Sausage roll specialists Greggs PLC (LSE:GRG) reported sales growth in the year to date but warned cost inflation is likely to stick around.
Sales were up by 17.1% to £609mln in the 19 weeks to 13 May 2023 compared to the same period last year which was impacted by Omicron, according to a statement.
Looking ahead, the board of Greggs remains confident in making further progress despite the challenging backdrop.
Inflation is expected to persist, although the FTSE 250 company believes it has “good forward cover on key commodities".
Consumer incomes are also expected to stay under pressure, but Greggs said it remains confident in its value proposition.
“Whilst uncertainties continue, the board’s expectations for the full-year outcome are unchanged,” it said.
Greggs also opened 63 new locations, including in Canary Wharf Station and Glasgow and Cardiff airports.
Menu development, it said, is supporting strategic growth objectives, with sales of chicken goujons and wedges particularly strong.