Greggs believes it can get back to normal profits this year after the fast food and bakery chain performed well during the first couple of weeks after non-essential retailers reopened.
The cahin which has more than 2,000 retail outlets throughout the country has reported a strong recovery in sales levels following easing of restrictions on the 12th April.
With trading in 2020 having been severely impacted by the temporary closure of our shops they are now reporting like-for-like sales performance on a two-year basis, against the comparable period in 2019
Total sales in the 18 weeks to 8 May 2021 were £352 million compared to £280 million last year and £373 million in 2019.
Delivery sales continue to contribute positively to performance, representing 8.2 per
cent of company-managed shop sales in the most recent eight weeks. Greegs have now
successfully rolled out delivery services to 800 of our shops.
“The current trading environment is clearly highly unusual, making it difficult to predict
how sales will develop. In the coming weeks the Government’s roadmap is likely to
lead to further relaxation of restrictions and we will see increased competition as cafes
and restaurants are able to compete more effectively with our largely take-out
offer. Nonetheless we are pleased with the progress that we have made so far this
year in both the walk-in and delivery channels” said the Company adding:
Sales have recovered well in recent weeks as out-of-home activity levels have
increased, albeit in the absence of competition from indoor seated catering operators.
If restrictions continue to ease in line with current plans then we now expect our overall
sales performance for the year to be stronger than we had previously anticipated.
Costs have been well-controlled and the rate of cost inflation we are experiencing is
in line with our plans for the year.”
“Providing guidance on the profit outcome for 2021 remains difficult given the
uncertainties surrounding trading conditions. However, given our recent trading
performance, the Board now believes that profits are likely to be materially higher than
its previous expectation, and could be around 2019 levels in the absence of further
restrictions.”
