BAKED goods retailer Greggs has reported lower annual profits amid rising costs, but said 2018 would be the "peak year" for internal investments meant to help transform the business.
The high street chain - which has 13 stores in Northern Ireland - said pre-tax profits fell from £75.1 million in 2016 to £71.9 million last year, despite reporting a 7.4 per cent rise in total sales to £960 million over the 12 months to December 30.
Its earnings were knocked by an exceptional charge of £9.9 million linked to a major investment programme meant to reshape its internal supply chain.
That is compared with a £5.2 million charge in 2016, when it launched the first phase of the turnaround plan.
Chief executive Roger Whiteside said it was a strong performance for Greggs given the "challenging economic circumstances" which saw rising inflation having an impact on both the company costs and customer disposable income.
"At the same time we continued to make good progress with our business transformation programme.
"Whilst the UK consumer outlook remains challenging, we are encouraged by the start to the year. 2018 will be the peak year for investment in our supply chain as we create the platforms for further growth.
"We also plan to open a record number of new shops as we implement our plan to grow Greggs as a leading food-on-the go brand."
The retailer said it opened 131 new shops over 2017 against 41 closures, meaning it added 90 locations on a net basis, bring the total number of trading stores to 1,854 as of December 30.
Like-for-like sales at the company's own managed shops - which excludes franchises - rose 3.7 per cent over the year.
Greggs said it was already "encouraged" by the start of the 2018 financial year, with company-managed shops recording a 3.2 per cent rise in like-for-like sales over the eight weeks to February 24.
The chain first entered the Northern Ireland market in 2015 via a franchised shop in the Applegreen Service Station on the M2, and since then has gone on to launch further motorway outlets as well as company-managed shops in locations such as Belfast (seven), Ballymena, Newry, Lisburn, Larne and Coleraine.
