Greggs’ first-half sales increased 7.2% to £1.1bn (£1.1bn expected), driven by 34 net store openings and market share gains. Company-managed shop like-for-like (LFL) sales rose 2.1%, while franchised shops contributed 1.3% LFL growth.
Operating profit rose 22.9% to £87mnn (£82mn expected), helped by lower-than-expected cost inflation, strong cost control, and an easy comparable period.
Free cash flow improved from a £41mn outflow to a £74mn inflow, as capital expenditure moderated. Net cash rose to £16mn at the end of the period.
Full-year operating profit guidance remains unchanged, expected to land around last year’s level of £188mn. Capital expenditure guidance has been lowered by £20mn to around £180mn.
An interim dividend of 19.0p per share was announced, in line with last year.
The shares rose 9.9% in early trading.
Our view
HL view to follow.
Greggs key facts
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