Greggs share price drops on falling profits

<p>Profits are down at Greggs.</p>

The share price of Greggs has fallen today (August 6th), after the firm announced profits are down.

Like-for-like sales, which exclude new outlets opened by the bakery chain, fell by 2.9 per cent in the first half of 2013, which the firm said was partly due to cold weather.

Half-year profits fell by £4.6 million to £11.4 million and Greggs warned in a statement that its annual profits would now be £3 million lower than previously expected.

Greggs chief executive Roger Whiteside confirmed shop refits are going to be sped up as a result of the financial results, while the business will be reshaped.

“We will spend the next two to three years reshaping the business as we build the platform for long term sustainable profit growth,” he said.

The share price of Greggs was hit badly by the news of its sales and profits dipping.

At 15:31 BST, stocks were trading for 400.40, which is a drop of almost ten per cent on the start of the session.

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