Jan 8, 2020

Greggs boosts profit outlook after ‘exceptional’ year

Greggs, the on-the-go food retailer, raised profit forecasts and said it was awarding a £7m one off payment to employees following an "Exceptional" year despite warning that costs were likely to increase in 2020. In a trading update on Wednesday, the Newcastle upon Tyne based bakery chain said that like-for-like sales for the year ending 28 December were up 9.2 per cent. Total sales increased 13.5 per cent with sales in the final three months of the year up 8.7 per cent compared to the same period in 2018. The company's in-house broker, Edison, estimated that profits for 2019 would be £112m. But, Greggs warned that it expected increases to the National Living Wage, which has risen faster than inflation, to cause cost headwinds in 2020. "Looking to the year ahead, we face strong sales comparatives and cost inflation headwinds present a challenge. However, with strong momentum in the business we see further growth opportunities across a number of channels," he added.

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