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Greggs reveals strong 2015 financials ahead of £100m five-year investment plan

Newcastle-headquartered bakery giant Greggs has revealed a strong set of financials for last year, ahead of plans to invest £100m in manufacturing and distribution operations over the next five years.

The on-the-go food retailer, releasing its preliminary results for 2015, reported that total sales rose 5.2% to £835.7m (excluding 53rd week in 2014).

Revenue rose to £835.7m from £806.1m in 2014, an impressive increase of £29.6m.

Similarly, the firm’s pretax profits witnessed another admirable increase, soaring from £58.3m to £73m. Excluding exceptional items, this means the company can add a 25.4% profit rise to its list of achievements for 2015.

Strategy

Greggs, which boasts 1,700 retail outlets throughout the country, revealed that growth was driven by a strategy to focus on the growing food-on-the-go market.

As well as making further improvements to its product range, including ‘heat-to-eat’ sandwich range and an extended breakfast menu, the firm cited its ‘Balanced Choice’ range of healthier options as a key success, which now accounts for 10% of total sales.

Roger Whiteside, Chief Executive, commented: “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.

“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.”

He added: “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.”

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