Greggs rises on strong Christmas results

By Dan Colombini

- Last updated on GMT

Greggs performed ahead of analysts expectations for the year
Greggs performed ahead of analysts expectations for the year
Bakery retailer Greggs has performed ahead of analyst’s expectations during the festive season after posting “excellent” results for the period ending January 7.

Experts said that they were “encouraged​” by Greggs performance after the firm posted total sales growth of 9% for the final part of the year.

Darren Shirley, analyst at Shore Capital, said: “Greggs has reported excellent results in our view, which is ahead of expectations.

“For the five weeks ended January 7, Greggs has reported total sales growth of 10.8%, including a like-for-like sales contribution of 5.1%, which is a sharp increase on the 5.4% and 0.8% reported respectively for the 13 weeks to October 1.

Outperforming

LFL sales were also up by 4%, with the firm outperforming for the full year on the strength of December’s results, according to Shirley.

Greggs chief executive, Ken McMeikan said the firm had performed well after a “tough year for high streets​” and confirmed he expected the difficult trading environment continue into the new year.

He said: “Rising food and energy costs have been a feature of 2011 but to reduce the impact on customers we have continued to invest in promotional activity in order to maintain our value position in what has remained a very competitive market.

“Despite these pressures, we anticipate that we will report full year results in line with expectations when we make our preliminary announcement on March 14 2012."

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