Newcastle-based bakery and “food-on-the-go” retailer Greggs said its 2017 sales rose 7.4% to £960 million and pre-tax profit excluding exceptional items edged higher to £81.8 million from £80.3 million in 2016.

Total ordinary dividend per share will be up 4.2% to 32.3p.

On its strategic progress, Greggs said it opened 131 new shops, closed 41 shops, leaving it with 1,854 shops trading at December 30, 2017.

In current trading, company-managed shop like-for-like sales rose 3.2% in the eight weeks to February 2018.

“In 2017 we delivered another strong performance in challenging economic circumstances as rising inflation impacted both our own costs and customers’ disposable income,” said Greggs CEO Roger Whiteside.

“At the same time we continued to make good progress with our business transformation programme.

“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.”