Greggs profits down but new strategy shows signs of success
Greggs has reported an 18.9% drop in its full-year pre-tax profit but said its sales are improving as it continues to focus on building its food-on-the-go business.
In the year to 28 December 2013, pre-tax profit before exceptional items was £41.3 million. While total sales rose 3.8% to £762.4 million, like-for-like sales edged down 0.8%.
However, there was an improving trend in the latter part of the year resulting in like-for-like sales growth of 1.2% in the second half and 2.6% in the fourth quarter.
The group said it was making good progress with its strategic plan which has a strong focus on food-to-go rather than take-home bakery products.
Never Miss a Retail Update!Greggs chief executive Roger Whiteside said: “2013 was a year of transition for Greggs as our new strategic focus centred on the growing food-on-the-go market.
“Whilst total sales for the year rose 3.8% like-for-like sales were down 0.8% reflecting the tough and competitive trading conditions.
“I am encouraged by the improvement in performance in recent months as our new strategic focus started to deliver benefits.”
During the year, Greggs completed a record 216 shop refits although overall shop numbers unchanged with 68 openings and closures leaving a total of 1,671 outlets.
Looking ahead Whiteside said: “Market conditions are expected to remain challenging in 2014. It will be a year of further change for Greggs as we move forward with our plan to focus on the food-on-the-go market and build on positive recent trading momentum.”
