T4K3.news

Greggs reports significant profit drop and plans to expand

The UK bakery chain announces a 14.3% decline in profits amid changing consumer preferences.

July 29, 2025 at 09:24 AM

UK has not hit ‘peak Greggs’, says CEO, as sales slow in heatwave

The bakery chain reports a significant profit drop amid a shift in consumer preferences.

Greggs faces challenges as profits decline amid changing consumer habits

Greggs, the UK's largest bakery chain, has reported a pre-tax profit drop of 14.3% for the first half of the year, leading to concerns about whether the company has reached its peak. While sales exceeded £1 billion for the first time, the heatwave led to decreased demands for baked goods like sausage rolls. CEO Roisin Currie stated that the company plans to expand by opening more shops, focusing on areas currently lacking availability. Analysts are cautious, citing health trends and changing consumer tastes as potential threats to future growth.

Key Takeaways

✔️

Greggs reported a 14.3% drop in pre-tax profits for the first half of the year.

✔️

Sales exceeded £1 billion for the first time, but profits fell due to hot weather and lower footfall.

✔️

The company plans to expand by opening at least 350 new outlets in the upcoming years.

✔️

Health trends have resulted in declining demand for pastry-based items at Greggs.

✔️

Roisin Currie insists Britain has not reached peak Greggs, highlighting future expansion plans.

✔️

Analysts worry about health-conscious consumers choosing alternatives over traditional bakery items.

"I completely do not believe we’ve reached peak Greggs."

Roisin Currie expresses optimism about Greggs' growth despite recent profit drops.

"The UK could have already hit peak Greggs as health-conscious consumers choose healthier options."

Analysts share concerns about changing consumer preferences affecting future sales.

"Lack of information on current trading has left investors wondering about the business’s future."

Russ Mould raises questions about transparency in financial performance affecting stockholder confidence.

Greggs' decline in profits highlights the complexities of shifting consumer preferences in a competitive market. The emphasis on healthier eating is reshaping the landscape for traditional fast food chains. As the company pushes to expand, it faces the challenge of balancing its well-loved pastries with the demand for lighter options. Declining foot traffic due to weather patterns adds another layer of uncertainty about its continued growth. This situation raises questions about how long the brand can thrive under changing consumer habits while still operating within a traditional business model.