Greggs - Britain's 'foremost providers of bakery food-on-the-go' - managed to fend off the high street downturn as six million hungry shoppers a week were tempted by its value savoury products and sandwiches.
The baker saw like-for-like sales climb 1.5 per cent, although it admitted that the rate of growth had slowed since its trading statement on 15 May. It said that like-for-like sales in the first six weeks of its new financial year were flat as a result of the wet weather.
Analysts also believe that overall sales volumes had declined, with sales propped up by price increases, but underlying operating profits rose 8.9 per cent to £16.3m, as a result of tight cost control as well as the sale of 10 loss-making stores in Belgium. The group benefited from improved efficiencies as it launched a new bakery in Manchester, and continued to harmonise its product range across its 1,400 stores - it said it is on track to harmonise 80 per cent of its products by the year-end. New product launches and upgrades also boosted trading, and the proportion of sales derived from new products trebled over the year.
Broker Altium Securities expects full-year pre-tax profits of £46.4m and EPS of 31.5p (£45.2m and 30.6p in 2008).
GREGGS (GRG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 413p | MARKET VALUE: | £429m | |
| TOUCH: | 413-414p | 12-MONTH HIGH: | 424p | LOW: 275p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 140p | NET CASH: | £14.9m | |
| Half-year to 27 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008* | 299 | 23.4 | 15.9 | 4.90 |
| 2009 | 312 | 16.5 | 11.3 | 5.20 |
| % change | +4 | -29 | -29 | +6 |
Ex-div: 2 Sep Payment: 2 Oct *Prior year earnings and dividends adjusted for 10-for-1 share split on 18 Jun 2009 | ||||
