Bakery Chain’s Exceptional Performance Amidst Challenges
- 13.5% increase in total sales for Greggs
- Record-breaking year with company-managed shop like-for-like sales up 9.2%
- Pre-tax profit excluding pre-tax charge up 27.2% to £114.2m
- Overall pre-tax profit £108.3m
- Strong start to the year in January, slowdown in February due to UK storms
- Company-managed shop like-for-like sales up 7.5% in nine weeks to 29 February
- Record annual profit share and strong cash generation
- Transformational changes made through strategic investment programme
- Supply chain investment, new product development, delivery service with Just Eat
- CEO Roger Whiteside: ‘exceptional year of progress’
- Strong start to 2020 but uncertainty due to Coronavirus impact
- Greggs to pay staff who have to self-isolate due to Coronavirus
Greggs, the UK-based bakery chain, reported a record-breaking year with a 13.5% increase in total sales reaching £1.1m for the year ended 28 December 2019. Company-managed shop like-for-like sales rose by 9.2%. Despite facing a significant slowdown in February due to UK storms, pre-tax profit excluding pre-tax charge increased by 27.2% to £114.2m and overall pre-tax profit reached £108.3m. The strong start in January was followed by a 7.5% increase in company-managed shop like-for-like sales in the nine weeks leading up to 29 February. The group attributed its ‘exceptional’ performance to transformational changes made through a multi-year strategic investment programme, including supply chain investment, new product development, and a delivery service partnership with Just Eat. CEO Roger Whiteside said that despite uncertainty due to Coronavirus, Greggs expects year-on-year progress from a strong financial position, supporting further growth and delivering good returns for stakeholders. The company will pay staff who have to self-isolate due to Coronavirus.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Greggs’ financial performance, including sales increases, profit margins, and the impact of storms and Coronavirus on their business. It also includes relevant quotes from the CEO, Roger Whiteside.
Noise Level: 3
Noise Justification: The article provides relevant information about Greggs’ financial performance and the impact of storms and Coronavirus on their business. It also mentions the CEO’s response to the situation. However, it lacks in-depth analysis or exploration of long-term trends or possibilities, and does not offer significant actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Greggs’ stock price and other food retailers
Financial Rating Justification: The article discusses Greggs’ financial performance, including sales increase, pre-tax profit, and the impact of storms and Coronavirus on their business. This information is relevant to investors and can affect the stock prices of Greggs and related companies in the food retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses Greggs’ financial performance and the impact of storms on their business, but it does not qualify as an extreme event.
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