March 11 - “Like every other business in our sector, we are continuing to face substantial pressure from rises in the cost of energy and in our key ingredients, including flour, vegetable oils, and protein. We will work hard to mitigate the impact of cost increases through greater efficiency and, in recovering higher costs in the market place, shall take account of consumer confidence and the competitive environment. We remain determined to continue offering outstanding value to our customers.
“Having laid firm foundations in 2007 for the growth of Greggs as a national brand, we will implement our plans to improve our products, shops and service during the current year. Progressive harmonisation of our offer, and the roll-out of best practice across the business, will help us both to drive sales growth and reduce costs in the medium and longer term.
“Overall, I expect that 2008 will be another year of steady progress for the Group, and will confirm that we have established a strong platform for future growth.” - Derek Netherton, Chairman
• Record operating profit and earnings per share
• Twenty-third consecutive year of dividend growth
• Further £25.7m returned to shareholders through ongoing share buyback programme
• Like-for-like sales up 5.3%, including core volume growth of 0.9%
• Good progress in building new organisational structure for more unified Greggs brand
• Initial benefits from extended shop trading hours and strategic marketing programme
• 32 net new shops opened, exceeding initial target
• Like-for-like sales in ten weeks to 8 March 2008 up 6.2%