Retailer known for its sausage rolls and steak bakes says it has been resilient in a challenging market

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Greggs has reported a slump in profits as it bemoaned “challenging” market conditions hitting consumer confidence and disposable income, amid pressure to prove the UK has not hit “peak Greggs”.

The high street bakery chain, known for its sausage rolls and steak bakes, said statutory pre-tax profits fell by 17.9% to £167.4m for the year to 27 December, compared with a year earlier. Total sales rose by 6.8% to £2.15bn over the year.