Greggs : Trading Update

4 October 2016

GREGGS plc

THIRD QUARTER TRADING UPDATE

Greggs is the leading bakery food-on-the-go retailer in the UK,

with over 1,700 retail outlets throughout the country

TRADING IN LINE WITH EXPECTATIONS

· Total sales up 5.6% for the 13 weeks to 1 October

· Company-managed shop like-for-like sales up 2.8% for the 13 weeks to 1 October

· 145 refits completed year-to-date

· 103 new shops opened year-to-date, 58 closures

· Balanced Choice and breakfast products popular over the summer months

· New Enfield distribution centre ready to commence operations

Trading performance

Greggs continued to trade in line with our expectations in the third quarter. In the 13 weeks to 1 October 2016 total sales grew by 5.6 per cent (2015: 5.0 per cent) and like-for-like sales in company-managed shops increased by 2.8 per cent (2015: 4.9 per cent), in line with our expectations. Total sales have grown by 5.6 per cent in the year-to-date and like-for-like sales have increased by 3.4 per cent.

The popularity of our summer menu including an extended range of Balanced Choice salads and yoghurts supported sales growth in the period. We also saw continued strong growth at breakfast time, helped by our strong coffee offer and value deals.

Shop estate development

In the year-to-date we have completed 145 shop refurbishments and are on track to refurbish around 200 shops this year. We have also opened 103 new shops, including 41 franchised units predominantly in transport locations. We have closed 58 shops, giving a total of 1,743 shops trading at 4 October (comprising 1,600 of our own shops and 143 franchised units).

The pipeline of new shop locations remains good and for the year as a whole we still expect to open 140-150 shops and close circa 70-80, a net increase of around 70.

Outlook

We have now launched our autumn/winter menu which includes new lower-calorie Balanced Choice bakes and soups along with a range of new snacks with gluten-free options. Chipotle Pulled Beef, Fiery Pulled Chicken and Onion Bhaji burritos are exciting new additions to our successful hot sandwich range.

We are making good progress with the first stages of our supply chain investment plan. The work to facilitate our new distribution centre in Enfield is now finished and the site will be brought into operation in the coming weeks. As a result we will complete the previously-announced closure of our Twickenham bakery in November.

Given trading to date and the outlook, our expectations for the full year outturn remain unchanged. As we look to next year, whilst we anticipate some general industry-wide cost pressures, we expect to make further progress against our strategic plan.