British high-street baker Greggs has warned that high inflation would continue to be a challenge this year, but said it was confident its value offer of sausage rolls, steak bakes and pizza would help drive growth.
For 2022, Greggs posted pretax profit of £148.3 million (€167.3 million), in line with analysts' forecasts, on total sales which rose 23% to £1.51 billion (€1.70 billion).
Profit was held back by increases in the prices of ingredients, energy and labour, with cost inflation totalling about 9% over the year, said Greggs.
The group opened a record 186 new shops in 2022, along with 39 closures (147 net openings), growing its estate to 2,328 shops as at 31 December 2022.
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Confident About 2023
Chief executive Roisin Currie, who took up the top job last May, said she was confident in the prospects for 2023 despite the ongoing high level of inflation, which Greggs said would be felt in pay awards and energy costs.
“2022 has been a year of strong progress for Greggs, the result of committed efforts to deliver our strategic growth plan," she said. "The significant opportunities on which the plan is based will remain centre stage in the year ahead as we make Greggs more accessible to even more customers.
"Although consumer incomes remain under pressure, Greggs continues to offer exceptional value to people looking for great tasting, high-quality food and drink on-the-go."
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News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.
