Greggs Earnings, Revenue Jump in H1

Greggs (LON: GRG), the popular UK bakery chain unveiled robust interim results for the 26 weeks ended 29 June 2024.

The company's strategic focus on expansion and product innovation has yielded impressive financial performance.

Total sales surged by 13.8% to £960.6 million, underpinned by a 7.4% increase in like-for-like sales. This growth trajectory reflects the appeal of Greggs' offerings and the company's ability to adapt to evolving consumer preferences. Consequently, underlying pre-tax profit, excluding exceptional items, jumped 16.3% to £74.1 million.

A key driver of Greggs' success has been its aggressive store expansion strategy. The company opened 99 new shops in the first half of the year, demonstrating its commitment to increasing market presence.

In addition, the company highlighted its menu development, which is said to be supporting growth across all dayparts and channels.

Furthermore, Greggs is investing heavily in its supply chain infrastructure, with new distribution centres and a state-of-the-art frozen manufacturing facility in the pipeline.

Despite these capital expenditures, Greggs maintains a solid financial position, boasting a cash balance of £141.5 million. The company's ability to generate strong cash flow while funding growth initiatives is a testament to its operational efficiency.

“Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers,” said Roisin Currie, the company's Chief Executive. “Our cost outlook for 2024 remains unchanged and we continue to trade in line with our plan. The Board remains confident in the long-term growth strategy, and we are investing to support that growth.”