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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Will Greggs’ expansion and profit update ignite shares?

Greggs PLC (LSE:GRG), the bakery retailer, will be looking to ignite some much-needed life into its share price when it reports full-year results on Tuesday 5 March.

Shares have remained relatively subdued since the group’s fourth-quarter update in January, having lifted around 3% in the two months since.

Analysts at Hargreaves Lansdown believe that if management wants to impress shareholders it will need to report full-year pre-tax profits of £168 million, which would represent a 13% year-on-year jump.

“On the outlook side of things, investors will be looking out for details on further plans to expand the estate, increase delivery partnerships and drive more traffic through online and click & collect options,” Matt Britzman, equity analyst at the UK broker said.

“Inflation will, as always, be a topic for discussion. As price hikes slowed last year it caused a drag on growth, but retaining a low-cost product is essential for the Greggs proposition.”

Greggs’ fourth-quarter trading update was warmly welcomed by analysts in January after the bakery chain unveiled a 13.7% jump in annual revenues.

Sales came in at £1.8 billion for 2023, prompting Liberum to class a ‘buy’ rating as “the right call”.

The UK bank also noted that Greggs’ bid to operate around 3,000 sites by 2026 would in turn generate £2.4 billion in sales.

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