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Greggs upgrades full-year expectations after swing to interim profit

The baker has also resumed dividend payments after a pandemic-induced break

Greggs PLC (LSE:GRG) said full-year profit will be slightly ahead of expectations as it swung back to an interim profit.

In the four weeks to 31 July, like-for-like sales in company-managed shops were flat compared to the equivalent period of 2019, while in the six months to 3 July, total sales slipped 9% to £546mln compared to two years ago but were well above last year’s £300mln.

READ: Greggs says sales recovery better than expected

The baker recorded a £55mln statutory profit before tax from a £65mln loss in 2020 and resumed dividend payments with a proposed 15p per share payout for the first half of the current financial year.

The plan is to open 100 shops in 2021, net of closures, after 48 opened in the first half and 11 closed permanently.

The delivery service continues to be rolled out and is now available in 837 locations. It accounted for 8% of company-managed shop sales in the six months just finished.

The FTSE-250 group also resumed its new product development pipeline after a pandemic-induced break, focusing on vegan ranges such as a 'Vegan Ham & Cheeze Baguette' and a vegan-friendly breakfast sausage. The latest line, the 'Vegan Sausage, Bean & Cheeze Melt' will be launched from 5 August.

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