Greggs PLC (LSE:GRG) warned that full-year profits are likely to fall compared to last year, as it blamed slower growth in recent weeks on hot weather.
Total sales in the first half of the year came to £1.03 billion, the FTSE 250-listed baker said in a trading update, a 6.9% increase compared to the prior year, or 2.6% on a like-for-like basis.
Sales growth slowed from 7.4% and LFL sales from the 2.9% recorded in the first 20 weeks of the year.
The company attributed slower sales in June to very high temperatures across the UK, which boosted demand for cold drinks but reduced overall footfall.
Despite cost mitigation plans and a less demanding sales comparison, which are both expected to improve second-half performance, Greggs said it now anticipates full-year operating profit could be "modestly below" the £195.3 million made in 2024.
The board expects first-half operating profit to be lower than the same period last due to stronger prior-year comparatives and the timing of refurbishments, with 108 refits completed so far and only around 50 planned for the second half.
Greggs had 2,649 shops trading by the end of June, having opened 87 new shops and closed 56.