Greggs PLC on Tuesday rewarded shareholders with a special dividend, as it reported a healthy jump in sales and profit.

Shares in Greggs rose 4.2% to 2,828.60 pence each on Tuesday.

The Newcastle, England-based bakery chain said pretax profit climbed 27% to £188.3 million in 2023 from £148.3 million in 2022. Diluted earnings per share increased 18% to 139.2p from 117.5p.

Sales advanced 20% to £1.81 billion from £1.51 billion, with like-for-like sales in company-managed shops up around 14% year-on-year.

John Moore, senior investment manager at wealth manager RBC Brewin Dolphin, said the results ‘once again paint a picture of reliability’.

‘The company has seen good growth with an uptick in sales and profit, thanks to store management and innovation in terms of its opening hours, expanding product ranges, and delivery partnerships.’

Greggs said its robust cash position of £195.3 million supported both investment in growth and additional shareholder returns by way of a special dividend of 40.0p per share.

The special dividend came on top of an increased ordinary dividend of 62.0p per share for 2023, up from 59.0p in 2022.

Greggs said its market share was at an all-time high with its total share of food-to-go visits at 8.2%, rising from 7.7% in 2022.

Chief Executive Roisin Currie said: ‘We are very much on track to deliver our bold five-year growth plan to double sales by 2026 and to have significantly more than 3,000 shops in the UK over the longer term.’

The company said it made 145 net new openings in 2023, taking store numbers to 2,473 by the end of 2023.

Greggs highlighted evening trade as an area of progress, contributing 8.7% of company-managed shop sales in the second half of 2023.

It said its market share for the evening increased to 1.6% in 2023 from 1.2% in 2022, according to data from Circana.

More than 1,200 sites now offer food-on-the-go-sales until 7pm or later, Greggs said, with hot chicken goujons, potato wedges and pizzas all selling well.

Greggs backed its outlook for 2024, reporting a good start to the year.

LFL sales in company-managed shops are up 8.2% in the first nine weeks of 2024, it said.

There are no change to management’s expectations for 2024.

Copyright 2024 Alliance News Ltd. All Rights Reserved.