(Alliance News) - Greggs PLC on Monday reported its profit for 2021 could reach pre-pandemic levels after a "strong recovery in sales", as lockdown restrictions are eased across the UK.
Since non-essential retail shops were allowed to reopen in England on April 12, two-year like-for-like sales have been positive, Greggs said.
The baker said like-for-like sales in the 18 weeks to May 8 were down 14% on the same period in 2019. In the ten weeks to March 13, sales were down 23% on two years ago, but this narrowed to a decline of just 3.9% in the eight weeks to May 8.
"Sales have recovered well in recent weeks as out-of-home activity levels have increased, albeit in the absence of competition from indoor seated catering operators. If restrictions continue to ease in line with current plans, then we now expect our overall sales performance for the year to be stronger than we had previously anticipated," the sausage roll maker said.
While there is still uncertainty over trading conditions, Greggs believes that 2021 profit is likely to be "materially higher" than previous expectations and could be around 2019 levels in the absence of further restrictions.
Greggs did caution that it remains hard to predict how sales will develop, with the further relaxation of restrictions likely leading to increased competition from cafes and restaurants.
Shares in the mid-cap bakery chain were 8.5% higher in London early Monday morning at 2,544.00 pence each.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Greggs (GRG)