Greggs PLC: on a roll after strong festive sales

Newcastle upon Tyne / UK. (gplc) Greggs PLC had enjoyed strong trade over the festive period, with like-for-like sales in the month to January 05 up 5,6 percent, the bakery chain reports in a press release. It also said that it has performed well across the second half, with annual like-for-like sales also pushing ahead by 5,3 percent. But the company, the largest seller of sausage rolls in the United Kingdom with over 1.350 retail outlets under the Greggs and Bakers Oven brands, warned it was facing cost pressures on a number of key ingredients. However, it is still forecasting «satisfactory» progress when its 2007 results are published. Group managing director Sir Michael Darrington: «The business has continued to achieve satisfactory like-for-like sales growth since our last trading update in October». During the year, the company opened 56 new shops and closed 24, meeting targets for new openings announced in October. The company has said that its performance over the start of the second half had been helped by poor summer weather leading more people to buy hot food. But in line with other food companies, rising costs of key ingredients and slower consumer spending are likely to have an impact on its full-year results.