REG - Greggs PLC - Interim Results
Tue 07:00
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RNS Number : 8795S Greggs PLC 29 July 2025
29 July 2025
GREGGS PLC
("Greggs" or "the Company")
INTERIM RESULTS FOR THE 26 WEEKS ENDED 28 JUNE 2025
Continued strategic progress, focused on becoming more convenient to more
customers
First half financial highlights
H1 2025 H1 2024
Total sales £1,027.7m £960.6m
Operating profit £70.4m £75.8m
Pre-tax profit £63.5m £74.1m
Diluted earnings per share 45.3p 53.8p
Ordinary interim dividend per share 19.0p 19.0p
· Total first-half sales up 7.0%, with company-managed shop LFL* sales
up 2.6% and franchised shop LFL* sales up 4.8%
· First half impacted by challenging market footfall, more weather
disruption than in 2024, and phasing of cost headwinds
· Interest income reduced as a result of cash deployment into
investment programme
· Operating profit down 7.1% to £70.4 million, profit before tax down
14.3% to £63.5 million
· Interim dividend of 19.0p pence per share declared (2024: 19.0p)
* Like-for-like (LFL) company-managed / franchise shop sales performance
against 2024 comparable period, where shops have a calendar year's trading
history (excluding any shops which opened, relocated or closed in the current
or prior year)
Operational and strategic progress
Growing and developing the Greggs estate:
· Continued expansion of footprint beyond traditional high street
locations to provide more convenient access to Greggs and reach more customers
· Opened 87 new shops in the first half with 56 closures (including 27
relocations), resulting in 31 net openings, growing the estate to 2,649 shops
trading as at 28 June 2025
· Analysis of shop performance and App customer behaviour demonstrates
that increasing convenient access to Greggs, as customers go about their busy
lives, drives greater purchase frequency across new and core shops
· Strong pipeline of good opportunities that are expected to deliver on
our return on investment targets - remain on track to achieve 140 to 150 net
new shop openings in 2025 (openings are typically weighted to the second half)
· Continue to see clear opportunity for significantly more than 3,000
UK shops over longer term.
Innovation:
· In September 2025, we will extend availability of our frozen 'Bake at
Home' range through a new relationship with Tesco. This builds on our years of
success with Iceland Foods, which remains an important partner to Greggs
· Ongoing menu development supporting growth across all dayparts and
channels:
o Healthier choice range seeing good momentum, supported by successful
launches including Plenish Ginger Immunity and Turmeric Recovery health shots,
fat-free Greek-style yoghurt with Strawberry Compote, as well as new
sandwiches such as our Korean BBQ Chicken Flatbread
o Breakfast and lunch deals remain highly competitive and are great value
customer favourites, offering quality and affordable choices
o Strong performance in key growth areas such as pizza and iced drinks,
where new flavours, expanded availability and compelling value are helping us
meet customer needs throughout the day
· Progress continues in the evening daypart and new channels:
o Evening remains our fastest growing daypart, up to 9.3% of company-managed
shop sales (H1 2024: 8.4%), driven by strong demand in higher-footfall
locations
o Sales through delivery channels represented 6.8% of company-managed shop
sales in the first half (H1 2024: 6.7%)
o The Greggs App was scanned in 25.7% of company-managed shop transactions
(H1 2024: 18.3%), with customers who engage with the App shopping more
frequently than previously
· Greggs remains the UK's leading food-to-go brand (Source: YouGov
Brand Index, June 2025) with a sector-leading reputation for value.
Supply chain investment:
· New frozen manufacturing and logistics site in Derby is now built.
Work is progressing to install the stock management and picking automation,
along with the first production line. The site is expected to be operational
in the first half of 2026
· Initial build phase for our new National Distribution Centre in
Kettering is progressing well. This site, expected to be operational in the
first half of 2027, will support our existing Radial Distribution Centres to
service circa 700 additional shops through the automated upstream picking of
chilled and ambient goods.
"After a challenging start to 2025 we remain clear on the strategic
opportunities that lie ahead. Through our disciplined estate expansion and
focus on innovation, Greggs is evolving its offer further and making the brand
more convenient for a wider range of customers. The outlook for cost inflation
is unchanged and we are making great progress in building the supply chain
infrastructure that will support the next phase of growth. The Board's
expectations for the full year are consistent with the guidance provided in
our last trading update on 2 July."
- Roisin Currie CBE, Chief Executive
ENQUIRIES:
Greggs plc (http://www.greggs.co.uk) Hudson Sandler (http://www.hudsonsandler.com)
Roisin Currie, Chief Executive Wendy Baker / Hattie Dreyfus
Richard Hutton, Chief Financial Officer / Emily Brooker
David Watson, Head of IR Email: greggs@hudsonsandler.com (mailto:greggs@hudsonsandler.com)
Tel: 0191 281 7721 Tel: 020 7796 4133
An audio webcast of the analysts' presentation will be available to download
later today at http://corporate.greggs.co.uk/ (http://corporate.greggs.co.uk/)
CHIEF EXECUTIVE'S REPORT
Against a challenging market, Greggs continued to grow sales in the first half
of 2025. Total sales for the 26 weeks to 28 June 2025 were £1,027.7 million,
an increase of 7.0% (H1 2024: £960.6 million). Like-for-like ('LFL') sales in
company-managed shops grew by 2.6% and franchise shop LFL 'system sales' grew
by 4.8% when compared with the equivalent period of 2024.
We continue to make progress against our strategic plan, which targets
profitable growth by making Greggs more convenient for customers whilst
innovating to evolve our value-led food and drink menu in line with changing
tastes and market trends. With significant opportunities ahead, we are
investing in additional supply chain capacity and in the technology that will
support our ambitions.
