Greggs reports 4.2% sales growth
Greggs has reported a 4.2% rise in sales across the UK to £335m as part of its interim results.
The bakery retailer, which has over 1,500 outlets, in its interim results ending 2 July 2011, reported an operating profit of £17.3m, having opened 45 new stores across the UK, and closed six over the last year.
The company also highlighted Helen Milligan’s new role as head of retail for the south east, after her appearance on BBC1’s The Apprentice. The role will see her take responsibility for over 200 shops.
‘Helen is a great example of the talented individuals we employ throughout our business,’ said chief executive, Kennedy McMeiKan.
McMeikan added: "Total sales grew by 4.2% as we opened a record number of shops and also delivered positive like-for-like sales growth. Underlying operating profit was ahead of last year, adjusting for the impact of two additional public holidays compared with the first half of 2010.
"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. We continue to experience substantial increases in commodity prices and are continuing to work hard to mitigate the impact on customers through business efficiencies and targeted promotional activity.
"Our total sales will benefit from our shop opening programme and we believe that marginally positive like-for-like sales growth over the year as a whole is achievable. Our performance to date in these difficult trading conditions confirms our confidence in Greggs' ability to deliver long term profitable growth for the benefit of shareholders, employees and the wider community."