Seasonal lines boost Greggs Q4 sales

Total sales for the full year rose 19.6% to £1.8bn, while like-for-like sales in company-managed stores were up 13.7% on 2022.

Fourth-quarter company-managed shop LFL sales were up 9.4%. Greggs pointed to continued growth in transaction numbers and reduced contribution from price inflation.

The company - famous for its sausage rolls - said that seasonal lines such as its festive bake, chocolate orange muffin and Christmas lunch baguette were in high demand in Q4, featuring alongside mince pies and festive hot drinks.

In addition, pizza continues to perform strongly during the day and into the evening, with pizza boxes and pizza bundle deals contributing to growth.

Chief executive Roisin Currie said: "2023 was a year of further progress by Greggs. I am proud of our teams, who did a fantastic job serving more customers as we continue to grow our shop estate and offer greater availability through digital channels and extended trading hours.

"We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet. Our value-for-money offer, and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead."

Matt Britzman, equity analyst at Hargreaves Lansdown, said: "A solid final quarter means Greggs can tick off 2023 as a year of real progress. Double-digit growth in like-for-like sales was down to extended opening hours, more delivery options, improving supply chain capacity and a fresh new suite of tasty treats.

"Festive bakes and chocolate orange muffins led the way over Christmas but bears may point to sales growth slowing over the year, and the fourth quarter was the lowest of 2023. That’s largely because Greggs was able to limit price hikes as inflation cooled.

"Longer-term, that’s a net positive. One of Greggs' key strengths is offering a lower value treat and keeping that proposition intact is key, especially when consumer incomes are stretched. The most important thing is to see volumes trend higher, and that remains the case.

"The job’s not done. Expect to see more progress over 2024 as investment continues into the digital offering, delivery partnerships and expanding the store estate."