Greggs interim results report a pre-tax profit of over 20%

Profit before tax for the food-on-the-go retailer Greggs, increased to £24.1m for the first half of 2018, according to its H1 financial report.

This marked an increase of 24% from £19.4m on the same period last year, while total sales were also up by 5.2% to £476m.

Greggs has almost 1,900 retail outlets throughout the UK.

The report comes just days after the outlet signed up to debate the market landscape at ‘Lunch!’ which kicks off this September.

The financial report outlines continued strong cash generation, showing a £39.0m net inflow from operating activities, up from £34.0m.

Ordinary interim dividend per share was also increased, up by 3.9% to 10.7p.

The report highlights that despite extreme weather conditions, the company saw “continued growth in developing strategic categories including hot drinks, breakfast, healthier choices and hot food options.”

The shop opening programme has progressed well for Greggs so far: 59 new shops opened and 25 closed as the company expects around 100 net new shops for the year as a whole.

Roger Whiteside, chief executive, said: “Greggs has delivered a resilient performance despite challenging market conditions and we have continued to make good progress with our strategic investment programme to transform the business into the customers’ favourite for food-on-the-go.

He added: “While we remain cautious in respect of the outlook for sales in the balance of the year given the consumer backdrop, we are confident in the medium and long-term growth potential for the business, supported by customers’ response to our initiatives, our strong cash generation and the ongoing strategic investments that we are making.”

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