Greggs PLC: announces FY-2021 preliminary results

Newcastle upon Tyne / UK. (gs) British Greggs PLC, the leading bakery food-on-the-go retailer in the UK with more than 2,200 retail outlets throughout the country, announced its preliminary results for the 52 weeks ended 01 January 2022.

2021 Financial highlights

  • Total sales up 5.3 percent[*] on 2019 level to GBP 1,229.7 million[**] (2020: GBP 811.3 million, 2019: GBP 1,167.9 million)
  • LFL[***] sales in company-managed shops 3.3 percent down on 2019 level
  • Pre-tax profit of GBP 145.6 million (2020: GBP 13.7 million loss, 2019: GBP 108.3 million profit)
  • Strong cash position supporting planned capital investment programme and special dividend
  • Diluted earnings per share 114.3p (2020: 12.9p loss per share, 2019: 85.0p earnings per share)
  • Final dividend of 42.0p per share recommended, taking total ordinary dividend per share to 57.0p (2020: nil, 2019: 11.9p[****])
  • Special dividend of 40.0 pence per share declared
  • Colleague profit-sharing recommenced, will share GBP 16.6 million with our people

[*] comparison with 2019 sales considered more helpful as 2020 figures include the period of shop closure in Q2 2020
[**] 52 weeks ended 1 January 2022 (2020: 53 weeks ended 2 January 2021, 2019: 52 weeks ended 28 December 2019)
[***] like-for-like sales in company-managed shops (excluding franchises) with a calendar year’s trading history
[****] 2019 dividend reflects only the interim dividend, the final dividend of 33.0p was proposed but not paid

Strategic progress

  • Growing and developing the Greggs estate: 131 new shops opened in 2021, 28 closures (103 net openings); 2,181 shops trading as at 1 January 2022. From 2022, targeting 150 annual net new shop openings, with the potential for at least 3,000 shops in the UK over time. Improving the quality of our estate – 200 refurbishments planned in 2022 to support growth in additional channels.
  • Evening trade: Plan to extend late opening to 500 shops in year ahead, offering core menu plus hot food trials.
  • Delivery and digital channels: Extending delivery reach from 1,000 to 1,300 shops to complement evening availability. Further recruitment of, and engagement with, Greggs App customers.
  • Supply chain investment: Identifying optimal locations for future investment in supply capacity to facilitate growth ambition.
  • ESG: Majority of year one Greggs Pledge targets met, including food waste reduction both in our shops and our manufacturing sites; and extending the proportion of items on our shelves that are healthier choices.

Current trading

  • In first nine weeks of 2022, LFL sales in company-managed shops up 3.7 percent compared to the 2020 level
  • For same period LFL sales in company-managed shops up 44.2 percent against lockdown-affected period in 2021

Chief Executive’s Commentary

«Our results and achievements in 2021 show that we have emerged from the pandemic both stronger and better as a business. I would like to thank, once again, all of our teams across the country who rose so well to meet the challenges of the last two years,» said Chief Executive Roger Whiteside.

«We have started 2022 well, helped by the easing of restrictions. Cost pressures are currently more significant than our initial expectations and, as ever, we will work to mitigate the impact of this on customers, however given this dynamic we do not currently expect material profit progression in the year ahead.

«Despite these near-term pressures, we continue to believe that the opportunities for Greggs have never been more exciting. Our investment over recent years has left the business well-placed to move quickly as the economy recovers and we drive our ambitious plans to become a larger, multi-channel business,» Whiteside added.

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