Britain’s Greggs overcomes supply chain disruptions with increased sales

Signage and logo photographed outside a branch of Greggs in Liverpool, Britain July 30, 2019. REUTERS / Phil Noble / File Photo

LONDON, Oct. 5 (Reuters) – British baker and fast food chain Greggs (GRG.L) raised its full-year profit outlook after underlying third-quarter sales rose by 3 , 5% from two years ago despite staff and supply chain disruptions.

Greggs (GRG.L), which trades in 2,146 stores and is best known for its sausage rolls, baked steaks, vegan snacks and sugary treats, said sales growth had been particularly strong in August when a “stay” effect was evident and remained positive. territory in September, with two-year like-for-like growth of 3.0% over the four weeks to October 2.

However, the group said it had not been immune to pressures on staff and supply chains and had seen disruptions in the availability of labor and labor. supply of ingredients and products in recent months.

He warned that inflationary pressures on food inputs were also increasing.

“While we have short-term protection due to our forward buy positions, we expect costs to increase towards the end of 2021 and through 2022,” he said. .

Greggs said his operating cost control was good and the strong third quarter sales performance gave him confidence heading into fall.

“Subject to any unexpected COVID disruption, we expect the full year’s results to be ahead of our previous expectations,” he said.

Ahead of Tuesday’s update, analysts’ average forecast for full-year pre-tax profit was 133 million pounds ($ 181 million) according to Refinitiv data, down from a loss of 13.7 million. books in 2020.

($ 1 = 0.7356 pounds)

Reporting by James Davey, editing by Paul Sandle

Our Standards: The Thomson Reuters Trust Principles.

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