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REG - Greggs PLC - Trading Update

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RNS Number : 5293L  Greggs PLC  16 May 2022

 

 

16 May 2022

GREGGS PLC

 

TRADING UPDATE

 

Recovery continues

 

Highlights

 

·    27.4% LFL* sales growth for first 19 weeks

·    49 new shops opened in first 19 weeks, 6 closures, strong pipeline

·    Cost pressures increasing

·    Trading in line with plan, expectations for the full year outcome
unchanged

* Like-for-like (LFL) company-managed shop sales performance against
comparable period in 2021

 

Trading performance

 

Greggs has traded well in the first 19 weeks of 2022.  Like-for-like (LFL)
sales in company-managed shops grew by 27.4%, a figure that is flattered by
comparison with restricted trading conditions in the same period of 2021.
Since we last reported, like-for-like sales growth in the most recent ten
weeks to 14 May (when lockdowns in 2021 were easing) has averaged 15.8% and we
expect this figure to continue to normalise as we start to compare with more
robust trading periods in 2021.

 

Sales levels in larger cities and in office locations continue to lag the rest
of the estate but transport locations have shown a marked increase in activity
in recent weeks.  Sales of hot food and snacks are showing particularly
strong growth, with chicken goujons and potato wedges proving popular.

 

Total sales in the 19 weeks to 14 May 2022 were £495 million (2021: £378
million).

 

Shop estate

 

In the first 19 weeks of 2022 we opened 49 new shops, including 18 with our
franchise partners.  Recent shop openings include a number of retail parks
and new travel-based units at Birmingham and Liverpool airports.  In the year
to date we have closed 6 shops, giving a total of 2,224 shops trading at 14
May (comprising 1,831 company-managed shops and 393 franchised units).

 

Outlook

 

We have made a good start to 2022, with sales in line with our plan and a
strong pipeline of new shop acquisitions ahead.  Looking ahead, market-wide
cost pressures have been increasing and consumer incomes will clearly be under
pressure in the second half of the year.  We will continue to work to
mitigate the impact of cost pressures whilst protecting Greggs' reputation for
exceptional value.

 

Whilst considerable uncertainties remain, we are in line with our plan and the
Board's expectations for the full year outcome remain unchanged.

 

 

 ENQUIRIES:

 Greggs plc (http://www.greggs.co.uk)   Hudson Sandler (http://www.hudsonsandler.com)

 Roger Whiteside, Chief Executive       Hattie Dreyfus / Nick Moore / Sophie Miles

 Richard Hutton, Finance Director       Tel: 020 7796 4133

 Tel: 0191 281 7721

 

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