Greggs “well-placed” for growth despite £13.7m pre-tax loss in 2020

Bakery brand Greggs is optimistic of its ability to grow the business during 2021 following a challenging year.

In its preliminary results for the 53 weeks ending January 2, the company reported a pre-tax loss of £13.7m.

Greggs’ total sales for the period were £811.3m, down from £1.1bn in 2019. Like-for-like sales in company-managed shops dropped by 36.2 per cent compared with 2019, a decrease the business attributed to the pandemic and subsequent disruption.

The pandemic did however result in the acceleration of the firm’s multi-channel development strategy, with delivery contributing an increased proportion of total sales and Click & Collect rolled out across the store network.

Roger Whiteside OBE, chief executive, commented: “Greggs has made a better-than-expected start to 2021 given the extent of lockdown conditions and is well placed to participate in the recovery from the pandemic.

“It has a clear strategy to extend its digital capabilities and to grow further in new locations, channels and dayparts. These opportunities will benefit all of its stakeholders in the years to come.

“In a year like no other I believe that the Covid crisis has in many ways demonstrated the strength of Greggs.

“It has shown the resilience of our business model, but most of all the strength of our people who have worked hard throughout to maintain an essential service providing takeaway food to customers unable to work from home, many of whom were themselves key workers.”