Coronavirus Update

Greggs Plc - Year-End Results

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Greggs Plc

PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 28 DECEMBER 2019

Greggs is a leading UK food-on-the-go retailer, with 2,050 retail outlets throughout the country

SHARING A GREAT-TASTING, RECORD-BREAKING, AWARD-WINNING YEAR

2019 Financial highlights*

  • Total sales up 13.5% to £1,167.9m (2018: £1,029.3m)
  • Company-managed shop like-for-like sales** up 9.2% (2018: 2.9%)
  • Pre-tax profit excluding exceptional items*** up 27.2% to £114.2m (2018: £89.8m)
  • Pre-tax profit £108.3m (2018: £82.6m)
  • Strong cash generation supporting capital investment programme, additional shareholder returns, and a record annual profit share and special payment for employees
  • Total ordinary dividend per share up 25.8% to 44.9p (2018: 35.7p)
  • Will consider capacity for special dividend at time of interim results

* 2019 figures reflect the adoption of IFRS16 (lease accounting) and are not directly comparable with 2018, which has not been restated

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

*** exceptional pre-tax charge of £5.9m in 2019 (2018: £7.2m charge)

Strategic progress

  • Exceptional performance founded on transformational changes made across multi-year strategic investment programme
  • Product development driving quality, sustainability, variety and brand appeal
  • 138 new shops opened, 41 closures (97 net openings); 2,050 shops trading at 28 December 2019
  • Significant progress in delivery of supply chain investment programme, with benefits ahead of plan
  • Commencing roll-out of delivery service in partnership with Just Eat
  • Developing 'Next Generation Greggs' programme aimed at increasing customer loyalty, choice and access to Greggs across multiple channels

Current trading

  • Very strong start to 2020 in January, but significant slowdown in February due to storms
  • Company-managed shop like-for-like sales up by 7.5% in the nine weeks to 29 February 2020

"2019 was an exceptional year of progress for Greggs, during which we experienced a sustained increase in customer visits as increased awareness and appreciation of our brand gathered momentum.  Our exceptional performance was founded on the changes that we have made across our multi-year strategic investment programme, which has delivered transformational change across the business and has now set us up for the next phase of growth.

 "We made a very strong start to 2020 in January, but in February saw a significant slowdown in sales growth as a result of the storms that have affected the UK.  There is some uncertainty in the outlook, particularly given the potential impact of Coronavirus.  This aside we expect to make year-on-year progress and will do so from a strong financial position, supporting our investment for further growth whilst also delivering good returns for all stakeholders."