Greggs Warns UK Heatwave May Lower 2024 Profit

British bakery chain Greggs has warned that its full-year operating profit may be modestly lower than in 2024 due to the impact of very high temperatures in June, which reduced customer footfall despite increased demand for cold drinks. While the company reported a 6.9% rise in total sales for the first half of 2025, like-for-like sales growth slowed to 2.6%, with June experiencing a noticeable downturn as the UK endured one of its hottest Junes on record. Greggs has also been affected by strong prior-year comparatives, ongoing refurbishments, and cost inflation, although it expects planned cost-mitigation measures to improve performance in the second half of the year. The company remains confident in its expansion strategy, aiming to open between 140 and 150 net new shops by the end of 2025, having already opened 87 new outlets and completed 108 refits by mid-year. Despite these efforts, Greggs' share price has declined significantly amid concerns over slower growth and the challenges posed by inflation and wage taxes. The bakery continues to push into late-night trading and menu diversification to counteract the challenging market conditions.