Food-on-the-go retailer Greggs is planning to expand with 100 new shops, but has warned that its profit will not return to pre-Covid levels “until 2022 at the earliest”.
The chain reported sales of £811m for 2020, down from £1.2bn in 2019. Its full-year loss before tax is expected to be up to £15m, compared with £108.3m last year.
During the fourth quarter, sales fell by 15% to £293m, down from £344m in Q4 2019. Company-managed shop like-for-like sales during the quarter averaged 81.1% of the equivalent 2019 level.
However, Greggs said it expected to open around 100 net new stores in the year ahead, subject to prevailing market conditions.
The bakery chain opened 84 new shops during the year, including 35 franchised premises, and closed 56. Its total shop count stood at 2,078 as of 2 January, 328 of which are franchises.
The food retailer has made 820 redundancies following a consultation.
It ended the year with a £37m net cash position. It also has in place a £100m, three-year revolving credit facility.
Chief executive Roger Whiteside said: “In light of the recent government announcements, significant uncertainties remain in the near term. We have taken action to position Greggs to withstand further short-term shocks and are optimistic about our prospects for growth once social restrictions are lifted.”
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