Greggs sales up

Greggs' total sales for the 19 weeks to 13 May grew by 7.5% and like-for-like sales in company-managed shops rose by 3.6% during the same period, according to an update issued ahead of tomorrow's annual general meeting. Greggs said customers increasingly recognised the quality and value of its £2 breakfast offer and it had invested further in capacity to meet this growing demand.

It added: "Balanced Choice sales continue to grow and we have added lines to this range, including cold-pressed juice drinks and a new selection of freshly-prepared salads and wraps incorporating flavours such as 'Coconut, Lime and Chilli Chicken'."

Looking ahead, it said: "We have made a good start to 2017 although the sales outlook remains uncertain in the context of slowing growth in disposable incomes.

"Input cost inflation is having a modest impact on margins in the first half of the year as expected, however we have increasing visibility of costs for the second half and anticipate this pressure to ease towards the end of the year.

"Whilst this pattern will constrain profit growth in the first half of the year we expect to make progress in line with our previous expectations for the year as a whole."