UK high street baker Greggs reported a 2% rise in annual profits, as inflation and higher costs hit the bottom line and said like-for-like sales in company-managed shops up was up 18.8% in the first nine weeks of 2023, in line with expectations.
The company, famed for its sausage rolls, said pre-tax profits for 2022 rose to £148.3m from £145.6m as total sales increased 23% to £1.5bn.
“Cost inflation will continue to be a challenge in the year ahead, driven particularly by pay awards and energy costs, but we are confident that our outstanding value proposition will remain compelling as customers look to make their money go further. As such, we remain confident in the prospects for the business in 2023,” said chief executive Roisin Currie.
Greggs expects overall input cost inflation in 2023 to be 9-10% and said uncertainty over commodity prices remains “but we have been able to secure forward cover for all of our electricity requirements through to the end of the third quarter of the year and expect to extend this further when opportunities present themselves”.
“We also have forward purchase agreements representing between four and five months of our food and packaging needs,” the company added.
Reporting by Frank Prenesti for Sharecast.com
