Bakery chain sees significant growth and optimistic profit outlook!
- Greggs’ two-year like-for-like sales decline narrowed to 3.9% for the eight weeks to 8 May.
- Sales grew by 25.7% year-on-year for the 18 weeks to 8 May compared to FY19.
- Delivery sales now account for 8.2% of managed shop sales.
- The company opened 34 new stores and closed 11 in 2021, resulting in a net increase of 23 shops.
- Greggs anticipates higher profits for the remainder of FY21 due to increased out-of-home activity.
Greggs has reported a significant recovery in its sales, with a two-year like-for-like (LFL) sales decline narrowing to just 3.9% for the eight weeks ending on 8 May. This follows a 13.5% drop in LFL sales over the 18 weeks leading up to the same date when compared to fiscal year 2019. The recovery is attributed to the reopening of non-essential retail on 12 April, which has positively impacted sales. Despite a decrease in two-year LFL sales from £373 million to £352 million, the company experienced a remarkable 25.7% year-on-year growth for the fiscal year 2021 period. Additionally, Greggs has successfully rolled out delivery services at 800 of its UK locations, contributing to 8.2% of its managed shop sales. The company has also expanded its portfolio, opening 34 new stores while closing 11, resulting in a net increase of 23 shops. Looking ahead, Greggs is optimistic about its profit outlook, expecting it to be higher than previously anticipated for the remainder of FY21. The company noted that sales have rebounded well in recent weeks, driven by increased out-of-home activity, and if restrictions continue to ease, overall sales performance for the year is expected to be stronger than earlier forecasts. Furthermore, Greggs has managed to keep costs under control, with the current rate of cost inflation aligning with their plans for the year.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Greggs’ sales performance, recovery after reopening non-essential retail, delivery services expansion, and expectations for future profits. It presents facts without any bias or personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about Greggs’ sales performance and growth in the context of the pandemic and its impact on the company. It also mentions the expansion of delivery services and expectations for future profits. However, it lacks analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Greggs’ stock prices
Financial Rating Justification: The article discusses Greggs’ sales performance, growth in delivery services, and expectations for future profits, which can impact the company’s stock prices and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There are no extreme events mentioned in this article.
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