Stock Spotlight: Managers adamant on Greggs' ability to deliver despite inflation bite

Forecast cost inflation 9-10%

On-the-go bakery giant Greggs has been on a significant growth journey in 2022, reporting a 23% increase in total sales (£1.5bn) in its annual results, alongside a 1.9% rise in profits (£148.3m) and total ordinary dividend per share up 2p from 2021.

Despite closing the period with a 30% drop on its share price in 2022, according to data from Morningstar, and with inflation taking a toll on its profits, the UK bakery has proved resilient during an economically turbulent year, sparking confidence from fund managers and analysts alike. Greggs CEO Roisin Currie, who took over from Roger Whiteside in May 2022, commended the bakery for its "year of strong progress", yet she noted consumer incomes remain under pressure and the company expects cost inflation for 2023 to hit around 9-10%. Central bank chiefs toughen rhetoric against infla...