Greggs PLC on Tuesday reported double-digit sales growth in the first 19 weeks of the year and, despite acknowledging an uncertain consumer backdrop, kept its outlook for the full-year unchanged.
The Newcastle-based bakery chain said like-for-like sales in company-managed shops grew 17% in the first 19 weeks of 2023 against the year prior.
Greggs noted that this growth, in part, reflected the impact of the Omicron virus strain in the first nine weeks of 2022.
In the first ten weeks to May 13, like-for-like sales growth has averaged 16% against the prior year. Greggs said it expects this figure to continue to normalise as it annualises against the actions taken to mitigate inflation in 2022.
Total sales in the 19 weeks to May 13 stood at £609 million, up 23% from £495 million the year prior.
The firm noted particularly strong growth in sales of hot goods and snacks, such as chicken goujons and wedges. Pizza also was proving popular, Greggs added, with the company’s late trade pizza deal helping to drive sales.
Greggs opened 63 new shops in the 19 weeks to May 13, including sites at Glasgow and Cardiff airports. It has also closed 26 in the year-to-date, leaving a total 2,365 shops as of May 14.
The company said it expects additional shop capacity will become available in the second half of 2024.
‘We have made a good start to the year with sales in line with plans and continued progress on our strategic initiatives. Looking ahead, whilst we expect the macro backdrop to continue to be challenging, we are confident in making further progress,’ Greggs said.
‘Although we expect to see ongoing material cost inflation, we have good forward cover on key commodities. Consumer disposable incomes are likely to stay under pressure, but we remain confident that our outstanding value proposition continues to be compelling.’
Despite the uncertainties, Greggs said its expectations for the full-year remain unchanged.
Shares in Greggs were down 2.2% at 2,782.68 pence on Tuesday morning in London.
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