Bakery chain Greggs delivered a shock trading update this morning to reveal that its full-year profits would be ahead of analysts’ expectations.

Chief executive Roger Whiteside said customers were ‘responding’ to improvements in products and services - as it unveiled own shop like-for-like sales (LFLs) growth of 5.2% for the 24 weeks to 13 December, compared with growth of just 0.7% in the same period last year.

For the year-to-date LFLs were up 4.2%, added Greggs, significantly better than the -1.1% decline seen in the same period in 2013.

Total sales were also up by 3.6%.

Whiteside said: "The strong performance that we reported in our September IMS has continued. Trading conditions have remained helpful, but there is no doubt that customers are also responding to improvements in our product and service offer and to the investment we are making in the shop environment.

“Whilst there is still much to play for over the final few weeks of the year, we currently anticipate that full-year profits will be ahead of analysts’ expectations.”

The company said it would also update the market following its Christmas trading period and ahead of its full-year results.

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