Greggs profit jumps 20% as cost controls offset weak consumer backdrop

Greggs PLC (LSE:GRG) has reported a sharp rise in first-half profit as new shop openings, grocery sales and tight cost control helped offset subdued consumer confidence. However, the Tyneside bakery chain warned that additional supply-chain capacity is expected to result in second-half profit falling year on year, unless the consumer backdrop improves. The board's expectations for the full-year outcome remained unchanged, chief executive Roisin Curry said, also highlighting "great progress" in improving supply chain infrastructure to support growth opportunities. The interim dividend was held at 19p per share. Pre-tax profit increased 19.7% to £76.0 million in the 26 weeks to June 27, while operating profit rose 22.9% to £86.5 million. Total sales climbed 7.2% to £1.10 billion. Like-for-like sales at company-managed shops rose 2.1%, with franchised shop sales up 1.3%. This rate of growth was slower than the 2.5% reported in a May update for the first 19 weeks of the year, but Greggs said its share of food-to-go visits increased 0.3 percentage points to 8.7%. The bakery chain described the period as a "strong financial performance", although it acknowledged that profit growth benefited from a soft comparison with the previous year and the timing of cost inflation. Overall cost inflation was 2.2% and is now expected to remain around that level for the full year. Greggs delivered £7 million of its targeted £11 million in 'structural' savings during the half. The group opened 34 net new shops, taking its estate to 2,773, and still expects 100-110 net openings during 2026. It is also trialling smaller "Greggs Express" outlets and opened its first international travel-hub ...