Greggs Reports £2.15bn Sales and Ambitious 3,000-Shop Target Despite Profit Decline
The North East bakery giant Greggs has announced a significant milestone, with total sales soaring to £2.15 billion in 2025, marking a 6.8% increase from the previous year. This growth is largely attributed to the company's ongoing store opening programme, which saw 121 net new shops added last year. However, the financial results also revealed a challenging period, as pre-tax profit fell by 17.9% to £167.4 million, and operating profit dropped by 12.2% to £183.7 million for the year ending December 27.
Strategic Expansion and Market Resilience
Greggs has set its sights on an ambitious long-term goal of expanding to significantly more than 3,000 shops across the UK, building on its current network. The company plans to open around 120 new stores in 2026, continuing its aggressive growth strategy. Roisin Currie, Chief Executive of Greggs, highlighted the firm's resilience, stating that despite inflationary pressures impacting disposable incomes, demand for convenient food-on-the-go remains strong. She emphasized Greggs' focus on broadening access through shop openings, product launches, and enhanced customer engagement via the Greggs app.
Currie noted, "We have a clear formula for long-term success, leveraging our value leadership, vertical integration, breadth of range, and strong track record of innovation. Together, these strengths give us a clear competitive advantage and position us well to deliver further sustainable growth." The company's like-for-like sales in company-managed shops increased by 2.4% year-on-year, though underlying operating profit before net finance charges and income tax was 4% lower at £187.5 million, and underlying pre-tax profit fell by 9.4% to £171.9 million.
Adapting to Consumer Trends and Sharing Success
In response to evolving consumer preferences, Greggs is adapting its menu to cater to dietary shifts, such as increased demand for higher protein meals, more fibre, and smaller portions, partly influenced by the rising popularity of weight loss medications like GLP-1s. The company expressed confidence in its ability to evolve its product range to meet these changing nutritional needs while maintaining its value-based offerings.
Despite the profit downturn, Greggs is rewarding its workforce with a £20.2 million profit-sharing bonus, distributed among over 33,000 employees based on length of service and hours worked. This initiative reflects the firm's commitment to sharing success with its staff, as it allocates 10% of annual profits to colleagues. Additionally, a final dividend of 50p per share has been recommended, underscoring the company's financial stewardship.
Outlook for 2026 and Beyond
Looking ahead, Greggs anticipates that 2026 will present continued challenges for consumers due to economic pressures, but it remains optimistic that easing inflation could provide some relief. The company plans to maintain its focus on value leadership, cost control, and structural efficiencies to navigate the tough trading environment. By expanding its shop estate and forging partnerships with grocery, franchise, and delivery services, Greggs aims to enhance accessibility and drive future growth in the competitive food-to-go sector.
