TIDMGRG
RNS Number : 1668Z
Greggs PLC
10 January 2024
10 January 2024
GREGGS PLC
("Greggs" or the "Company")
Q4 TRADING UPDATE
Further strong trading through fourth quarter
Q4 highlights
-- Financial year 2023* ("FY23") total sales up 19.6% to
GBP1,809 million (2022: GBP1,513 million)
-- Company-managed shop like-for-like** sales up 13.7% for FY23
-- Company-managed shop like-for-like** sales up 9.4% for the
fourth quarter, with continued growth in transaction numbers and
reduced contribution from price inflation
-- Strong LFL performance reflects popularity of the Greggs
brand as we further develop our range and make Greggs more
accessible through digital channels and extended trading hours
-- Delivery service rolled out to 710 shops with Uber Eats,
alongside the existing service offered with Just Eat
-- A record 220 new shops opened in the year, with 33 closures
and 42 relocations resulting in a net 145 new shop openings, and
2,473 shops trading as at 30 December 2023
-- Good progress in development of supply chain capacity, supporting growth plans
-- Year-end net cash of GBP195 million (2022: GBP192 million)
-- Inflationary pressures reducing
-- Anticipate full year outcome in line with our previous expectations
* 52 weeks ended 30 December 2023 (2022: 52 weeks ended 31
December 2022)
** Like-for-like (LFL) company-managed shop sales performance
against comparable period in 2022
Roisin Currie, Chief Executive commented:
"2023 was a year of further progress by Greggs. I am proud of
our teams, who did a fantastic job serving more customers as we
continue to grow our shop estate and offer greater availability
through digital channels and extended trading hours.
"We enter 2024 with plans to continue to invest in our shops and
expand supply chain capacity to deliver the growth strategy,
supported by our strong balance sheet. Our value-for-money offer,
and the quality of our freshly prepared food and drink continue to
evolve and position us well for further progress in the year
ahead."
Trading performance
Total sales for FY23 were GBP1,809 million, an increase of 19.6%
compared with 2022. Like-for-like sales in company-managed shops
were 13.7% higher than those seen in 2022 . Fourth quarter
like-for-like sales in company-managed shops grew by 9.4%, with
continued growth in transaction numbers and a reduced contribution
from price inflation as we progressed through the year. The strong
finish to the year reflected the favourable Christmas trading
pattern and less disruption than we saw in the same period of
2022.
Our strong LFL sales performance demonstrates the popularity of
the Greggs brand as we further develop our range and make Greggs
more accessible through digital channels and extended trading
hours. By the end of 2023 Greggs was available for delivery on the
Uber Eats platform in 710 of our shops, in addition to the service
provided through our existing partner Just Eat.
Seasonal lines, including our iconic Festive Bake, Chocolate
Orange Muffin and Christmas Lunch Baguette were in high demand in
the fourth quarter, featuring alongside our shop-baked Sweet Mince
Pies and festive hot drinks. Pizza continues to perform strongly
during the day and into the evening, with pizza boxes and pizza
bundle deals continuing to contribute to our growth .
Shop estate and supply chain development
In 2023 we opened a record 220 new shops and closed 75 shops (33
closures and 42 relocations), giving a total of 2,473 shops trading
at 30 December 2023 (comprising 1,970 company-managed shops and 503
franchised units ). Our shop openings are giving customers more
convenient access to Greggs, whilst our relocation activity
increases our capacity in existing successful catchments.
The planned investment in our supply chain is progressing well,
which supports our ambitious growth plans. A fourth production line
is currently being commissioned at Balliol Park in Newcastle upon
Tyne and will provide significant additional manufacturing capacity
for our iconic savoury rolls and bakes. Work is progressing well to
expand the logistics capacity of our Birmingham and Amesbury
distribution centres, both of which are due to come on stream later
in 2024.
Financial position and outlook
Greggs ended 2023 with a cash position of GBP195 million (2022:
GBP192 million) , which will support our plans to invest further in
growing both our shop estate and supply chain capacity in the years
ahead. The pipeline of new shop opportunities remains strong, and
we expect to open between 140 and 160 net new shops in 2024.
Given the strong trading in the final quarter the Board
anticipates reporting a full year outcome for FY23 in line with its
previous expectations.
As expected, inflationary pressures are reducing and with good
forward cover on food, packaging and energy we anticipate a more
stable cost base in the coming year . Wage inflation remains,
although higher rates of pay across the economy will also provide
support to consumer incomes. Overall, we are confident that Greggs
can deliver another year of good progress in 2024 as we continue
our plans for sustainable growth.
ENQUIRIES:
Greggs plc Hudson Sandler
Roisin Currie, Chief Executive Wendy Baker / Hattie Dreyfus /
Richard Hutton, Chief Financial Officer Nick Moore / Emily Brooker
David Watson, Head of IR
Tel: 0191 281 7721 Tel: 020 7796 4133 greggs@hudsonsandler.com
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END
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