Healthy foods paying off for baker Greggs

Greggs saw its pre-tax profit jump by 51 per cent to £25.6 million in the six months to 4 July compared with a year earlier. Picture: Neil Hanna

The City has already hiked the bakery chain’s full-year profit expectations by about 3 per cent to just over £70 million following news of strong half-year sales in July.

The group, which trades from more than 1,600 sites, saw pre-tax profit jump by 51 per cent to £25.6m in the six months to 4 July compared with a year earlier.

This week’s trading update is expected to provide more cheer after Greggs said breakfast remained the fastest growing part of its day with the menu extended to add new porridge and breakfast sandwich options, and three-quarters of shops now open by 7am.

Its Balanced Choice range of sandwiches and flatbreads with fewer than 400 calories are also selling well.

The group continued its expansion, adding a net 14 stores in the first half of the year. Analysts at brokerage N+1 Singer said: “We firmly feel that Greggs’ business model is in great shape.”