Taste for takeaway good for Greggs

HIGH Street baker Greggs pushed first-half profits ahead by almost 11% to £13.6m, with good demand for savoury products as sales of bread and rolls continued their long-term decline.

In the six months to 12 June sales were up 7.5% to £216.2m, with a like-for-like increase of 4.1%, reflecting a stronger second quarter.

Sales have accelerated further in the second half so far, with an underlying increase of 7.4% in the seven weeks to 31 July. Managing director Sir Michael Darrington says this reflects the impact of the heatwave last year and will slow as the year goes on.

Greggs has a chain of 1200 shops and includes the Bakers Oven. Darrington said takeaway food remained the main driver of growth, with savouries again making the strongest progress.

Sandwich sales improved as the year went on, benefiting from the relaunch of the Greggs brand. There was modest growth in cakes and confectionery.

The half-time dividend is raised 17.6% to 30p, in line with the group's decision to balance the interim and full-year payments.