Greggs hits targets but remains cautious about UK consumer oulook
Greggs’ revenue for 2016 grew as the bakery transforms itself in a food-on-the-go-retailer, while the company was cautious about the consumer outlook in the UK.
Food & Drug Retailers
3,956.27
16:59 26/04/24
FTSE 250
19,824.16
16:59 26/04/24
FTSE 350
4,470.09
16:59 26/04/24
FTSE All-Share
4,423.59
17:14 26/04/24
Greggs
2,700.00p
16:40 26/04/24
Revenue for 2016 rose 7% to £894.2m, compared to the previous year and company-managed shop like-for-like sales were up 4.2% from 4.7%.
Operating profit excluding property profits and exceptional items increased 8.6% to £78.1m and pre-tax profit, excluding exceptional items, rose 10% to £80.3m.
The FTSE 250 company declared a dividend of 31p per share, up 8.4%.
Greggs has also started a £100m, five-year investment programme in its manufacturing and distribution operations as it plans to transform Greggs from a traditional bakery into a food-on-the-go retailer with 92% of its shops refurbished.
Since the start of 2017, company-managed shop like-for-like sales have been up 2% in line with expectations.
Chief executive Roger Whiteside said: “In 2016 we delivered another strong performance as we continued on our journey to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer. Our product offer is evolving to meet the changing needs of our customers and our shop estate and service levels have benefited from significant investment.
"The UK consumer outlook is more challenging than we have seen in recent years, with industry-wide pressures emerging in commodities as well as labour costs. However we are confident of making further progress as we implement our plan to grow Greggs as a contemporary food-on-the-go brand."
Shares in Greggs were down 1.73% to 993.50p at 0821 GMT.