Greggs has 1,400 outlets in the UK and its Leeds-based Greggs of Yorkshire business operates around 140 shops.

The company today said increases in energy and ingredient costs were not passed on in full to customers.

It said poor weather throughout August and early September caused like-for-like sales growth to slow to 3.9 per cent in the 16 weeks to October 4, although sales since mid-September picked up to show growth of 5.7 per cent.

Analysts had been expecting a pre-tax profits haul of around £48m for the year to the end of December.

Greggs said: "As a consequence of the period of slower sales growth and temporary margin impact from higher costs we are reducing our expectations of operating profit for the current financial year by some £3m."

Greggs said its desire to maintain the brand's value-for-money market position meant it had absorbed some of the recent impact on margins.

However, it added that prices for many ingredients were now stabilising, with reductions in some areas including vegetable oils and vehicle fuel.

"This, combined with tightened control of operating costs, promises a more positive outlook for operating margins in the final 12 weeks of the year," it added.

Greggs also said increasing pressure on household budgets had only resulted in a "modest erosion" in customer numbers and transaction values.

Last month, Greggs of Yorkshire denied that trials of an upmarket version of its stores – opened under the name Baked – had been a failure despite axing the name from two outlets in Leeds.

The two city-centre stores have reverted to the more familiar Greggs brand following what the company described as completion of its "conceptual trial" of Baked.

The Leeds Baked stores were opened last year to determine the market potential amongst new and existing Greggs customers for luxury pasties and pies.

The shops, on Boar Lane and Wellington Street, offered products that would differentiate from those more often associated with Newcastle-based Gregg's, such as Steak and Black Sheep Ale and Steak and Stilton pasties, Fairtrade hot drinks and a freshly baked breakfast range.