Greggs says 2023 sales increase shows "popularity" of brand

(Correcting that sales are in billion.)

(Alliance News) - Greggs PLC on Wednesday said its sales rose in the full year, as it targets more new stores in 2024.

The Newcastle, England-based bakery chain reported that its total sales increased 20% to GBP1.8 billion for the full year, from GBP1.5 billion the year prior.

The firm said company-managed shop like-for-like sales in 2023 increased 14% during the period, while they increased 9.4% in the fourth quarter, as transaction numbers continued to grow but price inflation had a negative effect.

Greggs said the increase in sales shows the popularity of its brand, as it notes that it is making the brand more accessible via extended trading hours and digital channels, with Uber Eats delivery having been rolled out to 710 shops, alongside the existing Just Eat service.

The company noted that it opened 220 new branches during the year, with 33 closures and 42 relocations giving a net shop openings figure of 145. It has 2,473 shops in total.

At December 31, the firm said it had GBP195 million in net cash, up from GBP192 million previously.

Looking ahead, Greggs left its full year expectations unchanged, and said it expects to open between 140 and 160 new stores in 2024.

Chief Executive Roisin Currie said: "2023 was a year of further progress by Greggs. I am proud of our teams, who did a fantastic job serving more customers as we continue to grow our shop estate and offer greater availability through digital channels and extended trading hours.

"We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet. Our value-for-money offer, and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead."

Greggs shares rose 7.4% to 2,656.00 each on Wednesday morning in London.

By Harvey Dorset, Alliance News reporter

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