Greggs PLC Trading Update (9995X)
10 May 2021 - 4:00PM
UK Regulatory
TIDMGRG
RNS Number : 9995X
Greggs PLC
10 May 2021
10 May 2021
GREGGS plc
TRADING UPDATE
Greggs is a leading UK food-on-the-go retailer,
with more than 2,000 retail outlets throughout the country
Strong recovery in sales levels
Highlights
-- Strong recovery in sales levels following easing of restrictions
-- Two-year LFL* in latest eight-weeks -3.9%, with positive
two-year LFL since non-essential retail reopened
-- Two-year LFL* for first 18 weeks -13.5%
-- Delivery service now available from 800 shops; sales
represented 8.2 per cent of company-managed shop sales in the most
recent eight weeks
-- 34 new shops opened in first 18 weeks, 11 closures
-- Considerable uncertainty remains but profits for the year
could be around 2019 levels, materially higher than the Board's
previous expectation
* Like-for-like (LFL) company-managed shop sales performance
against comparable period in 2019
Trading performance
In recent weeks, following the easing of restrictions across the
UK, we have seen a strong recovery in sales levels. With trading in
2020 having been severely impacted by the temporary closure of our
shops we are now reporting like-for-like sales performance on a
two-year basis, against the comparable period in 2019 ("two-year
LFL").
Through the year to date, we have seen continued improvement in
our sales performance. Performance across periods, on a two-year
LFL basis, was as follows:
10 weeks to 13 March -23.3%
8 weeks to 8 May -3.9%
-------
18 weeks to 8 May -13.5%
-------
We saw a significant pick up in sales with the reopening of
non-essential retail from 12 April, in part reflecting the pent-up
demand for retail which has boosted High Street footfall. Our
two-year LFL growth since 12 April has been positive.
Total sales in the 18 weeks to 8 May 2021 were GBP352 million
(2020: GBP280 million, 2019: GBP373 million).
Delivery sales continue to contribute positively to performance,
representing 8.2 per cent of company-managed shop sales in the most
recent eight weeks. We have now successfully rolled out delivery
services to 800 of our shops.
The current trading environment is clearly highly unusual,
making it difficult to predict how sales will develop. In the
coming weeks the Government's roadmap is likely to lead to further
relaxation of restrictions and we will see increased competition as
cafes and restaurants are able to compete more effectively with our
largely take-out offer. Nonetheless we are pleased with the
progress that we have made so far this year in both the walk-in and
delivery channels.
Shop estate
In the first 18 weeks of 2021 we opened 34 new shops, including
13 with our franchise partners. The emphasis of our estate
expansion continues to be in those locations where performance has
proved to be most robust, such as Retail Parks, Roadside and Petrol
Filling Stations. In the year to date we closed 11 shops, giving a
total of 2,101 shops trading at 8 May (comprising 1,761
company-managed shops and 340 franchised units).
Outlook
Sales have recovered well in recent weeks as out-of-home
activity levels have increased, albeit in the absence of
competition from indoor seated catering operators. If restrictions
continue to ease in line with current plans then we now expect our
overall sales performance for the year to be stronger than we had
previously anticipated. Costs have been well-controlled and the
rate of cost inflation we are experiencing is in line with our
plans for the year.
Providing guidance on the profit outcome for 2021 remains
difficult given the uncertainties surrounding trading conditions.
However, given our recent trading performance, the Board now
believes that profits are likely to be materially higher than its
previous expectation, and could be around 2019 levels in the
absence of further restrictions.
ENQUIRIES:
Greggs plc Hudson Sandler
Roger Whiteside, Chief Executive Wendy Baker / Nick Moore
Richard Hutton, Finance Director Tel: 020 7796 4133
Tel: 0191 281 7721
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