Greggs PLC: Profits rise in H1/2010

Newcastle upon Tyne / UK. (gplc) Greggs PLC announced their trading results for the first 26 weeks to 03rd July 2010. Total sales increased by 2,9 percent and like-for-like sales by 0,7 percent in line with expectations. Chairman Derek Netherton: «Despite the challenging trading environment, I believe that Greggs remains on track to deliver another year of progress». Summary:
Sales up 2,9 percent to 321 million GBP (2009: 312 million GBP); like-for-like sales up 0,7 percent
Operating profit up 13,1 percent to 18,5 million GBP (2009: 16,3 million GBP)
Pre-tax profit up 12,3 percent to 18,6 million GBP (2009: 16,5 million GBP)
Underlying operating profit up four percent
Interim dividend increased 5,8 percent to record 0,055 GBP per share
Diluted earnings per share up 12,4 percent to 0,127 GBP (2009: 0,113 GBP)
Net cash of 24,6 million GBP (2009: 14,9 million GBP) after 4,5 million GBP share buyback
26 new shops opened: net increase of 18 in half year

CEO Ken McMeikan: «We have delivered a resilient first half performance under challenging conditions with total sales growth of 2,9 percent and marginally positive like-for-like sales growth, in line with our expectations. Our accelerated shop opening and refit programmes are progressing as planned, and delivering encouraging early results. We are now set to commence the first phase of our supply chain investment programme. The pressure on the trading environment looks likely to increase in the second half and we remain focused on managing costs tightly. We now expect an increase in ingredient cost inflation in the second half of the year, following the recent rise in wheat prices. Despite the challenging trading environment, I believe that Greggs remains on track to deliver another year of progress».

Info: Greggs announce their trading results for the first 26 weeks to 03rd July 2010 (PDF – complete press release)