Member Article

Greggs profits heat up to reach record high

Bakery chain Greggs this morning reported on record profits ahead of ongoing expansion that will see it open 80 new shops in the next 12 months.

The Newcastle-headquartered firm saw pre-tax profit climb 7.9% to £52.5m in the year to 1 January 2011, with sales climbing 2.1% to £662m during the period.

Chief executive Ken McMeikan said: “In 2010 we grew sales and achieved record profits despite the tough trading conditions across the UK. I am delighted that we’ve made Greggs accessible to many more customers through our new shop opening programme, bringing them the great value, freshness and quality that our existing customers already enjoy.

“Whilst 2011 will see further pressures on consumer spending and rising global commodity prices our strong value positioning, excellent products, outstanding staff and clear strategy for growth mean that we are well positioned to deal with this challenging environment.”

The company said the growth opportunities in the UK remained significant and its plans to open at least 600 new shops in the long run were well on track.

It said the year ahead would continue to be challenging with rising global commodity prices being reflected in significant upward pressure on many of the key ingredient costs of all food producers.

However, it expects to become more efficient and is dedicating resources to identify and unlock further cost savings throughout the business.

This was posted in Bdaily's Members' News section by Ruth Mitchell .