- Greggs reported that total turnover increased by almost £300m to £1.8bn last year
- Trade was driven in part by price increases and volume expansion at existing sites.
- Sales were further boosted by more stores opening later in the evening.
Greggs has said it is on track to double its turnover under a rolling five-year strategy after achieving its strongest performance in 2023.
The bakery chain, famous for its sausage rolls, reported total revenue rose by almost £300m to £1.8bn last year, with like-for-like sales at company-run sites up 13.7 percent.
The growth was driven by price increases, volume expansion at existing outlets and a record 220 store openings, including new sites in hubs such as Canary Wharf, Gatwick Airport and London Waterloo Station.
Good result: Greggs reported that total sales increased by almost £300 million to £1.8 billion last year.
Trade was further boosted by more stores opening later in the evening, when products such as Southern fried chicken goujons, potato wedges and pizzas are in high demand.
Additionally, the group expanded its partnerships with food ordering platforms Just Eat and Uber Eats, which increased its delivery sales by 23.6 per cent, as well as retailers such as Primark, Tesco and Sainsbury’s.
As a result, the company’s turnover has increased by approximately half in the last two years, putting it on track to achieve its goal of doubling revenue by 2026.
The Newcastle-based company also said it was on track to have more than 3,000 stores in the long term, with between 140 and 160 new openings planned this year alone.
Greggs told investors it “delivered another strong performance in 2023, making good progress on our strategic plan and further strengthening the company’s position as a leader in the food-to-go market.”
He added: “In a period when the rising cost of living was all too evident, Greggs’ value proposition shone through and was reflected in growing customer visits and record value for money ratings.”
The increase in sales, combined with easing inflationary pressures, helped the group’s underlying pre-tax profits rise 13.1 per cent to £67.7 million.
Greggs saw its headline pre-tax profits rise by £40m to £188.3m after including £20.6m in exceptional income mainly related to the settlement of business interruption insurance claims.
Charlie Huggins, quality equity portfolio manager at Wealth Club, said: “The key to Greggs’ success is doing the simple things well.” Their supply chain and infrastructure are top-notch.
‘Their operational execution is invariably impeccable. And it is continually improving the offer. Overall, the future looks bright for Greggs and 2024 should be another year of progress.”
greggs stock They rose 4.6 per cent to £28.40 on Tuesday morning, although they are still down around 18 per cent since peaking in late 2021.
