full-year profits materially ahead of previous expectations due to a strong sales performance in its second half and lower commodity costs.
The Newcastle-based firm, which has 1,660 outlets in Britain, said sales had increased by 4.0 per cent in the 11 weeks to Sept. 13, taking growth so far this year to 3.5 per cent.
Greggs said sales at outlets open more than a year rose by 5.4 percent over the 11 weeks, taking growth this year to 3.9 percent.
It said margins had strengthened into the second half, reflecting deflation in commodity costs and cost savings that were ahead of plan.
"This strong performance reflects a positive response from customers to new product initiatives, improved service, better value and our investment in shop refurbishments alongside more favourable trading conditions," said chief executive Roger Whiteside.
“While we face tougher comparatives in the final quarter, the combination of strong sales performance, lower costs and our outlook for the remainder of the year means we now anticipate full-year profits to be materially ahead of our previous expectations, he added.
In the year to date, 153 shop refits have been carried out with around 200 due to have been completed by the year end, including 42 franchised operations.
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