Operational and strategic development
Our brand health metrics remain strong, building on the record levels reported
in 2023 and 2024, and we continue to be the UK's leading food-to-go brand
(Source: YouGov Brand Index, June 2025) with a clear and long-held
sector-leading reputation for value. From this strong base, Greggs continued
to deliver LFL and total sales growth in the first half of 2025 despite a
challenging market characterised by subdued consumer confidence and more
volatile weather conditions.
Greggs has a long history of innovating to drive profitable sales growth. The
business has been transformed from a traditional bakery retailer to a modern
food-to-go brand, with more convenient locations and delivery services. The
development of our breakfast and coffee offers, all at great prices, has taken
us to number one in the out-of-home market for breakfast and number two for
coffee (Source: Circana, June 2025). By continuing to follow trends in taste
we have introduced more protein-led hot food lines, plant-based food options,
epitomised by the iconic vegan sausage roll, and are now seeing strong growth
in made-to-order iced drinks. In addition to expanding our own retail shop
estate, Greggs has developed a successful grocery wholesale relationship with
Iceland Foods and has grown a strong franchise business, particularly in
roadside locations.
The innovation continues, with an ongoing focus on menu, value and
convenience:
· Our made-to-order drink and food options meet changing customer tastes,
making our offer increasingly in demand for later-day trading
· Trials of in-store kiosk ordering have recently commenced in six
shops, targeting labour efficiency and LFL growth
· In the second half of 2025 we will trial a new shop format, "bitesize
Greggs", which aims to improve frequency of purchase by opening up locations
that do not have space for a full-service Greggs shop. These shops will have a
narrower range but will offer all of our iconic products; we will be testing
the concept in locations such as railway stations and retail parks where there
is unmet demand for the Greggs offering
· In September 2025, we will extend the availability of our frozen
'Bake at Home' range through a new relationship with Tesco, initially
launching a selection of five products in over 800 stores and online.
Estate growth
In the first half of 2025 we opened 87 new shops, including 18 franchised
units and 27 relocated shops. We closed 56 shops (including relocations),
resulting in 31 net new shops in the period and a total of 2,649 shops (of
which 564 are franchised) trading as at 28 June 2025.
Company-managed Franchised Total estate
Estate at 28 December 2024 2,057 561 2,618
New shop openings 69 18 87
Relocation closures -27 - -27
Other closures -14 -15 -29
Estate at 28 June 2025 2,085 564 2,649
Our estate expansion programme is developing our reach into new locations in
under-penetrated catchments as well as relocating constrained existing shops
to better locations, facilitating further growth in traditional trading areas.
Consistent with the phasing seen in prior years our new shop openings are
weighted more to the second half of 2025, whilst closures are more weighted to
the first half this year. We opened six drive-thrus in the first half of the
year, including our first in Northern Ireland at Craigavon. We continued to
expand our presence in supermarkets, and on roadsides through our franchise
relationships.
In the first half of the year we refurbished 108 shops, including 27
franchised units, modernising them to our latest look and enhancing their
capability for food preparation and the preparation of digital orders. As well
as improving the quality of our estate, the refurbishment programme improves
performance by enabling growth in new channels and categories. We anticipate
completing circa 165 shop refurbishments in 2025, 115 company-managed and 50
through franchise partners (2024: 165 refurbishments).
Our assessment of retail catchments across the UK continues to support our
investment in supply chain capacity for 3,500 shops. Our confidence in this
opportunity is underpinned by our success opening shops and generating good
returns in catchments such as retail parks, railway stations, airports,
roadsides and supermarkets where Greggs is underrepresented and there remains
significant headroom for further growth. These openings are improving access
to Greggs and delivering strong investment returns. In more traditional
locations in cities, towns and suburbs our strategy is to relocate shops where
necessary to allow for further growth and to optimise the distribution of
shops within the catchment. Since 2019 we have relocated 14% of our estate in
these traditional locations.
As we grow the overall estate we monitor customer behaviour to ensure that new
openings are not at risk of cannibalising existing shop sales. Analysis of our
Greggs App customers shows that those who visit a new shop increase the
overall frequency with which they visit Greggs, maintaining their visits to
existing shops. In 2024 60% of our new shop openings (excluding relocations)
were in areas with no other Greggs shop within a mile, with 2025 openings
having a similar profile. For openings in areas with existing access to
Greggs within a mile of the new shop, the transfer of sales from existing
shops averaged just 5%. We factor this into our rigorous new shop appraisal
process to ensure that increased access to Greggs improves catchment
performance and returns on investment.
Greggs is a trusted brand offering a strong covenant to landlords and
franchise partners and this continues to generate opportunities in new
locations. Our new shop pipeline is robust and we plan to open between 140 and
150 net new shops in the year overall. Our trial of new concepts such as
"bitesize Greggs" aims to enable more convenient access to Greggs, driving
greater visit frequency, and supports the scale of estate opportunity in the
medium term.
Range evolution
Menu development is key to meeting consumers' changing tastes and
requirements, and to supporting growing dayparts. We continue to make strong
progress across key strategic areas, with a particular focus on health, value
and new product innovation. Our healthier choice range is seeing good
momentum and resonating well with customers, supported by successful launches
such as the Plenish Ginger Immunity and Turmeric Recovery health shots and
fat-free Greek-style yoghurt with Strawberry Compote, as well as new
additions to our sandwich range including the Korean BBQ Chicken Flatbread.
