Greggs’ Share Price Surged 10% on Its Q4 and FY 2023 Results

The Greggs plc (LON: GRG) share price surged 10% after its trading update for the fourth quarter and full-year 2023. In the fiscal year of 2023, the company's total revenue saw a significant increase of 19.6%, reaching £1,809 million, compared to £1,513 million in the previous year.

The sales in company-managed stores, on a like-for-like basis, rose by 13.7% throughout the fiscal year. In the fourth quarter alone, these like-for-like sales grew by 9.4%, driven by increased transactions and a lesser impact from price inflation.

This impressive performance in like-for-like sales is attributed to the growing appeal of the Greggs brand. This growth was supported by expanding the product range, enhancing accessibility through digital platforms, and extending store operating hours.

The company expanded its delivery services to 710 outlets in collaboration with Uber Eats, adding to the existing partnership with Just Eat.

A notable expansion was seen in the number of stores, with 220 new openings, 33 closures, and 42 relocations, culminating in a net increase of 145 stores. By the end of the year, the total number of stores stood at 2,473.

There has been considerable progress in enhancing the supply chain capabilities to support future growth, and the financial year concluded with a net cash position of £195 million, a slight increase from £192 million in 2022.

There has been a reduction in inflationary pressures. The overall performance for the year is expected to align with the company's prior forecasts.

Roisin Currie, Greggs' chief executive, commented: “2023 was a year of further progress by Greggs.  I am proud of our teams, who did a fantastic job serving more customers as we continue to grow our shop estate and offer greater availability through digital channels and extended trading hours. We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet.  Our value-for-money offer and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead.”

Greggs share price. 

Greggs’ share price surged 10.04% to trade at 2718.0p from Tuesday’s closing price of 2470.0p.