Greggs sees rise in sales despite pressure on customers
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UK high street food chain Greggs has forecast a strong growth in demand this year, driven by new products such as chicken goujons and potato wedges despite cost inflation and pressure on customers.
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Annual profit was expected to grow by about 10% this year as like-for-like sales growth in the 10 weeks to 13 May averaged 15.7% as customers also enjoyed plant-based food such as it vegan Mexican chicken-free bake
"Although we expect to see ongoing material cost inflation, we have good forward cover on key commodities," the company said.
The Newcastle-based chain said like-for-like sales rose 17.1% to £609m in the first 19 weeks of 2023, in part due to the Covid Omicron variant hitting revenues last year.
"Although we expect to see ongoing material cost inflation, we have good forward cover on key commodities. Consumer disposable incomes are likely to stay under pressure, but we remain confident that our outstanding value proposition continues to be compelling," it added.
Reporting by Frank Prenesti for Sharecast.com