Greggs Regulatory News (GRG)

13 May 2009 07:00



13 May 2009

GREGGS plc

INTERIM MANAGEMENT STATEMENT

Greggs is the leading bakery retailer in the UK, with 1,400 retail outlets throughout the country.

The Chairman, Derek Netherton, will deliver the following Interim Management Statement to shareholders at the Annual General Meeting to be held in Newcastle upon Tyne later this morning.

"Total Group sales in the 19 weeks to 9 May 2009 increased by 5.2 per cent, including like-for-like sales growth of 2.0 per cent.

"Since our preliminary results announcement in March we have enjoyed a successful Easter. Our shops sold over 2.3 million hot cross buns during 2009, an increase of ten per cent compared with the previous year. During recent weeks there have been some encouraging signs of greater stability in customer numbers.

"Performance in the year to date remains in line with our expectations. Margins are as we budgeted, with ingredient costs continuing to increase overall but offset by some improvement in energy costs which we expect to continue during the second half.

"Our current promotional emphasis includes our famous cheese and onion pasties, now featuring an improved three cheese recipe, sandwiches made with even better freshly baked bread, and new Belgian chocolate muffins. We launched the latest phase of our national TV advertising campaign last month. All these activities emphasise the high quality as well as the outstanding value for money that Greggs offers. This is an enduring strength of the business and one that is particularly appropriate to consumers in the current climate. 

"Our programme to create a single Greggs brand in the UK is on track.  35 of our 160 Bakers Oven shops have now been converted to the Greggs fascia, with encouraging results. We have also completed the sale of our 10 shops in Belgium to Foodmakers NV in line with the provision in our 2008 accounts. Our other plans to centralise and simplify the business are progressing well, and our financial position remains strong. 

"The proposed ten-for-one share split will, subject to the approval of the Annual General Meeting today, take effect on the commencement of trading on Monday, 18 May. We believe that this will make the Company's shares more accessible, particularly to small shareholders and our own employees.

 "We shall provide our next trading update to shareholders in the announcement of the Group's interim results for the 26 weeks to 27 June 2009."