REG - Greggs PLC - Q4 Trading Update

GreggsAnnouncement

09/01/2025 07:00

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RNS Number : 6527S  Greggs PLC  09 January 2025

 

 

9 January 2025

 

GREGGS PLC

("Greggs" or the "Company")

 

Q4 TRADING UPDATE

 

GOOD PROGRESS AND RECORD £2 BILLION SALES

 

Q4 highlights

 

·    Financial year 2024* ("FY24") total sales up 11.3% to £2,014 million
(2023: £1,809 million).  Company-managed shop like-for-like** sales up 5.5%
for FY24

·    Fourth quarter total sales up 7.7%.  Company-managed shop
like-for-like** sales up 2.5% for the fourth quarter, reflecting the more
subdued High Street footfall

·    A record 226 new shops opened in the year, with 28 closures and 53
relocations resulting in 145 net new shop openings, in line with our target,
and 2,618 shops trading as at 28 December 2024

·    Strong pipeline of opportunities supports plans to continue new shop
opening momentum in 2025; in the range of 140 to 150 net openings, including
50 targeted relocations

·    Supply chain capacity development on track, supporting growth plans

·    Planning permission achieved for new National Distribution Centre in
Kettering, land purchase completed in January 2025

·    Year-end net cash of £125 million (2023: £195 million)

·    Anticipate full year outcome in line with the Board's previous
expectations

* 52 weeks ended 28 December 2024 (2023: 52 weeks ended 30 December 2023)

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

 

Roisin Currie, Chief Executive commented:

 

"2024 was another year of good progress by Greggs, with a record number of new
shops opened and the £2 billion sales milestone surpassed.  I'm proud of our
teams who, day in and day out, do such a fantastic job for our customers.

 

"We enter 2025 with a strong pipeline of new shop opportunities, and we
continue to broaden our menu and enhance our digital capabilities, whilst also
developing our supply chain capacity to deliver our growth strategy.  Whilst
lower consumer confidence continues to impact High Street footfall and
expenditure, our value-for-money offer and the quality of our freshly-prepared
food and drink position us well to meet the headwinds we expect to see in the
year ahead, and we remain confident in the significant long-term opportunity
for growth."

 

 

Trading performance

 

Total sales for FY24 were £2,014 million, an increase of 11.3% compared with
2023, with like-for-like sales in company-managed shops 5.5% higher than those
seen in 2023.  Fourth quarter total sales were 7.7% higher than 2023, with
like-for-like sales in company-managed shops growing by 2.5%.  Trading
performance reflected a well-publicised more challenging market backdrop in
the second half of 2024.  Lower consumer confidence impacted High Street
footfall and industry-wide visits and expenditure.  Against this challenging
backdrop, Greggs maintained its market share of visits, including remaining
customers' number one destination for breakfast, and controlled operational
costs well.

 

We continue to broaden the appeal of Greggs to existing and new customers
through a combination of menu development, marketing and extension into new
channels and dayparts.  Seasonal lines were in high demand in the fourth
quarter, including the iconic Festive Bake, the Vegan Festive Bake and the
all-new Festive Flatbread.  These featured alongside our shop-baked Sweet
Mince Pies, Christmas Cake Slice and festive hot drinks including the
Gingerbread Latte.  Pizza continued to perform strongly during the day and
into the evening, with sales of pizza boxes and pizza bundle deals continuing
to grow.

 

Shop estate and supply chain development

 

In 2024 we opened a record 226 new shops and closed 81 shops (28 closures and
53 relocations), giving a total of 2,618 shops trading at 28 December 2024
(comprising 2,057 company-managed shops and 561 franchised units).  Our shop
openings bring Greggs to new locations, giving customers more convenient
access to food and drink on-the-go.  Our relocation activity increases our
capacity to serve existing successful catchments.

 

Following a rapid roll-out of equipment, our over-ice drinks range is now
available in 1,100 shops, exceeding our previous target to make this available
in 700 shops by the end of 2024.  The range is popular and we expect to
extend its availability further in 2025.

 

The planned investment in additional supply chain capacity is on track,
supporting our ambitious growth plans. Construction of our new frozen product
manufacturing and logistics facility in Derby continues at pace.  Following
the completion of landlord's works we signed the lease for the Derby site in
November 2024 and remain on track to open in 2026 on completion of fit-out and
commissioning.  In Kettering, the planning application for our new chilled
and ambient National Distribution Centre was approved in Q4 and the land
purchase has completed this week.  Construction of the site will commence
shortly, with the aim of opening the new site in mid-2027.

 

Financial position and outlook

 

Greggs ended 2024 with a cash position of £125 million (2023: £195 million),
reflecting the investment in growth and capacity in 2024 and supporting our
plans for the year ahead.  The pipeline of new shop opportunities remains
strong, and we expect to open between 140 and 150 net new shops in 2025,
including 50 targeted relocations.

 

Despite growth in disposable incomes, consumer confidence was subdued in the
second half of 2024 and this weighed on industry-wide customer visits and
expenditure.  With good cost management in the final quarter the Board
anticipates reporting a full year outcome for FY24 in line with its previous
expectations.

 

Looking into 2025, employment costs will result in further overall cost
inflation, although wage increases should provide support to consumers.
Greggs has demonstrated its ability to mitigate cost inflation in recent years
whilst retaining its value leadership, and we are confident we can continue to
do so.

 

Despite the current headwinds the significant longer-term opportunity for
Greggs remains.  We are investing to support our ambitious growth plan and
are confident that Greggs can deliver another year of progress in 2025.

 

 

 

 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
 Tel:  0191 281 7721                       Tel:  020 7796 4133 greggs@hudsonsandler.com
                                           (mailto:greggs@hudsonsandler.com)

 

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