Greggs PLC Trading Update (3204D)
October 09 2018 - 1:00AM
UK Regulatory
TIDMGRG
RNS Number : 3204D
Greggs PLC
09 October 2018
9 October 2018
GREGGS plc
THIRD QUARTER TRADING UPDATE
Greggs is the leading bakery food-on-the-go retailer in the
UK,
with over 1,900 retail outlets throughout the country
Improved sales in challenging conditions
-- Total sales up 7.3% for the 13 weeks to 29 September 2018
-- Company-managed shop like-for-like sales up 3.2% for the 13 weeks to 29 September 2018
-- 93 new shops opened year-to-date, 35 closures
-- Still expect around 100 net openings in 2018
-- Autumn range includes limited-edition Pumpkin Spice Latte, a
new Chilli Beef Bake and new soup and hot sandwich options
-- Our expectations for the full year are unchanged
Trading performance
Greggs traded well against strong comparatives in the third
quarter, which was characterised by particularly hot weather. In
the 13 weeks to 29 September 2018 total sales grew by 7.3 per cent
(2017: 8.6 per cent) and like-for-like sales in company-managed
shops increased by 3.2 per cent (2017: 5.0 per cent). Total sales
have grown by 5.9 per cent in the year-to-date and like-for-like
sales have increased by 2.1 per cent.
Our drinks range and new focaccia-style pizzas proved popular
over the summer months. We continued to see growth at breakfast
time, helped by the expansion of our great value deals and our wide
selection of freshly-ground Fairtrade coffees. As testament to the
increased breadth of our product range, we were recognised at
PETA's 2018 Vegan Food Awards and were awarded the `Best Vegan
Sandwich' for our Mexican Bean Wrap.
Shop estate development
In the year-to-date we have opened 93 new shops, including 35
franchised units predominantly in transport locations. We have
closed 35 shops, giving a total of 1,912 shops trading at 29
September (comprising 1,677 of our own shops and 235 franchised
units). For the year as a whole we still expect around 100 net
openings, of which around 60 are planned to be with franchise
partners.
Outlook
Investment in our supply chain continues apace with the
commissioning of new consolidated manufacturing platforms at our
Newcastle, Leeds and Manchester sites progressing in the fourth
quarter. As part of our strategic investment in systems we will be
implementing the human resource and estate management modules of
our integrated SAP solution in the months ahead, with payroll due
to follow in early 2019.
We were pleased with our trading performance during a period
that included a long spell of hot weather, which made sales
patterns more difficult to predict. This, and the resulting mix of
sales led to a lower-than-normal trading margin in the first part
of the quarter, offset by improved trading as we came into
September. Overall our expectations for the full year outturn
remain unchanged.
ENQUIRIES:
Greggs plc Hudson Sandler
Roger Whiteside, Chief Executive Wendy Baker / Hattie O'Reilly / Nick Moore
Richard Hutton, Finance Director
Tel: 0191 281 7721 Tel: 020 7796 4133
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END
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