Greggs hails ‘exceptional’ record-breaking year
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Bakery chain Greggs has reported a 13.5% increase in total sales to £1.1m for the year ended 28 December 2019.
In what was a ‘record-breaking’ year for the group, company-managed shop like-for-like sales were also up 9.2%.
Pre-tax profit excluding pre-tax charge was up 27.2% to £114.2m, with an overall pre-tax profit £108.3m.
Although the group enjoyed a “strong” start to the year in January, it said business faced a “significant slowdown” in February due to storms across the UK. Despite this, company-managed shop like-for-like sales up by 7.5% in the nine weeks to 29 February.
The group also enjoyed a “record” annual profit share alongside “strong” cash generation, and said that its “exceptional” performance was founded on “transformational changes” made across a multi-year strategic investment programme.
Strategic changes included “significant” progress in delivering a supply chain investment programme, new product development and the roll-out of a delivery service in partnership with Just Eat.
Roger Whiteside, CEO of Greggs, said: “2019 was an exceptional year of progress for Greggs, during which we experienced a sustained increase in customer visits as increased awareness and appreciation of our brand gathered momentum.
“Our exceptional performance was founded on the changes that we have made across our multi-year strategic investment programme, which has delivered transformational change across the business and has now set us up for the next phase of growth.”
He added: “We made a very strong start to 2020 in January, but in February saw a significant slowdown in sales growth as a result of the storms that have affected the UK. There is some uncertainty in the outlook, particularly given the potential impact of Coronavirus.
“This aside we expect to make year-on-year progress and will do so from a strong financial position, supporting our investment for further growth whilst also delivering good returns for all stakeholders.”
Speaking to the BBC today, Whiteside also said that Greggs would pay all staff who have to self-isolate due to Coronavirus.
“Our default position is that we pay contract hours. We don’t have any zero contract hours,” he told the BBC.
