Greggs has reported “excellent” full year results as it focuses on transforming its offering from a traditional bakery store to a food-on-the-go retailer.
For the year to 2 January 2016 total group sales grew by 5.2% to £835.7m. Pre-tax profits rose by 25.4% to £73m from £49.7m the previous year. Company-managed shop like-for-likes also increased by 4.7%.
The bakery chain opened 122 new stores and closed 74, resulting in an overall 1,698 trading sites by the end of its full year. 90% of its new stores are located away from the high street, at service stations, travel hubs and retail and industrial parks.
Greggs said its expansion and sales growth was pushed by a growing demand for food-on-the-go and its new ‘heat-to-eat’ sandwiches and extended breakfast range.
The previously traditional baker plans to invest £100m in its manufacturing and distribution in the next five years.
“In 2015 we delivered another excellent performance in the second year of our strategy to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer” said Roger Whiteside, Greggs Chief Executive.
“We have made significant progress across the business change programme, consequently our estate is stronger and our products, value and service are all improving the experience for customers.
“This year has started well and the consumer outlook remains positive with disposable incomes expected to grow further in 2016. Overall 2016 will be another year of significant change as we advance with our strategic plan and propose major investment in our supply chain. Alongside this we are confident of delivering a further year of underlying growth.”