Preliminary Q4 2024 Greggs PLC Earnings Call Transcript
Key Points
- Greggs PLC (GGGSF) achieved record sales of over 2 billion pounds in 2024, marking an 11% total sales growth.
- The company reported a strong profit delivery with underlying pre-tax profits of 189.8 million pounds, a growth of 13.2%.
- Greggs PLC (GGGSF) opened 226 new shops in 2024, resulting in a net growth of 145 shops, with a healthy pipeline for future openings.
- The evening sales strategy is progressing well, now representing 9% of company-managed shop sales, and delivery sales have grown to 6.7% of sales.
- The Greggs app has seen significant growth, with 1 in 5 transactions now scanned through the app, enhancing customer engagement and data collection.
- The trading environment in 2024 was challenging, with low consumer confidence and a static physical market in volume terms.
- Greggs PLC (GGGSF) faces significant inflationary pressures, particularly in wage costs, with an expected 8% wage inflation in the coming year.
- The company anticipates a 6% overall cost inflation for 2025, driven by wage and energy costs.
- Greggs PLC (GGGSF) is entering a peak investment phase, with capital expenditure expected to reach 300 million pounds, impacting cash flow.
- The company is experiencing higher administrative expenses due to increased investment in technology and ERP systems.
Good morning and thank you for taking the time to join Richard and myself to For the Greggs 2024 prelim results presentation.
So the agenda today will be in the usual format. I will give you an update on the results we've announced today. I will share with you some of the key highlights, and then Richard will take you through the financial performance before handing back to me for the operational and strategic review.
So, it is great to be able to stand here and announce another record performance in 2024, despite a very tough and challenging marketplace, driven by a strong execution of our strategic plan.
The slide behind me covers all of the key information, but just a few points to note. For the first time we have delivered sales of over 2 billion pounds. That was over 11% total sales growth, and that was 5.5% on a like for like basis.
We also had strong profit delivery of 189.8 million for underlying pre-tax profits, which was growth of 13.2% and also came at an improved margin.
And we
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