Our breakfast and lunch deals remain highly competitive and great value
customer favourites, offering high quality and affordable choices. We have
enhanced the quality of our sandwich range with improved ingredients, while
our hot food offer continues to grow rapidly, driven by the popularity of our
£5 meal deal, which includes a hot sandwich, or Southern Fried Goujons with
wedges and a drink, satisfying customers from lunch through to the evening. We
also have customisable made-to-order fish finger wraps, fish finger
sandwiches, chicken wraps, and chicken burgers in circa 340 locations,
available in a meal deal offer from £5.
Innovation remains key to our offer, with standout new products like the Red
Pepper, Feta and Spinach Bake broadening our appeal. We are also seeing strong
performance in key growth areas such as pizza and iced drinks, where new
flavours, expanded availability and compelling value are helping us meet
customer needs throughout the day.
Menu development is supporting the strategic progress of the Greggs offer
across all dayparts, but particularly later in the day. In the first half of
2025 post-4pm sales continued to grow more strongly than the average,
increasing to comprise 9.3% of sales (H1 2024: 8.4%). Over the longer term we
believe that the evolution of our menu combined with the scale of our suburban
shop estate presents a significant opportunity to increase our share of both
the walk-in and delivery evening markets.
Digital convenience
Greggs is available for delivery on the Just Eat and Uber Eats platforms.
Sales through the delivery channel represented 6.8% of company-managed shop
sales in the first half of 2024 (H1 2024: 6.7%), broadly following the rate of
expansion of the overall estate.
Growth in use of the Greggs App has continued, with 25.7% of company-managed
customer transactions scanned as part of our loyalty programme in the first
half of 2025 (H1 2024: 18.3%). We have continued to develop our customer
relationship management approach, with behavioural data influencing
decision-making and enabling tailored communications to customers.
Technology investment
Our ongoing investment in technology enhances the company's growth
capabilities whilst ensuring the robustness of processes and driving greater
efficiency. We are on track to commence migration to the next version of SAP
from August 2025 and are also improving support team productivity by investing
in new systems that embrace AI functionality to drive service standards and
efficiencies. In our shops, technology is helping to automate tasks and
drive higher standards. Examples include trials of remote temperature
monitoring, order consolidation systems and in-store digital assistants.
Customer-facing technology, such as self-service ordering kiosks, offers
alternative service options and is being trialled in six shops.
Supply chain investment
To support our growth plans, we are investing in further supply chain
capacity, primarily focused on two brand new state-of-the-art facilities in
the Midlands. These sites will enable growth without the need to build further
Radial Distribution Centres ('RDCs') whilst also providing white space for
future manufacturing and logistics capacity.
Our new Derby supply site will be a frozen manufacturing and logistics
facility. This will mirror our northern frozen manufacturing and logistics
campus at Balliol Park, including an automated cold store but with the
addition of automated picking of products to shop level. The site is now
built, and work is progressing to install the automated logistics solutions
and the first production line. We are on track to open Derby in the first half
of 2026. This site will be a consolidation point for our frozen food logistics
in the south of the UK, as well as increasing the capacity of our existing
RDCs by supporting them with upstream picking. The manufacturing space will be
developed progressively as required to meet future demand.
Our new Kettering supply site will be a National Distribution Centre ('NDC')
for the storage, picking and distribution of chilled and ambient goods. The
site is currently in the build phase, with a planned opening in the first half
of 2027. This site will replace and expand our two existing NDC facilities in
Kettering and will enable our existing RDCs to service around 700 more shops
by providing upstream picking of chilled and ambient goods. We will benefit
from productivity improvements from automation and the scale of the operation,
and the site also provides white space to develop future RDC and manufacturing
capacity.
This approach to capacity expansion reduces the labour intensity in our supply
chain and will deliver a stronger financial outcome than simply building
additional RDCs to match estate growth.
The Greggs Pledge
We continue to make good progress across the ten commitments that make up The
Greggs Pledge, our roadmap for making Greggs an even more sustainable
business. As we come to the end of the original plan, we are actively
preparing for the next stage of the Pledge, which will guide our
sustainability and social responsibility efforts from 2026 onwards. In doing
so we are engaging with a broad range of stakeholder groups to shape our
future priorities.
Financial performance
Total sales for the 26 weeks to 28 June 2025 were £1,027.7 million (H1 2024:
£960.6 million). LFL sales in company-managed shops grew by 2.6%, with
franchise shop LFL 'system sales' increasing by 4.8%. The performance of shops
in locations managed by franchise partners continued to prove more resilient
to market conditions, emphasising the benefit of diversifying the Greggs
estate into new locations.
Operating profit was £70.4 million (H1 2024: £75.8 million) and pre-tax
profit was £63.5 million in the first half of 2025 (H1 2024: £74.1 million).
The year-on-year reduction in operating profit reflected challenging market
footfall and the phasing of cost headwinds that have particularly impacted the
first half of the year. These challenges were compounded by heavy snow and
strong winds in January and unusually hot weather in June, which had a
material impact on consumer behaviour and lowered LFL sales.
The headwinds that affected year-on-year financial performance in the
first-half included £3 million of additional costs in respect of
manufacturing, logistics and technology capacity introduced during H1 2024,
the impact of which has now annualised. Shop refurbishments are weighted to
the first half in 2025, with 108 completed in H1 2025 versus 81 in H1 2024,
resulting in an additional first-half headwind of £1 million as works were
completed.
Overall cost inflation in the first half of 2025 was 5.4% and we continue to
expect circa 6% cost inflation for the year as a whole. Looking forward, our
energy pricing is largely fixed for the remainder of 2025 and we hold 40%
cover for our 2026 requirement. Forward purchasing cover in respect of our
requirements for food and packaging inputs totals around 75% of our second
half requirement.
