Greggs warns further price hikes likely
Bakery chain Greggs has warned its prices could rise for a second time this year due to surging costs.
The high street favourite, which has more than 20 outlets in Northern Ireland, blamed increased costs for food, energy and staff, plus tax changes which mean the company’s own costs will rise by between 6% and 7%.
The chain, known for its sausage rolls and steak bakes, put prices up at the start of the year and expects “further changes” to be necessary.
Greggs said that overall wages at the company increased by 3% last year, and it had brought forward a planned 2022 pay rise by five months, adding £4.5m to its costs.
The company also noted that it would face an increase in the rate of National Insurance on wages and salaries in April.
Chief executive Roger Whiteside said that while there were no immediate price rises, “obviously that’s going to have to remain under review given the way the markets are moving around the world on commodity food prices in particular”.
“As ever, we will work to mitigate the impact of this on customers,” a statement added.
The comments triggered a near 9% fall in Greggs’ share price to a one-year low of £20.96.
Greggs swung back to a profit last year after taking a hit in 2020 when many of its shops were closed for much of the year due to the pandemic.
Full year sales rose by 5.3% compared with 2019, the year before the pandemic, to £1.2bn. Like-for-like sales, which strip out revenue from new shops open during the year, fell by 3.3% from pre-Covid levels.
Profit before tax rose to £145.6m for the year to 1 January, compared to a £13.7m loss in the previous 12 months.
