Greggs report trading in line with plan and good strategic

In its fi rst half fi nancial highlights, Greggs reported total sales up 27.1%, with 22.4% LFL (like-for-like companymanaged shop sales performance against comparable period in 2021) sales growth in the fi rst half of 2022 (Q1: 36.9%, Q2: 11.2%).

First half LFL sales were 12.3% higher than comparable period in 2019 with a fl at profi t outcome primarily refl ecting the re-introduction of business rates, increase in VAT and higher levels of cost infl ation. In addition, they reported a strong cash position and good liquidity, with net cash at period end of £145.7m, having paid a special dividend of 40p per share (£40.6m total) in April 2022. 70 new shops were opened in the fi rst half, with 12 closures, with 2,239 shops as at 2 July 2022 and circa 150 net new shop openings anticipated in 2022. Extension of evening hours was going well, with delivery service continuing to prove incremental despite recovery of ‘walk-in’ trade.

The Greggs App had shown strong growth in usage driving loyalty engagement, and new services such as Click + Collect and product customisation were progressing well. New product development had included menu development focused on healthier choices, hot food and evening daypart. New manufacturing capacity was progressing well, the company added, with technology development now focused on digital

Greggs Pledge - science-based targets for emissions – had been submitted for verifi cation and National Equality Standard accreditation achieved and a fi rst “Eco-Shop” opened to test solutions to minimise environmental impact of retail operations.

“Greggs delivered an encouraging performance in the fi rst half of the year with sales ahead of 2019 levels. These results demonstrate the continued strength of the Greggs brand and demand for our great tasting, quality and value for money off ering,” said Roisin Currie, chief executive.

“During the period we continued to make good progress with our strategic priorities, including expanding our shop estate and making Greggs more accessible to customers through extended trading hours and digital channels.

“In a market where consumer incomes are under pressure Greggs off ers exceptional value for customers looking for food and drink on the go. We are well positioned to navigate the widely publicised challenges aff ecting the economy and continue to have a number of exciting growth opportunities ahead, with a clear strategy for expansion. We remain confi dent in Greggs’ ability to deliver continued success.”

For the fi rst time ever, this year’s UN climate change conference - COP27 - will host pavilions dedicated to food system change, including the Food4Climate Pavilion organised by global food awareness NGO, ProVeg International, and 15 other partners from around the world.

COP27 takes place in Sharm el-Sheikh, Egypt in November this year and the Food4Climate Pavilion will be setting out to highlight to the nearly 200 country delegations visiting the conference how the food and agriculture system needs to change in order to eff ectively tackle the climate crisis.

Worldwide, meat and dairy production provides just 18% of calories consumed, but uses 83% of global farmland, it is claimed. In addition to this, global greenhouse gas (GHG) emissions from animal agriculture are twice those from plant-based diets, so policies need to be pushed that encourage plant-based nutrition, it is also claimed, and without addressing food systems at UN level, global climate targets such as those set out in the Paris Agreement, will not be met, it is felt.

“Approval by the UN to set up the Food4Climate Pavilion at COP27 really marks a tectonic shift in the UN’s approach to food systems,” said Raphael Podselver, head of UN advocacy at ProVeg.

“We hope the pavilion will engage policymakers around the world to address the challenges posed by agriculture and encourage countries to embrace the solutions,”

Under the banner, Diet Change Not Climate Change, ProVeg and partners say that they will be engaging UN member states to transition to more plant-based food systems and diets as part of their climate policy.

“Inaction on food systems at this stage is no longer an option. We need to transition more to plant-based diets to bring down both methane and CO2 emissions eff ectively,” Raphael Podselver added. “The scientifi c evidence shows that this transition can help put the brake on climate change as well as ensure food security for future generations.”