Greggs PLC - Trading Update
FOURTH QUARTER TRADING UPDATE
Greggs is the leading bakery food-on-the-go retailer in the
with over 1,750 retail outlets throughout the country
A strong finish to a year of good progress
Financial year 2016*
· Total sales up 7.0%
· Company-managed shop like-for-like sales up 4.2%
· 208 refits completed in 2016
· 145 new shops opened in the year, 79 closures
· 1,764 shops trading as at
· Full year results anticipated to be slightly ahead of previous expectations
* 52 weeks ended
"We finished 2016 well, delivering our thirteenth consecutive quarter of like-for-like sales growth, and anticipate that we will report full year results for 2016 slightly ahead of our previous expectations.
"In the year ahead, whilst we will undoubtedly see a number of well-documented industry headwinds, we are confident we will continue to make progress with the implementation of our strategic plan, including significant investment in our capability to supply a growing shop estate."
For our 2016 financial year as a whole (52 weeks ended
Customers enjoyed seasonal favourites such as our Festive Bake and traditional mince pies but our growing strength in food-on-the-go was the main driver of sales. Our new 'Balanced Choice' bakes have proved popular along with hot food options such as our new burritos, and we will soon be extending our hot drinks range to include Vanilla Latte alongside Fairtrade Peppermint Tea and Green Tea.
During the year we opened 145 new shops (including 56 franchised units) and closed 79, growing the estate to 1,764 shops trading as at
In 2016, we converted a further 208 shops to our successful "bakery food-on-the-go" format. We expect to refurbish shops at a similar rate in the year ahead to maintain our modern, food-on-the-go experience for customers.
Alongside the trading activity we delivered a number of significant elements of our previously announced strategic investment programme, including successful trials of our new shop replenishment system. We also commissioned our new distribution centre in
Looking forward there is greater uncertainty in the trading environment with increased pressure on real income growth. We also continue to expect some industry-wide cost pressures in 2017 and these are likely to have a modest impact on margins in the short term.
2017 will be another busy year of change as we continue to progress our investment in better systems and the transformation and development of our supply chain. Over the medium term we are confident of making further progress as we implement our plan to grow Greggs as a modern food-on-the-go brand.
| || |
| || |
| || |
Tel: 020 7796 4133
0191 281 7721
This information is provided by RNS
Quick facts: Greggs PLC
Market Cap: -
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE