Greggs share price: 4 things we learnt from its half-year results
Shareholders were rewarded for believing in the bakery chain with a £35 million pay out after an ‘exceptional’ performance over the last six months following strong growth as it ‘broadens its appeal for food on-the-go’.
Greggs has made a strong start, with it recording a significant hike in pre-tax profit over the first six months of trading, delighting shareholders who received a major windfall for their support as the company navigated a myriad of headwinds.
IG looks at the main takeaways from its impressive half-year results.
Greggs results wow investors
The bakery chain saw its pre-tax profit growth by 58% to £40.6 million in its first six months of trading, up from 25.7 million in the same period last year.
Total sales at Greggs increased by 14.7% to £546 million, while like-for-like sales in its stores rose by 10.5%.
Greggs rewards shareholders with major windfall
Greggs rewarded its shareholders for their ongoing support with a £35 million special dividend pay out to mark its ‘exceptional’ start to the new financial year.
Greggs food on-the-go strategy a big hit with customers
The bakery chain has championed food on-the-go with it creating healthy vegan alternatives to many of its fan favourite items, including the plant-based sausage roll that launched in January.
The strategy has been a success with customers and will help the company hit its full-year targets.
‘We have continued to make strategic progress with our programmes of investment in infrastructure to support future growth and in developing the products and channels to market that will help achieve our ambition to be the customers’ favourite for food-on-the-go,’ Greggs CEO Roger Whiteside said.
Greggs steady expansion pays off
Over the first six months of the year, Greggs opened 54 new stores and closed 23, bringing its total to 1,984. Its decision to shut down non-performing stores and expand moderately into new areas paid off with it seeing double-digit sales growth so far this year.
‘Given the strength of our year to date and the outlook, we have decided to increase investment in strategic initiatives in the second half of the year to help to deliver an even stronger customer proposition and further growth in the years ahead,’ Whiteside said.
‘Our expectations for underlying profits for the year as a whole remain unchanged,’ he added.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.