Greggs PLC (LSE:GRG) reported a good start to 2022 and left its forecast for the full year unchanged, but cautioned that costs are continuing to climb, with pressure on consumer incomes set to increase in the final six months.
In the first 19 weeks to 14 May 2022, like-for-like sales were 27.4% higher than the same period last year, reflecting a recovery from the pandemic and in line with expectations, the baker said in a trading update.
Total sales rose to £495mln in the period from £378mln in 2021, with hot food and snacks growing particularly strongly.
Sales in larger cities and office locations continued to lag, but there has been a “marked increase” in sales in transport locations in recent weeks, Greggs noted.
Like-for-like sales growth in the 10 weeks to 14 May averaged 15.8% compared with last year, when lockdown restrictions were being lifted. The company said it expects “this figure to continue to normalise as we start to compare with more robust trading periods in 2021”.
There were 2,224 shops trading at 14 May, after 49 new shops were opened in the period, including at Birmingham and Liverpool airports, with a strong pipeline reported.
“Whilst considerable uncertainties remain, we are in line with our plan and the board's expectations for the full year outcome remain unchanged,” Greggs concluded.