GREGGS PLC
(“Greggs” or “the Company”)
INTERIM RESULTS FOR THE 26 WEEKS ENDED 29 JUNE 2024
Continued strategic progress with ambitious growth plans on track
First half financial highlights
| H1 2024 | H1 2023 | |
| Total sales | £960.6m | £844.0m |
| Underlying pre-tax profit excluding exceptional items * | £74.1m | £63.7m |
| Underlying diluted earnings per share excluding exceptional items* | 53.8p | 46.8p |
| Ordinary interim dividend per share | 19.0p | 16.0p |
* Excludes H1 2023 impact of £16.3 million exceptional net income related to settlement of a Covid business interruption insurance claim. Including this exceptional gain, H1 2023 pre-tax profit was £80.0 million and diluted earnings per share were 59.0p.
· Total first-half sales up 13.8%, with company-managed shop LFL** sales up 7.4%
· Underlying profit before tax excluding exceptional items up 16.3% to £74.1 million
· Cash balance of £141.5 million at June 2024 (December 2023: £195.3 million), expected to reduce as capital investment programme progresses
· Interim dividend of 19.0p pence per share declared, an increase of 18.8%
** Like-for-like (LFL) company-managed shop sales performance against 2023 comparable period, where shops have a calendar year’s trading history (excluding any shops which opened, relocated or closed in the current or prior year)
Strategic progress
Estate growth:
· 99 new shops, including 30 relocations, opened in the first half, 18 closures (excluding relocations), giving 51 net new shops in the period
· 2,524 shops trading as at 29 June 2024
· Strong pipeline and remain on track to achieve 140 to 160 net new shop openings in 2024 (openings are typically weighted to the second half)
LFL growth:
· Menu development supporting growth across all dayparts and channels:
o Over-ice drinks range, including the Mango and Strawberry Cooler and the Strawberries and Cream Refresher, is proving successful and now available in 500 shops, with plans to roll out to a further 200 shops this year
o Dedicated pizza deals, including the Late Trade Pizza Deal and Pizza Box Deal, driving strong sales growth, with hot food also continuing to perform well. Recently launched a four-slice pizza sharing box option to complement our existing range
· Progress continues in the evening daypart and new channels:
o Evening daypart sales growing ahead of the average LFL rate, albeit from a low base, increasing share of sales mix by daypart
o Sales through the delivery channel represented 6.7% of company-managed shop sales in the first half of 2024 (H1 2023: 5.3%)
o The Greggs App was scanned in 18.3% of company-managed shop transactions (H1 2023: 10.6%)
Supply chain investment:
· Redevelopment of Birmingham and extension of Amesbury distribution centres on track to complete in second half of 2024, creating logistics capacity for an additional 300 shops
· The initial build phase of the new frozen manufacturing and logistics site in Derby, which we expect to be operational in late 2026, is progressing well
· Contracts exchanged for the purchase of a 25-acre plot of land at Symmetry Park in Kettering, on which we will construct our new National Distribution Centre. This site, expected to be operational in the first half of 2027, will support our existing Radial Distribution Centres to service circa 700 more shops through the automated upstream picking of chilled and ambient goods.
“Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers. Our success is founded on the exceptional value that Greggs offers to customers looking for food and drink on-the-go and the fast and friendly service delivered by our colleagues.
“Our cost outlook for 2024 remains unchanged and we continue to trade in line with our plan. The Board remains confident in the long-term growth strategy, and we are investing to support that growth.”
– Roisin Currie, Chief Executive