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Highlights
- Greggs Plc was the latest establishment to get hit by disruptions in supply the chain which has crippled retail and hospitality businesses across Britain.
- It has been reported that Greggs was hit by a supply crunch in their popular chicken-based products.
- Other European countries, as well as the US, are also facing the same crisis.
Greggs Plc, the fast food and bakery chain, is the latest establishment to get hit by disruptions in the supply chain which has crippled retail and hospitality businesses across Britain. It has been reported that Greggs was hit by a supply crunch in their popular chicken-based products. But Reuters reported that the company has stated that they were not facing any supply issues specifically in the chicken bakes.
According to a company spokesperson, like most other companies, there is a temporary interruption in the supply of a few ingredients, resulting in shops not having stocks available completely. Post Covid-19, cafes, restaurants, and retailers are dealing with an acute shortage of heavy goods vehicle drivers especially and food processing staff.
The UK is not the only country struggling with a shortage of truck drivers. Other European countries, as well as the US are also facing the same crisis, however for Britain, Brexit has exacerbated the problem.
Here is how Greggs and two other stocks reacted to supply chain disruptions:
Greggs Plc (LON: GRG)
Greggs shares were trading down by 0.07 per cent at GBX 3,020 on 26 August at 09:06 GMT+1. They hold a market capitalisation of £3,077.43 million. The shares have a one-year return of 115.96 per cent.
During the H1 of 2021, the company’s total sales were at £546.2 million, up from £300.6 million in the same period a year ago. The company reported a statutory pre-tax profit of £55.5 million from a loss of £65.2 million a year ago.
Tesco Plc (LON: TSCO)
The shares of the British groceries and general merchandise company Tesco were trading up by 0.20 per cent at GBX 252.05 on 26 August at 09:06 GMT+1. The shares have a market capitalisation of £19,449.11 million and have a one-year return of 12.30 per cent. They have a dividend yield of 3.96 per cent and a price-to-earnings (PE) ratio of 26.83x.
For the Q1 of 2021, group retail sales rose by modest one per cent to £13,362 million. UK sales improved 0.5 per cent to £10,016 million. The company’s online demand remained robust at 1.3 million orders per week. Two-year sales growth was at 81.6 per cent.
Morrisons Supermarkets Plc (LON: MRW)
Shares of UK’s fourth-largest supermarkets’ chain were trading down 0.17 per cent at GBX 290.10 on 26 August at 09:06 GMT+1. The shares have a market capitalisation of £7,030.32 million and have a one-year return of 48.32 per cent. They have a PE ratio of 73.27 per cent and a dividend yield of 2.37 per cent.
For the year ended 31 January 2021, the group revenue increased by 0.4 per cent to £17.6 billion. Like-for-like sales increased 8.6 per cent. The company’s profit before tax increased 5.6 per cent to £431 million. It announced a total dividend of 11.15 pence.
