Greggs, the UK’s leading bakery retailer with over 1,500 outlets throughout the country, has reported a 4.2% increase in group sales to £335m, including like-for-like sales growth of 0.4% in the 26 weeks ended July 2nd 2011. The sales growth was driven by a record number of new shop openings by Greggs.

Operating profit excluding exceptional items fell £1.2m to £17.3m. However, taking into account the £2m impact of additional public holidays in the first half, underlying operating profit rose by £0.8m.

“This was a creditable performance in the light of the very substantial increases in commodity prices during the half year, affecting most key ingredients as well as our energy-related production, retailing and distribution costs. This pressure was mitigated by our continuing drive to identify and unlock cost savings throughout the business,” says Ken McMeikan, chief executive of Greggs.

Ken McMeikan, chief executive of Greggs.

He continues: “Trading conditions have proved to be more challenging than we had expected and we do not anticipate that the second half will bring any alleviation of the tougher consumer spending environment with disposable incomes remaining under pressure. We continue to experience substantial increases in commodity prices and are continuing to work hard to mitigate the impact on customers through business efficiencies and targeted promotional activity.”

Greggs is continuing to open new shops and increased the size of its retail portfolio by 39 outlets during the first half and is on track for 80 net additions during the full year. The group also completed the construction of two new bakeries on time and on budget during the first half.

Total sales will benefit from the shop opening programme and Ken McMeikan believes that marginally positive like-for-like sales growth over the year as a whole is achievable.

Greggs, the UK’s largest retail bakery, is on track to expand its number of shops by approximately 80 during its 2011 financial year. During the first 18 weeks, the group opened a total of 25 new shops, making a net addition of 20 after five closures, giving a total of 1,507 shops. Greggs passed the milestone of its 1,500th shop in March.

However, the group is continuing to see significant and rising input cost pressures as a result of global commodity price increases, in particular fuel, energy and key ingredients. Greggs expects to mitigate these challenges through its ongoing initiatives to make the business even more efficient, thereby minimising the need to pass on inflationary cost increases to customers.

Greggs is projecting marginally positive like-for-like sales the full year and further top line sales growth as its rate of new shop openings gathers pace.

Greggs, the UK’s leading bakery retailer, increased pre-tax profit by 7.9% to a record £52.5m for the 52 weeks ended January 2nd 2011. Sales rose by 2.1% to £662m and by 0.2% on a like-for-like basis, as Greggs achieved a record numbers of new shop openings and refits, expanding its retail business through a net addition of 68 new shops.

Greggs now has over 1,480 retail outlets serving six million customers each week. Operating profit grew by 8.1% to £52.4m and the operating margin improved from 7.4% to 7.9%, reflecting a full year’s benefit from actions taken in 2009 to reorganise the business, harmonise the product range and create a single brand.

Ken McMeikan, chief executive of Greggs.

“In 2010 we grew sales and achieved record profits despite the tough trading conditions across the UK. We’ve made Greggs accessible to many more customers through our new shop opening programme, bringing them the great value, freshness and quality that our existing customers already enjoy,” says Ken McMeikan, chief executive of Greggs. “Whilst 2011 will see further pressures on consumer spending and rising global commodity prices our strong value positioning, excellent products, outstanding staff and clear strategy for growth mean that we are well positioned to deal with this challenging environment.”

In addition to planning to open around 80 net new shops in 2011, Greggs also anticipates marginally positive like-for-like sales growth. Performance in the year to date is in line with expectations with total sales increasing by 3.8% including like-for-like sales of 0.4%.

Greggs, the UK’s largest retail baker, has reported that its expansion programme remains firmly on track, with a net 32 new shops opened in the year to date, giving it a total of 1,451 shops at 2nd October 2010. The group now expects total net new shops for the year as a whole to be at the upper end of its previously indicated range of 50-60.

Ken McMeikan, chief executive of Greggs.

Greggs has also completed 84 shop refurbishments, including 17 of the concept shops trialled in 2009. The group is well on course to meet its target of 120 refurbishments this year including 30 concept shops.

Construction of Greggs’ replacement bakery in Newcastle upon Tyne is progressing well, and is scheduled to begin production in mid-2011. Greggs has received planning permission for a new cake and confectionery bakery in Penrith and commences building later this month ready to open in summer 2011.

Greggs has also submitted a planning application for a new bakery in Wiltshire to enable it to unlock the significant growth opportunities already identified in the South and South West of England. Greggs is continuing to self-finance its capital expenditure requirements.

Greggs, the UK’s largest retail baker, increased total group sales in the 26 weeks ended 3rd July 2010 by 2.9% to £321m as like-for-like sales advanced by 0.7%, in line with expectations of marginally positive like-for-like sales growth over the year. Operating profit rose by 13.1% to £18.5 million but the underlying increase was 4% with net margin remaining stable.

Profit before taxation grew 12.3% to £18.6m with no exceptional items during the period. Greggs opened 26 new shops during the first half and closed eight, making a net increase of 18 since the beginning of its financial year, taking its total to 1,437 outlets.

Greggs is continuing to make good progress with its strategy of increasing its accessibility to consumers through its shop opening programme, investing in its bakeries for greater efficiency and capacity for growth and realising the benefits of a strong, centrally run business.

Ken McMeikan, chief executive of Greggs.

“We have delivered a resilient first half performance under challenging conditions,” says Ken McMeikan, chief executive of Greggs. “Our accelerated shop opening and refit programmes are progressing as planned, and delivering encouraging early results. We are now set to commence the first phase of our supply chain investment programme.”

He continues: “The pressure on the trading environment looks likely to increase in the second half and we remain focused on managing costs tightly. We now expect an increase in ingredient cost inflation in the second half of the year, following the recent rise in wheat prices. Despite the challenging trading environment, I believe that Greggs remains on track to deliver another year of progress.”

The British Food and Drink Federation (FDF) has unveiled the final shortlist for its annual Community Partnership Awards. FDF’s Community Partnership Awards recognise the food and drink chain’s longstanding commitment to the community and provide a showcase for the sector’s widespread activities in corporate social responsibility.

The companies shortlisted for the 2010 Awards are: AF Blakemore and Son, Alpro UK, ASDA Stores, Bel UK, Bradgate Bakery, Cadbury UK (see picture), Coca-Cola Enterprises, Findus Group, General Mills UK, Greggs, Mars Chocolate UK, McCain Foods, New Covent Garden Market, Samworth Brothers, The Authentic Food Company, Typhoo Tea, Unilever UK, United Biscuits and Young’s Seafood.

The companies have been shortlisted for the following categories: culture, media and sport; education; environment; local community and workplace community. For the first time, an overall winner will be selected for the President’s Award by FDF president Ross Warburton MBE. The winners will be announced on Tuesday 19 October 2010.