Greggs Ord Stock Earnings Reports

Key investor points: Greggs delivered a robust H1 2026: total sales +7.2% and company-managed like‑for‑like +2.1%; profit before tax £76m (up 19.7% vs 2025). Operating cash flow grew 18.3% and the interim dividend was maintained at 19p. Management reiterates full‑year expectations are unchanged but flags a roughly £10m H2 headwind from Derby operating costs, so FY profit growth is expected to be broadly flat. CapEx has peaked (FY capex guidance reduced from £200m to £180m), supply‑chain projects (Derby operational imminently; Kettering H1 2027) will unlock logistics capacity to support a materially larger estate. Net new shop openings guided to c.100–110 for the year with a medium‑term opportunity of ~3,500 UK shops; franchise remains an important growth channel. Grocery (Bake‑at‑Home) distribution with Iceland and Tesco is scaling and contributing to B2B growth. Cost tailwinds in H1 included lower food & packaging inflation and favourable phasing of pay awards; energy is ~90% hedged for the year. Lease accounting and new large sites have increased imputed finance charges (non‑cash). Management’s medium‑term financial priorities include returning ROCE to around 20% and resuming shareholder returns once cash balances normalise (target cash at year‑end ~3% of turnover, ~£70m). Succession: Ben Waldron joins as CFO designate end‑Oct and will succeed Richard Hutton as CFO on 1 Jan 2027.