Greggs is set to open another 500 new stores – taking the total to at least 3,000 – after revealing sales in first six months of this year hit almost £1 billion.
Strong demand for its pizza box deals and iced summer drinks have helped drive higher half-year sales up by 13.8 percent to £960.6 million.
Underlying profit rose 16.3 percent in the first half of 2024 to hit £74.1 million.
At the same time, Britain’s favourite baker increased the dividend paid to shareholders by an impressive 18.8 percent to 19.0p per share.
The king of sausage rolls and steak bakes revealed that pizza deals drove strong sales growth after it recently launched a four-slice sharing box to add to the hot food range.
Sales were helped by other new menu options, with iced drinks such as its mango and strawberry cooler and the strawberries and cream refresher now available in 500 shops.
Greggs said it remains committed to its long-term aims to have “significantly” more than 3,000 shops across the UK, having opened 99 new shops and closed 18 to reach 2,524 in the first half.
The firm is redeveloping and extending its warehouses in Birmingham and Amesbury in Wiltshire, which is set to complete in the second half of the year and will help support another 300 shops.
Roisin Currie, chief executive of Greggs, said: “Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers.”
She added: “Our cost outlook for 2024 remains unchanged and we continue to trade in line with our plan.
“The board remains confident in the long-term growth strategy, and we are investing to support that growth.”
Senior equity analyst at investment experts Hargreaves Lansdown, Matt Britzman, said: “Greggs has showcased its strengths once more, as the UK’s favourite baker continues to deliver.
“A high bar’s been set over the past year or so, but results have beat expectations once again.
“The value offering that Greggs is so well known for has been holding it in good stead of late, and it was good to see that continue over the half with like-for-like sales well ahead of the industry average.”
He added: “Greggs is a quality outfit with plenty to like. The number of shops is set to rise to 3,000 over the next few years, the menus and stores have been reset, and market share is at an all-time high.
“There are other growth levers, too, including bolstering delivery services, click-and-collect options, and opening later to attract more evening customers.”
Mr Britzman said: “Perhaps unusual for a business geared to growth, management is keen to make sure investors are paid while they wait, and growing dividends are part of the attraction.
“The cash hoard on the balance sheet is expected to be flexed to cover increased growth investment, but that’s precisely what it’s there for.”
