Greggs Announces Generous Staff Bonuses Following a Record-Breaking Profit Year
Posted by Emily on 15th Mar 2024
In a display of exceptional financial performance, Greggs will distribute £17.6 million in bonuses among its employees, celebrating a remarkable 27% increase in annual profits. This announcement comes on the heels of the company's pre-tax profits soaring to £188.3 million for 2023, up from £148.3 million in the previous year, marking a significant leap in success. The commendable 13.7% rise in like-for-like sales within company-managed shops significantly contributed to this achievement. On an underlying basis, pre-tax profits experienced a 13.1% increase to £167.7 million.
Roisin Currie, Greggs' CEO, shared her enthusiasm, revealing that most 32,000 employees will receive this bonus in their March paychecks. Greggs' strategic plan, initiated in 2021 to double its sales within five years, is transforming from vision to reality, with the company affirming its robust progress towards this ambitious goal.
In a gesture of shared success, Greggs annually allocates 10% of its profits to employees who have been with the company for at least six months. Currie expressed confidence in the company's value proposition and strategic decision not to raise prices in 2024 despite acknowledging the challenging high street trading conditions and the ongoing pressure on consumer disposable income.
Looking ahead, Currie is optimistic about a potential uplift in consumer confidence and spending following the national living wage increase set for April. Despite a slight deceleration in sales growth towards the end of 2023 and the beginning of 2024, the company remains upbeat about its prospects. It highlights a continued commitment to expansion, with plans to open between 140 and 160 new shops this year.
Greggs reassures stakeholders of its positive outlook for 2024, underpinned by easing inflationary pressures and a clearer view of the year's costs. However, it remains cautious of the impact of geopolitical risks on its forecasted cost inflation of 4% to 5%.
We invite your thoughts and comments below on Greggs' remarkable year and its approach to sharing success with its employees.