7 March 2023
GREGGS PLC
(“Greggs” or the “Company”)
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 31 DECEMBER 2022
Strong performance and good strategic progress with record shop openings
2022 Financial highlights
· Total sales* up 23% on 2021 level to £1,513 million (2021: £1,230 million)
· LFL** sales in company-managed shops up 17.8% year-on-year
· Pre-tax profit up 1.9% to £148.3 million (2021: £145.6 million)
· Robust cash position of £191.6 million supporting plans for future investment in growth
· Diluted earnings per share 117.5p (2021: 114.3p)
· Final dividend of 44.0p per share recommended, taking total ordinary dividend per share to 59.0p (2021: 57.0p ordinary dividend***)
* 52 weeks ended 31 December 2022 (2021: 52 weeks ended 1 January 2022)
** like-for-like sales in company-managed shops (excluding franchises) with a calendar year’s trading history
*** 2021 additional special dividend of 40.0p paid
Strategic progress
Growing and developing the Greggs estate:
· Record 186 new shop openings in 2022 and 39 closures (147 net openings), growing the estate to 2,328 shops as at 31 December 2022
· Continued to expand our presence in retail parks, Central London as well as key transport hubs, with shops opening in Leicester Square, Liverpool Street Station and Birmingham and Liverpool airports
· Targeting 150 net openings in 2023; clear opportunity for significantly more than 3,000 UK shops in time
· Relocated 25 existing shops to better sites in 2022 to support growth and refurbished 86 existing shops to our latest format
Evening trade:
· 500 shops now open until 8pm or beyond; further development planned for 2023
· Pizza sales and chicken goujons growing well, including sharing boxes via delivery service
· Strongest growing daypart is now post-4pm
Digital channels:
· 1,270 shops now operating delivery services, circa 5% of sales overall
· Delivery volumes normalising as in-store volumes recover post-Covid, but longer-term opportunity remains intact
· Click + Collect on the Greggs App allows a customer to see our menu, personalise their order, then skip any queue to pick it up
Broadening customer appeal and driving loyalty:
· Brand health and market share at an all-time high
· Strong growth in the use of the Greggs App as customers value rewards for loyalty
‒ 1.1 million individual active users of the app in Q4 2022 (Q4 2021: 0.4 million)
· Provides a platform for more personalised engagement, with exclusive offers and benefits
‒ 8.1% of company-managed shop transactions scanned the Greggs App for benefits in Q4 2022
Supply chain investment:
· Supply chain investments laying the foundation for Greggs’ next phase of growth
· New pizza manufacturing plant opened in Enfield, additional pastry savoury capacity at Balliol Park under construction
· Plans for expansion of logistics capacity progressing well
Greggs Pledge ESG targets:
· Near-term s cience-based emissions reduction targets based on a 1.5ºC pathway approved by the Science Based Targets initiative
· First Eco-Shop opened, a brand new and bespoke format to test ways to reduce the environmental impact of our estate
· 789 Breakfast Clubs supported in primary schools across the UK, serving a free breakfast to 49,000 school children each day
· 30th Greggs Outlet shop opened, helping to tackle food waste by redistributing unsold food items and investing back into local charities working to tackle food insecurity
· National Equality Standard achieved, recognising progress on diversity and inclusion
Current trading
· Like-for-like sales in company-managed shops up 18.8% in the first nine weeks of 2023, in line with our expectations and reflecting the impact of Omicron in the comparator period
· Confident in prospects for 2023, and the medium-term opportunity to become a significantly larger multichannel business
Roisin Currie, Chief Executive commented:
“2022 has been a year of strong progress for Greggs, the result of committed efforts to deliver our strategic growth plan. The significant opportunities on which the plan is based will remain centre stage in the year ahead as we make Greggs more accessible to even more customers. Although consumer incomes remain under pressure, Greggs continues to offer exceptional value to people looking for great tasting, high-quality food and drink on-the-go.
“We have an exciting, ambitious plan for the years ahead and, by continuing to nurture what makes Greggs special, I believe we are extremely well-placed to realise the opportunity to become a significantly larger, multi-channel business.”
| ENQUIRIES:Greggs plc Roisin Currie, Chief ExecutiveRichard Hutton, Chief Financial OfficerDavid Watson, Head of IRTel: 0191 281 7721 | Hudson Sandler Wendy Baker / Nick Moore /Sophie Miles / Emily BrookerEmail: greggs@hudsonsandler.comTel: 020 7796 4133 |
| An audio webcast of the analysts’ presentation will be available to download later today at http://corporate.greggs.co.uk/ |
Chair’s statement
I am delighted to have taken over as Chair of Greggs, a business and brand that I have long admired, and it’s great to have joined a company that has, once again, delivered a strong performance in a challenging trading environment. Since joining the Board I have been struck by the capability of the team, the organisational culture and values, and the customer-centric focus across the breadth of the organisation. This puts Greggs in a strong position to deliver on its strategic plan and the many growth opportunities that lie ahead.