Sales at popular bakery store Greggs (LON:GRG) rose at a slower pace to previous quarters, as economic conditions became more “challenging”.
Greggs reported like-for-like sales growth of 3.7 percent in the year to the end of December, down from the 4.2 percent in 2016. Total sales over the year rose 7.4 percent to £960 million, up from from £894.2 million the year before, but pre-tax profit fell to £71.9 million.
The bakery chain increased its dividend by 4.2 percent to 32.3p per share, compared with 31p per share last year.
“In 2017 we delivered another strong performance in challenging economic circumstances as rising inflation impacted both our own costs and customers’ disposable income. At the same time we continued to make good progress with our business transformation programme,’ said Roger Whiteside, Chief Executive.
“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.”
Greggs share are currently trading up 0.84 percent at 1,323,00 (0843GMT).