Greggs : Annual Report 2020 13/04/21

20

GREGGS PLC Annual Report & Accounts 202020

BRINGING OUT

THE BEST IN US

INTRODUCTION

Greggs plc

1

In a year like no other, the Covid-19 crisis has, in many ways demonstrated the strength of Greggs.

It has shown the resilience of our business model, but most of all the strength of our people who have worked hard throughout to maintain an essential service providing takeaway food to customers unable to work from home, many of whom were themselves key workers. I would like to take this opportunity to thank all of our people, who can be proud of the part we played in our nation's time of need.

Greggs is well placed to participate in the recovery from the pandemic and has demonstrated its resilience and capability to operate under such challenging conditions. With good liquidity and growing digital capabilities Greggs is an attractive proposition that can grow further in new locations, channels and dayparts. These opportunities will benefit all of our stakeholders in the years to come.

Roger Whiteside OBE, Chief Executive

16 March 2021

STRATEGIC REPORT DIRECTORS' REPORT ACCOUNTS

Strategic Report

2020 Highlights	2	2020
At a glance	3
		Accounts
Business model	8
Year in review	6
		and
Chairman's statement	9
		Report
Chief Executive's report	12
Key performance indicators	18	Annual
Non-financial key	20
performance indicators
Gender of workforce	23
Our strategy in action	24
Supporting our local communities	32
The Greggs Pledge	34
Financial Review	41
Risk management	45
Viability statement	46
Principal risks and uncertainties	47
Stakeholder engagement	51

Directors' Report

Board of Directors and Secretary	54
Governance report	57
Audit Committee report	71
Directors' remuneration report	79
Statement of Directors'
responsibilities	102

Accounts

Independent auditor's report	104
Consolidated income statement	112	page
Consolidated statement of	113
Balance sheets	nextthe
comprehensive income	112
		on
Statements of changes in equity	114
Continued
Notes to the consolidated accounts	120
Statements of cashflows	118
Ten-year history	167
Secretary and advisers	169

2020 HIGHLIGHTS

Covid-secure operating model established.

Shop and supply chain operations adapted to safeguard team members and customers while operating during Covid-19.

READ MORE ON PAGES 13-14

Multi-channel development strategy accelerated.

Delivery and wholesale channels providing alternative routes to access Greggs products, with delivery contributing

an increasing proportion of total sales. Click + Collect rolled out across entire estate and delivery made available in more than 600 shops.

READ MORE ON PAGES 24-27

The Greggs

Pledge launched.

Ten sustainability commitments to continue to develop the business in a responsible manner over the next five years and beyond.

READ MORE ON PAGES 34-40

Greggs plc

2

STRATEGIC REPORT	DIRECTORS' REPORT ACCOUNTS

Key financial highlights

Total sales

£811.3m

-30.5%

2019: £1,167.9m

Company-managed shop like-for-like (LFL) sales growth

-36.2%

2019: 9.2%

Pre-tax loss

£13.7m

2019: profit before tax £108.3m

Diluted loss per share

12.9p

2019: earnings per share 85.0p

Return on capital employed

-2.4%

2019: 19.0%

Detailed calculations of Alternative Performance Measures, not otherwise shown in the income statements and related notes, are shown on page 168.

Annual Report and Accounts 2020

Continued on the next page

AT A GLANCE

With ownership of our supply chain, multiple service channels for our customers, and over 2,000 shops nationwide, we are in a unique position to make great tasting, freshly prepared food accessible to everyone. Staying open to serve under Covid-secure conditions showed the important role we play in providing food-on-the-go to all types of people, as they go about their daily lives as best they can, in difficult circumstances.

Our purpose

To make great tasting, freshly prepared food accessible to everyone.

Our vision

To be the customers' favourite for food-on-the-go.

Greggs plc

3

STRATEGIC REPORT	DIRECTORS' REPORT ACCOUNTS

OUR STRATEGIC PILLARS

Great tasting, freshly prepared food	2020
ingredients, consistent quality and outstanding	Accountsand
You cannot beat freshly baked, freshly prepared
food. With our great flavours, responsibly-sourced	Report
value - our food-to-go leads the way.
READ MORE ON PAGES 24-25			Annual
Best customer experience
Fast and friendly service is a key reason why customers
choose Greggs. Great service is not an easy thing to deliver
under pressure, and our shop teams do an amazing job.
Through Greggs Rewards, we are able to build long-lasting
relationships with our customers and reward their loyalty.
READ MORE ON PAGES 26-28
Competitive supply chain
By owning our supply chain, we can make
great tasting, freshly prepared food
accessible to everyone.
READ MORE ON PAGES 29-30			next page
First class support teams
on the
We've invested heavily in leading-edge systems. They
equip our support teams to provide the best service to	Continued
their colleagues and ultimately, our customers.
READ MORE ON PAGE 31