Greggs PLC: pleased with Christmas sales

Newcastle upon Tyne / UK. (gplc) Greggs PLC, the United Kingdom´s leading retailer specialising in sandwiches, savouries and other bakery-related products, announced a trading update for the passed Christmas period. Group like-for-like sales during the period, comprising the four weeks to 03 January 2009, increased by 5,3 percent. For the second half of the Group´s financial year, comprising the 28 weeks to 27 December 2008, total sales increased by 6,6 percent, including like-for-like sales growth of 3,9 percent. This gave total sales growth for the financial year as a whole of 7,1 percent, including like-for-like sales growth of 4,4 percent. During the year the Group opened 67 new shops and closed 26, making a net addition of 41 shops and a total of 1’409 at 27 December. Chief Executive Ken McMeikan: «I am pleased with our Christmas trading performance, particularly given the current economic environment and that we were building on strong like-for-like sales in the same period last year. Our performance reflects the UK consumer´s loyalty to Greggs, with its great-tasting products and great value. I expect to report 2008 results in line with expectations when we make our preliminary announcement on 10 March 2009. The trading outlook for 2009 is demanding and customers will continue to feel the impact of the economic downturn. Costs will remain high into the first half despite the recent easing of prices for fuel and a number of key commodities. However, I believe that the quality and great prices of our products give us a competitive advantage. As a cash generative business with no debt we remain well placed to weather the recession and benefit from opportunities for future growth».