With 2,473 shops and 12 manufacturing and distribution centres, Greggs is the leading UK ‘food-on-the-go’ retailer. It uses vertical integration to offer differentiated products at competitive prices. Its ambition is to grow revenue to £2.4bn by FY26.
Greggs’ ambition to double revenue by FY26 has four key growth drivers: growing and developing the estate; leveraging digital channels; extending trading hours to the evening; and broadening customer appeal and driving loyalty. All will be enabled by higher investment in the supply chain and systems.
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edison tv
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Richard Hutton
FD
Roisin Currie
CEO
Forecast net cash (£m)
195.3
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (2.0) | 4.4 | 0.2 |
Relative | (3.6) | (0.7) | 0.4 |
52 week high/low | 2904.0p/2282.0p |
The second full year of Greggs’ five-year growth plan to double revenue by FY26 should be marked down as very successful, especially so given the challenging external environment. Unlike many consumer-facing companies, high selling price inflation was accompanied by volume growth, leading to good market share gains. The consumer is responding well to new initiatives to grow revenue in new dayparts and digital channels. Profitability was well-managed with better recovery of input cost inflation than FY22. We look for more of the same in FY24, which will be a significant year from a capital investment perspective, and beyond.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 1229.7 | 259.0 | 145.6 | 114.3 | 24.3 | 9.0 |
2022A | 1512.8 | 269.9 | 148.3 | 117.5 | 23.6 | 10.4 |
2023E | 1809.6 | 299.2 | 167.7 | 123.9 | 22.4 | 8.5 |
2024E | 2013.6 | 344.5 | 182.8 | 131.1 | 21.2 | 7.8 |