Healthy ranges continue to fuel sales growth at Greggs

Bakery chain Greggs has reported a strong start to the year after being boosted by its healthy eating ranges, including cold-pressed juice and freshly prepared salads.

Amid growing sales, Greggs warned of risks posed by the slowing economy and rising inflation. Picture: Contributed

The group said like-for-like sales rose 3.6 per cent in the 19 weeks to 13 May, with total sales growing 7.5 per cent.

• READ MORE: Greggs sales boosted by demand for healthier snacks

Greggs, best known for its sausage rolls, doughnuts and pasties, said sales of healthier food – such as coconut, lime and chilli chicken salads and wraps – were proving a hit with customers. It added that customers “increasingly recognise the quality and value” of its £2 breakfast deal.

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However, the firm warned that the slowing economy and higher inflation poses a risk.

“We have made a good start to 2017 although the sales outlook remains uncertain in the context of slowing growth in disposable incomes,” it said in a trading update.

“Input cost inflation is having a modest impact on margins in the first half of the year as expected, however we have increasing visibility of costs for the second half and anticipate this pressure to ease towards the end of the year.”

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Greggs said this will “constrain” profit growth in the first half of the year but it is still in line to meet expectations.

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