Newcastle-based Greggs said its total sales for the 26 weeks to June 28, 2025, rose 7% to £1.027 billion but profit before tax fell 14.3% to £63.5 million.
Like-for-like (LFL) sales in company-managed shops grew 2.6% and franchise shop LFL “system sales” grew 4.8% when compared with the equivalent period of 2024.
Interim dividend was maintained at 19p per share.
Greggs opened 87 new shops in the first half of the year with 56 closures — including 27 relocations — resulting in 31 net openings, growing the estate to 2,649 shops trading as at June 28, 2025.
Greggs CEO Roisin Currie said: “After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead.
“Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers.
“The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth.
“The board’s expectations for the full year are consistent with the guidance provided in our last trading update on 2 July.”
First-half operating profit fell 7.1% to £70.4 million.
“The year-on-year reduction in operating profit reflected challenging market footfall and the phasing of cost headwinds that have particularly impacted the first half of the year,” wrote CEO Currie.
“These challenges were compounded by heavy snow and strong winds in January and unusually hot weather in June, which had a material impact on consumer behaviour and lowered LFL sales.
“The headwinds that affected year-on-year financial performance in the first-half included £3 million of additional costs in respect of manufacturing, logistics and technology capacity introduced during H1 2024, the impact of which has now annualised.
“Shop refurbishments are weighted to the first half in 2025, with 108 completed in H1 2025 versus 81 in H1 2024, resulting in an additional first-half headwind of £1 million as works were completed.
“Overall cost inflation in the first half of 2025 was 5.4% and we continue to expect circa 6% cost inflation for the year as a whole. Looking forward, our energy pricing is largely fixed for the remainder of 2025 and we hold 40% cover for our 2026 requirement. Forward purchasing cover in respect of our requirements for food and packaging inputs totals around 75% of our second half requirement.”
Greggs also announced the appointment of Robert Moorhead as an independent non-executive director, with effect from October 1, 2025. Moorhead will become chair of the Audit Committee and join the Nominations and Remuneration Committees.
Kate Ferry, non-executive director and current chair of the Greggs Audit Committee, will retire from the board at the end of August 2025.
“Kate has made an exceptional contribution to the board and to the development of the business, including playing a critical role advising on financing options during and following the pandemic,” said Greggs.
“Robert was Chief Financial Officer and Chief Operating Officer of WH Smith plc before retiring from the board in November 2024 and is also a non-executive director of watches of Switzerland Group plc, where he chairs the Audit Committee.
Greggs chair Matt Davies said: “Kate has played a key role on the board of Greggs and I would like to take this moment to thank her for her exceptional contribution over the last six years.
“Whilst we are very sorry to see her go, we are delighted that Robert has accepted our invitation to join the board.
“His financial expertise in a listed company environment, together with his significant experience in retail will be of great benefit to our business.”
REACTION:
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Greggs’ first-half growth hasn’t been as strong as markets originally hoped, with the hot weather being blamed for a drop in customer footfall and sales. With less demand for its flaky bakes, and cost inflation expected to run at around 6%, full-year operating profits now look set to fall to below last year’s level of £195.3 million.
“These challenges have seen the Greggs’ share price fall by more than 40% over the last 12 months. While these issues shouldn’t be overlooked, they appear to be well baked into the valuation now, and the longer-term investment case remains intact.
“Growth is a key focus for the group. The number of shops is set to rise to over 3,000 over the next few years, with management doubling down on its guidance to open between 140 and 150 new stores in 2025. Many of these stores will be open into the evening, which happens to be the group’s fastest-growing daypart.
“And from September, a new partnership with Tesco means customers will be able to snap up Greggs’ frozen ‘Bake at Home’ range at more than 800 Tesco stores. There’s a lot to like about Greggs’ proposition and long-term outlook. But in the near term, there are some hurdles for the nation’s most popular bakery to jump, so investors will need some patience if Greggs is to prove it’s worth its crust.”