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Highlights:

  • GRG’s total H1FY25 revenue rose 6.9% year-on-year to GBX 1.03 billion
  • GRG’S LFL sales grew 2.6% in H1FY25, but June heatwave reduced customer footfall
  • The company’s board expects full-year operating profit slightly below FY24 due to H1 performance

Greggs plc (LSE:GRG), a UK-based food-on-the-go retailer, reported its trading update for the 26 weeks ended 28 June 2025, posting total revenue of GBX 1.03 billion, up 6.9% year-on-year. Like-for-like (LFL) sales across company-managed shops increased 2.6%, driven by positive trading momentum through most of the period but tempered by reduced footfall during unusually high June temperatures.

The company noted that trading performance remained in line with expectations through May but weakened in June due to reduced in-store traffic. While demand for cold beverages increased during the heatwave, it did not offset the decline in overall footfall, affecting headline sales growth in the latter part of the first half.

Greggs opened 87 new stores and closed 56, resulting in 31 net new shop openings. As of 28 June 2025, the company operated 2,649 stores, comprising 2,085 company-managed and 564 franchised units. The company reiterated its full-year guidance for 140 to 150 net openings by year-end.

Store refurbishment was more concentrated in the first half of the year, with 108 shop refits completed during the period. An additional 50 refurbishments are planned for the second half of 2025. The company stated that this front-loaded investment in store upgrades, combined with phased cost recovery efforts, contributed to a lower operating profit in H1FY25 compared to the prior year.

The Board now anticipates that full-year operating profit may be modestly below FY24 levels, citing the combination of soft June trading, timing of cost recovery initiatives, and prior-year comparative strength. Greggs maintained its outlook on cost inflation and expects planned cost mitigation to support performance in the second half of the year.

While acknowledging that the second half of 2025 will benefit from less challenging comparative LFL figures, the company said current trading conditions justify a more cautious view on full-year earnings. Interim results will be released on 29 July 2025 and are expected to show the impact of refurbishment costs, seasonal sales fluctuations, and inflation-related pressures.

Greggs is headquartered in Newcastle upon Tyne and operates one of the UK’s largest quick-service food chains, known for its bakery and takeaway items including savoury pastries, sandwiches, and beverages. The company serves customers through both owned outlets and franchise partnerships and continues to invest in expanding its physical footprint and enhancing in-store formats.

Following the announcement, Greggs shares declined by 13.47%, trading at GBX 1,709.00 as of 2 July 2025.