Food-on-the-go specialist Greggs has recorded an increase in both sales and profits in its full-year results as easing of restrictions increased demand.

Greggs pizza

Greggs reported a pre-tax profit of £146m for the 53 weeks to January 1, compared with a loss of £14m in 2020.  

This also surpassed pre-pandemic figures, with Greggs recording a pre-tax profit of £108m in 2019.

Total sales rose 5.3% compared with 2019 levels to £1.23m, while like-for-like sales in company-managed shops were down 3.3% on 2019 levels.

Greggs opened 131 new shops in 2021 and also recorded 28 closures. The company now has 2,181 shops trading. 

Greggs also aims to extend late opening to 500 shops in 2022, while it will also grow delivery from 1,000 to 1,300 shops.

In the first nine weeks of 2022, like-for-like sales were up 44% against 2021 when the UK was in lockdown. Like-for-like sales were up 3.7% compared with the same period in 2020.

Greggs also noted that cost pressures will continue throughout the year, explaining that rising inflation is impacting “raw materials, energy and people costs”. It added that the pressures are “more significant” than the company’s initial expectations. 

Chief executive Roger Whiteside said: “Our results and achievements in 2021 show that we have emerged from the pandemic both stronger and better as a business.

“We have started 2022 well, helped by the easing of restrictions. Cost pressures are currently more significant than our initial expectations and, as ever, we will work to mitigate the impact of this on customers, however, given this dynamic we do not currently expect material profit progression in the year ahead.

“Despite these near-term pressures, we continue to believe that the opportunities for Greggs have never been more exciting. Our investment over recent years has left the business well placed to move quickly as the economy recovers and we drive our ambitious plans to become a larger, multichannel business.”

 

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