Food Retailer Greggs Reports another Excellent Year with Pre-Tax Profits up over 13%

Food Retailer Greggs, the leading UK food-on-the-go retailer, has announced its full year 2023 results, which show the food retailer continues to thrive despite a challenging climate.  Results show:

  • Total sales rose by 19.6%, like-for-like sales rose by 13.7%
  • Underlying profit before tax up 13.1%, special dividend of 40p per share announced
  • Good start to 2024 with like-for-like sales up 8.2% in the first nine weeks

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, commented:

“Greggs has enjoyed an excellent year despite the challenging economic environment. Sales and profits have both risen, despite significant cost inflation, and the group is returning more cash to shareholders through dividends. All in all, an impressive performance.

There is no doubt Greggs’ brand is resonating strongly with the UK consumer and is in fine fettle. A record 220 new shop openings and longer opening hours have also extended the brand’s reach, contributing to market share gains.

This sales growth has enabled Greggs to continue increasing profits despite significant inflation in the cost of raw materials, energy and wages. Encouragingly, these cost pressures are now beginning to ease. This is good news for profit margins, as well as consumer demand as it should reduce the need for price increases.

Key to Greggs’ success is doing the simple things well. Its supply chain and infrastructure are top notch. Its operational execution is invariably flawless. And it is continually improving the offering.

Overall, the future looks bright for Greggs and 2024 should be another year of progress.”

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