Bakery chain Greggs (LON:GRG) posted a two percent rise in its 2017 profit, meeting forecasts.
Boosted by new store openings and growing product ranges to meet healthier demands, the high street baker announced 2017 profits of £71.9 million.
Total sales rose by £81.8 million, up from £80.3 million in 2016 and in line with analysts’ expectations and giving the group a positive start to the year, despite various economic challenges.
CEO Roger Whiteside said: “In 2017 we delivered another strong performance in challenging economic circumstances as rising inflation impacted both our own costs and customers’ disposable income. At the same time we continued to make good progress with our business transformation programme.”
“Whilst the UK consumer outlook remains challenging, we are encouraged by the start to the year. 2018 will be the peak year for investment in our supply chain as we create the platforms for further growth. We also plan to open a record number of new shops as we implement our plan to grow Greggs as a leading food-on-the-go brand.”
Greggs is continuing its ambitious plans and will open a record number of new shops in 2018. In 2017, the group opened 90 new shops in the UK, bringing the total to 1,854.
The bakery chain has also boosted sales through expanding healthier options and focusing on its hot food range.
“Greggs continues to demonstrate its resilience in the face of economic uncertainty,” said Chairman Ian Durant.
“This environment seems unlikely to change in the short term as the UK negotiates its exit from the European Union, with the associated risks to consumer confidence and further cost inflation.”
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