Greggs shares take off after rising sales

Investors gobble Greggs shares after the company has posted sales growth and has increased its dividend.

The total business figure for the 26 weeks ended June 30 is up 5.2% to £ 476 million, representing a 1.5% growth in business-to-business revenue and constant exchange rates (19659004). 1.9 million restructuring costs, at £ 25.7 million, down from £ 27.6 million the year before.

Greggs increased his regular interim dividend by 3.9% to 10.7 pence per share

. climbed 7.5% or 72.5% to 1,034%.

The grocery retailer reported good growth in its more recent product categories such as hot beverages, breakfast and coffee. healthier ranges.

However, the company remains cautious about its prospects. retailers and restaurant groups.

Costs have gone up for these businesses, with business rates, labor costs and inpu "Greggs' revamped summer menu and a larger selection of high-priced dishes seem to have attracted the attention of the consumer conscious of the costs in the incessant heat, "said Kate Heseltine, an badyst at Edison Investment Research

" The focus on new outlets remains focused on the places of work, travel and leisure, thus reducing the chain's exposure to the street. "

Greggs plans to open 100 new stores Managing Director Roger Whiteside said: "While we remain cautious about the sales outlook for the rest of the year given the economic environment, we are confident in the company's medium and long-term growth potential, supported by our clients' response to our initiatives, our strong cash generation and the ongoing strategic investments we make. "

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