Greggs has seen its profit before tax fall by over 14% in the six months to 28 June, totalling £63.5m in this period.

The bakery chain said its H1 results were impacted by challenging market footfall, hotter weather compared to 2024 and phasing of cost headwinds.

In this period, the firm’s operating profit fell by 7.1% to £70.4m, while its sales increased by 7% to just over £1bn.

Greggs has continued its expansion beyond high street locations across this period and has opened 87 new shops in the first year, with 56 closures, including 27 relocations.

As a result, it has an estate of 2,649 shops trading as of 28 June.

Chief executive at Greggs, Roisin Currie CBE, said: "After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead. Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers."

In its outlook, Greggs said that its cost inflation remains unchanged at 6% for the full year, while its operating profit is expected to fall below last year’s levels of £195.3m.

It added that it is making "great progress" in building supply chain infrastructure, with its new frozen manufacturing and logistics site in Derby now built and expected to be operational in the first half of 2026, while its national distribution centre in Kettering is set to open in the first half of 2027.

Following the announcement, shares in Greggs fell by almost 3%.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said that the firm’s first-half growth "hasn’t been as strong as market originally hoped".

He concluded: "These challenges have seen the Greggs’ share price fall by more than 40% over the last 12 months. While these issues shouldn’t be overlooked, they appear to be well baked into the valuation now, and the longer-term investment case remains intact.

"Growth is a key focus for the group. The number of shops is set to rise to over 3,000 over the next few years, with management doubling down on its guidance to open between 140 and 150 new stores in 2025. Many of these stores will be open into the evening, which happens to be the group’s fastest-growing daypart. And from September, a new partnership with Tesco means customers will be able to snap up Greggs’ frozen ‘Bake at Home’ range at more than 800 Tesco stores.

"There’s a lot to like about Greggs’ proposition and long-term outlook. But in the near term, there are some hurdles for the nation’s most popular bakery to jump, so investors will need some patience if Greggs is to prove it’s worth its crust."

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