- Sales growth has slowed in 2025 after record 2024, hitting Greggs shares
Greggs shares fell sharply on Wednesday after Britain’s biggest bakery chain warned annual profits would fall below last year – because hot weather had dented demand for sausage rolls.
The FTSE 250 group, which achieved 8.3 per cent profit growth to £204million in 2024, told investors June trade was impacted by ‘very high temperatures’ in the UK that boosted cold drink demand but reduced footfall.
It also highlighted ‘stronger comparative trading performance’ in the first six months of 2024, as well as the ‘phasing of refurbishments and cost recovery initiatives’ this year.
Greggs posted a record year in 2024 with sales exceeding £2billion for the first time, but growth has since slowed.
Weaker June trade dragged like-for-like sales growth lower to 2.6 per cent for the first half of 2025, with total revenues up 6.9 per cent to more than £1billion.

Hot take: Greggs said June trade was impacted by warm weather
As a result, Greggs expects to post a weaker first half operating profit when it reports at the end of July.
And while its cost inflation outlook remains unchanged and cost mitigation measures are expected to ‘enhance’ second half performance, it still expects profits to come under further pressure later this year.
Greggs said: ‘Whilst acknowledging that comparative like-for-like sales are less demanding in the second half of the year, in light of the current trading conditions the board now anticipates that the full year operating profit could be modestly below that achieved in 2024.’
Greggs shares were 12.9 per cent lower at 1,721p at the open. They have fallen almost 40 per cent since the start of the year.
Despite the slowdown, Greggs is pushing ahead with expansion efforts as it drives towards a target of 3,500 stores across the UK over the longer term.
Greggs on Wednesday flagged 31 net new first openings, taking its current UK footprint to 2,649 stores after opening a record 226 last year.
It is on track to open 140 to 150 net new stores for the full year.
Mark Crouch, market analyst at eToro, said: ‘For a brand that’s built its success on affordability and convenience, a dip in demand raises eyebrows, especially when footfall should be strong.
‘Sure, it’s harder to sell a hot sausage roll in a heatwave, but a stretched consumer may be part of the bigger picture. Inflation may be easing, but wallets are still under pressure, and Greggs’ value proposition may be losing a bit of its bite.’
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .