Greggs : Annual report and accounts

MORE SHOPS, MORE CHOICE, MORE GROWTH

MORE GREGGS FOR EVERYONE

GREGGS plc Annual Report & Accounts 2022

INTRODUCTION

FOCUSING ON THE FUTURE AND OFFERING MORE TO EVERYONE

2022 has been a year of strong progress for Greggs, the result of committed efforts to deliver our strategic growth plan. The significant opportunities on which the plan is based will remain centre stage in the year ahead as we make Greggs more accessible to even more customers. Although consumer incomes remain under pressure, Greggs continues to offer exceptional value to people looking for great tasting, high-quality food and drink on-the-go.

We have an exciting, ambitious plan for the years ahead and, by continuing to nurture what makes Greggs special, I believe we are extremely well-placed to realise the opportunity to become a significantly larger, multi-channel business.

Roisin Currie

Chief Executive

7 March 2023

You can also read our annual report online at

corporate.

greggs.co.uk/ investors

And read The Greggs Pledge at corporate. greggs.co.uk/doing-good/

Strategic Report

2022 highlights	1
At a glance	2
Year in review	4
Chair's statement	8
Business model	10
Market review	11
Chief Executive's report	12
Our strategy	18
Our strategy in action	20
Key performance indicators	30
Sustainability report	32
	The Greggs Pledge	32
	Task Force on Climate-related
	Financial Disclosures	35
	Gender of workforce	42
Financial review	43
Risk management	46
Our stakeholders	54

Directors' Report

Board of Directors and Secretary	62
Governance report	65
Audit Committee report	72
Directors' remuneration report	78
Statement of Directors' responsibilities	101

Accounts

Independent auditor's report	102
Consolidated income statement	108
Consolidated statement of
comprehensive income	108
Balance sheets	109
Statements of changes in equity	110
Statements of cash flows	112
Notes to the consolidated accounts	114
Ten-year history	156
Alternative performance measures	157
Secretary and advisers	159

2022 HIGHLIGHTS OPERATIONAL HIGHLIGHTS

MORE GREGGS FOR EVERYONE

In October 2021, we set out our ambitious plan to double our sales by 2026 and have made great progress against our 2022 targets. We identified four key growth drivers, which are the focus of our plan to reach our full potential in the years ahead, underpinned by investment in our supply chain and systems and our ongoing commitment to doing good through The Greggs Pledge.

Read more about our progress against our key growth drivers on page 19 

GROWING AND DEVELOPING THE GREGGS ESTATE

A fundamental part of our strategic plan is shop estate growth. Our ambition is to reach significantly more than 3,000 shops and we have a strong pipeline of new shop openings. We also have a significant opportunity to further enhance the quality of our estate through relocations and the next generation of shop refits. Greggs is a versatile brand. This means we can open a full range of formats in a variety of locations, with our new digital channels enabling

us to extend the reach of each shop even further.

Read more about our plans to grow and improve our shops on pages 20 to 21 

THE GREGGS PLEDGE

Our sustainability plan, The Greggs Pledge, focuses on how we are doing more to help people, protect the planet and work with our partners to change the world for the better. Our latest sustainability report, The Greggs Pledge, published alongside the annual report, is available to view on our corporate website.

Read more about our progress against

The Greggs Pledge commitments on pages 32 to 34 

STRATEGIC REPORT

DIRECTORS' REPORT

ACCOUNTS

FINANCIAL HIGHLIGHTS*

Total sales

£1,513m

2021: £1,230 million

Total ordinary dividend

59.0p

2021: 97.0p**

Like-for-like (LFL) sales ***

+17.8%

Diluted earnings per share

117.5p

2021: 114.3p

Pre-tax profit

£148.3m

2021: £145.6m profit

Colleague profit-sharing

£16.6m

2021: £16.6m

• Detailed calculations of Alternative Performance Measures, not otherwise shown in the accounts and related notes, are shown on pages 157 and 158
• Includes 2021 additional special dividend of 40.0p paid
• Like-for-likesales in company-managed shops (excluding franchises) with a calendar year's trading history

Greggs plc Annual Report and Accounts 2022

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AT A GLANCE

COMMITTED

TO TASTING GOOD

WHAT WE DO

We are a modern food-on-the-go retailer, providing a wide menu of food and drink choices wherever and whenever our customers need us throughout the day.

With ownership of our supply chain, multiple service channels for our customers and over 2,300 shops nationwide, we are in a unique position to make great tasting, freshly prepared food accessible to everyone. Our teams across the business are dedicated to providing our customers with great tasting food-on-the-go and the best experience, day in, day out.

MANUFACTURING

In our own food manufacturing centres of excellence, we make great tasting, freshly prepared food that our customers can trust.

LOGISTICS

We move products from our food manufacturing sites to our shops ourselves, which helps us to keep our prices as low as possible.

OUR PEOPLE

We have more than 28,000 amazing colleagues, working together to provide our customers with the best experience, offering fast and friendly service, day in, day out.

CUSTOMER CHANNELS

With more than 2,300 shops, including over 440 with franchise partners, our wholesale partnership, delivery and Click + Collect, we are available to serve customers wherever, whenever and however they choose.

CUSTOMER

RELATIONSHIPS

Through our Greggs App, we are building long-term connections with our customers and rewarding their loyalty. Our CRM systems allow us to talk to our customers on a regular one-to-one basis and to serve them even better, with exclusive offers and benefits for being an App customer.

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OUR PURPOSE

To make great tasting, freshly prepared food accessible to everyone

OUR VISION

To be the customers' favourite for food-on-the-go

DEDICATED

TO DOING GOOD

OUR CULTURE AND VALUES

Our people are what makes our business successful. We aim to provide them with a great place to work, where they feel valued and have the opportunity to fulfil their potential. Our values commit

us to being friendly, inclusive, honest, respectful, hardworking and appreciative. We are proud to hold the National Equality Standard in recognition of our efforts to improve diversity and inclusion across the business.

Read more about our people

on pages 58 and 59 

STRATEGIC REPORT	DIRECTORS' REPORT	ACCOUNTS

OUR SUSTAINABILITY

COMMITMENTS

It's our duty as a responsible business to stand for more than just profit. We have a strong sense of responsibility to do the right thing for our people, customers, suppliers and the communities in which we serve, and to lead positive change.

Read more about The Greggs Pledge on

pages 32 to 34 

Greggs plc Annual Report and Accounts 2022

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