Newcastle-HQ’d bakery giant Greggs has reported a significant surge in sales and profits in its latest HY results, attributing its healthy performance to an expanded range of iced drinks and salads that proved popular during recent heatwaves.
The bakery giant announced total sales reaching £1.1 billion for the 26 weeks to 27 June, marking a 7.2 per cent increase compared to the same period last year.
The growth was also bolstered by the opening of 34 new shops, on a net basis – without the new locations, like-for-like sales at company-managed shops rose by 2.1 per cent, while franchised outlets saw just a 1.3 per cent uplift.
Pre-tax profits for the half-year period jumped by around 20% to £76 million, partly also due to the launch of its ‘bake at home’ frozen range in Tesco, building on its existing partnership with Iceland Foods.
An updated menu, designed to “align with evolving consumer food trends,” has also been a key driver in attracting new customers. This includes popular items such as iced matcha lattes and the chicken roll, introduced in April as an alternative to its popular sausage and vegan rolls.
Greggs has also broadened its salad offerings with new and reformulated recipes, focusing on higher protein content and clearer nutritional labelling to appeal to health-conscious customers.
The cold and healthier options were vital in preventing a sales dip during the recent heatwaves, when demand for hot food typically wanes.
Roisin Currie, Greggs’ chief executive, told the Press Association: “You do see that when temperatures get above 30 degrees that people start to eat less. We’ve been much more resilient this year than previously because we learned some lessons.”
Currie highlighted products like blueberry matcha iced latte, which has resonated particularly with younger consumers, as an example of “keeping it exciting for customers.”
She added: “We had also just launched, before the heatwave started to hit, a new range of salads, with some favourites in there but also some new products such as our prawn layered pasta salad and our chicken caesar along with our grains and green salad. The timing of those was great and they have sold well.”
Customers also gravitated towards fruit pots, yoghurts, wraps, and picnic items like packs of sausage rolls during the hot weather.
Greggs operated 2,773 shops at the end of June, and anticipates opening between 100 and 110 new locations on a net basis throughout 2026, many in areas currently without a Greggs within a mile. The company is also trialling a ‘Greggs Express’ format, featuring self-service units with a smaller selection of food and drinks within petrol stations, with 10 of these expected to be operational by the end of the year.
It wasn’t all jammy doughnuts, however. Currie also warned: “The volatility of the Middle East and the impact on energy prices probably plays into what may happen towards the back end of this year and into 2027.”
She added that wages remain a significant cost in the current inflationary environment, though ingredient costs for items like coffee and cocoa appear to have peaked and have now begun to decrease.
Currie also confirmed that Greggs has no further price rises planned, following increases to its breakfast, lunch, and “big” deals in May: “Our prices are in a good place and we will now be working hard to protect the consumer and making sure that we can offer that value throughout the rest of the year.”
