Greggs has appointed former Tesco UK boss Matt Davies as its new chair, as it recorded an uptick in profit and sales.

Greggs Bucks

Greggs has reported sales up by 27%, but profits were almost flat at £0.3m

Davies has been named as an independent non-executive director and chair designate. He will join the board with immediate effect.

He will be appointed as chair on November 1 when Ian Durant will step down.

Davies has previously been chief executive of Tesco’s core UK business and also led Halfords and Pets at Home. He joins Greggs from his role as chair at Hobbycraft.

Davies said: “I’m really delighted to be taking on this role. Greggs is a great business and a brand that I have long admired. I’m looking forward to working with the board, Roisin [Currie, Greggs’ chief executive] and the senior management team to further develop the business over the coming years.”

Details of the appointment came as Greggs reported a 27% uplift in sales to £695m in the first half to July, up 22% year on year on a like-for-like basis.

Sales jumped 12% on a like-for-like basis against a comparable period in 2019.

Greggs said profits for the half stayed broadly flat, however, inching up just £300,000 to £55.8m.

It attributed this to the reintroduction of business rates and the reduced rates of VAT – both of which the business benefited from during the pandemic period.

Greggs also said the cost inflation increased “significantly” over the period, driven by food, packaging and energy commodities.  

The food-to-go specialist is focusing on expanding its store estate, including a pipeline of stores in central London.

These stores will also help its extension to sell into evening hours – though the proposed plan to sell hot food until 5am at its new Leicester Square flagship has been rejected by Westminster City Council.

Greggs added that other areas of focus include driving sales through its app including click and collect, and developing its menu to include new and healthier options.

Chief executive Roisin Currie said: “Greggs delivered an encouraging performance in the first half of the year with sales ahead of 2019 levels. These results demonstrate the continued strength of the Greggs brand and demand for our great tasting, quality and value-for-money offering.

“During the period we continued to make good progress with our strategic priorities, including expanding our shop estate and making Greggs more accessible to customers through extended trading hours and digital channels.

“In a market where consumer incomes are under pressure, Greggs offers exceptional value for customers looking for food and drink on the go. We are well positioned to navigate the widely publicised challenges affecting the economy and continue to have a number of exciting growth opportunities ahead, with a clear strategy for expansion. We remain confident in Greggs’ ability to deliver continued success.”

Topics