Mixed year for Greggs

High Street pastry and baked goods retailer Greggs served up a mixed bag of results, with an increase in full year sales and a dividend hike while profit and like-for-like sale slipped.

High Street pastry and baked goods retailer Greggs served up a mixed bag of results, with an increase in full year sales and a dividend hike while profit and like-for-like sale slipped.

The retailer said 2012 trading was very challenging as it battled against a mixture of continued consumer spending pressure and the wettest weather on record.

Nevertheless total sales rose 4.8% to £735m for the year ended December 29th after growth at its newly opened shops and the expansion of its new wholesale business. Around 100 net new shops were opened during the year.

Wholesale and franchise sales contributed 2.8% points to sales growth, it said.

Like-for-like sales were down 2.7% while pre-tax profit before exceptional items declined 2.2% to £51.9m. Diluted earnings per share rose 0.5% to 39.0p.

Greggs underlined its confidence in future trading with a 1.0% increase in its dividend to 19.5p.

Chief Executive Roger Whiteside said: "In 2012 consumer spending remained under pressure, shopper footfall declined, and the country experienced some of the wettest weather ever recorded."

On a brighter note he added: "Success in our new business channels coupled with new shop openings saw total sales growing again this year despite challenging market conditions."

Greggs said it has reshaped its plans for 2013 to focus on its core estate by increasing investment in its new formats in 'food on the go' and 'local bakery'.

"At the same time we will continue to develop sales through new shop openings, and make further progress in new markets through our wholesale and franchise agreements," it said.

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
It's not just the UK – we're seeing pandemic housing booms across the globe
Property

It's not just the UK – we're seeing pandemic housing booms across the globe

Soaring house prices aren’t just a UK thing, they’re a worldwide phenomenon. And it’s no coincidence – the underlying cause is much the same. John Ste…
18 Jan 2021