Greggs PLC Trading Update (9673B)
13 January 2015 - 6:00PM
UK Regulatory
TIDMGRG
RNS Number : 9673B
Greggs PLC
13 January 2015
13 January 2015
GREGGS plc
TRADING UPDATE
Greggs is the leading bakery food-on-the-go retailer in the
UK,
with 1,650 retail outlets throughout the country
Very strong finish to the financial year
Christmas trading
-- December* own shop like-for-like sales up 8.2% (2013 comparable period up 3.1%)
-- Very strong Christmas trading focused on serving the food-on-the-go customer
Financial year 2014**
-- Total sales up 5.5%, own shop like-for-like sales up 4.5%
-- Fourth quarter own shop like-for-like sales up 6.0%
-- Estate improvement programme - 213 shop refurbishments completed in the year
-- 50 new shop openings (including 20 with franchise partners), 71 closures
-- 1,650 shops trading as at 3 January 2015
-- Full year results anticipated to be above previous expectations
* Five week period ended 3 January 2015
** 53 weeks ended 3 January 2015 (total sales growth compares with 52 weeks in 2013)
Chief Executive Roger Whiteside comments:
"Since our last update on 15 December we have experienced a very
strong level of trade through the Christmas and New Year period.
Customers have clearly responded to the improvements in our product
offer and service, designed to meet the needs of the food-on-the-go
consumer, during this busy period.
"This has been a year in which we have made good progress with
our strategic plans and seen a welcome improvement in financial
performance. We remain clear on our priorities and are confident
that we can make further progress in the year ahead."
Trading update
We traded strongly through the Christmas and New Year period.
Since we last updated the market own shop like-for-like sales in
the three weeks to 3 January have risen by 9.3 per cent. For the
five week trading period ended 3 January 2015 total sales grew by
7.6 per cent and like-for-like sales grew by 8.2 per cent (five
weeks ended 4 January 2014: up 3.1 per cent on a like-for-like
basis).
Our 'food-on-the-go' focused product range clearly struck a
chord with customers over the Christmas period with growth in sales
of sandwiches, sausage rolls and coffee. Sales of our "Balanced
Choice" range of products with fewer than 400 calories continue to
grow and new products such as our fresh soups and our steak and
cheese roll were well received.
For our 2014 financial year as a whole (53 weeks ended 3 January
2015) total sales grew by 5.5 per cent including the impact of the
additional trading week and like-for-like sales were up by 4.5 per
cent. Sales have steadily improved during the year with own shop
like-for-like sales growth in the fourth quarter averaging 6.0 per
cent. Whilst trading conditions and the weather have been helpful,
customers have clearly responded well to the improvements we have
made to products, our service offer, and the investments we
continue to make in the shop environment.
During the year we opened 50 new shops (including 20 franchised
units) and increased the number of shop closures to 71 resulting in
1,650 shops trading at 3 January 2015. We now have 45 franchised
shops operating in travel and other convenience locations and
continue to see this as a route to further growth.
We successfully completed 213 shop refurbishments in the year.
Returns continue to be good and we anticipate progressing with the
estate improvement programme at a similar rate in the year
ahead.
Outlook
Following the very strong finish to the financial year we now
anticipate that we will report full year results above previous
expectations when we make our preliminary announcement on 4 March
2015. Conditions for the first half of 2015 look encouraging with
low input cost inflation expected along with an improved outlook
for disposable incomes. In the year ahead we will continue to
implement our plan to reshape the business to compete more
effectively in the food-on-the-go market and create a strong
platform for sustainable long term growth.
ENQUIRIES:
Greggs plc Hudson Sandler
Roger Whiteside, Chief Executive Wendy Baker / Alex Brennan
Richard Hutton, Finance Director Tel: 020 7796 4133
Tel: 0191 281 7721
This information is provided by RNS
The company news service from the London Stock Exchange
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