Soaring sales at Newcastle bakery chain Greggs have not translated into growing profits as the company was hit by inflation and other cost pressures.
The company has issued interim half-year results in which total sales rose 27.1% and were 12.3% above the same pre-pandemic period. But half-year profits remained largely flat year-on-year at £55.8m, because of the re-introduction of business rates, an increase in VAT and higher levels of cost inflation.
With soaring inflation putting a strain on people’s incomes, consumers are more likely to turn to lower-cost food and drink while on the go, Greggs said.
