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Greggs posts increase in sales and profit

Tuesday March 1st 2016

Greggs has said it achieved an “excellent” performance in the year to 2 January as it continues to transform itself from a traditional bakery business to a food-on-the-go retailer.

Total group sales were £835.7 million which marked an increase of 5.2% when the impact of an additional week in 2014 was excluded. Company-managed shop like-for-like sales climbed by 4.7% across the year, measured on a consistent 52 week basis.

Pre-tax profit excluding exceptional items increased by 25.4% to £73 million.

Greggs said growth was driven by its focus on the growing food-on-the-go market and improvements to its product range including 'heat-to-eat' sandwiches and an extended breakfast menu.

During the year, Greggs opened 122 new shops and closed 74, resulting in 1,698 shops trading at 2 January 2016. Some 90% of new shop locations were away from high streets in areas such as retail and industrial parks, motorway service stations and travel hubs.

Greggs said it is planning to invest £100 million in manufacturing and distribution operations over the next five years

Roger Whiteside, Greggs chief executive, said: "In 2015 we delivered another excellent performance in the second year of our strategy to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer.

“We have made significant progress across the business change programme, consequently our estate is stronger and our products, value and service are all improving the experience for customers.

“This year has started well and the consumer outlook remains positive with disposable incomes expected to grow further in 2016. Overall 2016 will be another year of significant change as we advance with our strategic plan and propose major investment in our supply chain. Alongside this we are confident of delivering a further year of underlying growth."