Greggs has recorded profits of £1.81bn in the fourth quarter of the 2023 financial year, an increase of 19.6% compared to the same period in 2022.

The British bakery chain also recorded a 9.4% increase in like-for-like sales at company managed shops in Q4, whilst ending 2023 with a net cash of £195m, a £3m rise compared to 2022.

Greggs opened a record 220 new shops in 2023, with 2,473 shops trading as of 30 December 2023.

However, this figure took into account 33 shop closures and 42 relocations, resulting in a net 145 new shop openings.

The bakery chain also rolled out delivery service across 710 shops with Uber Eats, alongside its existing service through Uber Eats.

Chief executive at Greggs, Roisin Currie, said: "[Last year] was a year of further progress by Greggs. I am proud of our teams, who did a fantastic job serving more customers as we continue to grow our shop estate and offer greater availability through digital channels and extended trading hours.

"We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet. Our value-for-money offer, and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead."

In terms of outlook, Greggs said that it anticipates a more stable cost base in 2024, as a result of reducing inflationary pressures and good forward cover on food, packaging and energy.

Furthermore, it expects to invest further in its shop and supply chain capacity. As well as aiming to open between 140 and 160 net new shops in 2024, Greggs has a fourth production line currently commissioned at Balliol Park in Newcastle-upon-Tyne.

It is also working to expand its logistics capacity at its Birmingham and Amesbury distribution centres, both of which are due to come on stream later in 2024.

Head of investment at interactive investor, Victoria Scholar, added: "Shares in Greggs are surging today, extending gains off the October lows, helping to reverse some of the declines from the highs at the start of May.

"Investors are cheering its impressive period to wrap up the year with strong demand for its festive products such as the Christmas lunch baguette and the Festive Bake, partly thanks to fun marketing with the return of Greggs’ own novelty Christmas jumper. It is also benefitting from the recent disinflationary trajectory that has helped to reduce its cost pressures.

"Its low price point makes Greggs resilient to the macroeconomic headwinds, cost-of-living pressures, and the consumer slowdown. Its range of value hot and cold comfort food and drinks appeal to a wide customer base including a vast number of workers who are on the move throughout the day."

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