Greggs looks to feta and beetroot dip after warning on profits

Greggs

Greggs has warned its profits will be flat for the year, as it revealed the so-called Beast from the East kept customers away and forced shops to remain closed, putting pressure on sales.

The high street baker, known for its sausage rolls and iced buns, is launching a summer menu of sandwiches and salads as it attempts to appeal to health conscious diners, with the launch of a feta and beetroot dip with grains among the recently launched options.

But Greggs said it was “cautious” about its sales outlook for the year amid “uncertainties over market footfall” and as a result, expects its underlying profits this year “to be at a similar level to last year”.

Shares in Greggs plunged more than 18pc in early trade, and were down 13.73pc at £10.93 later in the morning.

In the first 18 weeks of the year, total sales rose 4.7pc, which was well below the 7.4pc growth in the same period last year. Sales in stores open for more than a year grew 1.3pc, compared with 3.5pc the previous year.

But it said that in the period that followed retail locations were hit by "weak customer footfall".

This led to a “challenging trading environment throughout March and April”, with a fall in transaction numbers compared with the same period last year.

Despite Greggs' recent forays into more health conscious menu items, it said that its £2 breakfast offer remained a favourite among customers.