Greggs PLC: financial position remains strong

Newcastle upon Tyne / UK. (gplc) Greggs PLC said in an interim management statement to shareholders that the company is pleased with its year to date performance in a trading environment that remains challenging. For the 18 weeks to 08 May 2010, total sales increased by 2,6 percent and like-for-like sales by 0,6 percent, consistent with the company´s expectations of marginally positive like-for-like sales growth over the year. This has been achieved against Greggs´ strongest period of like-for-like sales in 2009. Chairman Derek Netherton: «Overall costs to date are in line with our plans. We have maintained our commitment to delivering the outstanding value and quality that Greggs´ food offers. Our latest national TV advertising campaign, Greggs ‘The home of fresh baking’, has been launched focusing on our shop staff making our sandwiches fresh by hand, every day, using bread we bake ourselves every day. Customer and staff feedback has been positive. We remain encouraged by sales from new products and have sold more than two million breakfasts to our customers since the national launch in February of our breakfast offer – bacon or sausage in a fresh, Greggs-baked roll. We continue to make good progress towards our strategic objectives and are on track to open a net 50 to 60 new shops and complete 120 refits this year. Our financial position remains strong and we are well placed to deliver further growth in 2010».