BAKERY chain Greggs said hungry Christmas shoppers helped it improve like-for-like sales.

The appetite of consumers for pies, sandwiches and pastries left same-store sales growth at three per cent in the ten weeks to December 27 - better than the 1.8 per cent seen in the previous 18 weeks. During the festive period, sales were up 3.5 per cent.

Managing director Sir Michael Darrington said the performance reflected a gradually improving trend for the company following the pressure on sales caused by the summer heatwave.

Sir Michael, who was knighted in the New Year's Honours List, said Greggs expected satisfactory progress for the year to December 27.

Before yesterday's statement, analysts forecast that full-year pre-tax profits - due to be announced on March 5 - would be about £38.6m, an improvement of £2m on a year earlier.

As well as affecting summer demand, the Europe-wide heatwave also led to poor grain harvests which increased the cost of raw materials.

But the company, based in Newcastle, said it had been able to protect margins through price rises and a variety of cost-cutting actions.

No jobs were lost as a result, a spokesman said.

Greggs has 1,231 stores - including two in Belgium - after opening 68 stores in 2003. A further 39 were closed, including 13 as part of a relocation programme.

The company has plans for Europe-wide expansion, although it is only expected to open three or four outlets on the continent in the coming year.

In August, Greggs announced a 13 per cent rise in first-half profits to £12.3m.