Greggs results: “unsurprisingly disappointing”

20 March, 2013

"Unsurprisingly disappointing" results says analyst

Greggs results were this morning labelled "unsurprisingly disappointing" - after the bakery chain revealed a fall in its 2012 profits.

Wayne Brown, analyst at Canaccord Genuity, said that recent trading at the group had been poor - with like-for-like sales down by 4% in the all weeks to 16 March.

And he dismissed the argument that Greggs had been hit by the downturn on the high street.

Brown, who rates the stock as a hold and has target share price of 485p, said: "Whilst the adverse weather has impacted the performance in January, underlying LFL sales in February has improved to a declineof 2%. However recent BRC data has been positive despite the adverse weather highlighting Greggs relative underperformance. The number of shoppers on the high street rose +2.7% in Feb 2013 vs Feb 2012."

However, the analyst said it agreed with the new 2013 strategy for the bakery company that will see investment in its core estate and a lower rate of new openings.

He added: "We expect this to have a negative impact on LFL sales in the short term due to increased shop closure but should provide a stronger platform for growth in the future."





Site Search

Webinars 

    Insights from the Bakery Market Report 2016

    You can now purchase the Bakery Market Report 2016, which offers insight into the retail bakery trade in the UK.