Sales have beaten expectations at Greggs in the first half of the year, with the bakery firm recording a 13.8% increase to £960.6m.

The company, which is headquartered in Newcastle, recorded a profit before tax of £74.1m in the six months to 29 June, an increase of 16.3%.

Like-for-like sales increased by 7.4% compared to H1 2023, with its new over-ice drinks and hot food range, as well as its pizza and meal deal offerings, also proving to be popular with customers.

As of 29 June, Greggs operated 2,524 shops, having opened 99 new shops, including 30 relocations, while closing 18 stores in this period.

Furthermore, the company has seen its interim dividend increase to 19 pence per share, a jump of 18.8% year-on-year.

Chief executive at Greggs, Roisin Curry, said: "Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers. Our success is founded on the exceptional value that Greggs offers to customers looking for food and drink on-the-go and the fast and friendly service delivered by our colleagues."

Looking ahead, Greggs said its outlook for 2024 remains unchanged and that it continues to trade in line with its plan.

It added that it has a "strong pipeline" and is on track to achieve between 140 to 160 net new shop openings in 2024.

Senior equity analyst at Hargreaves Lansdown, Matt Britzman, added: "Greggs has showcased its strengths once more, as the UK’s favourite baker continues to deliver. A high bar’s been set over the past year or so, but results have beat expectations once again. The value offering that Greggs is so well known for has been holding it in good stead of late, and it was good to see that continue over the half with like-for-like sales well ahead of the industry average.

"Perhaps unusual for a business geared to growth, management is keen to make sure investors are paid while they wait, and growing dividends are part of the attraction. The cash hoard on the balance sheet is expected to be flexed to cover increased growth investment, but that’s precisely what it’s there for.

"Greggs is a quality outfit with plenty to like. The number of shops is set to rise to 3,000 over the next few years, the menus and stores have been reset, and market share is at an all-time high. There are other growth levers, too, including bolstering delivery services, click-and-collect options, and opening later to attract more evening customers."

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