3rd Mar 2020 09:08
(Alliance News) - Baker Greggs PLC on Tuesday raised its payout and reported a double-digit sales rise during a "record" year, but added heavy rainfall in the UK harmed its February trading.
In the financial year ended December 28, sales rose 14% to GBP1.17 billion from GBP1.03 billion. Pretax profit was 31% higher at GBP108.3 million from GBP82.6 million in 2018.
Like-for-like sales in company-managed shops climbed by a record 9.2% during the recent year.
Greggs, which during 2019 launched a vegan version of its famed sausage roll, upped its dividend by 26% to 44.9 pence per share from 35.7p.
The company in January unveiled plans for a GBP7 million special payment to its employees and on Thursday, it went a step further by announcing a "record" annual profit share payment of GBP12.8 million.
Chief Executive Roger Whiteside said: "2019 was an exceptional year of progress for Greggs, during which we experienced a sustained increase in customer visits as increased awareness and appreciation of our brand gathered momentum. Our exceptional performance was founded on the changes that we have made across our multi-year strategic investment programme, which has delivered transformational change across the business and has now set us up for the next phase of growth."
Greggs made 97 net new openings during the year, with 2,050 shops trading as at December 28.
The company also reported company-managed like-for-like sales in the nine weeks to February 29 were 7.5% higher year-on-year, helped by a "strong" January.
February alone proved to be more difficult, with Greggs reporting a "significant slowdown" due to bouts of heavy rainfall in the UK.
"The flooding that resulted from the storms temporarily closed our supply site in Treforest, South Wales, and our teams there and across the business have done a terrific job in re-establishing operations," Greggs added.
The company left its full-year outlook unchanged but explained that there is some "uncertainty" in relation to the potential impact of the coronavirus.
Greggs added: "As previously indicated, cost increases are likely to present a stronger-than-normal headwind in 2020, with wages and pork commodities driving cost inflation. We intend to invest some of the margin generated by our strong performance in 2019 to protect customers from these costs."
Shares in the company were 1.2% higher at 2,114.48 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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