REG - Greggs PLC - Q3 Trading Update

GreggsAnnouncement

01/10/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241001:nRSA3329Ga&default-theme=true

RNS Number : 3329G  Greggs PLC  01 October 2024

 

1 October 2024

 

GREGGS PLC

("Greggs" or the "Company")

 

Q3 TRADING UPDATE

 

Further good progress, full year outlook unchanged

 

 

Q3 highlights

 

 ·         Total sales up 10.6% for the 13 weeks to 28 September 2024, and 12.7%
           year-to-date
 ·         Company-managed shop like-for-like* sales up 5.0% for the 13 weeks to 28
           September 2024, and 6.5% year-to-date
 ·         86 net new shops opened year-to-date (152 openings less 66 closures, including
           43 relocations)
 ·         On track to open between 140 and 160 net new shops in 2024, including circa 50
           relocations
 ·         Now expect the overall level of cost inflation for 2024 to be towards the
           lower end of the 4-5% range previously communicated
 ·         The Board's expectations for the full year outcome are unchanged

* Like-for-like (LFL) company-managed shop sales performance against
comparable period in 2023

 

Trading performance

 

Greggs continued to deliver good LFL sales growth over the third quarter of
2024, with total sales up 10.6% and LFL sales in company-managed shops rising
by 5.0% when compared with the same period in 2023, with September the
strongest month of the quarter.  Year-to-date total sales are up 12.7%, with
LFL sales up 6.5%.  This growth was supported by menu development and further
progress in extended trading hours and new digital channels.  Our new
over-ice drinks range is already available in 800 shops, and we now expect to
extend this to a total of 1,000 shops by the end of the year.

 

Our autumn menu is now available, featuring the new All-Day Breakfast Baguette
and Mexican Bean & Spicy Cheese Flatbread. We've also introduced a Pumpkin
Spice Doughnut to our sweet range, complementing the return of our seasonal
drinks range including the Pumpkin Spice Latte and Salted Caramel Latte which
are both also available as part of our over ice range. We introduced a new
pizza option, BBQ chicken, and our pizza sharing boxes are now available in
both four slice and six slice boxes.

 

Shop estate and supply chain development

 

In the year to date we have opened 152 new shops and closed 66 shops
(including 43 relocations), giving a total of 2,559 shops trading at 28
September 2024 (comprising 2,016 company-managed shops and 543 franchised
units).  Openings in the third quarter included two Drive-Thrus in Bristol,
at Abbeywood Retail Park and Harlequin Business Park.  For the year as a
whole, we expect 140 to 160 net shop openings, including around 50 relocations
and 55 net openings with franchise partners.  In line with our strategic
plan, our shop opening programme is improving the quality of the Greggs
estate, as well as extending its reach.

 

Investment in our supply chain is progressing well, supporting our ambitious
growth plans.  We have completed the redevelopment of our Birmingham
distribution centre and the extension of our Amesbury distribution centre,
adding logistics capacity to support a further 300 shops in our southern
network.

 

Construction of our new frozen product manufacturing and logistics facility in
Derby is progressing in line with plan and we expect to sign the lease in the
fourth quarter of 2024.  Once the lease is signed we will take over the
development of the site, fitting out the building to our requirements, ahead
of the site opening in 2026.  The planning application for our new chilled
and ambient National Distribution Centre in Kettering has been submitted.
Subject to planning permission being granted we expect the land purchase to
complete in the fourth quarter of 2024, with the site being developed for
opening in H1 2027.

 

Our full year guidance for capital expenditure in 2024 remains in the range of
£250 to £280 million, with the timing of the land purchase at Kettering
being the primary uncertainty.

 

Outlook

 

Greggs continues to extend its reach, bringing new shops closer to customers
and establishing the supply chain capacity to support further growth.  With
increased forward buying cover we now expect the overall level of cost
inflation for 2024 to be towards the lower end of the 4-5% range previously
communicated.  At a time when consumers continue to face uncertainty Greggs
offers exceptional value for money.

 

Whilst acknowledging ongoing economic uncertainty, the Board expects the full
year outcome to be in line with its previous expectations.  The Board remains
confident in the long-term growth opportunity for Greggs, and we are investing
to support that growth.

 

 

 ENQUIRIES:
 Greggs plc                                Hudson Sandler
 Roisin Currie, Chief Executive            Wendy Baker / Hattie Dreyfus /

 Richard Hutton, Chief Financial Officer   Nick Moore / Emily Brooker

 David Watson, Head of IR                  Email: greggs@hudsonsandler.com (mailto:greggs@hudsonsandler.com)
 Tel:  0191 281 7721                       Tel:  020 7796 4133

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTDZGFLVGRGDZM