Greggs PLC (LSE:GRG) reported a slowdown in sales growth in the third quarter but kept its full-year guidance unchanged despite “considerable uncertainty”.
Sales were up 14.6% to 13 weeks to 1 October, which was below the 27.1% growth reported in the first half of the year.
However, with no change in cost inflation, expected to be roughly 9%, the group kept its full-year guidance unchanged, which is in line with last year’s pre-tax profits of £145.6mln.
Greggs holds “an appropriate level of forward purchasing cover in respect of our fourth quarter requirements for key food and energy commodities”, the baker said in a statement.
“Greggs continues to trade well in an environment where cost pressures are significant, and our outstanding value-for-money positioning is ever-more important to consumers.”
The soaring price of energy is affecting a large number of businesses, but Greggs said it holds significant energy cover for the first quarter of 2023, with average costs expected to be below the level of the government's recently announced price cap.
The company said net store openings so far this year total 90 stores, taking its total store numbers to 2,271. It continues to expect net store opening of around 150 this year.
As a result of its strong balance sheet, the company said, capital expenditure for 2022 is expected to be at £120mln, down from £170mln, with some of the associated costs with new store openings added to 2023.
Matt Davies will succeed Ian Durant on 1 November as chair of the board when he steps down.