Greggs profits hit by falling sales
Bakery giant Greggs took heart from an improvement in its second half performance today after like-for-like sales and profits took a tumble in 2013.
Its full-year like-for-like sales dropped by 0.8%, while total sales rose by 3.8% to £768.2 million. Pre-tax profits fell by 36.7% to £33.2 million, meanwhile, and even excluding millions of pounds of exceptional costs they dropped by 18.9% to £41.3 million.
Greggs was clinging to the positives today, though, pointing to an improvement in like-for-like sales in the second half of the year, with a 1.2% rise in the second half, and a 2.6% improvement in the final quarter.
Chief executive Roger Whiteside said: "Like-for-like sales were down 0.8% reflecting the tough and competitive trading conditions.
"I am encouraged by the improvement in performance in recent months as our new strategic focus started to deliver benefits.
"Market conditions are expected to remain challenging in 2014. It will be a year of further change for Greggs as we move forward with our plan to focus on the food-on-the-go market and build on positive recent trading momentum."
The group was hit by exceptional charges of £8.1 million in its transition to its new strategy, and the closure of a number of loss-making shops.
It closed 68 shops during the year, but maintained its estate by relocating 17 branches and opening 51 new ones.
