Member Article

Greggs post strong 2014 results following implementation of new strategic plan

High street bakers Greggs have released a strong set of results for last year, with the company surmising 2014 as ‘a year of exceptional progress’.

Key financials looked particularly strong. Total sales were up 5.5% to £804.0m, from £762.4m in 2013. Additionally, own shop like-for-like sales were up 4.5% from a 0.8% decline in 2013. Moreover, property gains on disposal increased from £1.3m in 2013 to £1.5m last year. ·

The company said pre-tax profit excluding exceptional items, ie excluding exceptional pre-tax charge of £8.5m (2013: exceptional pre-tax charge of £8.1m), was up a hefty 41.1% to £58.3m (2013: £41.3m)

2014 saw the implementation of a new strategic plan for Greggs. For example, its’ Food-on-the-go’ focus was reported as key to delivering growth.

Other notable operational highlights attributing to Greggs’ growth included upgraded coffee sales, reportedly generating c.£1 million per week.

Moreover, the company witnessed strong growth from its ‘Balanced Choice’ range and growing customer participation in value deals.

With 213 shop refits completed in the year, 50 new shops openings and 71 closures, Greggs now has a total of 1,650 shops trading (to Jan 3).

Roger Whiteside, Chief Executive, 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.”

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