Partly Cloudy

Partly Cloudy

max temp: 18°C

min temp: 8°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

Retail: Greggs on track to serve up improved first half profits

10:03 01 July 2014

Greggs today reported strong first-half sales.

Greggs today reported strong first-half sales.

Greggs is set to report a big jump in half-year profits after sales at the pasty and sausage roll maker rallied on the back of recent turnaround efforts.

shares

The bakery chain, which has 1,661 shops in the UK, grew like-for-like revenues by 3.2% in the 26 weeks to June 28. Operating profits due later this month are now on course to be around £16million to £17m, up from £11.5m last year.

The improvement follows a move by chief executive Roger Whiteside to increase the focus of the business on the food-on-the-go market, which accounts for 75% of customer visits, rather than traditional take-home business.

The company has previously admitted it underperformed the food-on-the-go sector as convenience stores, coffee shops and fast food operators better met customer demands, particularly in traditional shopping centre locations.

Greggs has responded by completing 131 shop refurbishments in the first half of the year, in line with its plan to refit around 200 shops this year.

It also opened 26 new shops and closed 36 in a drive to target more sites in locations such as retail and industrial parks and motorway service stations.

Greggs has benefited from comparisons with a period of soft trading last year but adds that growth is also being driven by improvements to its products, availability, service and value.

The company added: “Overall, we expect to deliver an improved financial result for the year and further progress against our strategic plan.”

It has introduced a new pizza product that has become one of its fastest selling lines, as well as a range of ‘heat to eat’ sandwiches. In savouries it has improved the fillings in its best-selling lines such as Steak Bakes.

Cost inflation has also shown signs of easing recently but Greggs has warned that the costs of investing in its turnaround programme is likely to constrain profit growth over the next two years.

Shore Capital analyst Darren Shirley said: “Comparatives for the period were weak and the weather conditions have been almost perfect for Greggs, so we are not getting carried away.

“However, stores have clearly benefited from improved availability, longer trading hours as well as product upgrades.

“We believe Roger Whiteside merits much credit for progressively returning Greggs’ stores to like-for-like growth over the course of his 15 months’ tenure.”

shares

1 comment

  • Given how horrendously salty their food is, this can only mean good news for cardiac surgeon employment. Last time I had a Gregg's pasty there was so much salt in it I could almost feel my blood pressure going through the roof.

    Report this comment

    beerlover

    Tuesday, July 1, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

An 
Abellio Greater Anglia train.

Three train operators are in the running for the new East Anglia rail franchise.

The  Center Parcs business in the UK has been sold.

Britain’s five Center Parcs resorts, including Elveden Forest in Suffolk, have been sold to a Canadian investment firm in a deal thought to be worth more than £2.4billion.

Some of the facilities at David Lloyd Leisure in Ipswich.

Health and fitness centre operator David Lloyd Leisure is investing more than £1million in its club at The Havens on Ransomes Europark in Ipswich.

Neil Slaven, UK commercial manager at easyJet, centre, left, and Mark Suter, head of business development at Stansted Airport, centre, right, with easyJet crew before the airline's inaugural flight from Stansted to Monastir in Tunisia.
Photo: Tim Anderson

Budget airline easyJet has expanded its network of routes out of Stansted Airport to 25, with the launch of services to holiday destination Monastir in Tunisia.

The expanded Abberton reservoir in Essex.

The expansion of the Abberton reservoir in Essex has been described by European Investment Bank vice president Jonathan Taylor as an “essential” investment in climate change adaptation technology in the UK.

Neil Darwin, chief executive of the Greater Cambridge Greater Peterborough LEP

The Greater Cambridge Greater Peterborough Local Enterprise Partnership (LEP) has appointed Neil Darwin as chief executive.

From left, Jim Davison of EEF, Keith Ferguson of BDO, Paul Nelson of Barclays, and Paul Sparks  and Stephen Cooney, also both of BDO, at the East Anglian Manufacturers Forum event in Ipswich.

Manufacturers in the East of England have reported weaker than expected growth during the second quarter of the year, according to major sector survey.

Rob Dellow, second from left, of sponsor Atkins Thomson, with, from left Phil Pethybridge, Alex Till and Leanne Castle of Menta, celebrate the launch of 2015 Menta Trade Fair which takes place at the Apex in Bury St Edmunds on Wednesday, September 30.

Suffolk-based enterprise agency Menta has announced the date for its annual trade showcase event.

Chancellor of the Exchequer George Osborne.

Chancellor George Osborne has extended a plan to sell down the Government’s stake in bailed-out Lloyds Banking Group as it was disclosed that the holding has now been cut to less than 19%.

Ian Allchin who heads the new music and media team at Essex law firm Birkett Long.

Law firm Birkett Long, which has offices in Colchester, Chelmsford and Basildon, has launched a music and media team which it believes is the first of its kind in the county.

Most read

Most commented

Topic pages