Greggs reports jump in annual profit
Greggs increased its full year profit by 41.1% as it benefited from its focus on the food-to-go market and more favourable market conditions.
In the 53 weeks to 3 January, pre-tax profit excluding exceptional items rose to £58.3 million from £41.3 million in the previous year while total sales climbed by 5.5% to £804 million. On a like-for-like basis own shop sales increased by 4.5%.
Greggs chief executive Roger Whiteside said: “2014 was a year of significant change and an exceptional step up in performance for Greggs as we began to implement our new strategic plan centred on the growing food-on-the-go market.
“We have improved both our food offer and the shop experience for customers. Market conditions have been more favourable and like-for-like sales have grown throughout the year. This has resulted in record underlying profits for the financial year. Overall we are confident of delivering a further year of good growth and progress against our strategic plan in 2015.”
Greggs opened 50 new shops, including 20 franchised units, in the year and closed 71, resulting in 1,650 shops trading at 3 January 2015. Some 85% of new shop locations were away from high streets such as in retail and industrial parks, motorway service stations and travel hubs.
In 2015 Greggs expects to open 80 to 100 new shops and close around 60 to 80 as it looks to improve the quality and performance of its estate and grow its presence in travel, leisure and work-centred catchments.
Greggs said the current year had started well with like-for-like sales in the eight weeks to 28 February growing by 6.3%.
Whiteside added: “2015 will be a year of further change for Greggs as we continue to move forward with our focus on the food-on-the-go market. Market conditions remain helpful and the outlook for the first half suggests that low inflation should continue to support disposable incomes.
“Overall we are confident of delivering a further year of good growth and progress against our strategic plan in 2015.”
