Bakery chain Greggs today said favourable weather conditions helped drive an increase in sales over the last three months.
Like-for-like sales grew by 5.9% in the 16 weeks to October 6, much better than analysts had been expecting.
David Stoddart from independent broker Landsbanki, said the company is on course to beat his overall forecast of 4% growth in the second half: 'Even if we assume that Greggs averages only 3% against the tougher comps in the remainder of H2, same-store sales growth would average 4.6% for H2 overall.'
Despite the strong sales figures the Newcastle-based group said it had continued to experience 'significant increases' in the cost of key ingredients, including flour and dairy products, with meat prices also set to rise in the near future.
The firm added that its robust trading performance meant it would continue to pass the extra cost of goods on to customers, with prices currently around 4.5% higher.