Finance income of £1.3 million (H1 2024: £4.6 million) represents interest
income earned on cash deposits, which has reduced as funds have been deployed
in line with our supply chain investment plan. Finance expense of £8.2
million (H1 2024: £6.3 million) comprised £7.9 million in respect of the
IFRS 16 interest charge on lease liabilities and £0.3 million of facility
charges under the Company's financing facilities. The year-on-year increase in
the charge has been driven by new shop openings and the regearing of leases at
a higher interest rate.
The effective rate of Corporation Tax on underlying profits for the period was
26.8% (H1 2024: 25.6%) and we expect this to be the effective rate for the
2025 financial year as a whole. The main change in the rate compared with 2024
relates to the availability of a deduction when employee share options are
exercised - the lower share price at the period end leads to a reduction in
the deduction available and has also resulted in significantly fewer options
being exercised than was the case in the first half of 2024. Going forward,
the effective rate is expected to remain around 1.0 percentage point above the
headline Corporation Tax rate; this is principally because of expenditure for
which no tax relief is available, such as depreciation on properties acquired
before the introduction of structures and buildings tax allowances, and
acquisition costs relating to new shops.
Diluted earnings per share for the period were 45.3 pence (H1 2024: 53.8
pence).
Capital expenditure and financial position
Capital expenditure during the first half was £172.1 million (H1 2024:
£102.2 million) as we invested in line with our previously-announced growth
plans. The year-on-year increase was driven by the construction of the two new
national distribution centres in Derby and Kettering, including the land
purchase for the Kettering site. In the balance of the year we will progress
the development of these sites whilst also continuing to develop our retail
estate. Our full year guidance for capital expenditure in 2025 remains circa
£300 million (2024: £249.0 million) with 2025 being the peak year of our
investment programme.
Coming into 2025 we carried a higher-than-normal cash position to support the
multi-year investment in our growth programme. 2025 is the peak investment
year of this programme and in the first half of the year we saw an overall
cash outflow of £127.8 million before adjusting for the net £35.0 million
drawn down from the revolving credit facility during the period. This resulted
in a period-end net debt position of £2.5 million (28 December 2024: net cash
of £125.3 million), with cash and cash equivalents of £32.5 million and
borrowings of £35.0 million in relation to the revolving credit facility. At
the half year point the balance sheet shows a net current liabilities position
of £151.9 million (29 June 2024: £59.0 million) reflecting the planned cash
outflow to fund the capital programme.
As previously guided, the Company's investment in capital expenditure will
normalise in the coming years as the sites in Derby and Kettering are
completed and we start to utilise the capacity that this creates. As the
business moves to a more cash-generative phase in 2027 then there will be
greater capacity to address the options outlined in our capital allocation
policy. As a reminder, this is expressed as a series of priorities:
1. Invest to maintain the business - typically circa 5% of revenue
2. Maintain a strong balance sheet - plan for a year-end net cash position
of c.3% of revenue to accommodate working capital requirements
3. Deliver an attractive ordinary dividend to shareholders - target a
progressive ordinary dividend, normally around two times covered by underlying
profit after taxation
4. Selectively invest to grow - invest in opportunities with strong capital
returns, targeting a return on investment (cash contribution versus capital
investment, covering retail, supply, and working capital) of upwards of 25% on
company-managed stores
5. Return surplus cash to shareholders - either through special dividends or
by buying back shares
In the first half we extended our revolving credit facility to June 2028, with
one further one-year extension option available. The facility provides £100
million of liquidity in committed funds.
Dividend
The Board has declared an interim dividend of 19.0 pence per share (2024: 19.0
pence), in line with its expectation that the ordinary dividend will be
maintained until it is two times covered by underlying earnings.
The interim dividend will be paid on 10 October 2025 to those shareholders on
the register at the close of business on 12 September 2025.
Summary and outlook
After a challenging start to 2025 we remain clear on the strategic
opportunities that lie ahead. Through our disciplined estate expansion and
focus on innovation, Greggs is evolving its offer further and making the brand
more convenient for a wider range of customers. The outlook for cost inflation
is unchanged and we are making great progress in building the supply chain
infrastructure that will support the next phase of growth. The Board's
expectations for the full year are consistent with the guidance provided in
our last trading update on 2 July, i.e. that operating profit could be
modestly below the level achieved in 2024.
