Britain's baker and fast food chain Greggs said today that the surging cost of raw materials, energy and staff wages would limit any material profit growth in 2022 after it reported record annual profit in 2021.
Greggs, best known for its sausage rolls, steak bakes, vegan snacks and sweet treats, said cost pressures were currently more significant than it had initially expected.
"As ever, we will work to mitigate the impact of this on customers, however given this dynamic we do not currently expect material profit progression in the year ahead," CEO Roger Whiteside said.
Greggs made a pretax profit of £145.6m in the year to January 1, compared to a Covid-hit loss of £13.7m in 2020.
Total sales were £1.23 billion, up 5.3% on 2019, before the pandemic impacted trading.
The group said it had started 2022 well, helped by the easing of pandemic restrictions, with like-for-like sales in company-managed shops up 3.7% compared to the 2020 level.
