Newcastle-based bakery chain Greggs ](http://www.greggs.co.uk/)has warned that rising wheat prices will make trading tougher over the coming months.
Wheat prices hit a 22-month high last week after Russia announced that it would suspend wheat exports following a severe drought in the country.
The firm, which has 1,400 shops and aims to open 50-60 more this year, recorded a 12.3% rise in pre-tax profit to £18.6m for the first half of the year.
Revenue rose to £321m, up from £312m.
Greggs chief executive Ken McMeikan said: "We have delivered a resilient first half performance under challenging conditions."
"Our accelerated shop opening and refit programmes are progressing as planned and delivering encouraging early results."
[An eye for retail >>](http://www.caterersearch.com/Articles/2005/10/27/303161/An-eye-for-retail.htm)
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By Neil Gerrard
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