LONDON (Reuters) -British bakery chain Greggs said its growth had slowed in the Christmas quarter, hurt by lower consumer confidence, and its boss warned of a challenging 2025, sending its shares down by 10% on Thursday.
For the fourth quarter, Greggs posted underlying sales growth of 2.5%, behind the 5% level it recorded in the previous quarter as appetite for its sausage rolls, gingerbread lattes and festive treats was dampened by consumer caution.
“It’s been a challenging second half in 2024, I think you have to make some assumptions that that continues in 2025,” Chief Executive Roisin Currie said in an interview.
The group’s share price fell to 2,371 pence, its lowest level since November 2023, after what Jefferies analysts called “an uncharacteristically soft trading performance”.
Currie said Greggs was on track to meet forecasts for 2024 profit, adding that 2025 would be “another year of progress”.
The company said it would open 140-150 shops this year, after adding 145 last year, despite facing a jump in costs from April when employer taxes and the minimum wage are set to rise.
Currie said she expected inflation for the company of mid single digits for 2025, similar level to last year, and it was focused on mitigating the cost rises to keep Greggs prices low.
“What’s within our control is making sure that we continue to excite our customers with great menu options,” Currie said, adding that a January loyalty bonus for lunchtime sandwiches and new spicy vegetable curry bakes would help attract customers.
For 2024, analysts are on average forecasting an underlying pretax profit of 188 million pounds, according to LSEG data, up from 168 million pounds in 2023.
(Reporting by Sarah Young and Shashwat Awasthi; Editing by Rashmi Aich and Paul Sandle)
