GRG: Greggs Hints at Strong Year End

(LON:GRG) Greggs Presents Q4 FY23 Trading Update

Greggs Plc

Weighting as of writing: 6%

17th January 2024 - Q4 FY23 Trading Update

On January 10th, Greggs published a trading update for the last quarter of its FY23; with a more comprehensive annual report and call due on March 5th. It was a short 3-pager, as is typical, but provided positive glimpses of what to expect in a few months. “Inflationary pressures are reducing and with good forward cover on food, packaging and energy we anticipate a more stable cost base in the coming year”, cites Roisin Currie, Greggs CEO. She notes that wage inflation remains stubborn, yet this will “provide support to consumer incomes” which in Greggs’ case I believe is a fair comment.

Key points from the report:

• Revenue of £1.81 billion (+20%) comes in ahead of expectations; adding an incremental £300 million of revenue.

• Company-managed LFL +9.4% in the fourth quarter, and +13.7% for the year.

  • Reduced inflationary contribution and increased transaction volume were cited as factors.

• Delivery service rolled out…