Greggs has announced a record-breaking year, reporting annual sales surpassing £2 billion for the first time, with profits also rising. The bakery chain credited its success to new store openings, extended trading hours, and price adjustments.
However, despite the positive financial results, Greggs’ stock price tumbled by 12% on Tuesday morning after the company warned of slowing sales growth in early 2025.
Expansion Fuels Sales Growth
The company, which operates more than 2,600 stores across the UK, saw total sales grow by 11.3% in 2024. This was supported by the opening of approximately 225 new stores—an all-time high for Greggs.
Excluding the impact of store expansions, like-for-like sales rose by 5.5% compared to the previous year, aided by longer opening hours and a growing delivery service. However, market conditions weakened in the latter half of the year, impacting growth.
In the first nine weeks of 2025, sales growth slowed significantly to just 1.7% compared to the same period last year, sparking concerns among investors.
Cost Pressures and Price Increases
Greggs’ chief executive, Roisin Currie, acknowledged that consumers were still cautious about spending due to the cost-of-living crisis, with concerns over energy bills, mortgages, and rents affecting discretionary purchases.
The company raised prices on some of its products last year to offset rising wage costs. The price of its flagship sausage roll increased by 5p to £1.30 in January, while coffee and doughnuts saw price hikes of 5p to 10p.
Despite these increases, Currie insisted there were no immediate plans for further price hikes, though she noted that “inflationary pressures” remain a challenge.
£20m Staff Bonus as Profits Rise
Greggs recorded a pre-tax profit of £203.9 million in 2024, up 8.3% from the previous year. In recognition of its employees, the company will distribute £20.5 million among eligible staff through its profit-sharing scheme.
Workers who have been with Greggs for at least six months will receive a share of the bonus, with long-serving employees who work over 20 hours per week expected to receive around £850 at the end of March.
While the company remains optimistic about long-term growth, it acknowledges that economic challenges could continue to impact consumer confidence in 2025.
