Greggs PLC (LON:GRG), today announced interim results for the 26 week ended 30th June
First half financial highlights
· Total sales up 5.2% to £476m
· Company-managed shop like-for-like sales* up 1.5%
· Underlying operating profit excluding property profits** and exceptional charge*** £25.7m (H1 2017: £27.6m)
· Reported pre-tax profit including property profits and exceptional charge £24.1m (H1 2017: £19.4m)
· Continued strong cash generation: £39.0m net inflow from operating activities (H1 2017: £34.0m)
· Ordinary interim dividend per share up 3.9% to 10.7p
* like-for-like sales in company-managed shops (excluding franchises) with a calendar year’s trading history
** freehold property disposal profits of £0.3m in 2018 (H1 2017: £0.3m)
*** exceptional pre-tax charge of £1.9m in 2018 (H1 2017: £8.3m) in relation to previously-announced restructuring
Operational highlights
· Resilient trading, despite extreme weather conditions, with continued growth in developing strategic categories including hot drinks, breakfast, healthier choices and hot food options
· Strong demand for value meal deals which have been expanded to include:
– broader £2 breakfast offer, now including yoghurts and fruit pots
– new £2 ‘pizza slice + drink’ offer after 4pm
· Shop opening programme progressing well:
– 59 new shops opened, 25 closures; expect around 100 net new shops for the year as a whole
– increasing presence in transport locations (1st Tube station at Westminster, 2nd Drive-Thru at Ashby-de-la-Zouch, Birmingham New Street station, Glasgow Buchanan bus station and East Midlands Airport)
– 1,888 shops trading as at 30 June 2018
· Good progress with supply chain investment programme
Greggs, Roger Whiteside, Chief Executive commented:
“Greggs has delivered a resilient performance despite challenging market conditions and we have continued to make good progress with our strategic investment programme to transform the business into the customers’ favourite for food-on-the-go. While we remain cautious in respect of the outlook for sales in the balance of the year given the consumer backdrop, we are confident in the medium and long-term growth potential for the business, supported by customers’ response to our initiatives, our strong cash generation and the ongoing strategic investments that we are making. Over the year as a whole we continue to believe that underlying profits (before exceptional costs) are likely to be at a similar level to 2017.”
