Heavy snow and heatwave blamed for 14% profit loss at UK bakery chain Greggs

UK bakery chain Greggs has posted a more than 14% reduction in operating profit between the first half of 2024 and the same period in 2025 – which it partially blames on heavy winter snow and unusually hot weather in June.

The company’s operating profits before tax dropped from £74.1 million in H1 2024 to £63.5 million in 2025. Presenting its H1 results at the end of July 2025, Greggs Chief Financial Officer Richard Hutton said that unusually hot weather in June impacted sales, as “hot weather just makes people eat less”. 

In addition, Greggs explains in its interim results summary that the year-on-year reduction in operating profit “reflected challenging market footfall and the phasing of cost headwinds that have particularly impacted the first half of the year”. “These challenges were compounded by heavy snow and strong winds in January and unusually hot weather in June, which had a material impact on consumer behaviour and lowered LFL sales,” the company adds.

June heatwave affected all retail establishments

Food companies in the UK expect financial impacts from climate-related disruptions to their supply chains – but Greggs’ example shows that extreme weather events, which are becoming more frequent in the country, also shift consumer behaviour.

In his presentation, Hutton compared Greggs’ H1 sales graph to that of a takeaway and fast food competitor group, which showed a very similar dip in June.

In the five weeks from June 1 to July 5, total UK footfall decreased by 1.8%, according to the British Retail Consortium (BRC), with high street footfall decreasing the most at 3%.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Extreme weather meant shoppers stayed away from their local stores last month, leading to a decline in footfall across all three key retail locations. High streets were particularly affected as extreme heat was followed by severe thunderstorms, discouraging visits.”

Greggs is committed to achieving net zero emissions by 2040. In the near term, the firm has an SBTi-approved target to reduce absolute Scope 1 and 2 greenhouse gas emissions by 46.2% and absolute Scope 3 greenhouse gas emissions from purchased goods and services by 46.2% by 2030.