INTERIM RESULTS FOR THE 26 WEEKS ENDED 2 JULY 2022
Greggs is a leading UK food-on-the-go retailer,
with more than 2,200 retail outlets throughout the country
Trading in line with plan and good strategic progress
First half financial highlights
|
|
H1 2022 |
H1 2021 |
|
Total sales |
£694.5m |
£546.2m |
|
Pre-tax profit |
£55.8m |
£55.5m |
|
Diluted earnings per share |
44.8p |
43.2p |
|
Ordinary interim dividend per share |
15.0p |
15.0p |
|
• |
Total sales up 27.1%, with 22.4% LFL* sales growth in first half of 2022 (Q1: 36.9%, Q2: 11.2%) |
|
• |
First half LFL sales 12.3% higher than comparable period in 2019 |
|
• |
Flat profit outcome primarily reflects re-introduction of business rates, increase in VAT and higher levels of cost inflation |
|
• |
Strong cash position and good liquidity, with net cash at period end of £145.7m, having paid a special dividend of 40p per share (£40.6m total) in April 2022 |
* Like-for-like (LFL) company-managed shop sales performance against comparable period in 2021
Operational and strategic developments
|
• |
Shop opening progress : 70 new shops opened in first half, 12 closures; 2,239 shops as at 2 July 2022. Strong pipeline, anticipate circa 150 net new shop openings in 2022
|
|
• |
Growth channels : extension of evening hours going well, delivery service continuing to prove incremental despite recovery of 'walk-in' trade
|
|
• |
Greggs App: strong growth in usage driving loyalty engagement. New services such as Click + Collect and product customisation progressing well
|
|
• |
New product development : menu development focused on healthier choices, hot food and evening daypart
|
|
• |
Infrastructure : new manufacturing capacity progressing well, technology development now focused on digital
|
|
• |
Greggs Pledge: Science-based targets for emissions submitted for verification. National Equality Standard accreditation achieved and first “Eco-Shop” opened to test solutions to minimise environmental impact of retail operations
|
|
• |
Chair succession: Matt Davies announced today as Chair Designate, succeeding Ian Durant from 1 November 2022 |
“Greggs delivered an encouraging performance in the first half of the year with sales ahead of 2019 levels. These results demonstrate the continued strength of the Greggs brand and demand for our great tasting, quality and value for money offering.
“During the period we continued to make good progress with our strategic priorities, including expanding our shop estate and making Greggs more accessible to customers through extended trading hours and digital channels
“In a market where consumer incomes are under pressure Greggs offers exceptional value for customers looking for food and drink on-the-go. We are well positioned to navigate the widely publicised challenges affecting the economy and continue to have a number of exciting growth opportunities ahead, with a clear strategy for expansion. We remain confident in Greggs' ability to deliver continued success.”