Greggs, the UK’s leading bakery retailer, released a trading update on Tuesday morning. With over 1,900 retail outlets across the country, the company has strengthened its performance over the past two months. As a result, shares have soared up this morning, currently trading at +14.21%.
In the eight weeks to 24 November 2018, total sales grew by 9.0%. Additionally, company-managed shop like-for-like sales increased by 4.5% over the period. This like-for-like performance is above expectations and good cost control. As a result, the company has predicted that 2018 full-year profit before tax will be at least £86 million.
Shares in Greggs have jumped by over 14%.
The improved trading in the company’s third quarter has been strengthened by October and November trading. Compared to the same period last year, total sales are 0.8% higher (8.2% in 2017). Likewise, like-for-like sales in company-managed shops increased by 4.5% compared to the same period last year, which saw the figure itself at 4.5%. In the year-to-date, total sales have grown by 6.6% and like-for-like sales are 2.5% higher.
Greggs considers the figures particularly encouraging because it further supports the strong sales from the same period last year. Equally, the company said that operational costs remain well controlled.
The final few weeks of 2018 could have a significant impact on the results. Despite this, Greggs remains confident that full-year underlying profit before tax will be £86 million at the very least.
Greggs, along with other food retailers, saw its sales increase over summer. During the summer heatwave, sales increased by 7.3%. It seems that the UK’s scorching summer of hot weather and World Cup success saw an increase in food sales. However, food sales did drop by 0.8% in the summer’s aftermath. The second half of 2018 has seen a general rise in sales for the company, as they had slowed down in February due to “challenging” economic conditions.
At 08:51 GMT today, shares in Greggs plc (LON:GRG) were trading at +14.23%.
