Greggs PLC Q4 Trading Update (7180L)
05 January 2023 - 6:00PM
UK Regulatory
TIDMGRG
RNS Number : 7180L
Greggs PLC
05 January 2023
5 January 2023
GREGGS plc
FOURTH QUARTER TRADING UPDATE
Greggs is a leading UK food-on-the-go retailer,
with around 2,300 retail outlets throughout the country
Strong quarter ends a year of encouraging strategic progress
Robust financial position supports growth plans
-- Financial year 2022* ("FY22") total sales up 23.0% to GBP1,513m (2021: GBP1,230m)
-- LFL sales** for fourth quarter up 18.2%
-- LFL** sales for FY22 up 17.8%
-- 186 new shops opened in the year, 39 closures
-- 2,328 shops trading as at 31 December 2022
-- Strong growth in digital and early evening sales
-- Robust cash position to support investment in growth plans
-- Anticipate full year outcome in line with our previous expectations
* 52 weeks ended 31 December 2022 (2021: 52 weeks ended 1
January 2022)
** Like-for-like (LFL) company-managed shop sales performance
against comparable period in 2021
Roisin Currie, Chief Executive commented:
"I am proud of the progress Greggs made during 2022 in
challenging conditions. Our teams did a magnificent job serving
customers and managing the growing demand for Greggs products as we
expand our shop estate and offer greater availability through
digital channels and longer trading hours, whilst continuing to
extend our menu to offer more choice.
" We enter 2023 in a strong financial position that will enable
us to invest in shops and supply chain capacity to bring Greggs to
even more customers across the UK. While market conditions in 2023
will remain challenging, our value-for-money offer of
freshly-prepared food and drink is highly relevant as consumers
look to manage their budgets without compromising on quality and
taste."
Trading update
Sales for FY22 were GBP1,513 million, an increase of 23.0%
compared with the equivalent period in 2021. Like-for-like sales in
company-managed shops were 17.8% higher than sales seen in
2021.
Despite the impact of adverse weather and strikes at the end of
2022, fourth quarter like-for-like sales in company-managed shops
grew by 18.2%. This reflected a favourable trading pattern leading
into the Christmas period and softer trading conditions in the
comparable quarter of 2021 as a result of disruption caused by the
omicron variant of coronavirus.
Seasonal lines were in high demand in the fourth quarter,
including our iconic Festive Bake, which featured alongside its
vegan-friendly alternative, our shop-baked Sweet Mince Pies and our
festive hot drinks including the Salted Caramel Latte. Plant-based
foods are contributing more significantly to our range over time
and the introduction of new hot options such as the Vegan Festive
Baguette is testament to this trend.
At a time when consumers are increasingly focused on value, we
have seen strong growth in use of the Greggs App. This rewards
customers for their loyalty with free products across our entire
range, as well as giving access to features such as Click +
Collect, nutritional information and delivery options.
During the year we opened 186 new shops (including 70 franchised
units) and closed 39, growing the estate to 2,328 shops as at 31
December 2022, 441 of which are franchised shops operated by our
partners. 500 of our shops are now open until 8pm and early-evening
is now the fastest growing daypart as we extend availability to
both walk-in and delivery customers.
Financial position and outlook
Greggs ended 2022 with a cash position of GBP191 million, partly
reflecting phasing of capex investment, which we have previously
described. This will support our plans to invest further in growing
both our shop estate and supply chain capacity in the year ahead.
The pipeline of new shop opportunities remains strong and we expect
to open around 150 net new stores again in 2023.
Given our strong trading in the year, together with careful cost
control, we anticipate reporting a full year outcome for FY22 in
line with our previous expectations when we report our preliminary
results for 2022 on 7 March 2023.
We continue to see material cost inflation in the year ahead.
However, whilst consumers are clearly seeing pressures, our value
offering remains attractive in the food-on-the-go market. We are
confident in delivering another year of good progress in 2023 and
remain excited by the significant growth opportunity for Greggs in
the years ahead.
ENQUIRIES:
Greggs plc Hudson Sandler
Roisin Currie, Chief Executive Wendy Baker / Nick Moore
Richard Hutton, Finance Director Sophie Miles / Emily Brooker
Tel: 0191 281 7721 Tel: 020 7796 4133
Email: greggs@hudsonsandler.com
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