Greggs heading in the right direction to double gross sales by 2026 as revenues soar to £1.8bn
- Greggs reported general turnover rose by virtually £300m to £1.8bn final yr
- Trade was partly pushed by worth hikes and quantity growth at present websites
- Sales had been additional bolstered by extra shops opening later into the night
Greggs has stated it’s on observe to double turnover underneath an ongoing five-year technique after attaining its strongest-ever efficiency in 2023.
The bakery chain, well-known for its sausage rolls, reported complete income rose by virtually £300million to £1.8billion final yr, with like-for-like gross sales in company-managed websites rising by 13.7 per cent.
Growth was pushed by worth hikes, quantity growth throughout present retailers and a report 220 store openings, together with new websites in hubs like Canary Wharf, Gatwick Airport and London Waterloo Station.
Strong consequence: Greggs reported complete gross sales rose by virtually £300million to £1.8billion final yr
Trade was additional bolstered by extra shops opening later into the night, when merchandise like southern fried rooster goujons, potato wedges, and pizzas are in excessive demand.
Alongside this, the group prolonged partnerships with meals ordering platforms Just Eat and Uber Eats, which boosted its supply gross sales by 23.6 per cent, in addition to retailers like Primark, Tesco and Sainsbury’s.
As a consequence, the agency’s turnover has climbed by roughly half previously two years, setting it heading in the right direction to realize its goal of doubling income by 2026.
The Newcastle-based enterprise additionally stated it was on observe to have over 3,000 outlets in the long term, with 140 to 160 new openings deliberate this yr alone.
Greggs advised traders that it ‘delivered one other robust efficiency in 2023, making good progress towards our strategic plan and additional strengthening the corporate’s place as a pacesetter within the food-to-go market’.
It added: ‘In a interval when the rising value of dwelling was all too evident, the Greggs worth proposition shone by means of and was mirrored in rising buyer visits and report scores for value-for-money.’
The surge in gross sales, mixed with easing inflationary pressures, helped the group’s underlying pre-tax earnings improve by 13.1 per cent to £67.7million.
Greggs noticed its general pre-tax earnings bounce by £40million to £188.3million after together with £20.6million in distinctive revenue primarily associated to the settlement of enterprise interruption insurance coverage claims.
Charlie Huggins, supervisor of the Quality Shares Portfolio at Wealth Club, stated: ‘Key to Greggs’ success is doing the straightforward issues nicely. Its provide chain and infrastructure are high notch.
‘Its operational execution is invariably flawless. And it’s frequently enhancing the providing. Overall, the longer term appears brilliant for Greggs and 2024 must be one other yr of progress.’
Greggs shares had been 4.6 per cent greater at £28.40 on Tuesday morning, though they’ve nonetheless fallen by round 18 per cent since peaking on the finish of 2021.
