UK sandwich retailer Greggs has said it has had a "good" performance in the second half to date.

The company, which also sells savouries and other bakery products, said group like-for-like sales rose 6.2% for the 18 weeks to 16 October, slightly ahead of the company's expectations, while total sales rose 9.8%.

"Our selling price inflation, which averaged 2.1% in the first half, is currently running at 2.4%. We believe that this upward trend is likely to continue," said group managing director Sir Michael Darrington, adding that the company is experiencing higher labour costs and significant increases in energy and protein prices.

Greggs, which has over 1,200 retail outlets trading under the Greggs and Bakers Oven brands, added a total of 24 shops, net of closures, in the year to date, and now expects to exceed its target of adding 30 shops by the end of the year.

"Our budgets assume that like-for-like sales growth will trend gently downwards over the remainder of this year, reflecting the steadily strengthening comparative performance in 2003. Profits to date are in line with our expectations, and we continue to look forward to reporting satisfactory progress over the year as a whole," added Darrington.