Greggs shares dive after demand slows during second half of 2024
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Greggs shares plummeted on Thursday despite the sausage roll maker reporting its sales surpassed £2billion last year. Britain's largest bakery chain blamed subdued consumer confidence and a 'more challenging market backdrop' for hitting footfall and spending at its high street outlets during the second half of 2024.
Consequently, like-for-like sales in its company-managed stores rose by only 2.5 per cent in the fourth quarter, half the rise of the prior three months. Following this announcement, shares in Greggs slumped 14.9 per cent to £22.36 by the late afternoon, making them the FTSE 250 Index's biggest faller by some margin.
However, the Newcastle-based firm's strong first-half performance helped its annual turnover exceed £2billion for the first time. Revenues were around £200million higher than the previous year and more than 70 per cent above their pre-pandemic levels.
Decline: Greggs shares plummeted on Thursday despite the sausage roll maker reporting its sales surpassed £2billion last year. Greggs noted pizza boxes and pizza bundle deals experienced greater sales, while its festive bakes and new festive flatbread were popular over Christmas.
There was also healthy demand for its over-ice drinks range, now available in 1,100 shops, far ahead of Greggs' target to be available in 700 stores by the end of 2024. The company opened a record 226 new outlets in 2024, taking its total estate to 2,618 establishments as of 28 December.
