Thousands of Greggs workers will share a £17.6 million bonus this month after the bakery chain saw a 27 percent rise in annual profits.
The group’s boss, Roisin Currie, said most of the firm’s 32,000 staff will get a bonus in their pay packets at the end of March to recognise their “hard work and effort” in 2023.
It comes after Greggs reported a pre-tax profit of £188.3 million for 2023, up from £148.3 million the previous year, with like-for-like sales in company-managed shops jumping 13.7 percent.
On an underlying basis, pre-tax profits lifted 13.1 percent to £167.7 million.
Greggs shares out 10 percent of profits each year with staff who have worked for the firm for at least six months.
Ms Currie told the PA news agency the group was hoping its value offering would stand it in good stead this year and said she did not plan to increase prices in 2024.
But she added that Greggs was “not complacent” about tough high street trading conditions.
She said: “The consumer is still under pressure in terms of their disposable income.”
“We’re certainly not complacent.”
“Retaining that number one for value is very important to us.”
She said there may be a bounce in consumer confidence and spending after the national living wage is increased nationwide in April.
“That might well put more money into the pocket of the consumer,” she said. The company’s yearly results showed a slowdown in sales growth due to less contribution from price inflation, dropping to 9.4 percent in the last three months of the year.
The group also mentioned that comparable store sales growth has further slowed down to 8.2 percent in the first nine weeks of 2024, but they believe this shows good volume growth.
The company expressed confidence that Greggs can make good progress this year and is on track to open between 140 to 160 shops after opening a record 220 sites in 2023.
They added: “Inflationary pressures are reducing and we have improved visibility of costs in the coming year.”
“There is no change to management’s expectations for 2024.”
The group expects its own cost inflation to be between four percent and five percent, but warned this could change due to geopolitical risks.
They confirmed they are on track with plans set in 2021 to double sales over five years, stating that “what started as a plan is now a solid reality”.
