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Highlights:
- Greggs achieved record total sales of £2.01 billion in FY24, up 11.3% year-on-year.
- A net increase of 145 shops brought the total to 2,618 outlets by December 2024.
- Supply chain expansion, including projects in Derby and Kettering, is on track to support future growth.
Greggs PLC (LSE:GRG), a leading UK food-on-the-go retailer, has announced its Q4 trading update, marking a milestone year with record total sales of £2.01 billion for 2024. Despite facing a challenging retail environment in the latter half of the year, Greggs maintained steady growth and expanded its shop footprint, bolstered by strong demand for its seasonal menu and operational efficiency.
Performance Overview
Total sales for FY24 increased by 11.3%, up from £1.81 billion in 2023, with like-for-like (LFL) sales in company-managed shops rising 5.5% year-on-year. Fourth-quarter performance showed a 7.7% sales increase, while LFL sales grew 2.5%, reflecting lower High Street footfall due to subdued consumer confidence.
Despite industry-wide declines in visits and expenditure, Greggs retained its position as the UK’s top breakfast destination and effectively managed operational costs. Seasonal menu items such as the Festive Bake, Vegan Festive Bake, Festive Flatbread, and festive hot drinks like the Gingerbread Latte drove strong customer demand during Q4, alongside continued success in pizza and bundle deals, particularly in evening trading.
Shop Expansion and Supply Chain Progress
Greggs achieved a record 226 new shop openings in 2024, offset by 28 closures and 53 relocations, resulting in a net increase of 145 shops. By the end of December, the company operated 2,618 outlets, comprising 2,057 company-managed shops and 561 franchised units. This growth brought Greggs to new locations and enhanced its presence in established areas, improving accessibility for customers.
The company also exceeded its target for rolling out over-ice drinks equipment, with the range now available in 1,100 shops—far surpassing the initial goal of 700 by year-end. Greggs plans to extend the availability of this popular range further in 2025.
Supply chain capacity development remains on track, supporting Greggs' growth ambitions. Construction is underway at the frozen product manufacturing and logistics site in Derby, set to open in 2026. Additionally, planning approval and land purchase for a new National Distribution Centre in Kettering have been completed, with construction set to begin soon and a planned opening in mid-2027.
Financial Position and Outlook
Greggs ended the year with a net cash position of £125 million, compared to £195 million in 2023, reflecting significant investment in growth and capacity during 2024. The company plans to continue its expansion, targeting 140–150 net new shop openings in 2025, including 50 relocations.
Despite low consumer confidence impacting the wider retail sector, Greggs’ disciplined cost management allowed the company to deliver results in line with the Board’s expectations. Looking ahead, employment costs and inflation are expected to increase, but rising wages could bolster disposable incomes. Greggs has a proven ability to mitigate inflationary pressures while maintaining its value proposition, giving the company confidence in navigating the year ahead.
