Greggs plc (LON:GRG) shares soared early Tuesday after the bakery chain raised its pretax profit outlook for 2018, adding in a trading statement that sales have climbed 9% and cost-control efforts have been effective.
The FTSE 250-listed company, well-known for its sausage rolls, said total sales leapt 9% in the eight weeks to November 24. The period was “particularly encouraging as it builds on good comparative sales in the same period last year,” the company said in a statement.
READ: Greggs pre-tax profit moves up in the half year but cautious full-year outlook retained
Like-for-like sales at company-managed shops increased by 4.5%.
Year-to-date, total sales have risen by 6.6% and like-for-like sales increased by 2.5%.
“Operational costs have been well controlled and, whilst there is still much to play for over the final few weeks of the year, the Board now anticipate that full-year underlying profit before tax (excluding exceptional charges) will be at least £86 million,” Greggs said.
In July, the company said it expected underlying profits before exceptional costs would be “at a similar level to 2017” when pretax profit excluding one-off items was £81.8mln.
Shares of Greggs soared 11% to 1,375p in early moves.