Retailer Results / Greggs

04/10/2016

Greggs

Trading Update
13 weeks to 1 October 2016

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02/08/2016

Greggs

Trading Update
26 weeks to 2 July 2016

Highlights

• Total sales up 6.0 per cent to £422m
• Company-managed shop like-for-like sales up 3.8 per cent
• Operating profit excluding property gains and exceptional charge up 6.7 per cent to £27.2m (2015: £25.5m)
• Property disposal gains of £2.2m (2015: £0.1m)
• Diluted earnings per share excluding exceptional charge 22.3p (2015: 19.5p)
• Pre-tax profit including property profits and exceptional charges £25.4m
• Continued strong cash generation: £44.7m net inflow from operating activities
• Ordinary interim dividend per share of 9.5p (2015: 7.4p)

Summary

Greggs have made an encouraging start to the second half of the year. The Greggs brand will continue the long-term strategic investment programme to transform the business from traditional bakery to a growing food-on-the-go brand.

Overall, management expect to deliver full-year growth in line with their previous expectations as well as further progress against the strategic plan.

Food and packaging input costs continued to be deflationary in the first half, however these are now expected to increase with inflationary pressure in wage costs as the 'national living wage' increases take effect. Indirect currency impacts are likely to affect input costs towards the end of 2016 but hedging will have covered most of the second half.

Roger Whiteside, Chief Executive, said: “In the first half of 2016 we delivered good like-for-like growth by reinforcing the freshness and value of our offer in line with changing trends in the food-on-the-go market. We added to our "Balanced Choice" range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices.

"We have made an encouraging start to the second half of the year and are alert to any change in consumer demand that may result from the current economic uncertainty. Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan."


09/05/2016

Greggs

Trading Update
18 weeks to 7 May 2016

Highlights

• Total sales up 5.7 per cent in first 18 weeks of 2016 (2015: 5.9 per cent)
• Company-managed shop like-for-like sales in the first 18 weeks up 3.7 per cent (2015 comparator period: 6.0 per cent)
• 55 shop refits completed
• 43 new shops opened, 21 closures
• Breakfast, hot sandwiches and 'Balanced Choice' options driving growth
• Consultation on supply chain investment proposals progressing

Summary

Total sales for the 18 weeks to 7 May 2016 grew by 5.7 per cent and like-for-like sales in company-managed shops grew by 3.7 per cent over the same period. Greggs reported that they had not been immune to the slow-down in the high street over the last few months although they suggested that activity had improved in recent weeks.

The first 18 weeks saw 55 shop refurbishments and in total 200 shop refits are planned this year. These transformational investments continue to drive incremental sales growth with new product innovation and also seated areas.

In the year to date Greggs have opened 43 new shops, including 23 franchised units in transport locations. 21 shops were closed, giving a total of 1,720 shops trading at 7 May (comprising 1,592 company-managed shops and 128 franchised units). Shop openings continue to focus on new food-on-the-go locations and the relocation of existing shops to support further growth. In March, Greggs opened their first company-managed shop in Northern Ireland, at Boucher Retail Park in Belfast.

Greggs commented that input cost inflation remains low despite increased wage costs and, with a strong pipeline of product initiatives and plans to invest in their shops and supply chain. Progress is expected to be in line with previous expectations.


01/03/2016

Greggs

Full Year Results
52 weeks to 2 January 2016

Highlights

• Total sales up +5.2 per cent
• Company managed shops - like-for-like sales up +4.7 per cent
• Pre-tax profit excluding exceptional items up 25.4 per cent to £73.0 m (2014: £58.3m)
• Q4 company-managed shops - like-for-like sales up 2.3 per cent
• 202 refits completed in 2015, plus 20 conversions of larger bakery cafés
• 122 new shops opened in the year, 74 closures
• 1,698 shops trading as at 2 January 2016
• Full year results anticipated to be in line with previous expectations

Summary

Total sales grew to £835.7 million in 2015, up 5.2 per cent on a comparable 52 week basis and up 3.7 per cent when compared to the 53 week financial year in 2014. Company-managed shop like-for-like sales grew by 4.7 per cent and franchised shops performed well.

Operating profit (before exceptional items in 2014) grew by 25.9 per cent to £73.1 million and pre-tax profit (before exceptional items in 2014) grew by 25.4 per cent to £73.0 million.

The economic backdrop was favourable in 2015, with low inflation leading to further rises in real disposable consumer income. Greggs saw strong growth throughout the year, although customer footfall in some shopping locations was subdued in the final quarter, resulting in slower growth in this period, likely to be down the poor weather.

The market for food-on-the-go remains highly competitive but Greggs appeals to a broad customer base and there was an increase in the numbers of customer visits as well as growth in average transaction values in the year.

Chief Executive Roger Whiteside comments: "In 2015 we delivered another excellent performance in the second year of our strategy to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer.

"We have made significant progress across the business change programme, consequently our estate is stronger and our products, value and service are all improving the experience for customers.

"This year has started well and the consumer outlook remains positive with disposable incomes expected to grow further in 2016. Overall 2016 will be another year of significant change as we advance with our strategic plan and propose major investment in our supply chain. Alongside this we are confident of delivering a further year of underlying growth."


12/01/2016

Greggs

Full Year Results
52 weeks to 2 January 2016 (Preliminary)

Highlights

• Total sales up +5.2 per cent
• Company managed shops - like-for-like sales up +4.7 per cent
• Q4 company-managed shops - like-for-like sales up 2.3 per cent
• 202 refits completed in 2015, plus 20 conversions of larger bakery cafés
• 122 new shops opened in the year, 74 closures
• 1,698 shops trading as at 2 January 2016
• Full year results anticipated to be in line with previous expectations

Summary

Strong figures were released for Greggs for the year. As a whole (52 weeks ended 2 January 2016) total sales grew by 5.2 per cent on a comparable 52 week basis and company-managed shop like-for-like sales grew by 4.7 per cent. Like-for-like sales growth slowed to 2.3 per cent in the fourth quarter against strong comparatives and the impact of weaker footfall in some locations. Sales over the Christmas period were in line with the overall trend for the fourth quarter but appear a little disappointing.

Sales growth was particularly strong in sandwiches and drinks, including the healthier options ‘Balanced Choice’ range including new salads and ‘no added sugar’ drinks. The new hot food menu, with an improved hot sandwich range and fresh 2 soups, sold well as popularity grew in the new food on-the-go options.

During the year 122 new shops were opened (including 61 franchised units) and 74 were closed, growing the estate to 1,698 shops. There are now 105 franchised shops operated by partners in travel and other convenience locations.

Looking forward, Greggs is looking compete for more food-on-the-go market share, whilst also driving efficiencies and adding capacity for further sustainable growth.

Chief Executive Roger Whiteside comments: “2015 saw us deliver another excellent year of progress as we continue to transform Greggs into a modern, well-invested food-on-the-go retailer. “We anticipate that we will report full year results for 2015 in line with our previous expectations. In the year ahead we will continue with the implementation of our strategic plan to enable the business to compete more effectively in the food-on-the go market.”


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