Greggs on a roll with profit upgrade as staff to share ?7m payout
By Frank Prenesti
Date: Wednesday 08 Jan 2020
(Sharecast News) - Bakery chain Greggs said it would pay £7m to employees as it delivered a tasty 13.5% rise in full year sales and upgraded its profit forecast, but warned of cost inflation and comparative headwinds ahead.
The company, which has seen sales soar on the back of its vegan sausage roll, said like for like sales rose 9.2% during the year, adding that full year underlying pre-tax profits were expected to be "slightly higher" than previous expectations.
"In the context of this exceptional year the board has agreed to make a special payment to employees, in recognition of their crucial contribution to business success," said chief executive Roger Whiteside. Greggs has more than 20,000 staff at its 2,000 stores most of whom will receive £300.
Greggs has added to its vegan menu with the New Year launch of a vegan steak bake and doughnut as it continues to push into what is becoming a lucrative market.
"Looking to the year ahead, we face strong sales comparatives and cost inflation headwinds present a challenge, Whiteside said.
"We see a number of cost headwinds in the year ahead and expect these to be higher than we have seen recently, as National Living Wage costs increase faster than general inflation and the cost of pork continues to rise significantly."
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