Roisin Currie
Chief Executive
29 July 2025
Greggs plc
Consolidated income statement
For the 26 weeks ended 28 June 2025
52 weeks ended 28 December 2024 52 weeks ended 28 December 2024 52 weeks ended 28 December 2024
26 weeks ended 28 June 2025 26 weeks ended 29 June 2024
Excluding exceptional items Exceptional items
Total Total (see Note 4) Total
£m £m £m £m £m
Revenue 1,027.7 960.6 2,014.4 - 2,014.4
Cost of sales (396.0) (369.7) (770.8) - (770.8)
Gross profit 631.7 590.9 1,243.6 - 1,243.6
Distribution and selling costs (510.8) (465.4) (950.4) 0.3 (950.1)
Administrative expenses (50.5) (49.7) (97.9) - (97.9)
Other income - - - 13.8 13.8
Operating profit 70.4 75.8 195.3 14.1 209.4
Finance income 1.3 4.6 8.1 - 8.1
Finance expense (8.2) (6.3) (13.6) - (13.6)
Profit before tax 63.5 74.1 189.8 14.1 203.9
Income tax (17.0) (19.0) (48.8) (1.7) (50.5)
Profit for the period attributable to equity holders of the parent
46.5 55.1 141.0 12.4 153.4
Basic earnings per share 45.6p 54.3p 138.5p 12.2p 150.7p
Diluted earnings per share 45.3p 53.8p 137.5p 12.1p 149.6p
Greggs plc
Consolidated statement of comprehensive income
For the 26 weeks ended 28 June 2025
26 weeks ended 26 weeks ended 52 weeks ended
28 June 2025 29 June 2024 28 December 2024
£m £m £m
Profit for the period 46.5 55.1 153.4
Other comprehensive income
Items that will not be recycled to profit and loss:
Remeasurements on defined benefit pension plans (0.2) (11.5) (11.9)
Tax on remeasurements on defined benefit pension plans 0.2 0.8 0.9
Other comprehensive income for the period, net of income tax - (10.7) (11.0)
Total comprehensive income for the period 46.5 44.4 142.4
Greggs plc
Consolidated balance sheet
as at 28 June 2025
28 June 2025 29 June 2024 28 December 2024
£m £m £m
ASSETS
Non-current assets
Intangible assets 32.4 19.7 24.9
Property, plant and equipment 779.9 568.0 664.7
Right-of-use assets 384.2 302.3 387.2
1,196.5 890.0 1,076.8
Current assets
Inventories 56.0 48.8 55.2
Trade and other receivables 57.2 50.0 62.4
Assets held for resale - 1.1 -
Cash and cash equivalents 32.5 141.5 125.3
145.7 241.4 242.9
Total assets 1,342.2 1,131.4 1,319.7
LIABILITIES
Current liabilities
Trade and other payables (236.7) (230.3) (243.9)
Current tax liability (1.7) (11.8) (9.1)
Lease liabilities (56.3) (53.9) (53.8)
Provisions (2.9) (4.4) (3.4)
(297.6) (300.4) (310.2)
Non-current liabilities
Borrowings (35.0) - -
Other payables (1.6) (1.6) (1.8)
Lease liabilities (360.1) (273.1) (361.3)
Deferred tax liability (76.1) (60.4) (72.6)
Long-term provisions (2.3) (1.7) (2.9)
Defined benefit pension liability (0.5) (0.2) (0.4)
(475.6) (337.0) (439.0)
Total liabilities (773.2) (637.4) (749.2)
Net assets 569.0 494.0 570.5
EQUITY
Capital and reserves
Issued capital 2.0 2.0 2.0
Share premium account 25.1 25.1 25.1
Capital redemption reserve 0.4 0.4 0.4
Retained earnings 541.5 466.5 543.0
Total equity attributable to equity holders of the Parent 569.0 494.0 570.5
Greggs plc
Consolidated statement of changes in equity
For the 26 weeks ended 28 June 2025
26 weeks ended 29 June 2024
Issued Share Capital Retained Total
capital premium redemption earnings
reserve
£m £m £m £m £m
Balance at 31 December 2023 2.0 25.1 0.4 503.4 530.9
Total comprehensive income for the period
Profit for the period - - - 55.1 55.1
Other comprehensive income - - - (10.7) (10.7)
Total comprehensive income for the period - - - 44.4 44.4
Transactions with owners, recorded directly in equity
Sale of own shares - - - 3.7 3.7
Share-based payment transactions - - - 2.6 2.6
Dividends to equity holders - - - (87.5) (87.5)
Tax items taken directly to reserves - - - (0.1) (0.1)
Total transactions with owners - - - (81.3) (81.3)
Balance at 29 June 2024 2.0 25.1 0.4 466.5 494.0
52 weeks ended 28 December 2024
Issued Share Capital Retained Total
capital premium redemption earnings
reserve
£m £m £m £m £m
Balance at 31 December 2023 2.0 25.1 0.4 503.4 530.9
Total comprehensive income for the period
Profit for the financial year - - - 153.4 153.4
Other comprehensive income - - - (11.0) (11.0)
Total comprehensive income for the year - - - 142.4 142.4
Transactions with owners, recorded directly in equity
Purchase of own shares - - - (5.0) (5.0)
Sale of own shares - - - 4.7 4.7
Share-based payment transactions - - - 4.5 4.5
Dividends to equity holders - - - (106.8) (106.8)
Tax items taken directly to reserves - - - (0.2) (0.2)
Total transactions with owners - - - (102.8) (102.8)
Balance at 28 December 2024 2.0 25.1 0.4 543.0 570.5
26 weeks ended 28 June 2025
Issued Share Capital Retained Total
capital premium redemption earnings
reserve
£m £m £m £m £m
Balance at 29 December 2024 2.0 25.1 0.4 543.0 570.5
Total comprehensive income for the period
Profit for the period - - - 46.5 46.5
Other comprehensive income - - - - -
Total comprehensive income for the period - - - 46.5 46.5
Transactions with owners, recorded directly in equity
Sale of own shares - - - 1.5 1.5
Share-based payment transactions - - - 1.7 1.7
Dividends to equity holders - - - (50.9) (50.9)
Tax items taken directly to reserves - - - (0.3) (0.3)
Total transactions with owners - - - (48.0) (48.0)
Balance at 28 June 2025 2.0 25.1 0.4 541.5 569.0
Greggs plc
Consolidated statement of cash flows
For the 26 weeks ended 28 June 2025
26 weeks ended 26 weeks ended 52 weeks ended
28 June 2025 29 June 2024 28 December 2024
£m £m £m
Cash flows from operating activities
Cash generated from operations (see page 14) 153.5 157.4 352.6
Income tax paid (21.3) (5.7) (27.7)
Interest paid on lease liabilities (7.9) (5.9) (13.0)
Interest paid on loans and borrowings (0.3) (0.6) (1.0)
Net cash inflow from operating activities 124.0 145.2 310.9
Cash flows from investing activities
Acquisition of property, plant and equipment (164.9) (88.4) (230.0)
Acquisition of intangible assets (9.8) (3.4) (10.9)
