Greggs PLC Trading Update (4717Z)
16 Mayo 2023 - 1:00AM
UK Regulatory
TIDMGRG
RNS Number : 4717Z
Greggs PLC
16 May 2023
16 May 2023
GREGGS plc
TRADING UPDATE
Continued strong trading performance
Highlights for the first 19 weeks of 2023
-- 17.1% LFL* sales growth, in part reflecting the impact of Omicron in early 2022
-- 63 new shops opened, 26 closures; strong pipeline of new shop and relocation opportunities
-- Continued progress with sales growth initiatives
-- No change in cost inflation expectations
-- Commenced projects to invest in additional logistics capacity
-- Board's expectations for the full year outcome unchanged
* Like-for-like (LFL) company-managed shop sales performance
against comparable period in 2022
Trading performance
Greggs performed strongly in the first 19 weeks of 2023 as we
progressed our strategic growth plan against a challenging
macroeconomic backdrop. Like-for-like (LFL) sales in
company-managed shops grew by 17.1%, in part reflecting the impact
of Omicron in the first nine weeks of 2022. LFL sales growth in the
ten weeks to 13 May has averaged 15.7% and we expect this figure to
continue to normalise as we annualise against the actions taken in
2022 to mitigate against inflation.
Menu development continues to support our strategic growth
objectives. Sales of hot food and snacks including chicken goujons
and wedges are showing particularly strong growth. Pizza is also
proving popular, with our Late Trade Pizza Deal driving sales in
the evening daypart. We have also continued to grow our plant-based
offering, with the new Vegan Mexican Chicken-Free Bake being the
latest addition to the menu and were delighted that our Sweet
Potato Bhaji and Rice salad bowl recently won the Healthy Eating
award at The Sammies 2023.
Total sales in the 19 weeks to 13 May 2023 were GBP609 million
(2022: GBP495 million).
Shop estate and supply chain development
During the period we opened 63 new shops, including 25 with our
franchise partners. Recent shop openings have included sites at
Canary Wharf Station and at Glasgow and Cardiff airports. The
pipeline for the remainder of the year is strong. In the year to
date we have closed 26 shops, giving a total of 2,365 shops trading
at 14 May (comprising 1,908 company-managed shops and 457
franchised units).
In line with our previously-communicated capital expenditure
plans, investment projects at our Birmingham and Amesbury
distribution centres are under way and will deliver additional
logistics capacity to support further expansion of our shop estate.
We anticipate that this additional capacity will become available
in the second half of 2024.
Outlook
We have made a good start to the year with sales in line with
plans and continued progress on our strategic initiatives. Looking
ahead, whilst we expect the macro backdrop to continue to be
challenging, we are confident in making further progress.
Although we expect to see ongoing material cost inflation, we
have good forward cover on key commodities. Consumer disposable
incomes are likely to stay under pressure, but we remain confident
that our outstanding value proposition continues to be
compelling.
Whilst uncertainties continue, the Board's expectations for the
full year outcome are unchanged.
ENQUIRIES:
Greggs plc Hudson Sandler
Roisin Currie, Chief Executive Wendy Baker / Nick Moore
Richard Hutton, Chief Financial Officer Sophie Miles / Emily Brooker
David Watson, Investor Relations Tel: 020 7796 4133
Tel: 0191 281 7721 Email: greggs@hudsonsandler.com
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END
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May 16, 2023 02:00 ET (06:00 GMT)
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