5 March 2024
GREGGS PLC
(“Greggs” or the “Company”)
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 30 DECEMBER 2023
Record performance driven by execution of strategic plan
2023 Financial highlights
| 2023 | 2022 | |
| Total sales | £1,810m | £1,513m |
| Underlying pre-tax profit excluding exceptional income* | £167.7m | £148.3m |
| Pre-tax profit | £188.3m | £148.3m |
| Underlying diluted earnings per share excluding exceptional income* | 123.8p | 117.5p |
| Diluted earnings per share | 139.2p | 117.5p |
| Total ordinary dividend per share | 62.0p | 59.0p |
| Special dividend per share | 40.0p | – |
* Excludes impact of £20.6 million exceptional net income primarily related to settlement of business interruption insurance claims made in 2020
· Total sales** up 19.6% on 2022 level, with LFL*** sales in company-managed shops up 13.7% year-on-year
· Underlying profit before tax excluding exceptional income up 13.1% to £167.7 million (2022: £148.3 million); underlying diluted earnings per share up 5.4% to 123.8p
· Robust cash position of £195.3 million supports both investment in growth and additional shareholder returns by way of a special dividend of 40.0p per share
· Final dividend of 46.0p per share recommended bringing total ordinary dividend per share of 62.0p per share, up 5.1% from 2022, in line with the growth in underlying diluted earnings per share
** 52 weeks ended 30 December 2023 (2022: 52 weeks ended 31 December 2022)
*** like-for-like sales in company-managed shops (excluding franchises) with more than one calendar year’s trading history
Strategic progress
Broadening customer appeal:
· Greggs is the UK’s leading food-to-go brand (YouGov’s Brand Index)
· Market share at an all-time high; total share of food-to-go visits 8.2% (2022: 7.7%)
· Share of food-to-go breakfast visits increased to 19.6%, taking Greggs to #1 in the market
Growing and developing the Greggs estate:
· Record 220 new shop openings in 2023 and 75 closures (145 net openings), growing the estate to 2,473 shops as at 30 December 2023
· Relocated 42 existing shops and refurbished 122 existing shops
· Continued to expand partnerships with retailers including Primark, Tesco and newest partner Sainsbury’s. London presence extended including new shops in Canary Wharf and Waterloo railway stations and Gatwick Airport
· Targeting 140 to 160 net openings in 2024; clear opportunity for significantly more than 3,000 UK shops over longer term
Evening trade:
· More than 1,200 sites competing for food-on-the-go-sales until 7pm or later
· Existing range popular; hot chicken goujons, potato wedges and pizzas selling well
· Evening fastest growing daypart; 8.7% of company-managed shop sales in H2
Digital channels:
· Delivery reach extended, now available on Just Eat (1,340 shops) and Uber Eats (930 shops) platforms (1,440 shops in total) with sales up 23.6% in 2023
· Greggs App scanned in 12.5% of company-managed shop transactions (2022: 6.2%)
Supply chain investment:
· Fourth production line installed at Balliol Park in Newcastle upon Tyne, which will provide circa 35% additional manufacturing capacity for our savoury rolls and bakes
· Work progressing well to expand logistics capacity of Birmingham and Amesbury distribution centres, both due to come on stream later in 2024
· Two new state-of-the-art facilities planned to facilitate further expansion. First site in Derby secured and second site planned for the Kettering/Corby area
Greggs Pledge highlights:
· Greggs Foundation Breakfast Clubs continue to grow; 896 schools feeding 62,000 school children every day
· Now have 35 Outlet shops, providing unsold Greggs’ products at a discount
· 2040 net zero carbon target fully embedded into our business processes; emissions reduction targets introduced to long-term incentive schemes
· Eco-shop successes being rolled out across shop estate
Current trading
· Greggs has started 2024 well – like-for-like sales in company-managed shops up 8.2% in the first nine weeks of 2024
· No change to management’s expectations for 2024. Confident that Greggs can deliver another year of good progress
Roisin Currie, Chief Executive commented:
“Reflecting on another year of rapid growth, I am so proud of how our teams have risen to the challenge of serving more customers through more channels. Whether in our shops, our manufacturing sites, our distribution network, or in Greggs House, our teams stepped up to make sure that we kept pace with the increased customer demand as we delivered on our strategic growth plan.
“We are very much on track to deliver our bold five-year growth plan to double sales by 2026 and to have significantly more than 3,000 shops in the UK over the longer term.”
| ENQUIRIES:Greggs plc Roisin Currie, Chief ExecutiveRichard Hutton, Chief Financial OfficerDavid Watson, Head of IRTel: 0191 281 7721 | Hudson Sandler Wendy Baker / Hattie Dreyfus /Nick Moore / Emily BrookerEmail: greggs@hudsonsandler.comTel: 020 7796 4133 |