Greggs makes strong start after delivering tasty 2023 profits

5th Mar 2024 07:08

(Sharecast News) - High Street bakery chain Greggs maintained guidance and said it had made a strong start to the current year after delivering a jump in 2023 profits as customers sought out its sausage rolls and doughnuts amid the cost-of-living crisis.

Shareholders were also rewarded with a special 40p-a-share dividend on top of the 62p full-year payout.

Like-for-like sales in company-managed shops were up 8.2% in the first nine weeks of the year. Pre-tax profit for the year to December came in at £188.3m from £148.3m a year earlier, with total sales rising to £1.8bn from £1.51bn.

The chain extended opening hours last year and now had more than 1,200 sites competing for food-on-the-go-sales until 7pm or later, with evening sales forming 8.7% of company-managed shop sales in the second half of 2023.

It also established partnerships with food delivery firms Just Eat or Uber Eats and saw "strong potential for expanding our home delivery offer further in this daypart".

Customers tucked in to takeaway dinners, with hot southern fried chicken goujons, southern fried potato wedges, and pizzas all selling well.

"Our family pizza box comes with six individual slices and can be customised, meaning that everyone can get the flavour they want. We continue to innovate with new hot food options and expanded our pizza range with a spicy veg version this year, as well as trialling new menu ideas such as mozzarella and cheddar bites," Greggs said.

Reporting by Frank Prenesti for Sharecast.com