Greggs PLC Trading Update (5660L)
04 October 2016 - 5:00PM
UK Regulatory
TIDMGRG
RNS Number : 5660L
Greggs PLC
04 October 2016
4 October 2016
GREGGS plc
THIRD QUARTER TRADING UPDATE
Greggs is the leading bakery food-on-the-go retailer in the
UK,
with over 1,700 retail outlets throughout the country
TRADING IN LINE WITH EXPECTATIONS
-- Total sales up 5.6% for the 13 weeks to 1 October
-- Company-managed shop like-for-like sales up 2.8% for the 13 weeks to 1 October
-- 145 refits completed year-to-date
-- 103 new shops opened year-to-date, 58 closures
-- Balanced Choice and breakfast products popular over the summer months
-- New Enfield distribution centre ready to commence operations
Trading performance
Greggs continued to trade in line with our expectations in the
third quarter. In the 13 weeks to 1 October 2016 total sales grew
by 5.6 per cent (2015: 5.0 per cent) and like-for-like sales in
company-managed shops increased by 2.8 per cent (2015: 4.9 per
cent), in line with our expectations. Total sales have grown by 5.6
per cent in the year-to-date and like-for-like sales have increased
by 3.4 per cent.
The popularity of our summer menu including an extended range of
Balanced Choice salads and yoghurts supported sales growth in the
period. We also saw continued strong growth at breakfast time,
helped by our strong coffee offer and value deals.
Shop estate development
In the year-to-date we have completed 145 shop refurbishments
and are on track to refurbish around 200 shops this year. We have
also opened 103 new shops, including 41 franchised units
predominantly in transport locations. We have closed 58 shops,
giving a total of 1,743 shops trading at 4 October (comprising
1,600 of our own shops and 143 franchised units).
The pipeline of new shop locations remains good and for the year
as a whole we still expect to open 140-150 shops and close circa
70-80, a net increase of around 70.
Outlook
We have now launched our autumn/winter menu which includes new
lower-calorie Balanced Choice bakes and soups along with a range of
new snacks with gluten-free options. Chipotle Pulled Beef, Fiery
Pulled Chicken and Onion Bhaji burritos are exciting new additions
to our successful hot sandwich range.
We are making good progress with the first stages of our supply
chain investment plan. The work to facilitate our new distribution
centre in Enfield is now finished and the site will be brought into
operation in the coming weeks. As a result we will complete the
previously-announced closure of our Twickenham bakery in
November.
Given trading to date and the outlook, our expectations for the
full year outturn remain unchanged. As we look to next year, whilst
we anticipate some general industry-wide cost pressures, we expect
to make further progress against our strategic plan.
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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