British bakery chain Greggs has reported a 14% drop in first-half pre-tax profit, citing challenging market conditions including a slow sales period during June’s heatwave.
The sausage roll maker posted a pre-tax profit of £63.5m for the 26 weeks to 28 June 2025, down from £74.1m in the same period last year.
Total sales rose 7.0% to £1.03bn, driven by new shop openings and like-for-like sales growth.
Chief Executive Roisin Currie highlighted the impact of “challenging market footfall” and “volatile weather conditions” on trading, particularly the unusually hot weather in June which led to reduced customer visits despite higher demand for cold drinks.
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Greggs opened 87 new shops in the first half, closing 56, resulting in a net increase of 31 sites and growing its estate to 2,649 shops. Like-for-like sales rose 2.6% in company-managed stores and 4.8% in franchised locations.
The business continues to innovate with new product launches and expanded delivery options, while investing heavily in supply chain infrastructure including new distribution centres in Derby and Kettering due to open in 2026 and 2027 respectively.
Operating profit fell 7.1% to £70.4m, affected by cost inflation estimated at 5.4% in the first half. Despite the profit decline, Greggs maintained its interim dividend at 19.0 pence per share.
Looking ahead, the board expects full-year operating profit to be modestly below 2024 levels but remains confident in the brand’s long-term growth prospects and strategic investments.
“After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead,” Currie said.
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