Greggs, the U.K. bakery chain, has announced an increase in pretax profit and higher revenue for the first half of fiscal 2024. The company’s management expectations for the full year are unchanged.
For the 26 weeks ended July 1, Greggs reported a pretax profit of £80.0 million, compared to £55.8 million in the same period last year. This includes an additional one-off benefit of £16.3 million from the settlement of its coronavirus business interruption insurance claim.
Total sales also saw a significant increase, rising to £844.0 million from £694.5 million. On a like-for-like basis, company managed shop sales grew by 16%.
Positive Momentum Continues into Second Half
Greggs stated that the strong business momentum observed in the first half has continued into the second half. They have experienced good sales, and the rate of cost inflation is starting to ease.
“While uncertainties in the economic outlook remain, we continue to trade in line with our plan and are making good progress against our strategic objective to grow the frequency of customer visits through new channels,” said the company.
The board of Greggs has declared an interim dividend of 16.0 pence per share, up from 15.0 pence in the previous year.