Greggs (GRG)

Sector:

Food Pharmacy Retail

Index:

FTSE 250

2,874.00p
   
  • Change Today:
      14.00p
  • 52 Week High: 2,904.00
  • 52 Week Low: 2,282.00
  • Currency: UK Pounds
  • Shares Issued: 102.26m
  • Volume: 83,510
  • Market Cap: £2,938.83m
  • RiskGrade: 191

Greggs warns on profits, scraps dividend due to Covid-19

By Michele Maatouk

Date: Monday 23 Mar 2020

LONDON (ShareCast) - (Sharecast News) - Greggs issued a profit warning on Monday due to the coronavirus, scrapped its dividend and said it could not provide forward guidance.
The company, known for its sausage rolls, also said it was closing its stores.

"Given the current and likely impacts of coronavirus we are now planning for the closure of our shop estate by close of business on Tuesday 24 March in order to protect our people and customers," it said.

"It is now clear that to protect our people and customers we need to go further and temporarily close our shops completely. During this period, with support from the Government's Coronavirus Job Retention Scheme, we intend to maintain employment of colleagues at full contract hours for as long as is practicable."

Greggs said it had seen a "sharp" reduction in footfall over the last week. Initially the impact was seen in transport hubs and in central London, but more recently it has also affected other towns and city centres across the UK.

In its preliminary results earlier this month, the company said managed shop like-for-like sales grew by 7.5% in the nine weeks to 29 February. For the two weeks that followed, however, sales growth averaged 4.1% and in the most recent week to 21 March, it saw a 9.9% fall, with the rate of decline increasing each day as more and more customers adhere to social distancing advice.

"We would expect this to increase further if we were to continue to trade," it said.

Greggs said it was reducing cash expenditure to protect its liquidity in the short term and intends only to complete existing shop projects, whilst deferring new shop openings and planned refurbishments. In addition, it will not be paying out the previously-announced final dividend for 2019 and has stopped the programme of share purchases by its Employee Benefit Trust. This will avoid around ?40m of cash outgoings this year.

Providing forward guidance is now "impossible", it said, but the board no longer expects to make year-on-year profit progress like it said it did earlier this month.

"Whilst the outlook during this crisis remains uncertain Greggs is a resilient business with strong growth credentials and we should be confident of its ability to navigate this event and return to growth when the economy recovers," it said.

At 1625 GMT, the shares were down 8.2% at 1,294.00p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Greggs Market Data

Currency UK Pounds
Share Price 2,874.00p
Change Today 14.00p
% Change 0.49 %
52 Week High 2,904.00
52 Week Low 2,282.00
Volume 83,510
Shares Issued 102.26m
Market Cap £2,938.83m
RiskGrade 191

Greggs Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.96% below the market average96.96% below the market average96.96% below the market average96.96% below the market average96.96% below the market average
84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average
Price Trend
70.63% above the market average70.63% above the market average70.63% above the market average70.63% above the market average70.63% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average
Income
69.48% below the market average69.48% below the market average69.48% below the market average69.48% below the market average69.48% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Growth
0.35% above the market average0.35% above the market average0.35% above the market average0.35% above the market average0.35% above the market average
69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average

What The Brokers Say

Strong Buy 5
Buy 3
Neutral 3
Sell 0
Strong Sell 0
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Greggs Dividends

  Latest Previous
  Final Special
Ex-Div 25-Apr-24 25-Apr-24
Paid 24-May-24 24-May-24
Amount 46.00p 40.00p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 33,565 @ 2,874.00p
16:35 23 @ 2,874.00p
16:35 6 @ 2,874.00p
16:35 5 @ 2,874.00p
16:35 564 @ 2,874.00p

Greggs Key Personnel

Finance Director Richard Hutton
CEO Roisin Currie
Chair Matthew Davies

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