Greggs on course to double sales by 2026 as revenues soar to £1.8bn

  • Greggs reported overall turnover rose by almost £300m to £1.8bn last year
  • Trade was partly driven by price hikes and volume expansion at existing sites
  • Sales were further bolstered by more stores opening later into the evening

Greggs has said it is on track to double turnover under an ongoing five-year strategy after achieving its strongest-ever performance in 2023.

The bakery chain, famous for its sausage rolls, reported total revenue rose by almost £300million to £1.8billion last year, with like-for-like sales in company-managed sites increasing by 13.7 per cent.

Growth was driven by price hikes, volume expansion across existing outlets and a record 220 shop openings, including new sites in hubs like Canary Wharf, Gatwick Airport and London Waterloo Station.

Strong result: Greggs reported total sales rose by almost £300million to £1.8billion last year

Trade was further bolstered by more stores opening later into the evening, when products like southern fried chicken goujons, potato wedges, and pizzas are in high demand.

Alongside this, the group extended partnerships with food ordering platforms Just Eat and Uber Eats, which boosted its delivery sales by 23.6 per cent, as well as retailers like Primark, Tesco and Sainsbury’s.

As a result, the firm’s turnover has climbed by approximately half in the past two years, setting it on course to achieve its target of doubling revenue by 2026.

The Newcastle-based business also said it was on track to have over 3,000 shops in the longer term, with 140 to 160 new openings planned this year alone. 

Greggs told investors that it ‘delivered another strong performance in 2023, making good progress against our strategic plan and further strengthening the company’s position as a leader in the food-to-go market’.

It added: ‘In a period when the rising cost of living was all too evident, the Greggs value proposition shone through and was reflected in growing customer visits and record ratings for value-for-money.’

The surge in sales, combined with easing inflationary pressures, helped the group’s underlying pre-tax profits increase by 13.1 per cent to £67.7million.

Greggs saw its overall pre-tax profits jump by £40million to £188.3million after including £20.6million in exceptional income mainly related to the settlement of business interruption insurance claims. 

Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said: ‘Key to Greggs’ success is doing the simple things well. Its supply chain and infrastructure are top notch.

‘Its operational execution is invariably flawless. And it is continually improving the offering. Overall, the future looks bright for Greggs and 2024 should be another year of progress.’

Greggs shares were 4.6 per cent higher at £28.40 on Tuesday morning, although they have still fallen by around 18 per cent since peaking at the end of 2021.