Greggs full-year profits fall despite total sales rise
Greggs, the UK's largest bakery chain, blamed "challenging market conditions" and wet weather for a fall in full-year profits.
Pre-tax profits fell 2.2% to £51.9m for the 52 weeks to 29 December 2012, the company said.
While total sales rose 4.8% to £735m, like-for-like sales, which strip out the effect of new stores, fell 2.7%.
Chief executive of the Newcastle-based firm Roger Whiteside said the group had opened 121 new stores during the year.
"We saw no let-up in the pressure on our customers' disposable incomes during 2012," he said, with the wet weather also proving to be a "significant deterrent" to shoppers.
Greggs is opening stores closer to people's workplaces and leisure venues, the company said, as well as developing partnerships with other retailers, such as Iceland and Moto.
Its breakfast deal was "by far our most successful offer in 2012", said Mr Whiteside.