Greggs has reported total sales of £1,513m for the year ended 31 December 2022, up 23% from £1,230m in 2021.
In its fourth quarter trading update, the food-to-go retailer reported like-for-like (lfl) sales were up in company-managed shops by 18.2% in Q4 and 17.8% in FY22 overall, compared to 2021. It opened 186 new outlets during the year and closed 39, resulting in a total of 2,328 shops, 441 of which are franchised.
The growth in Q4 came despite the impact of adverse weather and strikes, reflecting a favourable trading pattern leading into the festive period and weaker trading in Q4 FY21 due to Omicron disruption.
The operator also reported strong growth in digital and early evening sales. The Greggs app – which provides rewards and access to click and collect and delivery options – has seen strong growth in line with customers’ increasing focus on value.
500 shops are now open until 8pm, resulting in early evening becoming the fastest growing day part. The offer has also been expanded with the introduction of new plant-based options.
Greggs ended 2022 with a cash position of £191m, partly reflecting the phasing of capex investment. It expects to open c150 net new stores in 2023, with plans to invest both in growing its estate and supply chain capacity.
Despite material cost inflation and consumer pressures, Greggs has stated its value offering remains attractive in the food-to-go market and sees significant growth opportunity in the year ahead.
CEO Roisin Currie commented: “I am proud of the progress Greggs made during 2022 in challenging conditions. Our teams did a magnificent job serving customers and managing the growing demand for Greggs products as we expand our shop estate and offer greater availability through digital channels and longer trading hours, whilst continuing to extend our menu to offer more choice.
“We enter 2023 in a strong financial position that will enable us to invest in shops and supply chain capacity to bring Greggs to even more customers across the UK. While market conditions in 2023 will remain challenging, our value-for-money offer of freshly prepared food and drink is highly relevant as consumers look to manage their budgets without compromising on quality and taste.”
