(Alliance News) - Greggs PLC on Tuesday reported third-quarter sales growth and said it is spotting signs that inflation is "beginning to ease".
The Newcastle, England-based bakery chain said it got a boost from its evening trading and its digital channels in the 13 weeks to September 30. Evening trades represented 8.8% of Greggs's company-managed shop sales, up from 8.3% a year prior.
Total sales rose 21% on-year during the period. Greggs said that it opened 144 new shops in the year to date and closed 62 shops.
Company-managed shop like-for-like sales were up 14%. "As we had expected, the rate of cost inflation has eased as we annualise on the significant commodity-led increases experienced in 2022. At a time when customers are looking to make their money go further Greggs continues to offer exceptional value and grow market share. We have strong product and promotional plans for the fourth quarter and the extension of our delivery service will make Greggs accessible to more customers on more occasions," the company said.
Looking ahead, Greggs anticipates the outcome for 2023 to be in line with its own previous expectations, Greggs said: "We expect 2023 to be a record year for the absolute number of new shops opened as we expand into new locations and relocate shops to better premises within existing catchments. For the year as a whole, and taking into account relocations and closures, we now expect between 135 and 145 net shop openings and see a strong pipeline ahead for 2024."
The company added that investment in its supply chain is progressing well and in line with its growth plans.
Greggs shares fell 2.2% to 2,423.43 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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Greggs (GRG)