Proceeds from sale of property, plant and equipment 0.2 0.6 16.1
Interest received 1.7 4.6 7.7
Net cash outflow from investing activities (172.8) (86.6) (217.1)
Cash flows from financing activities
Proceeds from borrowings (RCF drawdown) 40.0 - -
Repayment of borrowings (RCF) (5.0) - -
Sale of own shares 1.6 3.7 4.7
Purchase of own shares - - (5.0)
Dividends paid (50.9) (87.5) (106.8)
Repayment of principal of lease liabilities (29.7) (28.6) (56.7)
Net cash outflow from financing activities (44.0) (112.4) (163.8)
Net decrease in cash and cash equivalents (92.8) (53.8) (70.0)
Cash and cash equivalents at the start of the period 125.3 195.3 195.3
Cash and cash equivalents at the end of the period 32.5 141.5 125.3
Greggs plc
Consolidated statement of cash flows (continued)
For the 26 weeks ended 28 June 2025
Cash flow statement - cash generated from operations
26 weeks ended 26 weeks ended 52 weeks ended
28 June 2025 29 June 2024 28 December 2024
£m £m £m
Profit for the period 46.5 55.1 153.4
Amortisation 2.4 2.0 4.2
Depreciation - property, plant and equipment 43.3 37.8 76.6
Depreciation - right-of-use assets 32.3 28.7 59.2
Impairment charge- property, plant and equipment 1.7 0.6 2.9
Impairment charge - right-of-use assets 0.8 1.6 2.1
Loss / (profit) on sale of property, plant and equipment 1.5 1.0 (11.8)
Release of government grants (0.2) (0.2) (0.5)
Share-based payment expenses 1.7 2.6 4.5
Finance income (1.3) (4.6) (8.1)
Finance expense 8.2 6.3 13.6
Income tax expense 17.0 19.0 50.5
Increase in inventories (0.8) - (6.4)
Decrease/(increase) in receivables 4.8 3.9 (8.1)
(Decrease) / increase in payables (3.4) 8.1 24.9
(Decrease) / increase in provisions (1.0) - 0.1
Defined benefit pension scheme special contribution - (4.5) (4.5)
Cash from operating activities 153.5 157.4 352.6
Notes
1. Basis of preparation
The condensed accounts have been prepared for the 26 weeks ended 28 June
2025. Comparative figures are presented for the 26 weeks ended 29 June 2024.
These condensed accounts have been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the UK. They do not include all the
information required for full annual accounts, and should be read in
conjunction with the Group accounts for the 52 weeks ended 28 December 2024.
These condensed accounts are unaudited and were approved by the Board of
Directors on 29 July 2025.
The comparative figures for the 52 weeks ended 28 December 2024 are not the
Company's statutory accounts for that financial year. Those accounts were
reported on by the Company's auditor and delivered to the Registrar of
Companies. The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report; and (iii) did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
Going concern
The Directors have considered the adoption of the going concern basis of
preparation for these condensed accounts. The Directors have reviewed cash
flow forecasts prepared for a period of 18 months from the date of approval of
these condensed accounts.
At the end of the reporting period the Group had £97.5 million of available
liquidity which comprised £32.5 million cash and cash equivalents and the
remaining undrawn £65.0 million of the revolving credit facility ('RCF').
£35.0 million of the RCF has been drawn down as at 28 June 2025. In June
2025 the Group extended the RCF to June 2028, with one further one-year
extension available.
In reviewing the cash flow forecasts the Directors considered the current
trading position of the Group and the likely capital expenditure and working
capital requirements of its growth plans. The cashflow forecasts show that the
Group expects to comply with the covenants included within the RCF agreement
throughout the review period.
Taking into account the current cash level and the committed facilities the
Directors are confident that the Group will have sufficient funds to allow it
to continue to operate. After reviewing the projections and sensitivity
analysis the Directors believe that it is appropriate to prepare the condensed
accounts on a going concern basis.
Judgements and estimates
In preparing these condensed accounts, management have made judgements and
estimates that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual results may
differ from these estimates. In addition to the key estimates and judgements
disclosed in the consolidated accounts for the 52 weeks ended 28 December 2024
the following additional areas have been identified or updated for the 26
weeks ended 28 June 2025.
Impairment
Property, plant and equipment and right-of-use assets are reviewed for
impairment if events or changes in circumstances indicate that the carrying
value may not be recoverable. For example, shop fittings and right-of-use
assets may be impaired if sales in that shop fall. When a review for
impairment is conducted the recoverable amount is estimated based on the
higher of the value-in-use calculations or fair value less costs of disposal.
Value-in-use calculations are based on management's estimates of future cash
flows generated by the assets and an appropriate discount rate. Consideration
is also given to whether the impairment assessments made in prior years remain
appropriate based on the latest expectations in respect of recoverable amount.
Where it is concluded that the impairment has reduced, a reversal of the
impairment is recorded to the carrying value that would have been recognised
if the original impairment had not occurred, net of depreciation that would
have been charged.
The Group has traded profitably throughout 2024 and 2025 to date. As such
there is not considered to be a global indicator of impairment across the
Group's asset base. Where indicators of impairments exist for specific cash
generating units (CGUs), with each individual shop considered its own CGU,
then an impairment review has been performed to calculate the recoverable
value.
