Greggs PLC (LON:GRG) shares edged higher on Tuesday after its adjusted full-year pre-tax profit meet expectations although its like-for-like sales growth slowed and excluding one-offs profits fell.
The FTSE 250-listed baked goods provider reported pre-tax profit before one-off items of £81.8mln for the year to December 30, 2017, in line with analysts' expectations and up from £80.3mln in 2016.
READ: Greggs reports 2017 sales growth but cautious on outlook amid Brexit uncertainty
However, reported pre-tax profit was fell to £71.9mln, down from £75.1mln the previous year after an increased exceptional pre-tax charge of £9.9mln, almost double the 2016 charge as it opened new stores and extended its product ranges.
The company reported a net opening of 90 new stores alongside strong growth in its healthier options ‘Balanced Choice’ range, which it said accounted for more than £100mln of total sales.
Greggs saw a 3.7% increase in full-year like-for-like sales, albeit down from a 4.2% increase in the 2016 period, and said it was encouraged by the start to the new year, which saw like-for-like sales up 3.2% in eight weeks to 24 February 2018.
Roger Whiteside, Greggs' chief executive, said: "Whilst the UK consumer outlook remains challenging, we are encouraged by the start to the year. 2018 will be the peak year for investment in our supply chain as we create the platforms for further growth. We also plan to open a record number of new shops as we implement our plan to grow Greggs as a leading food-on-the-go brand."
The company increased its total dividend by 4.2% to 32.3p per share.
In early trading, Greggs shares edged 0.3% higher to 1,316p.