The Greggs plc (LON: GRG) share price fell 8.39% after releasing its financial results for the 26 weeks (half-year) ended on 1 July 2023. The bakery chain revealed that its revenues rose 21.5% to £844 million from the £694.5 million recorded in a similar period last year.
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The company’s underlying pretax profits were up 14.2% to £63.7 million compared to the £55.8 million recorded in H1 2022. The company’s reported pretax profit was £80.0 million because it included an additional £16.3 million of exceptional net income recognised after settling a Covid business interruption insurance claim.
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The bakery chain ended the period with £139 million in cash, which could support its plans for future investment in its growth strategy. The company declared an interim dividend of 16 pence per share, marking a 6.7% increase.
The company noted that the strong trading momentum of the first half has extended into the second half of the year, with robust sales reflecting the exceptional value that Greggs offers to customers who need food and drink on the go.
Greggs also revealed that it had been growing its real estate portfolio by opening 94 new shops in the first half while closing 44 old stores that were not aligned with its new strategy. The company ended the period with 2,378 shops and a solid pipeline of good opportunities. The firm expects to open 150 net new shops in 2023.
Roisin Currie, Greggs Chief Executive, said: “Greggs strong performance continued in the first half of 2023 as we deliver on our strategic growth plan. With consumers remaining under pressure, we continue to offer exceptional value, which is reflected in our performance and growing market share. In the period, we continued to open further new shops, extended trading hours into the evening and saw increased participation in the Greggs App. Our ambitious plans for growth are on track, and our amazing teams are committed to realising the opportunity to become a significantly larger, multi-channel business.”
*This is not investment advice.
Greggs share price.
The Greggs share price dropped 8.39% to trade at 2523.0p, from Monday’s closing price of 2754.0p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.