Greggs Faces Headwinds as Profit Outlook Moderates
Why we think this is bad
The trading update from Greggs indicates that the company is facing some challenges, with the Board anticipating that full year operating profit could be modestly below the previous year's level. This is due to a combination of factors, including slower like-for-like sales growth in June due to high temperatures, and the stronger comparative trading performance in the first half of 2024. While the company's revenue growth in the first half was solid, the profit outlook has been revised downwards, which is a negative signal for investors.
Key Points
- Total H1 sales up 6.9% to £1,027 million
- LFL sales growth of 2.6% in H1, but slowed in June due to high temperatures
- Board expects full year operating profit to be modestly below 2024 level
- On track to achieve 140 to 150 net new shop openings for the full year
Summary
In its first half 2025 trading update, Greggs plc reported that total H1 sales were up 6.9% to £1,027 million. However, the company noted that like-for-like sales growth slowed in June due to high temperatures, and the Board now anticipates that the full year operating profit could be modestly below that achieved in 2024. The company remains on track to achieve 140 to 150 net new shop openings for the full year.