Preliminary Results
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 2 JANUARY 2016
Greggs is the leading bakery food-on-the-go retailer in the UK,
with 1,700 retail outlets throughout the country
EXCELLENT OPERATIONAL AND FINANCIAL PERFORMANCE
2015 Financial highlights
· Total sales up 5.2% to £835.7m (excluding 53rd week in 2014)
· Company-managed shop like-for-like sales* up 4.7% (2014: 4.5%)
· Pre-tax profit excluding exceptional items** up 25.4% to £73.0 m (2014: £58.3m)
· Strong cash generation supported capital investment and £20m special dividend
· Total ordinary dividend per share up 30.0% to 28.6p (2014: 22.0p)
* like-for-like sales in Company-managed shops (excluding franchises) with a full year's trading history
** before exceptional pre-tax charge of £8.5m in 2014
Strategic progress
· Growth driven by our strategy to focus on the growing food-on-the-go market
· Further improvements to product range launched, including 'heat-to-eat' sandwich range and extended breakfast menu
· 'Balanced Choice' range of healthier options now accounts for 10% of total sales
· 202 shop refurbishments plus 20 café conversions
· 122 new shops opened, 74 closures; 1,698 shops trading at 2 January 2016
· Investment in systems to simplify processes and improve efficiency on track
· Planned £100m investment in manufacturing and distribution operations over the next five years
"In 2015 we delivered another excellent performance in the second year of our strategy to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer.
We have made significant progress across the business change programme, consequently our estate is stronger and our products, value and service are all improving the experience for customers.
This year has started well and the consumer outlook remains positive with disposable incomes expected to grow further in 2016. Overall 2016 will be another year of significant change as we advance with our strategic plan and propose major investment in our supply chain. Alongside this we are confident of delivering a further year of underlying growth."