Greggs PLC: sees profits rise as sales grow

Newcastle upon Tyne / UK. (gplc) Greggs PLC said in a statement that a year of consolidation had not affected the business, posting a rise in annual profits of eight percent to 48,8 million GBP. The performance included a 4,8 percent rise in sales to 658 million GBP, despite the recession and the company shake-up. In the past year, the bakery chain has reduced its bakery divisions from eleven to seven, moved out of its Belgian business and re-branded two thirds of its Bakers Oven shops as Greggs. But now the focus rests on expansion plans. Currently, Greggs runs 1’419 shops and has earmarked a total of 600 suitable sites. The group intends to increase the number of Greggs shops by 50 to 60 outlets per year and 70 additional stores annually from 2011 onwards. Greggs plans to hone the brand, taking it more upmarket in three initial «concept stores» for southerners, expanding to 24 shops in London during the year. CEO Ken McMeikan: «The changes of the last year have put us in a strong position to deliver the significant growth opportunities that we have identified». Despite the uncertain outlook, the firm expects sales growth to be marginally positive, to the tune of around 0,8 percent, the increase seen in the ten weeks to March 13. McMeikan added that Greggs was «well placed to achieve a year of further progress in 2010». Greggs will return 15 million GBP to shareholders, the 25th consecutive year of dividend growth since the company was floated on the stock market in 1984.
Info: «Preliminary Results for the 53 weeks endet 02 January 2010» (complete press release, PDF, 20 pages, 197 KB).