Unusually hot weather hitting sausage roll and steak bake sales hard says North East baked goods firm Greggs
Greggs have said that the unusually hot weather in June has had a negative impact on its sales of warm foods such as sausage rolls and steak bakes.
Greggs shares fell by 15% after the company revealed that their operating profit could potentially be lower than last year, with the Newcastle-founded firm pointing to June’s hot weather as the primary culprit behind reduced demand for baked goods.
The nationally-famous pastry provider went on to say that, despite “good progress” made in May, footfall across the business declined in June amid very high temperatures up and down Britain, although demand for cold drinks increased.
Greggs said that total sales were up 6.9% in the 26 weeks to June 28 (the end of its first half) to £1.03 billion, with like-for-like sales growth of 2.6%. The baker forecasts operating profit in the first half to be lower than last year, due to last year’s stronger comparative and the phasing of refurbishments and cost recovery initiatives across the current year.