Greggs PLC: Announces Preliminary Results FY 2019

Newcastle upon Tyne / UK. (gs) British Greggs PLC, the leading bakery food-on-the-go retailer in the UK with more than 2,050 retail outlets throughout the country, announced its Preliminary Results for the financial year 2019 – the 52 weeks ended 28 December.

2019 Financial highlights*

• Total sales up 13.5 percent to GBP 1,167.9 million (2018: GBP 1,029.3 million)
• Company-managed shop like-for-like sales** up 9.2 percent (2018: 2.9 percent)
• Pre-tax profit excluding exceptional items*** up 27.2 percent to GBP 114.2 million (2018: GBP 89.8 million)
• Pre-tax profit GBP 108.3 million (2018: GBP 82.6 million)
• Strong cash generation supporting capital investment programme, additional shareholder returns, and a record annual profit share and special payment for employees
• Total ordinary dividend per share up 25.8 percent to 44.9 GBPence (2018: 35.7 GBPence)
• Will consider capacity for special dividend at time of interim results

* 2019 figures reflect the adoption of IFRS16 (lease accounting) and are not directly comparable with 2018, which has not been restated
** like-for-like sales in Company-managed shops (excluding franchises) with a calendar year’s trading history
*** exceptional pre-tax charge of GBP 5.9 million in 2019 (2018: GBP 7.2 million charge)

Strategic progress

• Exceptional performance founded on transformational changes made across multi-year strategic investment programme
• Product development driving quality, sustainability, variety and brand appeal
• 138 new shops opened, 41 closures (97 net openings); 2,050 shops trading at 28 December 2019
• Significant progress in delivery of supply chain investment programme, with benefits ahead of plan
• Commencing roll-out of delivery service in partnership with Just Eat
• Developing «Next Generation Greggs» programme aimed at increasing customer loyalty, choice and access to Greggs across multiple channels

Current trading

• Very strong start to 2020 in January, but significant slowdown in February due to storms
• Company-managed shop like-for-like sales up by 7.5 percent in the nine weeks to 29 February 2020

Roger Whiteside OBE, Chief Executive: «2019 was an exceptional year of progress for Greggs, during which we experienced a sustained increase in customer visits as increased awareness and appreciation of our brand gathered momentum. Our exceptional performance was founded on the changes that we have made across our multi-year strategic investment programme, which has delivered transformational change across the business and has now set us up for the next phase of growth.

«We made a very strong start to 2020 in January, but in February saw a significant slowdown in sales growth as a result of the storms that have affected the UK. There is some uncertainty in the outlook, particularly given the potential impact of Coronavirus. This aside we expect to make year-on-year progress and will do so from a strong financial position, supporting our investment for further growth whilst also delivering good returns for all stakeholders.»

For additional information please read Greggs’ PDF file below (204 KB):

20200304-GREGGS-FY-2019.