Interim Management Statement

RNS Number : 3380G

Greggs PLC

11 May 2011

 



11 May 2011

GREGGS plc

INTERIM MANAGEMENT STATEMENT

Greggs is the leading bakery retailer in the UK,

with over 1,500 retail outlets throughout the country,

serving freshly baked products to six million customers each week

CONTINUED GROWTH IN CHALLENGING ENVIRONMENT

Highlights

·	Total sales growth in first 18 weeks up 4.8%
·	Like-for-like sales growth up 0.8%
·	Strong Easter performance - over three million hot cross buns sold
·	New shop expansion on track - 20 net new shops opened
·	59 refits completed, including 13 concept shop refits

The Chairman, Derek Netherton, will deliver the following Interim Management Statement to shareholders at the Annual General Meeting to be held in Newcastle upon Tyne later this morning.

"I am pleased to report continued growth in what remains a challenging trading environment.  For the 18 weeks to 7 May 2011, total sales increased by 4.8 per cent and like-for-like sales by 0.8 per cent.  The positive like-for-like sales performance compares with the increase of 0.4 per cent reported for the first 10 weeks, reflecting good Easter trading and the favourable weather over the last four weeks.

"We sold more than three million of our award-winning hot cross buns, an increase of 23 per cent compared with last year, and continued our programme of product innovation with the successful launch of two new seasonal lines: an Easter simnel cake and a hot cross bun loaf.

"Our programme to add approximately 80 net new shops during 2011 is on track.  We passed the milestone of our 1,500th shop in York on 5 March.  During the first 18 weeks we opened a total of 25 new shops, making a net addition of 20 after five closures, and giving us a total of 1,507 shops today.  Our refit programme is also on track, with 59 refits completed to date, including 13 in our concept shop format.

"We are continuing to see significant and rising input cost pressures as a result of global commodity price increases, in particular fuel, energy and key ingredients.  We expect to mitigate these challenges through our on-going initiatives to make the business even more efficient, thereby minimising the need to pass on inflationary cost increases to our customers.  It should be noted, as we have previously indicated, that profits in the first half of this year will bear the impact of some £2m from the two additional bank holidays when compared to the first half of 2010.

"We continue to believe that marginally positive like-for-like sales are achievable for the full year and expect further top line sales growth as our rate of new shop openings gathers pace.  The financial position of the business remains strong, and overall we expect the year to be one of further progress for Greggs."

ENQUIRIES:
Greggs plc	Hudson Sandler
Ken McMeikan, Chief Executive	Wendy Baker / Michael Sandler
Richard Hutton, Finance Director	Tel:  [phone]
Tel:  [phone]

 

END

 

 

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