DJ Greggs PLC Interim Results
Financial highlights — Total sales up 6.0% to GBP422m
— Company-managed shop like-for-like sales up 3.8%
— Operating profit excluding property gains and exceptional charge* up 6.7% to GBP27.2m (2015: GBP25.5m)
— Property disposal gains of GBP2.2m (2015: GBP0.1m)
— Diluted earnings per share excluding exceptional charge* 22.3p (2015: 19.5p)
— Pre-tax profit including property profits and exceptional charges GBP25.4m
— Continued strong cash generation: GBP44.7m net inflow from operating activities
— Ordinary interim dividend per share of 9.5p (2015: 7.4p)
*before exceptional pre-tax charge of GBP4.0m (2015: GBP nil) in relation to previously announced restructuring
Operational highlights
— Good results from sales initiatives:
– strengthening of 'Balanced Choice' range
– further development of breakfast and hot drinks offer
– successful launch of improved Greggs Rewards app
— Shop refurbishment programme progressing well:
– 86 shop refurbishments completed year-to-date, planning 200 for the year
— 68 new shops opened, 36 closures; expect around 70 net new shops in the year
— 1,730 shops trading as at 2 July 2016
“In the first half of 2016 we delivered good like-for-like growth by reinforcing the freshness and value of our offer in line with changing trends in the food-on-the-go market. We added to our “Balanced Choice” range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices.
“We have made an encouraging start to the second half of the year and are alert to any change in consumer demand that may result from the current economic uncertainty. Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan.”