Riots-hit Greggs announces "challenging" trading

09 August, 2011

Bakery chain Greggs said profits had been hit, with trading “more challenging than expected”, as it announced its half-year results to 2 July this morning. Meanwhile, a Greggs shop in Peckham was burnt out in riots in London last night, another was looted and a delivery driver assaulted.

Greggs said 19 shops had to close in London due to the riots and overnight deliveries to a number of shops were hit.

The 1,518-shop chain said pre-tax profits before exceptional items fell to £17.3m in the six months, down from £18.6m the year before. Total sales rose 4.2% to £335m, from £321m, with like-for-like sales up 0.4%.

Chief executive Ken McMeikan said: “Trading conditions have proved to be more challenging than we had expected and we do not anticipate that the second half will bring any alleviation of the tougher consumer spending environment, with disposable incomes remaining under pressure.”

The company was continuing to experience substantial increases in commodity prices and was working to mitigate the impact on customers, he said, through business efficiencies and targeted promotional activity.

Greggs opened a total of 39 shops in the half-year period, bringing its tally up to 1,518. It said it was on track to open a net 80 outlets in the course of the year.





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