Greggs Share Price Decline Continues, H1 Pre-Tax Profit Drops 14%

Greggs (LON: GRG) shares fell over 6% in early trading on Tuesday, extending a steep downward trend as the food-to-go chain reported a 14% fall in pre-tax profit for the first half of 2025.

Pre-tax profit declined to £63.5 million from £74.1 million a year earlier, despite total sales rising 7% to £1.03 billion. 

Operating profit declined 7.1% to £70.4 million, with the company attributing the decrease to weaker footfall, adverse weather conditions, and the timing of cost pressures.

The interim dividend was held at 19p per share.

Greggs said it remains on track to open 140 to 150 net new shops in 2025, with most planned for the second half.

Despite the profit drop, Greggs highlighted strategic progress, including growing evening and delivery sales and the upcoming launch of its ‘Bake at Home’ range in Tesco stores from September.

However, recent analyst commentary suggests growing concern over the near-term outlook. 

Following Greggs’ trading update earlier this month, Edison analysts noted that June represented the second month of H125 that was negatively affected by ‘unusual’ weather, while June’s hot weather continued into July. Edison cut its 2025 profit forecast for Greggs by 10%.

Greggs' share price has now fallen more than 43% year-to-date and is down over 17% in the past month. So far on Tuesday, it has dropped below the 1,600p mark.

The company reaffirmed its full-year guidance but acknowledged ongoing cost pressures and market headwinds.