Greggs dishes up profit rise as pizza boxes and iced drinks prove popular

High street bakery chain Greggs said strong demand for its pizza box deals and iced summer drinks have helped drive higher half-year sales and profits.

The group posted a 16.3% rise in underlying pre-tax profits to £74.1 million for the six months to June 29 as like-for-like company-managed shop sales jumped 7.4%.

Greggs said profit growth was also supported by “better recovery” of cost inflation than a year earlier.

The firm saw total sales rise 13.8% to £960.6 million over the half-year.

It said sales were helped higher by new menu options, with iced drinks such as its mango and strawberry cooler and the strawberries and cream refresher now available in 500 shops and with plans to roll out to a further 200 shops this year.

Pizza deals also drove strong sales growth, according to the group, which recently launched a four-slice sharing box to add to the hot food range.

Greggs said it remains committed to its long-term aims to have “significantly” more than 3,000 shops across the UK, having opened 99 new shops and closed 18 to reach 2,524 in the first half.

It is planning to open up to 160 new shops on a net basis – those opened less those closed – this year as a whole.

The firm is redeveloping and extending its warehouses in Birmingham and Amesbury in Wiltshire, which is set to complete in the second half of the year and will help support another 300 shops.

Roisin Currie, chief executive of Greggs, said: “Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers.”

She added: “Our cost outlook for 2024 remains unchanged and we continue to trade in line with our plan.

“The board remains confident in the long-term growth strategy, and we are investing to support that growth.”

Overall it said cost inflation in the first half of 2024 stood at 4% and is expected at 4% to 5% for the year as a whole.

“Whilst uncertainties remain, the board’s expectations for the full-year outcome are unchanged,” Ms Currie said.