Washout weather hits Greggs' H1 profits

Newcastle upon Tyne-based baker Greggs has attributed a 4.5% dip in first half profits to the UK's wettest April to June since records began.

Greggs reported a pre-tax slide in profits from £17.3 million to £16.5 million in the six months ending 30 June.

The firm did report record a 4.5% boost in sales after recently introducing new revenue streams such as frozen bakery sausage rolls through UK supermarket Iceland and opening stores outside Greggs' traditional urban stronghold. The company has also successfully piloted its eat-in Greggs' moment coffee shop format in Newcastle.

"The market remained challenging and was particularly impacted by the record levels of rainfall in the second quarter with UK high street footfall down over 7%," said the firm in a statement.

Britain's largest retailer of food on-the-go affirmed that it expects the market to remain challenging over the next six months with weak consumer confidence and higher prices for food ingredients.

However, Greggs has increased its interim dividend by 3.4% to 6 pence a share. Shares closed at 509.5 pence which values the business at £515 million.