AGM Statement

14 May 2007 07:01

Greggs PLC14 May 2007 14 May 2007 GREGGS plc CHAIRMAN'S AGM STATEMENT Greggs is the UK's leading retailer specialising in sandwiches, savouries andother bakery products, with a particular focus on takeaway food and catering. It has over 1,300 retail outlets throughout the UK, trading under the Greggs and Bakers Oven brands. At the Annual General Meeting to be held in Newcastle upon Tyne this afternoon,the Chairman Derek Netherton will say: "I am pleased to report a satisfactory performance in the first half to date.Like-for-like sales in the 18 weeks to 5 May 2007 have increased by 4.9 percent, improving on the 3.9 per cent increase for the first nine weeks alreadyreported in March. This compares with a flat sales performance in the first 18weeks of 2006, and reflects increased consumer traffic on the high street andfavourable weather conditions. We have also benefited from an increase in thenumber of our shops trading on Sundays. Our retail selling price inflationduring the period has been 4.0 per cent, so we have achieved a modest increasein core volumes after allowing for the benefit of extended Sunday opening. "As a result of this sales performance, operating profit in the year to date isahead of our budget and the comparable period last year. "Last month we launched the first phase of a £3 million integrated marketingcampaign designed to build awareness of the Greggs brand, advertising onnational TV and radio, posters and the Internet. This is expected to deliverreal benefits through increasing consumer recognition in the longer term. "We are progressing a number of trials of new products and shop formats, withencouraging initial results. Steady progress is also being made in the processof moving away from our previously decentralised management structure to ensurethat we are even more customer-focused and to build a strong, unified, nationalGreggs brand. "So far this year the Company has purchased for cancellation 29,151 of itsordinary shares at an average price of £48.51 and a total cost of £1.4 million.We are seeking shareholders' approval to renew our authority to buy back sharesat today's Annual General Meeting. "Our next update to shareholders will be the announcement of the Group's interimresults for the 24 weeks to 16 June 2007, which is scheduled for Tuesday, 31July 2007." ENQUIRIES:Greggs plc Hudson SandlerSir Michael Darrington, Managing Director Wendy Baker / Jessica RouleauRichard Hutton, Finance Director Tel: 020 7796 4133Tel: 0191 281 7721 This information is provided by RNS The company news service from the London Stock Exchange