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Highlights:

  • GRG H1 profit before tax declined 14.3% to GBP 63.5 million due to footfall challenges and cost phasing.
  • Greggs opened 87 new shops in H1, with a net increase of 31 outlets, expanding to 2,649 locations.
  • GRG’s evening sales grew to 9.3% of company-managed shop sales, with continued app-driven customer engagement.

Greggs plc (LSE:GRG), the UK-based food-on-the-go retailer, reported its half-year results for the 26 weeks ended 29 June 2025. The company recorded total sales growth of 7.0% compared to H1FY24, despite a decline in profitability due to external pressures and internal investment plans. Company-managed like-for-like (LFL) shop sales rose 2.6%, while franchised shop LFL sales increased 4.8%.

First-half trading was impacted by softer market footfall, more weather-related disruption than in the prior year, and the phasing of cost headwinds. Operating profit for the period fell 7.1% to GBP 70.4 million, with profit before tax declining 14.3% to GBP 63.5 million. The interim dividend remained unchanged at 19.0p per share. The company’s income from interest reduced as it continued deploying capital into its long-term investment programme. Total operating cost inflation and strategic spend contributed to the earnings decline, while Greggs continues to prioritise strategic progress across shop expansion, innovation, and supply chain development.

Greggs made further progress in growing its store footprint. During the first half of 2025, the company opened 87 new shops and closed 56, resulting in a net increase of 31. This brought the total number of trading outlets to 2,649 as of 28 June 2025. Openings extended beyond traditional high street locations to improve accessibility. Customer behaviour data suggests that increased convenience supports higher purchase frequency. The company confirmed it remains on track to achieve 140 to 150 net new shop openings for the full year, with a long-term target of exceeding 3,000 shops across the UK.

Greggs plans to broaden the reach of its frozen ‘Bake at Home’ range by partnering with Tesco from September 2025. This complements its existing collaboration with Iceland Foods. The company continued developing its menu with new launches across various dayparts, including healthier product lines and seasonal items. Evening trade accounted for 9.3% of company-managed shop sales in H1FY25, up from 8.4% in H1FY24. App usage also expanded, with 25.7% of company-managed shop transactions involving the Greggs App, compared to 18.3% in the prior period. Delivery channels contributed 6.8% of shop sales, reflecting steady demand. Pizza and iced drinks categories recorded notable growth, supported by increased availability and competitive pricing.

Greggs reported steady progress on its supply chain investment projects. Construction of its new frozen manufacturing and logistics site in Derby is completed, with automation and production line installations underway. The facility is expected to be operational in H1FY26. The company is also advancing its National Distribution Centre in Kettering, targeting operations in H1FY27. This centre is intended to support the servicing of around 700 additional shops and enhance upstream efficiency for chilled and ambient goods distribution.

Looking ahead, Greggs stated that while the first half posed challenges, its strategic direction remains intact. The outlook for cost inflation is unchanged, and infrastructure development is expected to support the company’s future scale. Management reiterated that expectations for the full year remain consistent with guidance issued on 2 July 2025.

GRG shares were trading at 2.07 % lower at GBX 1,611.00 per share as on 29 July 2025.