Shares in Greggs PLC (LON: GRG) tumbled nearly 10% to a two-year low of 1,865p following its latest results, which revealed a continued slowdown in sales growth after price increases late last year.
For 2024, like-for-like sales growth decelerated to 1.7% year-on-year in the first nine weeks of 2025, down from 2.5% in the previous year’s fourth quarter.
2024 Financial highlights
|
2024 |
2023 |
% Increase |
|
|
Total sales |
£2,014m |
£1,810m |
+11.3% |
|
Underlying operating profit excluding exceptional income* |
£195.3m |
£171.7m |
+13.7% |
|
Underlying pre-tax profit excluding exceptional income* |
£189.8m |
£167.7m |
+13.2% |
|
Pre-tax profit |
£203.9m |
£188.3m |
+8.3% |
|
Underlying diluted earnings per share* |
137.5p |
123.8p |
+11.1% |
|
Diluted earnings per share |
149.6p |
139.2p |
+7.5% |
|
Total ordinary dividend per share |
69.0p |
62.0p |
+11.3% |
* Excludes impact of £14.1 million exceptional net income primarily related to the sale of a legacy supply chain site (2023: £20.6 million net income related to settlement of business interruption insurance claims made in 2020)
|
· |
Total sales** up 11.3% on 2023 level, with LFL*** sales in company-managed shops up 5.5% year-on-year |
|
· |
Cash position of £125.3 million supports investment in supply chain and technology |
|
· |
Final dividend of 50.0p per share recommended, total ordinary dividend per share of 69.0p per share, up 11.3% from 2023 in line with underlying diluted earnings per share growth |
|
· |
Record profit sharing; £20.5 million to be shared with colleagues |
** 52 weeks ended 28 December 2024 (2023: 52 weeks ended 30 December 2023)
*** like-for-like sales in company-managed shops (excluding franchises) with more than one calendar year’s trading history
“Looking ahead to 2025, the macroeconomic environment remains difficult. Inflation is still elevated, and many of our customers remain concerned about the cost of living,” said chief executive Roisin Currie on Tuesday.
Despite these challenges, Greggs reported total sales growth of 11.3% for the 12 months ending December 28, surpassing £2 billion for the first time. Like-for-like sales in company-managed shops increased by 5.5% year-on-year, while pre-tax profit rose 8.3% to £204 million.
The company had already flagged a slowdown in sales growth to 2.5% in the fourth quarter, as weaker consumer confidence led to reduced footfall on the high street, triggering a drop in its share price.
Best known for its sausage rolls and expanding vegan range, Greggs has been diversifying its offering with extended opening hours, an expanded menu, and partnerships with Just Eat and Uber Eats for online delivery.
“Greggs has limited control over consumer sentiment but continues to perform well in a tougher market, with its value-driven offering helping to sustain market share,” said Hargreaves Lansdown analyst Matt Britzman.
“Like-for-like sales growth of 1.7% in recent months can be considered solid, and management’s indication of improved trading in February is encouraging. However, 2025 presents challenges, with consumers facing financial pressures and costs expected to rise under Finance Minister Rachel Reeves’s budget measures.”
“On the bright side, Greggs’ growth drivers—including store expansion, delivery services, evening trade, and digital channels—continue to show strong momentum, offering investors optimism that the company can navigate sector headwinds.”
