Partner Article

Greggs sees profits climb

North East baker Greggs yesterday marked the start of its accelerated expansion, in which it will open up to 60 new stores, by recording an 8% surge in profit in the last year.

The company, which operates 1,400 stores nationwide, also said it had started 2010 strongly with sales up 2.8% in the last 10 weeks. In the year to January 2010, the company profits jumped to £48.8m, as sales climbed 4.8% to £658m.

It said it had now completed its process of becoming a simpler and more focused business, having “harmonised” its product ranges across the UK.

Chairman Derek Netherton said: “We have achieved our key objectives despite the pressures of a harsh recession, and delivered a record underlying operating profit whilst completing a major programme of reorganisation to create the right structure for future growth.

“Given the uncertain outlook for consumer spending in the current year, we considered it sensible to plan for like-for-like sales growth to be marginally positive, and to manage our costs so that they remain consistent with this challenging trading environment.

“The current outlook for ingredient costs is reasonably benign, and we expect further cost benefits from the simplification of the business completed during 2009.”

In the ten weeks to 13 March 2010 total sales have increased by 2.8% and like-for-like sales by 0.8%.

This was posted in Bdaily's Members' News section by Ruth Mitchell .