UK, Food-chain Greggs has announced its annual results as it posted surge in both sales and profits, but with caution that it is facing augmented inflationary pressures and greater economic insecurity.
Company’s total sales surged 7% to £894.2 million last year, while pre-tax profits hit £75.1 million, up from £73 million year over year.
Meanwhile Greggs said the consumer outlook was trickier than it had been.
Recently Greggs has been shifting from typical bakery business to concentrate on food-to-go.
“The UK consumer outlook is more challenging than we have seen in recent years, with industry-wide pressures emerging in commodities as well as labour costs,” said chief executive Roger Whiteside.
“However we are confident of making further progress as we implement our plan to grow Greggs as a contemporary food-on-the-go brand.”
Furthermore falling currency means food coming from abroad is more costly, meaning retailers either have to soak up those costs or try to pass them on to customers.
Chairman Ian Durant said: “In the short term we face a period of greater economic uncertainty and increased pressure from cost inflation.”
Back in 2013, Greggs revealed a five-year plan to shift from being a conventional bakery to concentrate on the £6 billion food-to go market.
The Company said its business had shown positive signs since then by, “delivering an unbroken record of positive like-for-like sales and new levels of profit”.
Greggs like-for-like sales, which cancels the impact of store openings and closures in outlets managed by the firm surged by 4.2%.
Greggs spokesperson said in a statement that demand for its Balanced Choice range of healthier options with fewer than 400 calories had been on the up last year. This range is now accounted for more than 10% of company’s sales, with revenues more than £100 million in 2016, said Greggs.
