Greggs PLC Trading Update (5293L)
16 May 2022 - 4:01PM
UK Regulatory
TIDMGRG
RNS Number : 5293L
Greggs PLC
16 May 2022
16 May 2022
GREGGS PLC
TRADING UPDATE
Recovery continues
Highlights
-- 27.4% LFL* sales growth for first 19 weeks
-- 49 new shops opened in first 19 weeks, 6 closures, strong pipeline
-- Cost pressures increasing
-- Trading in line with plan, expectations for the full year outcome unchanged
* Like-for-like (LFL) company-managed shop sales performance
against comparable period in 2021
Trading performance
Greggs has traded well in the first 19 weeks of 2022.
Like-for-like (LFL) sales in company-managed shops grew by 27.4%, a
figure that is flattered by comparison with restricted trading
conditions in the same period of 2021. Since we last reported,
like-for-like sales growth in the most recent ten weeks to 14 May
(when lockdowns in 2021 were easing) has averaged 15.8% and we
expect this figure to continue to normalise as we start to compare
with more robust trading periods in 2021.
Sales levels in larger cities and in office locations continue
to lag the rest of the estate but transport locations have shown a
marked increase in activity in recent weeks. Sales of hot food and
snacks are showing particularly strong growth, with chicken goujons
and potato wedges proving popular.
Total sales in the 19 weeks to 14 May 2022 were GBP495 million
(2021: GBP378 million).
Shop estate
In the first 19 weeks of 2022 we opened 49 new shops, including
18 with our franchise partners. Recent shop openings include a
number of retail parks and new travel-based units at Birmingham and
Liverpool airports. In the year to date we have closed 6 shops,
giving a total of 2,224 shops trading at 14 May (comprising 1,831
company-managed shops and 393 franchised units).
Outlook
We have made a good start to 2022, with sales in line with our
plan and a strong pipeline of new shop acquisitions ahead. Looking
ahead, market-wide cost pressures have been increasing and consumer
incomes will clearly be under pressure in the second half of the
year. We will continue to work to mitigate the impact of cost
pressures whilst protecting Greggs' reputation for exceptional
value.
Whilst considerable uncertainties remain, we are in line with
our plan and the Board's expectations for the full year outcome
remain unchanged.
ENQUIRIES:
Greggs plc Hudson Sandler
Roger Whiteside, Chief Executive Hattie Dreyfus / Nick Moore /
Richard Hutton, Finance Director Sophie Miles
Tel: 0191 281 7721 Tel: 020 7796 4133
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END
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