Member Article

Greggs report very strong finish to the financial year

Greggs has reported a very strong finish to the financial year following a prosperous Christmas and New Year trading period.

Like-for-like sales in the three weeks to 3 January increased by by 9.3 per cent.

Moreover, for the five week trading period ended 3 January 2015 total sales grew by 7.6 per cent and like-for-like sales grew by 8.2 per cent (five weeks ended 4 January 2014: up 3.1 per cent on a like-for-like basis).

For Greggs’ 2014 financial year as a whole (53 weeks ended 3 January 2015) total sales grew by 5.5 per cent including the impact of the additional trading week and like-for-like sales were up by 4.5 per cent.

Sales have steadily improved during the year with own shop like-for-like sales growth in the fourth quarter averaging 6.0 per cent.

During the year Greggs opened 50 new shops (including 20 franchised units) and increased the number of shop closures to 71 resulting in 1,650 shops trading at 3 January 2015.

The company now have 45 franchised shops operating in travel and other convenience locations and continue to see this as a route to further growth.

Greggs successfully completed 213 shop refurbishments in the year.

Returns continue to be good and the business anticipate progressing with the estate improvement programme at a similar rate in the year ahead.

The company revealed that their ‘food-on-the-go’ product range struck a chord with customers over the Christmas period with growth in sales of sandwiches, sausage rolls and coffee.

Sales of the “Balanced Choice” range of products with fewer than 400 calories continue to grow and new products such as fresh soups and the steak and cheese roll were well received.

Following the very strong finish to the financial year the company now anticipate that they will report full year results above previous expectations when they make their preliminary announcement on 4 March 2015.

Conditions for the first half of 2015 reportedly look encouraging with low input cost inflation expected along with an improved outlook for disposable incomes.

In the year ahead the company are set to continue to implement a plan to reshape the business to compete more effectively in the food-on-the-go market and create a strong platform for sustainable long term growth.

Chief Executive Roger Whiteside said: “Since our last update on 15 December we have experienced a very strong level of trade through the Christmas and New Year period.

“Customers have clearly responded to the improvements in our product offer and service, designed to meet the needs of the food-on-the-go consumer, during this busy period.

“This has been a year in which we have made good progress with our strategic plans and seen a welcome improvement in financial performance.

“We remain clear on our priorities and are confident that we can make further progress in the year ahead.”

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