Greggs returns to profit
Greggs has made a full year profit of £145.6 million in the year to 1 January following a loss of £13.7 million in the previous year.
While total sales rose by 5.3% on two-year basis to £1.2 billion, like-for-like sales in company-managed shops were 3.3% down on 2019 levels before the pandemic struck.
Roger Whiteside, Greggs chief executive, said: “Our results and achievements in 2021 show that we have emerged from the pandemic both stronger and better as a business. I would like to thank, once again, all of our teams across the country who rose so well to meet the challenges of the last two years.”
The company opened 31 new shops in 2021 and closed 28, which meant there were 2,181 shops trading as of 1 January. From 2022, Greggs is aiming to have 150 annual net new shop openings, with the potential for at least 3,000 shops in the UK over time. It will also be improving the quality of its estate with 200 refurbishments.
Greggs has also announced that it is planning to extend late opening to 500 shops in the year ahead when it will offer its core menu and hot food trials. To complement the move, it will extend its delivery reach from 1,000 to 1,300 shops.
Whiteside said the company has started 2022 well following the easing of Covid-19 restrictions, although cost pressures are currently more significant than initial expectations.
He added: “Despite these near-term pressures, we continue to believe that the opportunities for Greggs have never been more exciting. Our investment over recent years has left the business well-placed to move quickly as the economy recovers and we drive our ambitious plans to become a larger, multichannel business.”
