Cost pressures to cap growth, Greggs CEO says
Roger Whiteside expects cost inflation of 6% to 7% for 2022.
The chief executive of Greggs warned that the surging cost of raw materials, energy and staff would limit any material profit growth this year.
Speaking to Reuters, CEO Roger Whiteside said he expected cost inflation of 6% to 7% for 2022 compared to a previous expectation of about 5% as Russia's invasion of Ukraine had fuelled commodity and energy prices.
"All the proteins, all the cereals, all the oils - everything's going up in price," Whiteside said, noting food ingredients represent 29% of the bakery giant’s total costs.
Greggs also faces higher staff costs due to April's government-mandated 6.6% rise in the minimum wage.
"As ever, we will work to mitigate the impact of this on customers. However, given this dynamic, we do not currently expect material profit progression in the year ahead," Whiteside added.
