Greggs upgrades profit forecast and could join FTSE 100
British baker pays staff £7m bonus following ‘exceptional’ year
Food retailer Greggs has upgraded its profit forecasts and awarded its staff £7m ($9.1m, €8.2m) in bonuses following an “exceptional” 2019.
The baker stated that like-for-like sales for the year ending December 28 rose 9.2 per cent, with total sales increasing 13.5 per cent on the year previous.
Although the experienced healthy growth throughout 2019, the holiday period saw a significant increase in business. Sales in the last three months of the year rose 8.7 per cent on the same period in 2018. This surge can be attributed in part to the popularity of Greggs’ vegan sausage roll and their Christmas pigs in blankets offer.
Although chief executive Roger Whiteside hailed the baker’s “exceptional” year, the company’s share price initially plunged in early morning trading. Some analysts have questioned whether Greggs will be able to its growth in 2020 with pork prices expected to rise.
Nonetheless, by mid-afternoon trading Greggs’ share price has recovered to stand at 2,406.80p, a gain of 0.20 per cent. With Greggs shares gaining 30 per cent since November and the company successfully managing cost inflation, analysts are beginning to consider the possibility of the once-family run baker from Newcastle soon entering the FTSE 100.
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