New products, pizza deals, and evening sales are among the drivers of growth at Greggs which saw a 13.8% increase in sales for the first half of 2024.
The business reported sales of £960.6m in its interim results for the 26 weeks ended 29 June 2024, with underlying profit before tax also rising to £74.1m, representing a 16.3% increase.
During the period, Greggs has continued its expansion with a net of 51 new shops opening during the period and 2,524 locations trading at the end of the period. There is a strong pipeline in place and Greggs said it remains on track to achieve 140-160 net new openings in 2024, adding that openings are typically weighted to the second half of the year.
Growth is also coming from its existing estate. Like-for-like sales at company-managed shops (which excludes shops which opened, reopened, or closed in the current or prior year) were also up 7.4%.
The drivers behind this, according to the business, included menu development which supported growth across all dayparts and channels. It highlighted the over-ice drinks range, including the Mango & Strawberry Cooler and the Strawberries & Cream Refresher, which is now available in 500 shops, with plans to roll out to a further 200 shops this year.
Pizza deals, including the Late Trade Pizza Deal and Pizza Box Deal, were also among the initiatives driving strong sales growth.
Greggs added that the evening day part was growing ahead of the average like-for-like growth, albeit from a low base, and that sales through the delivery channel now represented 6.7% of company-managed shop sales in the first half of 2024 vs 5.3% in the comparative period for 2023.
“Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers,” said chief executive Roisin Currie. “Our success is founded on the exceptional value that Greggs offers to customers looking for food and drink on-the-go, and the fast and friendly service delivered by our colleagues.”
The cost outlook for 2024 remains unchanged, she added, noting that the board remains confident with the long-term growth strategy of the business.
This includes opening a new National Distribution Centre in Kettering. Contracts have been exchanged for the purchase of the 25-acre plot of land at Symmetry Park and the centre is expected to be operational in the first half of 2027 when it will support existing Radial Distribution Centres to service around 700 more shops through the picking of chilled and ambient goods.
It is also underway with the redevelopment of Birmingham and extension of Amesbury distribution centres which are on track to complete in second half of this year, creating logistics capacity for an additional 300 shops. The initial build phase for a new frozen manufacturing and logistics site in Derby, expected to be operational in late 2026, is also progressing well, Greggs added.
No comments yet