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Greggs sees pasty pastry sales after summer wash-out Tuesday, 7th August 2012
Despite the much-lauded U-turn on the Government’s proposed ‘Pasty Tax’, Greggs saw a drop in profits for its first half, with wet weather damaging like-for-like sales.
Pre-tax profit at the UK’s largest bakery chain during the six months to end of June was £16.5 million, a drop from the £17.3 million reported a year ago. Revenue rose nearly 5 per cent at £350 million.
Taking away the impact of new store openings and closures, like-for-like sales at Greggs fell 2.3 per cent during the half year.
Matthew McEachran, analyst at Singer Capital Markets, said in a report on Tuesday that Greggs still has “a number of domestic growth opportunities and it is pleasing to see that the new wholesale operation is exceeding expectations.”
"The market remained challenging and was particularly impacted by the record levels of rainfall in the second quarter.” Greggs said in a statement to press. The retailer added that tight cost controls had helped minimise the negative impact on profits.