Greggs reported full-year revenue up 11.3% to £2.0bn, with life-for-like (LFL) sales in company-managed shops rising 5.5% (6.3% expected). Revenue growth was driven by 145 net new shop openings and increases in prices and volumes. Underlying profit before tax was up 13.2% to £189.8mn (£187.2mn expected).
Free cash flow of £97.0mn was down from £122.1mn the prior year, the difference largely due to increased investment.
LFL sales are up 1.7% in the first nine weeks of 2025, challenged by weather conditions. Cost inflation of around 6% is expected for the year.
The board has proposed a final dividend of 50.0p, up from 46.0p in the previous year.
Management remains confident that Greggs can manage inflationary headwinds this year. Current consensus points to a revenue growth of 8.8% to £2.2bn for 2025.
The shares fell 9.2% in early trading.
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