Has Britain hit peak Greggs? Baker suffers summer sales slump
However, the chain's boss said she remains committed to plans to open 140 to 150 net new stores over the course of 2025.
The FTSE 250-listed firm, which flagged a drop in footfall earlier this month, told investors a 'challenging start to 2025' had seen Greggs struggle against 'snow and strong winds in January and unusually hot weather in June'.
Greggs said the weather had a 'material impact on consumer behaviour' and sales, which inched 2.6 per cent higher on a like-for-like basis over the period.
Total sales were up 7 per cent to just over £1billion thanks to new store openings, but the 'phasing of cost headwinds' contributed to a 14.3 per cent fall in pre-tax profits to £63.5million.
Boss Roisin Currie said: 'After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead.
'Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers.
'The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth.'
Are even more stores the answer?
Greggs opened 87 new stores over the first half but also shut 56, bringing the total size of its estate to 2,649 shops and keeping it on track for 140 to 150 net new openings over the whole year.
Currie told the PA news agency Greggs can expand to 'significantly more than 3,000' sites across the UK.
Greggs shares were down 5.1 per cent to 1,556.01p in early trading on Tuesday, bringing losses since the start of the year to around 45 per cent.
Recent weakness is a reversal of Greggs' performance over recent years, as the group's profits continued to beat expectations. Its shares had added almost 150 per cent between their Covid-era low and the end of last year.
Robinhood UK lead analyst Dan Lane said: 'Greggs isn't the plucky market darling anymore and today's results show how hard it is to keep up with the boomtime years.
'Slowing sales growth and noticeable profit drops are a real issue but as much as Greggs talks about expansion, that's not a sure-fire way to course correct.'
He added that Greggs' UK footprint 'already serves vast swathes of the country' so more stores 'won't necessarily unlock underserved customer appetites'.
Zoe Gillespie, wealth manager at RBC Brewin Dolphin, said: 'This will do little to address fears the UK has hit "peak Greggs", but the company has been through significant challenges before and come through stronger on the other side.
'Sales are still heading in a positive direction, the store estate is expanding, and the commitment to innovation is delivering popular new products.
'Greggs also has plenty of cash to deploy and drive its investment programme forward.'
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