Greggs issues warning on potential price hikes at the end of 2021

Greggs has announced that its businesses have recovered to trade before the pandemic, but said it has been affected by some interruptions to work and supply of ingredients.

The bakery chain told investors that like-for-like sales increased 3.5% in the third quarter of the year over the same period in 2019.

It is therefore expected that full year performance will exceed the company’s previous expectations.

In a statement, Greggs said, “Greggs has not been immune to publicity pressures on staff and supply chains, and we have seen some disruptions in labor availability, ingredients and products over the past few months.

“Inflationary pressures on food inputs are also mounting – while we are short-term hedged with our forward buy positions, we expect costs to rise towards the end of 2021 and through 2022.

“The operational cost control was good and the strong sales development in the third quarter gives us confidence for the autumn.

“Subject to unexpected Covid disruptions, we assume that the result for the full year will exceed our previous expectations.”

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