Greggs Regulatory News (GRG)

7 Jan 2009 07:00



7 January 2009

GREGGS plc

TRADING UPDATE

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

Group like-for-like sales during the Christmas trading period, comprising the four weeks to 3 January 2009, increased by 5.3 per cent.

For the second half of the Group's financial year, comprising the 28 weeks to 27 December 2008, total sales increased by 6.6 per cent, including like-for-like sales growth of 3.9 per cent. This gave total sales growth for the financial year as a whole of 7.1 per cent, including like-for-like sales growth of 4.4 per cent.

During the year the Group opened 67 new shops and closed 26, making a net addition of 41 shops and a total of 1,409 at 27 December.

Chief Executive Ken McMeikan commented, "I am pleased with our Christmas trading performance, particularly given the current economic environment and that we were building on strong like-for-like sales in the same period last year. Our performance reflects the UK consumer's loyalty to Greggs, with its great-tasting products and great value. I expect to report 2008 results in line with expectations when we make our preliminary announcement on Tuesday, 10 March 2009.

"The trading outlook for 2009 is demanding and customers will continue to feel the impact of the economic downturn. Costs will remain high into the first half despite the recent easing of prices for fuel and a number of key commodities. However, I believe that the quality and great prices of our products give us a competitive advantage. As a cash generative business with no debt we remain well placed to weather the recession and benefit from opportunities for future growth."