Greggs PLC Trading Update (5120L)
12 January 2016 - 6:00PM
UK Regulatory
TIDMGRG
RNS Number : 5120L
Greggs PLC
12 January 2016
12 January 2016
GREGGS plc
FOURTH QUARTER TRADING UPDATE
Greggs is the leading bakery food-on-the-go retailer in the
UK,
with almost 1,700 retail outlets throughout the country
A good finish to an excellent year
Financial year 2015*
-- Total sales up 5.2% against comparable 52 weeks in 2014**
-- Company-managed shop like-for-like sales up 4.7%
-- Fourth quarter company-managed shop like-for-like sales up 2.3%
-- 202 refits completed in 2015, plus 20 conversions of larger bakery cafés
-- 122 new shops opened in the year, 74 closures
-- 1,698 shops trading as at 2 January 2016
-- Full year results anticipated to be in line with previous expectations
* 52 weeks ended 2 January 2016 (2014: 53 weeks to 3 January
2015)
** Statutory total sales for 2015 (52 weeks) up 3.7% against a
53 week year in 2014
Chief Executive Roger Whiteside comments:
"2015 saw us deliver another excellent year of progress as we
continue to transform Greggs into a modern, well-invested
food-on-the-go retailer.
"We anticipate that we will report full year results for 2015 in
line with our previous expectations. In the year ahead we will
continue with the implementation of our strategic plan to enable
the business to compete more effectively in the food-on-the-go
market."
Trading update
For our 2015 financial year as a whole (52 weeks ended 2 January
2016) total sales grew by 5.2 per cent on a comparable 52 week
basis and company-managed shop like-for-like sales grew by 4.7 per
cent. As we expected, like-for-like sales growth slowed to 2.3 per
cent in the fourth quarter as we came up against stronger
comparatives and the impact of weaker footfall in some shopping
locations. Sales over the Christmas period were in line with the
overall trend for the fourth quarter.
Sales growth has been particularly strong in sandwiches and
drinks, including our healthier options 'Balanced Choice' range
including new salads and 'no added sugar' drinks. Our new hot food
menu, with an improved hot sandwich range and fresh soups, is also
selling well as customers become increasingly aware of our new
food-on-the-go options. Seasonal favourites such as our
award-winning mince pies and Festive Bake made a strong
contribution to sales over the Christmas and New Year period.
Customer demand for breakfast-on-the-go continues to make this our
fastest growing part of the day with sales of coffee continuing to
grow strongly. We plan to add 'flat white' and an improved 'mocha'
to our coffee menu early in the New Year.
During the year we opened 122 new shops (including 61 franchised
units) and closed 74, growing the estate to 1,698 shops trading as
at 2 January 2016. We now have 105 franchised shops operated by
partners in travel and other convenience locations.
In 2015, we completed 222 shop refurbishments including the
conversion of 20 of our larger bakery cafés to the "bakery
food-on-the-go" format. This transformational programme continues
to go well and we will invest at a similar rate in the year
ahead.
Outlook
Since our last update, trading has been broadly consistent with
our plans and we anticipate that we will report full year results
in line with our previous expectations when we make our preliminary
announcement on 1 March 2016.
In the year ahead we will continue with the implementation of
our strategic plan to transform the business so that it can be ever
more competitive in the food-on-the-go market, whilst also driving
efficiencies and adding capacity for further sustainable
growth.
ENQUIRIES:
Greggs plc Hudson Sandler
Roger Whiteside, Chief Executive Wendy Baker / Alex Brennan / Jessica Reid
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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