Greggs dividend boon boosted shares, despite cost concerns

Greggs (LSE:GRG), the baker,reported improved pretax profit for the first half of the year, but noted higher costs.

Nevertheless, a promise of higher dividend payouts boosted investor sentiments despite the softer financial print.

Greggs is raising its interim dividend to 19p from 16p.

The high street food chain, meanwhile, reported to investors a pretax profit of £74.1 million for its first half trading, compared to £63.7 million a year ago.

Meanwhile, Greggs said it expected cost inflation to remain between 4% and 5%.

Sales, meanwhile, rose to £960.6 million from £844 million, and, in its non-franchised stores the like-for-like sales growth was measured at 7.4%.