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Sparks commentary - Greggs

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Sparks - Greggs

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Greggs (LSE: GRG) – H125 profit down due to weather events and phasing of inflation
Published by Russell Pointon

Greggs’ H125 results reflect a combination of revenue growth being affected by a number of weather events, as well as the phasing of inflationary cost pressures. Despite total revenue growth of 7% in H125, PBT declined by c 14%.

Management’s profit expectations for FY25 are unchanged following the recent downgrade for the year, including an unchanged outlook for cost inflation. The company has announced a number of interesting new initiatives including a new relationship with Tesco to offer Greggs’ frozen Bake at Home range, the trial of a new ‘bitesize Greggs’ format for locations that do not have space for a full-service shop and trials on in-store kiosk ordering have begun.

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