Transformational Year For Greggs
Greggs, the UK’s leading bakery food-to-go retailer with almost 1,700 retail outlets throughout the country, has reported a 3.8% increase in sales to £762.4 million for 2013, as a result of the sales contribution from new shops. However, like-for-like sales were down 0.8% for the year as a whole, although there was an improving trend in the latter part of the year resulting in like-for-like growth of 1.2% in the second half and 2.6% in the fourth quarter.
Operating profit before exceptional items was down 19.1% at £41.5 million and pre-tax profit before exceptional items was down by 18.9% to £41.3 million. In addition Greggs took an exceptional charge of £8.1 million reflecting expected one-off costs.
Gregg’s new strategic plan, announced in August 2013, focuses on growing like-for-like sales by improving the quality of the group’s existing estate and making its operation simpler and more efficient.
Roger Whiteside, chief executive of Greggs, comments: “2013 was a year of transition for Greggs as our new strategic focus centred on the growing food-on-the-go market. Whilst total sales for the year rose 3.8% like-for-like sales were down 0.8% reflecting the tough and competitive trading conditions. However, I am encouraged by the improvement in performance in recent months as our new strategic focus started to deliver benefits.”
He continues: “Market conditions are expected to remain challenging in 2014. It will be a year of further change for Greggs as we move forward with our plan to focus on the food-on-the-go market and build on positive recent trading momentum.”
