Greggs takes advantage of the hike as he slows down the slowdown in Main Street | Business

Greggs shares jumped 12% on Tuesday after investors were encouraged by the news that profits in 2018 would be higher than previously expected, thanks to record sales in October and November.

The bakery product line was the largest producer of FTSE 250, after recording a 9% increase in sales in the eight weeks to November 24th. In addition to serving traditional favorites such as sausage rolls and pasta pies, Greggs customers can now enjoy the Christmas line of the chain, including festive baking, turkey rolls and bacon. and cranberries and chopped pies.

Greggs said that after stronger sales, he now expects annual pre-tax profits of at least £ 86 million in 2018, which should be roughly equal to 81.8 million pounds realized in 2017.

Investors have welcomed the strong performance, which is countering the general trend on British high street retailers, as retailers face higher costs and new buying habits as consumers purchase more online.

The company said in a statement: "This intensification of transactions in October and November is particularly encouraging, as it relies on good comparative sales for the same period last year.

"The operating costs have been well controlled and, although much remains to be done in the last weeks of the year, the Board now expects underlying earnings before taxes (excluding one-time charges) to reach at least £ 86 million. "

In addition to a 9% increase in total sales, on a like-for-like basis – excluding sales in stores opened less than a year ago – the turnover increased by 4.5%.

Russ Mold, Director of Investments at AJ Bell, said that Greggs had taken advantage of the adaptation of his business to better meet the demands and habits of consumers by offering different products and opening stores in such places of travel than railway stations and airports.

He said: "The company is posting excellent results in terms of dividends and has not remained immobile. It has gone from the focus on traditional bakery to a broader take-out food option in recent years.

"Greggs has also actively reduced its reliance on the high street by opening new outlets in exciting locations for work, travel or recreation.

"Although Greggs is not indifferent to what is happening among consumers, its attractive prices should allow some resistance to the economic uncertainty."