Greggs on a Roll

 Breaking News
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...
  • Diageo Forms New Rum Joint Venture Diageo and Corporación Cuba Ron, a leader in the production of premium Cuban rums, have created a joint venture – Ron Santiago. The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand. Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation [...]...
  • Stirring Times For US Yogurt – Innovation is Vital in a Changing Consumer Environment Over half of all U.S. consumers now buy yogurt as part of their typical grocery basket, according to a new report from Innova Market Insights, but their habits appear to be evolving. Convenience themes are becoming increasingly important, for example, with 17% of consumers naming this as a significant choice factor in 2018, which is [...]...
  • FrieslandCampina Significantly Expands its VLOG Production Due to the sharp increase in demand in Germany, FrieslandCampina is increasing the number of participating dairy farms that supply VLOG milk from 400 to more than 600. All VLOG milk produced by Dutch FrieslandCampina dairy farmers is used to make cheese for the German market. VLOG (Verband Lebensmittel Ohne Gentechnik) is a German association responsible [...]...
  • English Food Manufacturers Sign Up to Made Smarter Support A number of food manufacturing firms in the North West of England have signed up to a business-led programme which aims to use digital technology to boost growth and success. By implementing advances in data analytics, Artificial Intelligence (AI), Augmented Reality (AR), Industrial Internet of Things (IIoT), 3D-printing and robotics, firms can enhance their profitability [...]...

Greggs on a Roll

Greggs on a Roll
August 07
09:40 2019

Greggs, the UK bakery and food manufacturer and retailer, has delivered an exceptional first-half performance, with total sales for the 26 weeks to 29 June 2019 up by 14.7% to £546 million, as like-for-like sales in company-managed shops rose by 10.5% compared with the first half of 2018, when trading conditions were more challenging. Underlying pre-tax profit excluding property gains and exceptional charges was £40.6 million in the first half of 2019 (against £25.7 million in 2018), giving an underlying net margin of 7.4% (2018 – 5.4%).

Greggs is benefiting from strong growth in customer visits as its broadens its appeal for food-on-the-go combined with the continuing popularity of its traditional bakery favourites selling well alongside growth in Fairtrade coffee, breakfast and new hot food options, such as the new vegan-friendly sausage roll.

Greggs has continued to make strategic progress with its programmes of investment in infrastructure to support future growth and in developing the products and channels to market that will help achieve the group’s ambition to be the customer’s favourite for food-on-the-go.

Capital expenditure during the first half was £33.2 million (2018 – £33.2 million) as Greggs continued to invest in the transformation of its manufacturing and logistics capacity whilst also growing the company-managed estate. In light of the strong trading performance Greggs has brought forward existing plans to reinvest in its Balliol Park manufacturing and logistics site. As a result of this, along with some further contingency planning ahead of the UK’s possible exit from the European Union, Greggs now expects total capital expenditure in 2019 to be in the range £90-100 million (2018 – £73.0 million). This is purely a change in the phasing of investments and the medium-term outlook for capital expenditure remains unchanged.

Roger Whiteside (pictured), chief executive of Greggs, comments: “Given the strength of our year to date and the outlook, we have decided to increase investment in strategic initiatives in the second half of the year to help to deliver an even stronger customer proposition and further growth in the years ahead.  Our expectations for underlying profits for the year as a whole remain unchanged.”

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

Jobs: New Product Development

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here