UK based bakery retailer Greggs has posted a record pre-tax profit of £52.5 million in its full-year results published today.
In the 52 weeks to January 1st 2011 profits rose 7.9 per cent and sales increased 2.1 per cent in total as the company conducted a huge store expansion program.
A record number of 68 net store openings were achieved in the 12 months and like-for-like sales increased by 0.2 per cent year-on-year.
“In 2010 we grew sales and achieved record profits despite the tough trading conditions across the UK,” said Kennedy McMeikan, CEO of Greggs.
“I am delighted that we’ve made Greggs accessible to many more customers through our new shop opening programme, bringing them the great value, freshness and quality that our existing customers already enjoy.”
“Whilst 2011 will see further pressures on consumer spending and rising global commodity prices our strong value positioning, excellent products, outstanding staff and clear strategy for growth mean that we are well positioned to deal with this challenging environment.
As predicted earlier in the year, rising wheat prices impacted on prices but the group still managed to increase its operating margin by 0.5 per cent compared to 2009.
Capital expenditure totalled £45.6 million and with approximately 80 new stores currently in the pipeline, this will increase to around £60 million for 2011.
Diluted earnings per share increased by 9.7 per cent to 37.3p and dividend per share saw the 26th consecutive year of dividend growth rising 9.6 per cent to 18.2p.
Kennedy added: “In addition to opening around 80 net new shops in the year ahead we are planning for marginally positive like-for-like sales growth.
“Performance in the year to date is in line with our expectations with total sales increasing by 3.8 per cent including like-for-like sales of 0.4 per cent.”