For those shops with indications of impairment, the value-in-use has been
calculated using the following assumptions:
· Like-for-like sales for shops with more than two years trade has
been assumed to grow at a rate of 4.0% for year one of the period of the
impairment review, reducing steadily to 0.0% for year six onwards;
· Earnings before interest, tax, depreciation, amortisation and rent
('EBITDAR') is used as a proxy for net cash flow excluding rental payments;
· The discount rate is based on the Group's pre-tax cost of capital
and at 28 June 2025 was 9.5% (29 June 2024: 9.4%; 28 December 2024: 10.0%);
and
· Cash flows are forecast up to the probable end date of the lease.
Where considered appropriate, based on the estimated useful life of fixtures
and fittings within the CGU, cash flows may be included for periods beyond the
lease probable end date (to a maximum of five years in total).
On the basis of these value-in-use calculations, a net impairment charge of
£2.5 million (29 June 2024: £2.2 million; 28 December 2024: £5.0 million)
has been recognised during the current year (of which £1.7 million (29 June
2024: £0.6 million; 28 December 2024: £2.9 million) relates to fixtures and
fittings and £0.8 million (29 June 2024: £1.6 million; 28 December 2024:
£2.1 million) relates to right-of-use assets) resulting in an impairment
provision of £10.8 million (29 June 2024: £7.8 million; 28 December 2024:
£9.5 million) being retained at 28 June 2025 in respect of 90 (29 June 2024:
127; 28 December 2024: 109) shops (of which £5.6 million (29 June 2024: £2.8
million; 28 December 2024: £4.6 million) relates to fixtures and fittings and
£5.2 million (29 June 2024: £5.0 million; 28 December 2024: £4.9 million)
relates to right-of-use assets).
2. Accounting policies
The accounting policies applied by the Group in these condensed accounts are
the same as those applied by the Group in its consolidated accounts for the 52
weeks ended 28 December 2024 other than as disclosed below:
· Lease liability in sale and leaseback - Amendments to IFRS 16
· Supplier Finance Arrangements - Amendments to IAS7 and IFRS 17
The adoption of these amendments did not have a material effect on the
accounts.
Principal risks and uncertainties
The Directors have considered the principal risks and uncertainties which
could have a material impact on performance for the remainder of the financial
year.
The assessment of principal risks and uncertainties made in the 2024 Annual
Report and Accounts remains valid and we do not believe there to have been any
material changes in the profile of those risks since then.
We have considered whether the Company is facing any new principal risks at
each of our Risk Committee meetings so far during 2025. All new and emerging
areas of risk which have been identified fall within the scope of our existing
principal risks and uncertainties.
We continue to consider climate risk as part of our overarching risk
discussions, and factor climate into existing risks rather than describing it
as a separate principal risk in its own right. This ensures that climate risk
is embedded within our core risk activity, and is considered as an inherent
part of our processes, rather than as a standalone issue.
The assessment above should be read in conjunction with the statement of
principal risks described on pages 67-70 in the 2024 Annual Report and
Accounts. Other than the matters described above we believe our exposure to
other principal risks faced by the business is not significantly different to
that described in that statement.
3. Operating segments
The Executive Directors are considered to be the 'chief operating decision
maker' of the Group in the context of the IFRS 8 definition. In addition to
its company-managed retail activities, the Group generates revenues from its
business-to-business channel which includes franchise and wholesale
activities. Both channels were categorised as reportable segments for the
purposes of IFRS 8.
Company-managed retail activities - the Group sells a consistent range of
fresh bakery goods, sandwiches and drinks in its own shops or via delivery.
Sales are made to the general public on a cash basis. All results arise in
the UK.
Business to business channel - the Group sells products to franchise and
wholesale partners for sale in their own outlets as well as charging a licence
fee to franchise partners. These sales and fees are invoiced to the partners
on a credit basis. All results arise in the UK.
All revenue in 2025 and 2024 was recognised at a point in time.
The Executive Directors regularly review the revenues and trading profit of
each segment. They receive information on overheads, assets and liabilities on
an aggregated basis consistent with the Group accounts.
26 weeks ended 28 June 2025 26 weeks ended 28 June 2025 26 weeks ended 28 June 2025 26 weeks ended 29 June 2024 26 weeks ended 29 June 2024 26 weeks ended 29 June 2024 52 weeks ended 28 December 2024 52 weeks ended 28 December 2024 52 weeks ended 28 December 2024
Retail Business to business Total Retail Business to business Total Retail Business to business Total
company-managed company-managed company-managed
shops shops shops
£m £m £m £m £m £m £m £m £m
Revenue 911.4 116.3 1,027.7 851.2 109.4 960.6 1,781.7 232.7 2,014.4
Trading profit* 112.6 30.6 143.2 117.2 24.5 141.7 277.3 55.5 332.8
Overheads including profit share (72.8) (137.5)
(65.9)
Operating profit 70.4 75.8 195.3
Finance income 1.3 4.6 8.1
Finance expense (8.2) (6.3) (13.6)
Profit before tax 63.5 74.1 189.8
(excluding exceptional items)
Exceptional items (see Note 4) - - 14.1
Profit before tax 63.5 74.1 203.9
* Trading profit is defined as gross profit less supply chain costs and retail
costs (including property and direct management costs) and before central
overheads.
4. Exceptional items
The exceptional items in 2024 were as follows:
2024
£m
Provisions no longer required in respect of redundancy and dilapidations 0.3
Profit on disposal of Twickenham bakery site (net of fees) 13.8
14.1
5. Defined benefit pension scheme
The valuation of the defined benefit pension scheme for the purposes of IAS 19
(Revised) as at 28 December 2024 has been updated as at 28 June 2025 and the
movements have been reflected in these condensed accounts.
6. Taxation
The taxation charge for the 26 weeks ended 28 June 2025 and 29 June 2024 is
calculated by applying the Directors' best estimate of the annual effective
tax rate to the profit or loss for the period using rates substantively
enacted by the half year date as required by IAS34 'Interim Financial
Reporting'.
