Greggs has said it expects to report lower annual profit than last year as scorching temperatures in June impacted sales.
The company told markets this morning that total sales in the first half of the year grew 6.9 per cent to £1.3bn, although like-for-like sales grew just 2.6 per cent.
The sausage roll maker said its improved performance had failed to continue into June as “very high temperatures” reduced overall footfall, despite an uptick in cold drinks sales.
England reported its hottest June ever last month, with temperatures averaging 16.9C. The UK as a whole saw its second warmest June since records began in 1884.
Greggs expects full year operating profit to be “modestly” below last year’s, with higher costs compounding the slower sales growth.
It has invested significant amounts in refurbishments and new stores, opening 87 new shops in 2025 and confident in achieving 140 to 150 net openings for the full year.
Refurbishment activity has been “biased to the first half of 2025”, Greggs said, with 108 refits so far and around 50 more planned.
Analysts have previously warned on Greggs slowing growth rate, arguing that its strategic initiatives, too, look lacklustre despite recent growth.
It has been making a push into the late-night trade recently, with selected stores open past 4pm and some open until 2am, as well as expanding its menu range.
The high street bakery flagged the impact of cost inflation and higher wage taxes earlier in the year, which controversially pushed the company to increase the price of its flagship sausage roll in January, although said its cost inflation outlook for 2025 remains unchanged.
Greggs’ share price has taken a hit this year in light of its slower sales, down nearly thirty per cent in the year to date and 37 per cent since last August.
