LONDON Oct 4 British baker Greggs
reported a rise in sales over its third quarter on Tuesday,
helped by robust demand for new healthier products and its
breakfast offer, and keeping it on track to meet its full-year
The Newcastle, northern England, based firm sells
sandwiches, sausage rolls and pastries from 1,743 retail outlets
in the UK and sees scope for substantially more than 2,000.
Greggs is two years into a five-year plan to convert the
company from a traditional bakery business to focus on Britain's
more than 6-billion-pounds ($7.7 billion) a year market for
It said sales at company managed stores open over a year
rose 2.8 percent in the 13 weeks to Oct. 1, its fiscal third
quarter, while total sales increased 5.6 percent.
"The popularity of our summer menu including an extended
range of 'Balanced Choice' salads and yoghurts supported sales
growth in the period," said the firm.
"We also saw continued strong growth at breakfast time,
helped by our strong coffee offer and value deals."
Greggs has now launched its autumn/winter menu which
includes new lower-calorie bakes and soups along with a range of
new snacks with gluten-free options.
So far this year Greggs has refurbished 145 shops and is on
track to refurbish around 200 over the full year. It has opened
a net 45 stores, with a net of about 70 planned for the year.
"Our expectations for the full year outturn remain
unchanged," said the firm.
"As we look to next year, whilst we anticipate some general
industry-wide cost pressures, we expect to make further progress
against our strategic plan."
Prior to Tuesday's update, analysts were on average
forecasting an underlying pretax profit of 78 million pounds for
2016, according to Reuters data, up from 73 million pounds in
Shares in Greggs closed Monday at 10.46 pounds, valuing the
business at 1.07 billion pounds.
($1 = 0.7788 pounds)
(Reporting by James Davey, Editing by Paul Sandle)