Greggs Plc - Interim Results

Greggs is a leading UK food-on-the-go retailer,

with almost 2,000 retail outlets throughout the country

 

Exceptional trading performance

 

 

First half financial highlights

Total sales up 14.7% to £546m

Company-managed shop like-for-like sales* up 10.5%

Underlying pre-tax profit margin of 7.5% (H1 2018: 5.4%) driven by strong sales growth and operational cost control

Underlying pre-tax profit excluding property gains** and exceptional charge*** £40.6m (H1 2018: £25.7m)

Reported pre-tax profit including property gains and exceptional charge £36.7m (H1 2018: £24.1m)

Strong cash generation supporting investment programme and enhanced returns to shareholders

Ordinary interim dividend per share up 11.2% to 11.9p in line with our policy of paying one third of the previous year's total dividend as an interim dividend

Special dividend of 35.0p per share declared

 

* like-for-like sales in company-managed shops (excluding franchises) with a calendar year's trading history

** freehold property disposal profits of £0.1m in H1 2019 (H1 2018: £0.3m)

*** exceptional pre-tax charge of £4.0m in H1 2019 (H1 2018: £1.9m) in relation to previously-announced restructuring

 

 

Operational highlights

Exceptionally strong trading built on the successful end to 2018, and helped by the popularity of the new vegan-friendly sausage roll

Strong growth in customer visits as Greggs broadens its appeal for food-on-the-go

Traditional bakery favourites selling well alongside growth in Fairtrade coffee, breakfast and new hot food options

Shop opening programme progressing well:

-  -54 new shops opened, 23 closures; continue to expect around 100 net new shops for the year as a whole

-  -1,984 shops trading as at 29 June 2019

Supply chain investment programme progressing well

Extended trials in new channels including 'click & collect' and delivery

 

 

"Greggs has delivered an exceptional first half performance, building on the strong finish to 2018.  We have continued to make strategic progress with our programmes of investment in infrastructure to support future growth and in developing the products and channels to market that will help achieve our ambition to be the customers' favourite for food-on-the-go.

 

"Given the strength of our year to date and the outlook, we have decided to increase investment in strategic initiatives in the second half of the year to help to deliver an even stronger customer proposition and further growth in the years ahead.  Our expectations for underlying profits for the year as a whole remain unchanged."

 

-     Roger Whiteside, Chief Executive