Greggs has defied the doom and gloom on the high street by posting a strong increase in annual sales and profit.
Over the year to 28 December, the food-on-the-go retailer saw its total sales climb 13.5% to £1.68bn, with like-for-likes in company-owned shops surging up 9.2%. Pre-tax profit before exceptional items rose 27.2% to £114.2m.
The group’s performance was driven by 97 net store openings and strong response to new products such as its vegan sausage roll. It also commenced the roll-out of a delivery service in partnership with Just Eat.
Chief Executive Roger Whiteside said: “2019 was an exceptional year of progress for Greggs, during which we experienced a sustained increase in customer visits as increased awareness and appreciation of our brand gathered momentum.”
He said the business had made a strong start to 2020, although the storms in February had impacted sales. Despite this, company-managed shops saw like-for-like sales climb by 7.5% in the nine weeks to 29 February.
Whiteside also warned of uncertainty ahead because of the potential impact of the coronavirus. “This aside we expect to make year-on-year progress and will do so from a strong financial position, supporting our investment for further growth whilst also delivering good returns for all stakeholders,” he said.
NAM Implications:
- Key to check your Greggs sales vs. these results…
- It goes without saying that potential opportunities are often revealed in the process…
