Greggs upgrades profit forecast once more after sales increase
Share price of the British bakery rises 16 per cent
The popular British baker Greggs has upgraded its profit predictions for the year after reporting better-than-expected sales. The news caused its share price to surge 16 per cent in late-afternoon trading to stand at £2,060.
In the six weeks to November 9, sales growth was up 12.4 per cent, while like-for-like sales in the 2,000 company-managed shops increased 8.3 per cent.
As well as improving sales Greggs stated that, “Operational costs remain well controlled and, whilst the comparative sales become stronger still in the balance of the year, the board now anticipates that full year underlying profit before tax (excluding exceptional charges) will be higher than our previous expectations.”
Some observers were concerned that Brexit uncertainty coupled with plans for slower expansion of shops would see the baker falter. However, it would appear that Greggs has risen to the occasion.