7. Earnings per share
26 weeks ended 28 June 2025 26 weeks ended 29 June 2024 52 weeks ended 28 December 2024 52 weeks ended 28 December 2024 52 weeks ended 28 December 2024
Excluding exceptional items Exceptional items
(see Note 4)
Total Total Total
£m £m £m £m £m
Profit for the period attributable to equity holders of the parent
46.5 55.1 141.0 12.4 153.4
Basic earnings per share 45.6p 54.3p 138.5p 12.2p 150.7p
Diluted earnings per share 45.3p 53.8p 137.5p 12.1p 149.6p
Weighted average number of ordinary shares
26 weeks ended 28 June 2025 26 weeks ended 29 June 2024 52 weeks ended 28 December 2024
Number Number Number
Issued ordinary shares at start of period 102,255,675 102,255,675 102,255,675
Effect of own shares held (416,933) (649,199) (480,247)
Weighted average number of ordinary shares during the period 101,838,742 101,606,476 101,775,428
Effect of share options in issue 598,044 811,752 782,816
Weighted average number of ordinary shares (diluted) during the period 102,436,786 102,418,228 102,558,244
Issued ordinary shares at end of period 102,255,675 102,255,675 102,255,675
8. Borrowings
The Group has access to a committed revolving credit facility (RCF) of £100
million of which £35 million was drawn as at 28 June 2025. The RCF has
covenants comprising leverage (calculated as the ratio of total net borrowings
to EBITDA) and fixed interest charge (calculated as the ratio of EBITDAR to
net rent and interest payable). The RCF was put in place in June 2024 for a
period of three years. In June 2025 a one-year extension was agreed taking
the maturity date to June 2028.
Since at 28 June 2025 the Group had the right to roll over the facility for at
least 12 months the RCF was categorised as a non-current liability.
9. Dividends
The following tables analyse dividends when paid and the year to which they
relate:
Dividend declared 26 weeks ended 26 weeks ended 52 weeks ended
28 June 2025 29 June 2024 28 December 2024
Pence per share Pence per share Pence per share
2023 final dividend - 46.0p 46.0p
2023 special dividend - 40.0p 40.0p
2024 interim dividend - - 19.0p
2024 final dividend 50.0p - -
50.0p 86.0p 105.0p
26 weeks ended 26 weeks ended 52 weeks ended
28 June 2025 29 June 2024 28 December 2024
£m £m £m
Total dividend payable
2023 final dividend - 46.8 46.8
2023 special dividend - 40.7 40.7
2024 interim dividend - - 19.3
2024 final dividend 50.9 - -
Total dividend paid in period 50.9 87.5 106.8
10. Related party transactions
There have been no related party transactions in the first 26 weeks of the
current financial year which have materially affected the financial position
or performance of the Group.
Related parties are consistent with those disclosed in the Group's Annual
Report and Accounts for the 52 weeks ended 28 December 2024.
11. Half year report
The condensed accounts were approved by the Board of Directors on 29 July
2025. They will be available on the Company's website,
corporate.greggs.co.uk (https://corporate.greggs.co.uk)
12. Calculation of Alternative Performance Measures
Like-for-like (LFL) sales growth -compares company-managed shop sales
performance against the 2024 comparable period, where shops have a calendar
year's trading history (excluding any shops which opened, relocated or closed
in the current or prior year) and is calculated as follows:
26 weeks ended 26 weeks ended
28 June 2025 29 June 2024
£m £m
Current year LFL sales 819.6 763.3
Prior year LFL sales 798.6 710.8
Growth in LFL sales 21.0 52.5
LFL sales growth percentage 2.6% 7.4%
Franchise like-for-like sales growth - compares franchise shop sales
performance against the 2024 comparable period, where shops have a calendar
year's trading history (excluding any shops which opened, relocated or closed
in the current or prior year) and is calculated as follows:
26 weeks ended 26 weeks ended
28 June 2025 29 June 2024
£m £m
Current year franchise LFL sales 156.8 133.8
Prior year franchise LFL sales 149.6 123.8
Growth in franchise LFL sales 7.2 10.0
Franchise LFL sales growth percentage 4.8% 8.1%
Franchise system sales are different from revenue. They are the sales made
in our franchised shops whereas the Company's revenue from business to
business sales is made up of sales of products to franchise and wholesale
partners together with the licence fee charged to franchise partners.
Like-for-like sales can be reconciled to total revenue as follows:
26 weeks ended 26 weeks ended
28 June 2025 29 June 2024
£m £m
Like-for-like sales in company-managed shops 819.6 763.3
Non-like-for-like sales in company-managed shops 91.8 87.9
Total revenue in retail company-managed shops 911.4 851.2
Business-to-business sales 116.3 109.4
Total revenue 1,027.7 960.6
13. Statement of Directors' responsibilities
The Directors named below confirm on behalf of the Board of Directors that to
the best of their knowledge:
· the condensed set of accounts has been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted by the UK;
· the interim management report includes a fair review of the
information required by:
(a) DTR4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first 26 weeks of
the financial year and their impact on the condensed set of accounts; and a
description of the principal risks and uncertainties for the remaining 26
weeks of the year; and
(b) DTR4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first 26 weeks of the
financial year and that have materially affected the financial position or
performance of the Group during the period; and any changes in the related
party transactions described in the last annual report that could do so.
The Directors of Greggs plc are listed in the Annual Report and Accounts for
the 52 weeks ended 28 December 2024.
For and on behalf of the Board of Directors
Roisin
Currie
Richard Hutton
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