Greggs benefits from expanded range as interim profits rise

(Sharecast News) - Bakery chain Greggs lifted its interim dividend on Tuesday as it reported a jump in profit and revenue as it benefited from an expanded food and drinks range. In the 26 weeks to 29 June, underlying profit before tax excluding exceptional items rose 16.3% to £74.1m, with total first-half sales up 13.8% and company-managed shop like-for-like sales up 7.4%.

The chain - famous for its sausage rolls - lifted its interim dividend to 19p a share from 16p.

Greggs opened 51 net new shops during the half, and as at 29 June was trading from 2,524 shops. It remains on track to achieve 140 to 160 net new shop openings in 2024.

The company said menu development was "key" to its success and innovation in its food and drink offer has supported growth across all dayparts and channels. It said the new over-ice drinks range and pizza box deal were proving popular with customers.

Chief executive Roisin Currie said: "Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers. Our success is founded on the exceptional value that Greggs offers to customers looking for food and drink on-the-go and the fast and friendly service delivered by our colleagues.

"Our cost outlook for 2024 remains unchanged and we continue to trade in line with our plan. The board remains confident in the long-term growth strategy, and we are investing to support that growth."