FDBusiness.com

Greggs Makes Good Progress in First Half as Transformation Continues

 Breaking News
  • World’s Most Modern Snack Plant Begins Operations in Finland The world’s most modern dairy snack plant has commenced operation at Valio Riihimäki in Southern Finland. The snack plant is the largest single investment in Valio’s history. Construction of the new snack plant began in 2014 and took about three years. The area of the plant building is approximately 20,000 square metres. The plant is [...]...
  • FrieslandCampina Sells Fruit Juice Business The Dutch investment company Standard Investment is acquiring Riedel, the fruit juice business of FrieslandCampina, for an undisclosed sum. Based at Ede in the Netherlands, Riedel has a turnover of about €125 million and employs 200 people. Completion of the transaction is expected before the end of 2017. Earlier this year, FrieslandCampina announced that it would [...]...
  • LacPatrick is Cream of the Crop in UAE LacPatrick, the international dairy co-operative, has secured over £1 million of sales of its LP spray dried whole milk and skimmed milk powder in the United Arab Emirates (UAE), following participation at the Gulfood exhibition in February 2017. LacPatrick is one of Northern Ireland’s major manufacturing employers, employing over 300 staff across its Ballyrashane, Artigarvan [...]...
  • Tate & Lyle Launches CLARIA® Instant Functional Clean-Label Starches Tate & Lyle, a leading global provider of food ingredients and solutions, has announced a further expansion of its line of CLARIA® Functional Clean-Label Starches with the introduction of two new instant starch products: CLARIA® Instant 340 and 360. As claims such as ‘smooth’, ‘luscious’ and ‘velvet’ continue to grow, manufacturers are eager to develop textures [...]...
  • Reveal Impact – Ardagh Group to Launch a Two-Stage Thermochromic Solution Reveal Impact features combined temperature-sensitive inks with a twist. The new solution for aluminium cans uses two different thermochromic inks, which both boast the same colour when cooled down. However, once the can gets warmer again, one colour disappears quicker than the other, revealing a hidden message to the consumer. The revealed message surprises the [...]...
  • HKScan Opens New €80 Million Poultry Plant HKScan, the Nordic meat group, has just opened its new, state-of-the-art poultry unit at Rauma in Finland. Valued at over €80 million, the new facility is the largest investment in HKScan’s history. Indeed, the state-of-the-art Rauma unit ranks among the most significant investments in the history of the Finnish food industry. Jari Latvanen, president and chief [...]...

Greggs Makes Good Progress in First Half as Transformation Continues

Greggs Makes Good Progress in First Half as Transformation Continues
August 04
11:53 2016

Greggs, the leading bakery food-on-the-go retailer in the UK, has reported a 6.0% rise in revenue to £422 million, with like-for-like sales in company-managed shops up by 3.8%, in the first half ended 2 July 2016. Operating profit before property gains and exceptional items grew by 6.7% to £27.2 million.

Greggs is continuing to invest in the transformation of its shop estate and in the first half completed 86 shop refurbishments to its latest ‘bakery food-on-the-go’ format. Over the year as a whole Greggs plans to update around 200 shops. In the first half of 2016, the company also opened 68 new shops (including 31 franchise units) and closed 36 shops, giving a total of 1,730 shops (of which 136 are franchise units) trading at 2 July 2016. Greggs expects to open around 70 net new shops over the year as a whole.

The retail bakery group’s plans to invest in the transformation and development of its supply chain are progressing well. The new distribution facility in Enfield will be operational in October allowing the full closure of the existing Twickenham bakery in the fourth quarter as planned. In addition, planning permission has been secured for the extension of Greggs’ Clydesmill bakery in Glasgow which will facilitate the closure of the Edinburgh bakery during the second quarter of 2017, as previously announced. Greggs is now planning the next phase of investment in its remaining sites, which will increase logistics capacity and consolidate manufacturing, with benefits in product quality, consistency and efficiency.

GreggsSandwichesCompressedCapital expenditure during the first half was £31.2 million against £31.3 million in the corresponding period in 2015. Total capital expenditure in 2016 is expected to be approximately £85 million, up from £71.7 million for the previous year.

Roger Whiteside, chief executive of Greggs, comments: “In the first half of 2016 we delivered good like-for-like growth by reinforcing the freshness and value of our offer in line with changing trends in the food-on-the-go market. We added to our ‘Balanced Choice’ range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices.”

He adds: “We have made an encouraging start to the second half of the year and are alert to any change in consumer demand that may result from the current economic uncertainty. Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements