DECADES DECADES
FILLED FILLED
WITH WITH
FLAVOUR FLAVOUR
WELCOME
Through the hard work of the entire Greggs team,
we delivered another year of strong growth in
2024. We exceeded £2 billion in turnover for the
first time, opened our 2,600th shop, and laid the
foundations for yet more growth by securing the
space we need to expand our manufacturing and
logistics operations.
It has been a huge team effort. Our 33,000 colleagues across
the UK have pulled out all the stops to ensure that the growth
strategy we set out in 2021 is being delivered brilliantly. As well
as increasing and developing our estate, we continue to build
the Greggs brand, open more shops in the evenings, extend
our home delivery offer, and reward more loyal customers
through our increasingly popular App.
We may be growing fast, but we are growing responsibly too.
We remain on track to become a net zero business by 2040
and have reduced the carbon intensity of our operations
by 41.8% since 2019. We continue to strive to be the best
employer we can be, and to focus on delivering all of our
Greggs Pledge commitments.
Despite the challenges facing the broader economy, I am
optimistic about the year ahead and confident that our bold
growth strategy is right, and that our team is very capable
of delivering it.
Roisin Currie
Chief Executive, 4 March 2025
CELEBRATING CELEBRATING
MILESTONES MILESTONES
FINANCIAL HIGHLIGHTS
*
Find out more about our financial performance on pages 59 to 63
* Detailed calculations of alternative performance measures, not otherwise shown in the Accounts and related Notes, are shown on pages 172 and 173.
** Excluding exceptional items.
*** Year-on-year growth in like-for-like sales in company-managed shops (excluding franchises) with more than one calendar year’s trading history.
TOTAL SALES
£2,014m
2023: £1,810m
DILUTED EARNINGS PER SHARE
**
137.5p
2023: 123.8p
LIKE-FOR-LIKE (LFL) SALES
***
5.5%
PRE-TAX PROFIT
**
£189.8m
2023: £167.7m
COLLEAGUE PROFIT-SHARING
£20.5m
2023: £17.6m
TOTAL ORDINARY DIVIDEND
69.0p
2023: 62.0p
1Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
700+
shops feature Eco-Shop elements – 27% of our estate
1,000+ Breakfast Clubs
feeding 75,000 children, every school day across the UK
100% of electricity
we purchase comes from certified renewable sources
30+%
of our range is ‘Healthier Choice’
NON-FINANCIAL HIGHLIGHTS
Find out more about The Greggs Pledge on pages 46 to 49
Strategic Report
2024 highlights 1
Celebrating 40 years as a plc
and Year in Review 2
At a glance 8
Chair’s Statement 10
Business model 12
Market review 14
Chief Executive’s Report 17
Our strategy 26
Our strategy in action 28
Key performance indicators 38
Our People 40
Sustainability Report 46
The Greggs Pledge 47
Task Force on Climate-related
Financial Disclosures 50
Financial review 59
Risk management 64
Directors’ Report
Board of Directors and Secretary 72
Governance Report 75
Our stakeholders 81
Audit Committee Report 88
Directors’ Remuneration Report 95
Statement of Directors’
Responsibilities 119
Accounts
Independent Auditor’s Report 121
Consolidated income statement 128
Consolidated statement
of comprehensive income 128
Balance sheets 129
Statements of changes in equity 130
Statements of cash flows 132
Notes to the accounts 134
Ten-year history 172
Alternative performance
measures 172
Secretary and advisers 174
IN THIS REPORT
You can also read our Annual Report online at
corporate.greggs.co.uk/investors
2
CELEBRATING 40 YEARS AS A PLC
It’s been 40 years since Greggs floated on
the London Stock Exchange.
In 1984, the business had just over 260 shops and
a market capitalisation of £15 million. In 2024,
turnover exceeded £2 billion and we opened our
2,600th shop. This is testament to the hard work
and dedication of our colleagues, who have been
central to our journey over the years.
4040
YEARS OF
CONTINUED
GROWTH
3Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
THE GREGGS FOUNDATION
IS LAUNCHED
After receiving hundreds of requests
for support each week, Ian Gregg
established The Greggs Foundation,
initially known as The Greggs Trust, to
support local people facing hardship –
formalising our commitment to the
community, which we continue today.
Greggs opens 500th shop
We opened our first shop on Gosforth High
Street in 1951. Over the next four decades,
we acquired and built shops and bakeries
across the UK, and reached the milestone
of 500 shops in the Greggs estate in 1994.
The Greggs Foundation’s
Breakfast Club programme
is born
The first Greggs Foundation Breakfast Club
was established after a Business in the
Community event, when we saw the
difference a nutritious start to the school
day makes to children.
1999
19941987
4
Supermarket partnership
In 2020, as we focused on expanding
into locations our customers could
easily access via car, we trialled Greggs
concessions inside Asda and Tesco. The
success of these shops led to us opening
a further nine shops with Tesco in 2022.
As Greggs in supermarkets took off,
we are now partnered with Tesco, Asda
and Sainsburys, and have 54 shops with
a pipeline to open more in 2025.
CELEBRATING 40 YEARS AS A PLC CONTINUED
Greggs App launches
The first Greggs App launched to reward
customer loyalty with stamps for coffee
purchases. The App has evolved over time to
reward across all purchases giving customers
even better value. Our App continues to be a
key way to engage with our customers and the
number of users has increased every year since.
We knew our customers loved Greggs on-the-go,
so we decided to make it even more convenient for
them when travelling by car and opened our first
drive-thru Greggs in Irlam, Manchester. There
are now 45 Greggs drive-thrus across the UK.
We focus on opening them on main arterial routes
with significant traffic volumes to make the most
of their multi-channel capabilities.
Vegan sausage roll serves
up a cultural moment
As the Vegan Sausage Roll hit the
shelves, it got everyone talking and
encouraged brand reappraisal. Since
then, we have become known for our
vegan-friendly range, providing our
customers with delicious, quality
options – all at fantastic value.
2020
2020
2019
2014
2017
FIRST GREGGS
DRIVE-THRU
As part of our commitment to serve our
customers wherever, whenever and however
they choose, we partnered with Just Eat to offer
the convenience and flexibility of delivery.
INTRODUCTION
OF HOME DELIVERY
5Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Made-to-order
range expands
We expanded our made-to-order hot food range
of Chicken Burgers and Wraps with the addition of
the British classic, the fish finger. Our customisable
Fish Finger Sandwich and Fish Finger Wrap are popular
throughout the day, offering flexibility for customers,
and available as part of a deal with a drink and
wedges. Made-to-order hot food is now available
in 140 shops, and we plan to bring more exciting
options to more customers in the year ahead.
Arrival of Click + Collect
We created a new way for our
customers to shop with us. Click +
Collect was rolled out across our
entire estate, allowing customers
to skip the queue and save time,
grabbing their favourite products
exactly when they needed them.
Launch of The Greggs Pledge
We launched The Greggs Pledge, setting
out ten bold commitments to help make
the world a better place.
2021
2020
Growing home delivery
Uber Eats became our second
partner for home delivery,
extending this option to even more
customers and cementing our
position as a multi-channel retailer.
500th franchise
shop opens
Our franchise partners are a
critical part of our expansion
plans, helping us target on-the-
go locations reached by car.
Franchise shops account for
20% of the total estate.
2023 2023
FEBRUARY – 2024
MARCH – 2024
Over-ice drinks
range roll-out
Having proven highly popular during trials in
2023, we started rolling out our new over-ice
drinks range across the estate. We continued
to develop the range throughout the year,
offering exciting seasonal options like our
summery Mango and Strawberry Cooler and
the Iced Pumpkin Spice Latte. We worked
hard to meet customer demand and, following
a rapid roll-out of equipment, our over-ice
drinks range is now available in 1,175 shops,
exceeding our previous target to make this
available in 700 shops by the end of 2024.
We will extend this popular range to more
shops this year.
OVER-ICE DRINKS RANGE NOW AVAILABLE IN
1,175
shops
6
CELEBRATING 40 YEARS AS A PLC CONTINUED
We announced our new site in Derby, which will
provide additional manufacturing for frozen
products and enable frozen storage, picking and
distribution, which is key to our long-term growth.
JULY – 2024
MARCH – 2024
GREGGS ANNOUNCES
NEW NATIONAL
MANUFACTURING
AND DISTRIBUTION
CENTRE IN DERBY
JULY – 2024
We celebrate 40 years
as a listed company
We proudly celebrated our 40th anniversary
as a publicly listed company on the London
Stock Exchange. The business was then
a traditional, decentralised bakery business
with a mostly northern footprint. Today, we
have grown into a leading food-on-the-go
retailer with more than 2,600 shops across
the UK and 33,000 employees.
Greggs announces new National
Distribution Centre in Kettering
Following on from our news in Derby, we
announced our second new Midlands site in
Kettering. This new National Distribution Centre
will be focused on the storage, picking and
distribution of ambient and chilled goods.
As picking moves upstream to our new National
Distribution Centres, it unlocks capacity in
our Radial Distribution Centres to service more
shops, allowing for our continued growth.
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
7Greggs plc Annual Report and Accounts 2024
OCTOBER – 2024
NOVEMBER – 2024
2,600th shop opens
Our shop development programme
continued at pace, and alongside refits
and relocations, there have been
plenty of exciting openings including
11 shops inside large supermarkets
and 11 standalone drive-thrus. With the
support of our franchise partners, we
reached another huge milestone as our
2,600th shop opened, making us more
convenient than ever for our customers.
NOVEMBER – 2024
Festive menu returns
This year, we called in an icon to help us announce the return
of another icon. To the surprise and delight of our customers,
Nigella Lawson helped announce the return of the ‘rapturous
riot of flavour’ that is our Festive Bake. We had a few more
surprises in store this festive period as we once again
partnered with Fenwick, this time launching our exclusive
Greggs Champagne Bar. To round out the year, we created the
perfect stocking filler, the limited-edition Greggs Top Trumps.
We truly had something for everyone this festive period,
highlighting the creativity and joy that our brand champions.
NOVEMBER – 2024
GREGGS HITS
£2 BILLION SALES
MILESTONE
We ended 2024 on a high as we hit the £2billion
sales milestone. This achievement takes us
closer to our target of doubling our sales over
five years, and shows the strength of the brand
and the popularity of the offering we provide
to ourcustomers.
DECEMBER – 2024
We celebrate 1,000
Breakfast Clubs
In October, we celebrated alongside
The Greggs Foundation, and their other
partners as the 1,000th Greggs Foundation
Breakfast Club opened its doors. Twenty five
years after the scheme was established,
we are as committed as ever to building
stronger, healthier communities and are
proud to support more than 75,000 children
every school day.
A huge thank you to our colleagues,
customers and partners who have helped
to support our Breakfast Clubs across two
appeal weeks and with in-shop donations,
raising over £482,000 in 2024 alone.
A YEAR FULL OF JOYA YEAR FULL OF JOY
£1 million raised for
BBC Children in Need
We are proud to have partnered with BBC Children in Need
for 18 years and we once again kicked off November with
Pudsey power. A huge thank you to our colleagues and
customers as they came together to help us raise over
£1 million for BBC Children in Need – supporting the
lives of young people across the UK. From wacky and
wonderful fundraising activities and generous donations,
to customers enjoying our Pudsey products, the support
this appeal receives each year is truly phenomenal.
8
AT A GLANCE
BETTER BUSINESS BETTER BUSINESS
FOR EVERYONEFOR EVERYONE
Our purpose
TO MAKE GREAT TASTING, FRESHLY PREPARED FOOD
ACCESSIBLE TO EVERYONE
Our vision
TO BE THE CUSTOMERS’ FAVOURITE
FOR FOOD-ON-THE-GO
MANUFACTURING
In our own food manufacturing centres of
excellence, we make great tasting, freshly
prepared food that our customers can trust.
LOGISTICS
We move products from our food manufacturing
sites to our shops ourselves, which helps us to
keep our prices as low as possible.
OUR PEOPLE
We have 33,000 amazing colleagues, working
together to provide our customers with the best
experience, offering fast and friendly service,
day in, day out.
CUSTOMER CHANNELS
With more than 2,600 shops, including 561 with
franchise partners, our wholesale partnership,
delivery service and Click + Collect, we are
available to serve customers wherever, whenever
and however they choose.
CUSTOMER RELATIONSHIPS
Through our Greggs App, we are building
long-term connections with our customers
and rewarding their loyalty. Our Customer
Relationship Management (CRM) systems allow
us to talk to our customers on a one-to-one basis
and serve them personalised communication,
with exclusive offers and benefits for being an
opted-in App customer.
WHAT WE DO
With ownership of our supply chain, multiple service
channels for our customers and more than 2,600 shops
across the UK, we are in a unique position to make great
tasting, freshly prepared food accessible to everyone.
Our teams across the business are dedicated to providing
our customers with great tasting food-on-the-go and the
best experience, day in, day out.
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
9
Greggs plc Annual Report and Accounts 2024
Rewarding
our colleagues
We know that our people are our
most valuable asset, so we make
sure that our colleagues are paid
fairly, treated well, and given
the training and opportunities
they deserve. We believe all of
our people should share in our
success. Every year, 10% of
our profits are shared among
our colleagues.
Read more about our people and culture
on pages 40 to 45
Giving back to the
communities we serve
Greggs has a proud reputation
of giving back and we are
committed to doing the right
thing to help build stronger,
healthier communities and to lead
positive change. We donate to a
wide range of charitable causes,
and every year, we give at least
1% of profits to our corporate
charity, The Greggs Foundation.
Our donation, along with support
from our customers, colleagues
and partners, enabled the charity
to distribute £5.45 million in
2024 to schools and charitable
organisations in the UK.
Read more about The Greggs Pledge
on pages 47 to 49
Creating sustainable value
for our shareholders
We always strive to be a good corporate
citizen and to treat everyone – our colleagues,
customers, suppliers, partners and
shareholders – with fairness, consideration
and respect.
As well as supporting our communities by
providing thousands of fairly paid jobs and
supporting a number of charitable causes,
we are redoubling our efforts to make
Greggs a great place to work. We want to be
an inclusive employer that our colleagues
recommend to their friends.
We always set high standards for what we
purchase, with the aim of making things
better in our supply chain and working
collaboratively with our suppliers, so they
raise their game too.
Read more about our business model
on pages 12 and 13
HOW WE CREATE VALUE FOR OUR STAKEHOLDERS
COLLEAGUE PROFIT-SHARING
£20.5m
2023: £17.6m
DONATED TO THE GREGGS FOUNDATION
£3.1m
2023: £2.6m
TOTAL ORDINARY DIVIDEND
69.0p
2023: 62.0p
10
CHAIR’S STATEMENT
I’m delighted with the further progress that
Greggs has made in 2024. The whole team
has demonstrated its ability to execute on our
strategic plan, responding to market conditions
whilst continuing to deliver another year of
progress and attractive returns. We are excited
by the opportunity ahead and investing to
realise that potential. In doing so we remain true
to the responsible, long-term approach that has
served this business and its stakeholders well
for many years.
Matt Davies
Chair
Overview
Greggs delivered another strong performance in 2024, making
further progress against our strategic plan and delivering
an excellent financial outcome in more challenging market
conditions. The long-term growth opportunity ahead is clear
and we are making good progress as we develop capacity in our
supply chain to support further expansion in the years ahead.
The Board’s agenda for the year reflected the Company’s
ambitious growth plans. We continued to review the health of the
brand and management’s initiatives to develop the food and drink
offer and improve access to Greggs across multiple channels.
The Board scrutinised the investment plans that support these
objectives, ensuring that the business is making good returns on
the expansion of its shop estate into areas where Greggs has not
traditionally been accessible. This gives us confidence as we lay
down capacity for the next phase of expansion.
High standards of governance have long been associated with
Greggs, and we work hard to ensure that these are maintained as
the operating environment changes. During the year the Board
received updates on key risk areas and put a particular focus
on processes for allergen management, given the material risk
associated with this.
The business remains in a strong financial position and in 2024
the Board oversaw the refinancing of its revolving credit facility,
as well as supporting the defined benefit pension scheme
Trustee to de-risk the Company’s legacy pension scheme through
the purchase of an insurance policy which matches the majority
of the scheme’s liabilities.
Greggs has always aimed to carry out its business in a responsible
manner and our pursuit of the targets that make up The Greggs
Pledge has really pushed us forward on this agenda. As we enter
the final year of our current Pledge targets, great progress has
been made in making Greggs an even more sustainable business
and we are now refreshing the priorities for the next phase of this
journey. In supporting the communities in which Greggs operates
CONTINUED CONTINUED
STRONG TRACK STRONG TRACK
RECORDRECORD
11Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
we often partner with The Greggs Foundation (the ‘Foundation’),
the independent charity set up by Ian Gregg almost 40 years ago.
The Foundation makes a significant and positive impact on those
who need its help and I would like to thank our colleagues,
customers and partners for their support with this important work.
Our people and values
Our colleagues across the business are remarkable people, and
critical to the reputation that Greggs has for fast and friendly
service. The Board takes time to stay close to them in order to get
first-hand feedback on what’s working and what could be done
better. It’s a credit to the open culture of the business that they
do not hold back in offering their views and I want to thank them
for this and for their continued dedication.
This ‘listening’ activity involves Directors visiting shops, supply
sites and support teams, as well as attendance at forums that
help us to hear the impact of our plans on colleagues. This makes
the Board better equipped to question and support management
and to make informed decisions.
The Board
On 1 June 2024 we welcomed Tamara Rogers as an additional
Non-Executive Director. Tamara is the Global Chief Marketing
Officer of Haleon plc, the FTSE 100 listed world-leading
consumer healthcare company, and has over 30 years’
experience across a range of commercial and marketing roles.
She brings a wealth of experience across marketing, customer
insight and digital commerce.
The Board engaged in an externally-facilitated review in the year.
This comprehensive review process included the facilitator’s
attendance at meetings, including all of our Committees, to see
the Board in action. Interviews also extended to the Company’s
Operating Board members to evaluate the manner in which
the Board interacts with the executive team. The process was
extremely worthwhile and led to some valuable learnings that
will help us to improve further, but I am pleased to say that the
overwhelming outcome was that this is a highly effective and
engaged board.
Further details of the Board’s work are included in the
Governance and Committee sections of this Annual Report.
Dividend
At the time of the interim results in July 2024 the Board declared
an interim ordinary dividend of 19.0 pence per share (2023: 16.0
pence per share). In line with our progressive ordinary dividend
policy and our target for the ordinary dividend to be twice covered
by earnings, the Board intends to recommend at the annual
general meeting (‘AGM’) a final dividend of 50.0 pence per share
(2023: 46.0 pence per share), giving a total ordinary dividend for
the year of 69.0 pence per share (2023: 62.0 pence per share).
Our capital allocation policy, as outlined in the Financial Review,
details our approach to distribution, and the methodology for
determining and returning any surplus cash to shareholders.
In May 2024, in application of this policy, the Board paid a special
dividend of 40.0 pence per share.
Our colleagues across the
business are remarkable people,
and critical to the reputation
that Greggs has for fast and
friendly service.”
Looking ahead
Greggs made strong progress in 2024 and demonstrated its
ability to respond to tighter market conditions in the second half
of the year. This, and the Company’s robust financial health, puts
us in a good position to deliver our plans for long-term profitable
growth, whilst navigating near-term developments in market
conditions. The Board remains confident in the Greggs business
and our future plans.
Matt Davies
Chair
4 March 2025
12
BUSINESS MODEL
Our purpose…
To make great tasting, freshly prepared food accessible to everyone
Our people…
33,000
amazing colleagues
across our business
People are at the heart of everything we do.
We have 33,000 amazing colleagues across
our business – in our shops, supply chain and
central support teams – and each and every one
has an invaluable part to play in our success.
Our colleagues work together to provide our
customers with the best experience every day.
We want to provide them with a great place
to work, where they feel valued, want to stay
with us, and can thrive and be the very best
version of themselves.
…and continue to
enhance our offering by…
Find out more about our strategy on pages 26 to 37Find out more about Our People on pages 40 to 45
…focus on our four
strategic pillars…
1. Broadening customer appeal
2. Growing and developing the
Greggs estate
3. Developing our digital channels
4. Expanding our evening trade
5. Investing in our supply chain and
technology for a bigger business
QUALITY
Great tasting,
freshly prepared food
SERVICE
Best customer
experience
VALUE
Competitive
supply chain
ENGAGE
First-class
support teams
13Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Our vision…
To be the customers’ favourite for food-on-the-go
…and helping realise
The Greggs Pledge
to build…
Stronger, healthier
communities
A safer planet
A better business
More about The Greggs Pledge on pages 47 to 49
…delivering value to all our stakeholders…
Find out more about how we engage with our stakeholders on pages 81 to 87
CUSTOMERS
No.1
Greggs is rated No.1 for value on the
YouGov BrandIndex 2024, within the
quick-service restaurant, coffee shop
and delivery services group.
We want our customers to have the best
experience with Greggs, wherever, whenever
and however they shop with us. And we want
them to visit us time and time again. So, we
have been working to expand and improve
our 2,600-strong shop estate, as well as our
wholesale and delivery partnerships. We have
also been working hard behind the scenes
to develop and enhance our digital channels
to offer more value and convenience to our
customers via Click + Collect and the Greggs
App. Our App enables us to communicate
with our customers and reward them for
their loyalty.
COMMUNITIES
£5.45m
(2023: £4.5m)
Greggs believes in giving back to the
communities we serve. With our support,
The Greggs Foundation was able to distribute
£5.45 million last year to schools and
charitable organisations in the UK.
SUPPLIERS
93.8%
(2023: 94.5%)
We’re also a great brand to work with –
over 90% of invoices were paid to suppliers
within the terms agreed.
COLLEAGUES
74%
(2023: 74%)
Greggs is a great place to work, with a
74% engagement score in the most recent
colleague engagement opinion survey.
SHAREHOLDERS
69.0p
We provide value to our shareholders, with a
69.0p ordinary dividend proposed in line with
our progressive dividend policy.
14
MARKET REVIEW
ADAPTING TO ADAPTING TO
MARKET CHANGESMARKET CHANGES
At Greggs, we pay close attention to
the evolving macro and consumer
trends that we believe are most
likely to impact our operations. This
allows us to anticipate and mitigate
challenges, and also to seize new
opportunities as they arise.
MACRO TRENDS
Climate change
The climate crisis requires urgent action, and
businesses have an important role to play.
Improved governance and reporting across
all industries and sectors will continue to drive
the reduction of carbon emissions across
society, assisting with both adaptation and
the transition to a low-carbon future.
Nature and biodiversity
Human activities are causing a worrying decline
in biodiversity. An increasing human population
is putting ever-greater pressure on natural
habitats and leading to the over-exploitation
of our natural resources, concerns which are
further exacerbated by changes to the climate
caused by human activity.
Geopolitical uncertainty
Global political tensions and conflicts continue,
and Greggs must ensure business security and
continuity in uncertain operating conditions.
Inflation/cost of living
Economic pressure from inflation is directly
impacting the market and our consumer base.
More extreme weather may affect our supply
chain, infrastructure and operations; we have
undertaken work to fully understand the key
risks and impacts of climate change on our
business. Our Net Zero Steering Group is
challenging the climate impact of every area of
our operations and driving action to reduce it.
We aim to be net zero by 2040 – a decade earlier
than the UK Government’s plan.
Find out more in our TCFD Report on pages 50 to 58
Wherever possible, we seek to avoid
contributing to deforestation or land-use
change by purchasing certified sustainable
commodities – such as wood-based products,
beef, palm oil and soy. Further details can be
found within our deforestation policy.
Our recent partnership with EcoVadis gives
us the option to assess the environmental
practices of chosen suppliers and continue to
review the wider impacts of our operation to
identify further improvements we can make.
We ensure business resilience
through our ongoing enterprise risk
management (ERM) process.
As a value-led business, it is vital that we
monitor the economic situation and find ways to
mitigate costs to ensure we continue to support
our customers and communities with great
tasting, affordable products.
Greggs response
15Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
CONSUMER TRENDS
Dietary shifts
A growing number of consumers are
choosing to reduce their consumption
of animal products for ethical, health
or environmental reasons.
Ultra-processed food
According to the Food Standards Agency,
since August 2023 ultra-processed food
has been one of the top three concerns
raised by consumers surveyed in its
Consumer Insights Tracker, with three
out of four respondents saying they
are worried.
Healthy eating
Rising obesity levels and diet-related
ill health are putting enormous pressure
on the NHS. The UK Government is
combating this through policy and education
programmes aimed at improving the
nation’s eating habits – this includes the new
Advertising (Less Healthy Food Definitions
and Exemptions) Regulations 2024, which
come into force in October 2025.
Eco-conscious consumers
Consumers’ buying habits are increasingly
influenced by their concern for the
environment and a desire to reduce pollution
and avoid wasting resources. We use our
Eco-Shop as a test bed for new sustainability
initiatives. Ideas that successfully help us
reduce energy and water use are then rolled
out to all new shops and refits.
We pay close attention to changing
consumer preferences and capitalise on
the growing trend towards eating less meat
through our innovative range of plant-based
products, beginning in 2019 with the launch
of our – now iconic – Greggs Vegan Sausage
Roll. We offer at least one vegan option to
our customers at all times of the day.
While there is no single, universally agreed
definition for ultra-processed food, we
adopt the most commonly used NOVA
classification. We will continue to work
across the industry, and with Government
departments and non-Governmental
organisations (NGOs), as more information
on ultra-processed food becomes available.
Processing can play an important role in
food safety, nutrition, and in making food
more affordable but we are committed
to improving the nutritional value of our
products wherever possible.
We have committed to ensure that at least
30% of the products on our shelves are
healthier choices through expanding our
range of salads, flat breads, rice bowls
and fruit pots. We have reformulated
many of our sweet treats and savouries
to reduce the sugar, salt, fat and calories
in them without impacting their taste.
We help our customers to make informed
choices by providing calorie and nutritional
information on shelf, on packaging, and on
the Greggs App and website. We will adapt
our approach to advertising as required to
ensure we align to Government regulations.
More than a quarter of our shops now
feature initiatives tested at our Eco-Shop.
We aim to redistribute unsold food from
our shops at the end of every day and use
our Outlet shops, our national network
of charity partners and Too Good to Go
‘Magic Bags’ to help us. Almost all of our
Greggs retail branded packaging is ‘easily
recyclable’ according to the On-Pack
Recycling Label scheme, meaning most
households have access to recycling
facilities for these materials.
Greggs response
16
A RECORD-BREAKING YEAR
2024 was a record-breaking year for sales
and profit and we exceeded two billion
pounds of sales for the first time.
£2£2
BILLIONBILLION
17Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
THANKS TO THE DEDICATION OF THANKS TO THE DEDICATION OF
OUR PEOPLE, WE HAVE ENJOYED OUR PEOPLE, WE HAVE ENJOYED
ANOTHER SUCCESSFUL YEAR. ANOTHER SUCCESSFUL YEAR.
WE CONTINUE TO LAY STRONG WE CONTINUE TO LAY STRONG
FOUNDATIONS FOR OUR FUTURE FOUNDATIONS FOR OUR FUTURE
GROWTH.GROWTH.
2024 was another record-breaking year for
Greggs; we exceeded £2 billion in sales for the
first time and opened our 2,600th shop. Our
people have worked tirelessly to deliver on our
strategic ambition to further establish Greggs
as a multi-channel food-to-go retailer and I
want to acknowledge their efforts. It is thanks
to their hard work, week after week, that we
continue to grow, all the while maintaining the
great prices, high-quality products and friendly
service that keep our customers coming back,
again and again.
Roisin Currie
Chief Executive
In 2021, we set our sights on doubling sales by 2026 and having
a significantly bigger business over the longer term. Three years
into this five-year plan, sales are on track and we continue to
be confident in the growth opportunity in front of us. The brand
is in better shape than ever, with a material opportunity to
continue growing and developing the Greggs estate and plenty
of scope to continue to grow in newer dayparts and channels.
We continue to lay the foundations for this growth opportunity
by investing in our manufacturing and logistics capacity. We
have commenced building work on two large new sites in the
Midlands, a frozen product manufacturing and logistics facility
in Derby and a chilled and ambient National Distribution Centre
in Kettering, building additional capacity which will allow us
to service up to 3,500 shops.
The growth strategy that we began implementing in 2021 has
proven hugely successful and we remain committed to pursuing
our four key drivers of growth: broadening customer appeal;
increasing and developing our estate; extending evening trade; and
using digital channels to expand our home delivery offer and Click
+ Collect – all underpinned by significant investment in our supply
chain and technology. Our assessment of the opportunity
to grow to an estate of significantly more than 3,000 shops remains
unchanged, and we see further opportunity to gain increased
market share in the evening daypart and delivery channel, whilst
also maximising the value of the customers who now use our App.
In 2024, our like-for-like sales in company-managed shops
were up 5.5% year-on-year despite the food-to-go market
being challenging, with no volume growth in the market overall.
We maintained our overall share of the market and retained
our position as the UK’s No.1 brand for food-to-go breakfast
(Source: Circana CREST, YE December 2024), helping to start
the day well for millions.
As we attract new customers and increase sales, it is imperative
we invest in our infrastructure – both physical and digital – to keep
pace. We aim to simplify operations, improve efficiencies, and
use data and technology to drive better decisions and reduce
complexity for our people.
CHIEF EXECUTIVE’S REPORT
18
CHIEF EXECUTIVE’S REPORT CONTINUED
A key part of this is the evolution of our supply chain operating
model. In 2016, we began to move away from a traditional regional
bakery model – where every site made every product – towards
a consolidated, centralised approach. Today, our nine production
facilities are manufacturing centres of excellence, specialising
in specific products and producing them at scale.
Our plans for further growth will require additional capacity in our
supply chain over the coming years. During 2024, we introduced
a fourth savoury line at our Balliol Park site in Newcastle upon
Tyne, increasing production capacity for savoury rolls and bakes
by circa 35%, and completed work on expanding our Radial
Distribution Centres in Amesbury and Birmingham providing
300 additional shops of logistics capacity. We also set in motion
two major new development projects: a new frozen manufacturing
and logistics facility in Derby (due to open in 2026) and a new
National Distribution Centre in Kettering (due to open in the
first half of 2027). Both sites are designed to support our Radial
Distribution Centres and will significantly increase our logistics
capacity; when both are operational we will be able to service an
additional 700 shops through the automated upstream picking
of frozen, chilled and ambient goods, taking our total logistics
capacity to 3,500 shops.
Having led this significant transformation project since 2012, our
Supply Chain Director, Gavin Kirk, has now retired. He handed
over to Kuldip Bains who has joined Greggs from Bakkavor Group
plc where he was responsible for operational excellence across
their 15 manufacturing sites and four distribution sites. I wish to
thank Gavin for leaving our supply chain transformation project
in such a strong position, ready for Kuldip to maximise the
significant growth and efficiency opportunities ahead.
I would also like to thank Jonathan Jowett who is retiring after
15 years’ service to Greggs as our Company Secretary & General
Counsel. He played a key role in Greggs growth from bakery to
multi-channel food-to-go retailer, ensuring we have a robust
governance structure in place. He hands over to Sarah Dickson,
former Deputy General Counsel and Data Protection Officer
at Marks and Spencer and, prior to that, Senior Director for
Regulatory Compliance at Asda.
As we forge ahead into 2025, I know we have the right senior
team in place to take our business from strength to strength. We
have established strong foundations for future growth, and I look
forward to another year of solid progress towards our goals.
Financial results
Total sales grew to £2,014 million in 2024 (2023: £1,810 million),
an 11.3% increase on the level seen in 2023. Within this, company-
managed shop like-for-like sales were 5.5% higher than 2023.
Underlying pre-tax profit for the year increased by 13.2% to
£189.8 million (2023: £167.7 million). For further detail, see the
Financial Review. Including exceptional gains, pre-tax profit for
the year increased to £203.9 million (2023: £188.3 million).
A HEALTHIER CHOICE
WHEN SHOPPING
WITH US
We are always working on making our existing range
healthier. We continue to review the recipes of our core
products to find ways to deliver great tasting meals and
snacks which contain less sugar, calories and salt.
In 2017, the UK government published new recommended
limits on salt and calories, and we considered what was
possible and set out to achieve 92% of them by the end
of 2025. By the end of 2024, we had reached 85.1% and
continue to work towards our target. The impact of the
changes we have made to our recipes delivers astonishing
results. Since 2022, we have removed 2.7 billion calories
and 48 tonnes of salt from our customers’ diets without
impacting their enjoyment of the Greggs range.
As well as helping our customers to eat less salt, fat and
sugar, we also want to help them get more of the good
stuff like protein and vitamins. Every one of our soups and
rice boxes contains one portion of vegetables, and 50% of
our own brand cold sandwiches provide half a portion.
We define a ‘healthier choice’ as a menu item that
contains fewer than 400 calories and scores no red traffic
lights on the Government’s voluntary labelling scheme,
which provides consumers with nutrition information on
the front of the pack. The full traffic light label consists
of information on calories, fat, saturated fat, sugar and
salt. More than 30% of our range meets these criteria.
19Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Our key drivers of growth
Broadening customer appeal
Our mission is to provide our customers with excellent value for
money, great quality food, and fast and friendly service. To ensure
that we are as accessible as possible, we continue to extend
opening hours, increase the reach of home delivery and open
shops in more locations. Through new product development,
our loyalty programme on the Greggs App, and engaging, relevant
communications, we continue to reach new customers and
deepen our relationship with our existing ones.
During 2024, we further evolved our range, allowing us to meet
our customers’ needs and desires through all channels and in
every daypart. We rolled out our popular over-ice drinks range
following a successful trial and these are now available in 1,175
shops, along with chilled ‘Ready-to-Drink’ Latte and Caramel Latte
canned products. We extended our ‘ healthier choices ’ menu with
new pasta dishes and Chicken Pesto and Spicy Mexican Bean
Flatbreads. Our hot food menu is proving increasingly popular,
with pizza deals driving strong growth, and we conducted
successful trials of made-to-order options during the lunch and
evening dayparts. Our new add-on product, Mozzarella & Cheddar
Bites, won the ‘New Food To Go Award’ at the 2024 ‘Sammies’
(the Sandwich & Food To Go Industry Awards).
We rotate our product range across the year to provide enticing
novelty, with customers enjoying the return of seasonal stalwarts,
such as the Festive Bake and Vegan Festive Bake, as well as new
twists on old favourites. Popular new seasonal products in 2024
included the Cherry Bakewell Muffin, Spicy Vegetable Curry Bake,
Pumpkin Spice Doughnut, Gingerbread Latte, Christmas Lunch
Baguette, and Festive Flatbread.
According to Brand Finance’s latest ranking, Greggs is now
the UK’s second-strongest brand (UK 250 2024) with a triple-A
rating. This is derived from high scores for value for money,
consideration and familiarity, and demonstrates that we are
deeply rooted in customers’ minds – a key advantage in the
food-to-go market, where success is driven by being front of
mind when customers are seeking food-on-the-go.
AWARD-WINNING!
Greggs is incredibly proud to receive the Gold
Award in Britain’s Most Admired Restaurant and
Pub sector 2024. The Britain’s Most Admired
Companies study measures more than 250 of
Britain’s largest companies across 27 sectors,
against 13 individual criteria. This year marks
the 11th time Greggs have been named the Gold
winner for the Restaurants and Pubs sector.
This recognition is a testament to the hard
work, dedication and commitment of all our
colleagues across the business.
Our mission is simple: to make Greggs
accessible, wherever, whenever and however
our customers need us, while ensuring we offer
great value and great quality, freshly prepared
food and drink on-the-go. As we celebrate this
achievement, we’re also excited about the
future and continue to invest in growth across
the business. We remain focused on broadening
the appeal of Greggs to existing and new
customers and making our offer accessible
to more people, through our multi-channel
approach and expansion of our shop estate
in the UK. Thank you to all of our colleagues,
customers and shareholders who have been
part of our journey.
20
The popularity of the Greggs brand allows us to cut through in
fun, entertaining and engaging ways, celebrating British culture
in our trademark tongue-in-cheek way. As a value-driven brand,
generating media coverage in this way is a key part of our
customer engagement strategy and, in 2024, we made notable
appearances at Vicky Pattison’s wedding, Olly Murs’ baby shower,
and at the beach in Whitley Bay, Tyneside, where Rosie Ramsey
helped to launch our Fish Finger Sandwich. After the huge
success of the Greggs Bistro in Fenwick Newcastle in 2023,
we returned in 2024 with the pop-up Greggs Champagne Bar,
pairing customers’ favourite bakes and rolls with a curated
selection of champagnes.
During London Fashion Week in September, we launched ‘Baked
in Gold’, a limited-edition collection of 22-carat gold-plated
jewellery featuring Sausage Roll earrings, a Jammy Heart
Necklace and even a Greggs charm bracelet. The range of 1,000
items – the first from a food-to-go retailer – was designed and
hand-crafted by contemporary British artist Dion Kitson and
sold out within an hour of its launch.
Every year we look for new, innovative and fun ways to celebrate
the return of our much-anticipated Christmas menu. This year,
we recruited Nigella Lawson to star in our Christmas advert,
letting the nation know that even the most sophisticated of
palates revel in the ‘rapturous riot of flavour’ that is our
Festive Bake.
Growing and developing the Greggs estate
Expanding our national network of shops is central to our growth
plans. In 2021, we launched our five-year growth plan, outlining our
ambition to reach significantly more than 3,000 shops in the UK in
the longer term. In November 2024, we opened our 2,600th shop,
marking a significant milestone in our estate expansion strategy.
Over the course of the year, we opened an average of four new
shops every week and, on 28 December 2024, had 2,618 Greggs
shops across the UK (2023: 2,473). In total, we opened a record
226 new shops (2023: 220) and closed 81 shops (28 closures and
53 relocations), resulting in 145 net new shop openings.
We opened six shops in Northern Ireland, taking the total in this
region to 23. This is a developing market for Greggs where we
see potential for further growth and we have a strong new shop
pipeline in place for the year ahead.
In addition to finding new sites, relocating existing shops is a key
part of our strategy to grow the Greggs estate. During 2024, we
closed shops in 53 locations to make way for a better one either
nearby or by expanding into a vacant unit next door, allowing us to
serve more customers and expand our offer in that community.
Relocating shops enables us to retain the existing shop team
whilst adding the space needed to reach more customers. This
might be by providing seating, housing new equipment to expand
our range into hot products or iced drinks or installing an assembly
station to better meet the needs of Click + Collect customers and
delivery couriers. In these locations in the heart of communities,
our customer base is already well established and further
investment unlocks swift, profitable growth. Relocated shops
see a circa 30% increase in sales on average in the year after the
change of location which, consistent with our treatment of all new
shops, are excluded from our like-for-like sales growth measure
until they have completed one full calendar year of trading.
As an example, we first opened a shop on London’s Cheapside in
2012 and it quickly became a success. However, both the size and
shape of the property were a constraint to growth. We wanted
to add channels to improve sales and began to look for another
space. Fortuitously, the unit next door became available, enabling
us to create a larger shop with ample seating and a significant
upgrade to the customer area.
Similarly, we conducted an extensive programme of refits;
refurbishing, reconfiguring or extending 125 company-managed
shops and 40 franchised shops to make them more modern
and appealing, as well as better set up to support our
multi-channel offer.
CHIEF EXECUTIVE’S REPORT CONTINUED
21Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
We continue to focus on broadening our presence beyond
the high street and almost half of our shops (48.5%) are now
in alternative locations such as petrol forecourts, roadsides,
transport hubs, retail parks, supermarkets, universities and
hospitals. Ten years ago, these locations represented just 18.1%
of the Greggs estate. As well as offering a strong return on our
investment, these are the locations where we see the greatest
potential for future growth. During 2024, 144 of the 226 new
shops we opened were away from the high street, including 11
standalone drive-thrus, and 11 shops inside large supermarkets.
Notable openings in travel hubs included three in Glasgow (Queen
Street, Central and Motherwell railway stations), Embankment
London Underground station, a second shop at London Bridge
station, and Blackpool Tram Station. Securing transport locations
means we can place a shop inside a closed catchment, ensuring
customers in those locations have more choice when they grab
their breakfast, lunch or dinner whilst on the move.
Greggs is a trusted brand offering a strong covenant to
landlords and franchise partners and this continues to generate
opportunities in new locations. Our new shop pipeline is strong,
and we remain confident that we will deliver between 140 and
150 net openings again in 2025. We will continue our dual strategy
of growing our high street presence by relocating shops and
refitting existing ones, as well as opening new shops where
Greggs continues to be underrepresented, such as retail parks,
railway stations, airports, roadsides and supermarkets.
Extending evening trade
Evening sales now represent 9.0% of company-managed shop
sales, up from 8.5% in 2023, with post-4pm trading again being
the fastest growing daypart.
We know that relevant menu development is key to our success in
the evenings. Our hot food range, in particular our Southern Fried
Chicken Goujons and Southern Fried Potato Wedges, continue
to perform well after 4pm. In 2024 we launched a BBQ Chicken
& Bacon Pizza and complemented the well-established six-slice
pizza box with the introduction of a smaller four-slice box.
We have also expanded our made-to-order offer. In 2024, we
carried out a ‘made-to-order’ trial in ten shops in Newcastle
upon Tyne and are now inviting people to customise orders for
Fish Finger Wraps, Fish Finger Sandwiches, Chicken Wraps,
and Chicken Burgers at circa 140 shops. Customers can choose
from a variety of sauces, plus add-ons of bacon and cheese, and
enjoy it as part of a meal deal with wedges and a drink from £5.
We plan to introduce these made-to-order options at a further
200 locations by the end of the first quarter of 2025.
During the summer, we launched a CRM campaign called ‘Happier
Days’, utilising the Greggs App to grow evening trade, offering
double reward stamps on every purchase after 5pm from 8 July to
10 August. During this campaign we saw a strong uplift in evening
like-for-like sales compared to other dayparts, and transactions
remained higher following the campaign, showing the lasting
effect of the promotion.
Over the longer term, the ongoing evolution of our menu and the
convenience and diversity of our shop estate offers a significant
opportunity to further increase our share of both the walk-in and
delivery evening markets.
Developing digital channels
The Greggs App, Click + Collect, and our partnerships with
Just Eat and Uber Eats help drive forward our ambition to
become a multi-channel retailer. Whether a customer wants
to visit a shop, order in advance or have food delivered to their
home or workplace, we want their experience to be smooth,
easy and quick.
Use of the award-winning Greggs App continues to grow, with
customers scanning it in 20.1% of transactions in company-managed
shops during 2024 (2023: 12.5%). This notable growth in the use
of Greggs Rewards has been driven by the value the App offers;
we reward customers who collect nine stamps in a category
by giving them their tenth item free. The App also allows us to
promote products and flag new menu items, while allowing
customers to find their nearest Greggs and check opening times.
We continue to focus on making sure it is easy and intuitive to use
and are pleased that it is rated 4.8 out of 5 on both Google Play
Store and Apple’s App Store. We ended 2024 in the No.1 spot for
free Food & Drink apps on both app stores.
Effective customer relationship management is key to unlocking
further growth from the App and, this year, we implemented
a new customer engagement platform that is helping us to
Evening sales now represent
9.0% of company-managed
shop sales, with post-4pm
trading again being the fastest
growing daypart.”
22
understand our customers at a much more granular level, further
enhancing our ability to engage with them and increase loyalty.
It has allowed us to use geo-targeting to identify top App users
in a particular area to offer money-can’t-buy benefits, such
as an invitation to a sommelier event at the Fenwick Greggs
Champagne Bar. When we had special product launches, such as
for the Baked in Gold jewellery range or Greggs Top Trumps, we
sent App users a link to our online shop before we posted it on
social media.
During 2024, we increased the number of shops offering home
delivery to 1,556 (2023: 1,440). Collectively, our customers placed
circa 10 million orders through the Just Eat or Uber Eats apps
over the year, with basket sizes on average more than double
those of walk-in customers. Sales through this channel were up
30.9% compared with 2023, and in 2024 delivery represented
6.7% of company-managed shop sales (2023: 5.6%).
Behind the scenes, we have been improving our operational
procedures to fulfil demand and make the experience slicker
for both customers and colleagues. This includes better menu
management in our shops and streamlining the menu to make
it easier for customers scrolling online. Next, we are focusing
on providing our customers with more accurate estimations
of courier arrival times.
Investing in our supply chain and technology
for a bigger business
As our shop estate grows, we are expanding our manufacturing
and logistics capability to ensure that our supply capacity can
meet increased demand.
In early 2024, we finalised the commissioning of a fourth
manufacturing line at our Balliol Park site in Newcastle, increasing
levels of automation and boosting production capacity for our
savoury rolls and bakes by 35%.
We also completed the redevelopment of our Amesbury and
Birmingham Distribution Centres, doubling capacity at the
former and streamlining operations at the latter. Together, these
investments in our logistics infrastructure mean that we are now
set up to support an additional 300 shops.
During the year, we signed agreements for two new state-of-
the-art sites in the Midlands. The first, at SmartParc in Derby,
will be both a manufacturing and logistics facility, replicating
the success of our northern frozen manufacturing and logistics
campus at Balliol Park. In addition to an automated cold store, the
new site (due to open in 2026) will introduce automated picking
right down to the shop level.
The second new site, in Symmetry Park, Kettering, will be a
National Distribution Centre for storing, picking and distributing
ambient and chilled goods. In January 2025 we purchased a
25-acre plot and have begun building the facility, which we expect
will be operational in 2027. The site will embrace increased levels
of automation to enable upstream picking, relieving pressure on our
Radial Distribution Centres. This allows us to increase throughput
and improve the productivity of our entire logistics chain.
Together, these two new sites will allow us to support a total
estate of up to 3,500 shops. In addition, they are being
purpose-built to include developable ‘white space’ that will allow
us to make additional investments to support further growth,
as required. The expected impact of these investments on the
shape of margin and returns is set out in the Financial Review.
In addition to physical infrastructure, we are ensuring that we
have the right technology and systems in place to maximise
efficiency and minimise complexity right across our operations.
This includes the implementation of new EPOS till software to
improve how we manage pricing and promotions. We also began
the project to transition to an updated enterprise resource
planning software system, SAP S/4HANA, which brings greater
AI and analytics capability to help streamline processes, improve
productivity and give us real-time insights. All these investments
are generating better data which we can use to adjust and
improve how we do things. As our business becomes more
complex, we will use AI and technology to make our people’s jobs
as simple as possible, lightening the cognitive load and letting
them get back to what they do best: providing amazing service
for our customers.
As our shops become ever more reliant on connectivity, we have
invested in introducing full fibre broadband at every shop where
it is available. We are upgrading all our Chip & Pin devices to ensure
that we are utilising the most efficient technology available.
We are also testing new initiatives aimed at driving further sales
growth and delivering efficiencies, for example in 2025 we will trial
touchscreen kiosk ordering and remote temperature monitoring.
Looking after our people
As the employer of 33,000 people – many of whom work flexibly
or part-time – we feel a responsibility to help improve their
financial security. One way in which we do this, whilst also driving
engagement, is through our longstanding profit share scheme.
We continue to share 10% of our profits between colleagues who
have been with us for six months or more, which this year will see
qualifying colleagues share £20.5 million.
CHIEF EXECUTIVE’S REPORT CONTINUED
23Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Once again, we have reviewed our pension contributions. Last
year, we increased the Company’s matched contribution to 6%
and, in the year ahead, will raise it again to 7%, helping our people
to save for their future. We continue to offer a colleague discount
when buying Greggs products, and provide a Sharesave scheme
that enables our people to purchase Greggs shares at a discount.
We have reviewed our family-friendly policies and increased
maternity and paternity pay. Our intention is to support our
people, whatever their stage of life, to make sure they can
balance their family commitments with their career aspirations.
Improving the diversity of our workforce is one of the ten
commitments of The Greggs Pledge, and our ambition is that
we reflect the communities we serve by the end of 2025. In
September 2024, we held our first internal Inclusion Conference,
during which we reflected on and celebrated the progress we
have made in this important area. We now have three colleague
inclusion networks: REACH (our ethnicity group), ENABLE
(our disability group) and PRIDE (our LGBTQ+ group) that aim to
support these communities and improve access to opportunities.
We recognise that we need to work harder to achieve greater
ethnic diversity in our management population and are actively
encouraging colleagues from a minority background to apply for
our leadership development programmes.
Giving back
With such a large workforce, our greatest contribution to society
is providing fairly-paid, sustainable jobs to tens of thousands of
people across the country.
In addition, we contribute 1% of our pre-tax profits to The Greggs
Foundation (the “Foundation”) which distributes it to communities
through initiatives such as Breakfast Clubs, hardship funds, and
its community grant schemes. In 2024, we donated £3.1 million to
the Foundation – this includes donating 1% of our pre-tax profits,
and a share of profits from our Outlet shops. This was topped up
by a further £1.1 million raised by our colleagues and customers
through in-shop donations, two Breakfast Club appeal weeks,
colleague Give As You Earn donations and fundraising. We also
donate 5p to the Greggs Foundation for every Jammy Heart
Biscuit and children’s sandwich sold.
We have supported BBC Children in Need for 18 years now, raising
over £13 million for them in that time. 2024 was no exception and
the collection buckets, merchandise and Pudsey biscuits in our
shops during November raised over £1 million for the charity.
We also support Children’s Cancer North by funding the delivery
of their Children’s Cancer Run every May, putting collection buckets
in our shops in the North East and Cumbria, and encouraging
customers to participate in the event.
The Greggs Pledge
Since launching The Greggs Pledge in 2021, the business has
united around ten clear commitments, and we have driven
progress in every area. As we enter the final year of this phase
of our journey we have now met or exceeded some of our original
targets, and are on track to meet most of the others, and I am
very proud of what we have achieved together.
Every one of our colleagues can be part of The Greggs Pledge
journey – and I know so many of them feel very passionate about
contributing to making Greggs a better business; it is a source
of real pride and purpose.
In a fast-changing world, it is important that we regularly
review our approach and, this year, we conducted a materiality
assessment to ensure that our priorities are still the correct ones.
We asked our people, suppliers and partners where we need
to concentrate our efforts next, and we are now collating that
feedback ready to evolve our approach in 2026.
24
We group the ten commitments of The Greggs Pledge into three
areas: Stronger, Healthier Communities; Safer Planet; and Better
Business. Below are some highlights from the past year.
Stronger, Healthier Communities
Greggs Foundation launched its first Breakfast Club in 1999 and,
25 years later, proudly celebrated the opening of its 1,000th club.
These clubs provide a free and nutritious breakfast to over 75,000
school children every day, helping to tackle hunger in some of the
UK’s most deprived communities.
We are delighted that the Government is proposing to introduce
funded breakfast clubs for primary schools and are now looking
at how our support for Greggs Foundation can extend the positive
impact of breakfast clubs across more of the school day.
Greggs Foundation will be building on the long history of its
Breakfast Clubs to add even greater value to the network of
1,000 schools. Now called Feeding Brighter Futures, The Greggs
Foundation’s schools programme will continue to incorporate
Breakfast Clubs for as long as supported schools need them, as
well as developing additional support through after-school clubs
and holiday club provision. The Foundation gives schools the
freedom and funds to choose nutritious options and activities
that will help children overcome barriers and provide new
opportunities for learning.
Another way we tackle food insecurity is by redistributing our
unsold food. Our ‘daily fresh’ approach means that products that
haven’t been sold by the end of the day are taken off our shelves.
We use several channels to redistribute unsold food: our Outlet
shops; charity partners; the Too Good To Go app; and colleague
Magic Bags. We redistributed 45% of all unsold food through
these channels in 2024 (2023: 41.9% redistributed) and returned
the remainder to our manufacturing sites from where it was sent
to an anaerobic digestion facility that composts the food and
creates biogas.
Our supply sites also have a longstanding partnership with
FareShare and during 2024 we donated 50 tonnes of food
which was then passed on to more than 1,500 charities
across the UK. We have given them around 420 tonnes of
food during the entirety of our partnership which, according
to WRAP’s meals calculator, is equivalent to 1 million meals
– a significant milestone.
We have also grown our network of Greggs Outlets to 38 shops,
allowing us to sell day-old products at a big discount in places
of higher social deprivation. A portion of the profits from each
Outlet shop is then donated to community charities that support
people in the local area.
Building stronger, healthier communities is also about making
sure that we are supporting our customers to eat a healthier diet.
During 2024, we again delivered on our commitment to ensure
that at least 30% of our product range is a healthier option and
expanded our range of flatbreads, salads and fruit pots.
Safer Planet
We remain on track to becoming a net zero business by 2040,
and to meeting our nearer-term goal of using 100% renewable
energy by the end of 2025. Wherever we are responsible for
sourcing the electricity, we choose to purchase 100% renewable
electricity and, in a relatively small number of shops where
our landlords don’t do the same, we are encouraging them to
change. We have succeeded in moving 60% of the gas we use
to renewable sources and, over time, are switching away from
gas towards electricity.
In 2024, we converted one of our major distribution depots to
allow us to power our vehicles on Hydrotreated Vegetable Oil
(HVO) instead of diesel. This allows us to drive approximately
two million miles each year using renewable fuel, circa 10%
of the total miles our logistics fleet drives each year.
We remain on track to becoming
a net zero business by 2040, and
to meeting our nearer-term goal
of using 100% renewable energy
by the end of 2025.”
CHIEF EXECUTIVE’S REPORT CONTINUED
25Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
We test new environmentally-friendly technologies in our Eco-Shop
in Northampton and those that work well and demonstrate
impact are added to our standard shop fit-out. As a result, over
a quarter of our shop estate now features equipment that is
helping us to save water, create less waste or use less energy.
Looking ahead, our Scope 3 carbon footprint is the area where
we see the largest opportunity to reduce emissions. A significant
number of our suppliers have now publicly declared a net zero
target of their own and we are having constructive conversations
with them to see what we can learn from each other, and how
we might work in partnership to further reduce carbon in our
value chain.
Better business
We recognise that our people are crucial to our success,
and we make sure that they are fairly remunerated, given
opportunities to progress, and treated well. We aim to offer
inclusive workplaces and are striving to build diverse teams
that better reflect the communities we serve.
Being a better business also means using our buying power
as a force for good. We have a clear sustainable procurement
vision: “To source and collaborate with suppliers to accelerate
The Greggs Pledge to build strong, healthy communities, make
the planet a safer place and build a better business.” This vision
keeps human rights, animal welfare, and environmental
sustainability top of mind.
During 2024, our procurement team has focused on improving
the sustainability information we collect during our onboarding
and tendering processes, and our growing capability to utilise
sustainability data such as EcoVadis assessments.
A forward look
Looking ahead to 2025, the macroeconomic landscape remains
tough. Inflation remains elevated, and many of our customers
continue to worry about the cost of living. After years of financial
anxiety, they are still facing concerns about energy prices and
increased mortgage and rent costs.
Despite a challenging food-to-go market, Greggs has demonstrated
its ability to make positive progress and we remain confident
that Greggs can and will continue to grow. The five-year strategic
plan that we set out in 2021 is proving successful. We constantly
adapt our plans to meet the evolving landscape, and we remain
confident in the growth opportunity in front of us through
broadening our appeal, expanding our estate, extending into the
evening daypart, and developing our digital offer – all underpinned
by significant investment in our supply chain and technology.
Increases in employment taxes will significantly increase our
wage bill, and that of other retailers, in 2025, but we have dealt
with significant cost inflation effectively over recent years
and remain confident in our ability to manage the impact of
cost inflation on the business. We are relentlessly focused on
improving efficiencies which supports our position as a value-led
brand. To the extent that we cannot mitigate cost inflation
through savings, we recover it through careful pricing activity,
which we strive to keep to an absolute minimum to ensure that
we protect our reputation for offering great value.
Our number one place in YouGov’s poll for the most popular Quick-
Service Restaurant, Coffee Shop and Delivery Service brand and
strong ratings for quality and value for money (source: YouGov
Brand Health, December 2024) leave us confident that we will
continue to win in the food-to-go market.
Current trading and outlook
Like-for-like sales in company-managed shops have increased by
1.7% year-on-year in the first nine weeks of 2025 with challenging
weather conditions in January followed by improved trading in
February. We have a strong pipeline of new shop openings ahead
as we pursue our ambitious growth plans and invest in the supply
chain capacity that supports this. Management’s expectations
for 2025 are unchanged and we are confident that Greggs can
manage inflationary headwinds and deliver another year of
progress in 2025.
I remain optimistic about the many growth opportunities
available to Greggs and have great confidence in our people’s
ability to unlock them.
Roisin Currie
Chief Executive
4 March 2025
26
OUR STRATEGY
ENSURING GROWTH ENSURING GROWTH
IN THE YEARS AHEADIN THE YEARS AHEAD
Our vision is to be the customers’ favourite for food-on-the-go. While we’ve enjoyed tremendous success
in recent years, our journey is far from over. We have an ambitious plan to double sales over five years and
while the fundamental strategic pillars of our business model have not changed, we are continually learning
and adapting.
The Greggs Pledge: dedicated to doing good
Great tasting, freshly
prepared food
You cannot beat freshly baked,
freshly prepared food. With
our great flavours, responsibly
sourced ingredients,
consistent quality and
outstanding value, our food-
on-the-go leads the way.
Best customer
experience
Fast and friendly service is a
key reason why customers
choose Greggs. Great service
is not an easy thing to deliver
under pressure, and our
shop teams do an amazing job.
Through our Greggs App, we can
build long-lasting relationships
with our customers and reward
their loyalty.
Competitive
supply chain
By owning our supply chain,
we’re able to make our tasty
products and transport them to
our shops ourselves – offering
our customers food that
delivers the best possible
value for money.
First-class
support teams
We’ve invested heavily in our
systems and technology.
They equip our support teams
to provide the best service
to their colleagues and,
ultimately, to our customers.
OUR FUNDAMENTAL STRATEGIC PILLARS
Find out more about
The Greggs Pledge in
our sustainability report
Stronger, healthier communities
We pledge to play our part in improving the
nation’s diet, providing free breakfasts to school
children, supporting families in hardship and
giving surplus food to those who need it most.
Safer planet
We pledge to become a carbon-neutral,
zero-waste business.
Better business
We pledge to increase the diversity of our
workforce and to use our purchasing power
responsibly, with the aim of making things
better in our supply chain.
27Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
To reach our full potential in the years ahead, our strategy is focused on four key drivers of growth
and underpinned by investment in our supply chain and technology.
1. BROADENING CUSTOMER APPEAL
AND DRIVING LOYALTY
We continue to reposition the Greggs brand successfully as
a customer favourite for food-on-the-go. Through our brand
activity, and with timely and effective customer communication
via our Greggs App and website, we have the opportunity to
communicate effectively how Greggs can be a brand considered
by more people, in more places, and at all times of day when
customers need food-on-the-go.
4. EXPANDING OUR EVENING TRADE
By extending the trading hours in many of our shops, delivering
new and exciting additions to our menu, and leveraging our
existing customer channels – both walk-in and digital – we have a
strategic opportunity to compete effectively for food-on-the-go
sales in the evening.
INVESTING IN OUR SUPPLY CHAIN AND TECHNOLOGY FOR A BIGGER BUSINESS
Underpinning our ambition to double sales over five years is significant investment in manufacturing and logistics building capacity
for up to 3,500 shops. We see significant opportunities to grow our digital capabilities and enable more efficient operations through
a programme of continuous improvement as the business grows.
2. GROWING AND DEVELOPING
THE GREGGS ESTATE
We have a strong pipeline of new shop openings alongside
a significant opportunity to improve the quality of our estate
through relocations and shop refits. Through significant
investment in our supply chain, we are building capacity
to support up to 3,500 shops across the UK.
3. DEVELOPING OUR DIGITAL CHANNELS
Through our digital channels, we can compete more effectively
at all times of day. Our delivery partnerships with Just Eat and
Uber Eats enable us to increase the reach of our shops beyond
customers passing by and offer the added attraction of
higher-than-average baskets by serving multiple customers
in one order. Our Click + Collect service offers our customers
the ability to browse our menu easily, skip the queues and
personalise their order.
OUR KEY DRIVERS OF GROWTH
28
BROADENING BROADENING
APPEAL. APPEAL.
DRIVING DRIVING
LOYALTY.LOYALTY.
OUR STRATEGY IN ACTION
BROADENING CUSTOMER APPEAL AND DRIVINGLOYALTY
No.1
overall
in the YouGov BrandIndex*
No.1
for Value
in the YouGov BrandIndex*
No.1 for
Consideration
in the YouGov BrandIndex*
* YouGov BrandIndex, circa 24,700 sample, UK 18+ Nat Rep Total Population – data collected 1 January to 31 December 2024,
Quick Service Restaurant, coffee shop and delivery services sector.
29Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
We enjoyed a record year for our Greggs brand health
metrics in 2024, as we continued to strengthen our
position as the UK’s leading food-to-go brand based
on YouGov BrandIndex scores. We ended the year
as the No.1 brand in seven out of 16 YouGov brand
categories, including becoming the most considered
food-to-go brand for UK consumers and leading the
way for value.
Serving customers morning, noon and night
As we extended our menu and opening times to meet the
needs of more UK consumers in 2024, we had almost half
a billion transactions – with one in three adults across the
country shopping with Greggs in 2024 (source: Circana).
We retained our position as the UK’s No.1 brand for breakfast
food-to-go, helping start the day of millions of customers across
the country, and we continued to strengthen our lunchtime
offering with new products including Chicken Pesto and Spicy
Mexican Bean Flatbreads – and our Mozzarella and Cheddar Bites,
which won the ‘New Food To Go Award’ at the 2024 ‘Sammies’
(the Sandwich & Food To Go Industry Awards). The new over-ice
drinks range went down well with younger customers, and into
the evening, we continued to add to our popular range of single
slice and boxed pizza.
We continued to invest in making the brand mean more to
more people, and our new Greggs Gameshow ads resonated
with customers across the UK, helping to improve customer
perception across a range of key messages and metrics. Our
brand activations continued to entertain and engage – including
launching our exclusive ‘Baked in Gold’ jewellery collection
(that sold out in under an hour!) and evolving our partnership
with Fenwick by introducing the ‘Greggs Champagne Bar’ that
served over 7,500 customers during the festive period. We also
provided some fun for families across the UK at Christmas with
the introduction of our ‘Greggs Top Trumps.’ We launched our
Christmas menu with some help from Nigella Lawson, and were
also able to bring a Greggs flavour to a number of occasions
throughout 2024, including catering at the MTV EMAs in
Manchester, Hardwick Live and Rock and Roll Circus, as
well as feeding a very hungry crew backstage for Taylor Swift
in Edinburgh.
All of this came together to deliver another record year for our
brand health metrics, with Greggs being the most considered
food-to-go brand in the UK in 2024 (source: YouGov BrandIndex
52 w/e 31/12/24). This highlights that our strategy is working with
bigger and better shops, exciting new menu options and our
growing multi-channel offer, customers now have even more
reasons to come to Greggs.
Delivering even more value and insight through
investment in data and digital channels
We continue to develop a range of data-driven and digital
workstreams, bringing more of our capabilities in-house, and
supporting our teams with best-in-class suppliers and partners.
In 2024, we saw over four million new App users download the
Greggs App and, alongside existing users, continue to receive
even more value from our rewards scheme, earning and receiving
free products – as well as having access to exclusive offers and
events. Our ongoing investment in CRM and data capabilities saw
us re-platform our CRM and data systems in 2024. This allowed us
As we work towards adapting our brand
approach in line with the introduction of the new
Advertising (Less Healthy Food Definitions and
Exemptions) Regulations 2024 which will come
into force on 1 October 2025, we’ll continue to
optimise our paid media strategy. We will also
focus our creative efforts on our earned media
investment and brand partnership opportunities,
where we know we can always look to bring a
smile and execute in ways that only Greggs can.
As we look to evolve our loyalty and promotional
strategies, we will continue to build out and
enhance our digital and data capabilities, whilst
looking to understand and plan for how the use
of AI can help to improve our operations and
performance across digital channels.
As ever, we will look to continue to keep Greggs
front of mind and deepen the emotional
connection that customers of all ages and
from all backgrounds have with the brand,
our products and service experience – ensuring
we continue to mean more to more people.
to be more informed and work with new capabilities to encourage
more customers to scan the Greggs App more often when they
shop. This all led to a new record level of 20.1% of company-
managed transactions being accompanied by a scan in 2024.
2025 PLANS
30
OUR STRATEGY IN ACTION CONTINUED
GROWING OUR ESTATE
MORE MORE
SHOPS, SHOPS,
MORE MORE
MOMENTS.MOMENTS.
31Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Our mission is simple – we want Greggs to be
accessible, wherever, whenever and however our
customers need us. By making our shops the best
they can be, we can ensure our customers have
a brilliant experience when they visit us.
New shop openings
2024 was a record-breaking year for new shop openings and
we were proud to hit our 2,600th shop milestone in November.
We continued to grow our presence beyond the high street,
opening new shops in high footfall areas, roadsides and travel
hubs, including 11 standalone drive-thrus, 11 shops inside large
supermarkets, and three new Greggs Outlet shops. Notable
openings in travel hubs included three in Glasgow (at Queen
Street, Central and Motherwell railway stations), Embankment
London Underground station, our second shop at London Bridge
station and Blackpool Tram Station. We also opened six shops
in Northern Ireland, taking the total there to 23, and we have a
strong pipeline for 2025 and beyond.
Bigger and better shops through refits and relocations
In addition to growing our estate through new shop openings,
we want to ensure our existing shops are the best they can
be. Through our dedicated refit programme, we refurbished,
reconfigured or extended 165 sites to make them more modern
and appealing, as well as better set up to support our multi-
channel approach.
Our estate strategy also means moving some shops to better
locations. By relocating a shop to a bigger and better site, we
are able to increase coffee shop seating and better meet the
needs of Click + Collect customers and delivery drivers collecting
orders, whilst also offering the best experience for walk-in
customers. In these locations, our customer base is already
well-established and further investment unlocks swift, profitable
growth. Relocations will remain a strategic priority as we aim
to grow our multi-channel offer and strengthen our estate.
This year, we completed 165 refits (125 company-managed and
40 franchised) and 53 relocations.
Increasing customer reach through our franchise
and wholesale partners
Our partners play an important role in providing access to
restricted locations such as motorway service areas, petrol
filling stations and other closed catchments. We were proud to
celebrate the opening of MFG’s 100th franchised shop with us
this year and the opening of two franchise shops in hospitals at
Whiston Hospital and Midland Metropolitan University Hospital –
both with Compass. In 2024, we opened 63 new franchise shops,
taking the franchise estate to 561 locations.
In 2024, we celebrated 13 years of our partnership with Iceland
Foods. We successfully launched a calendar of rotational savoury
bakes, tailored to align with Iceland’s customer demographics.
The pipeline of new shop opportunities remains
strong, and we expect to open between 140 and
150 net new shops in 2025, including drive-thrus,
in travel hubs, and at supermarket locations; we
estimate that around a third of these will be with
franchise partners.
We will also focus on providing bigger and better
shops to serve all channels by targeting around
50 relocations and circa 160 refits.
As part of our ongoing commitments set out in
The Greggs Pledge, we plan to open more Greggs
Outlet shops and continue the roll-out of our
Eco-Shop elements. New and improved
environmentally-friendly equipment is being
invented all the time so, in 2024, we created a
design for our next generation Eco-Shop, which
we plan to build in the first half of 2025. This
second Eco-Shop will not only be an additional
testbed for new equipment that will help us to
save energy and water and reduce waste, but it
will also allow us to factor sustainability into the
build of a new drive-thru unit.
48.5%
of shops
now in locations such as petrol
forecourts, roadsides, retail parks,
supermarkets, universities and hospitals
2025 PLANS
226
(2023: 220)
record new shops
opened in the year
(gross openings)
165
(2023: 122)
refits completed
in 2024
32
OUR STRATEGY IN ACTION CONTINUED
DEVELOPING DIGITAL CHANNELS
CLICK, CLICK,
COLLECT, COLLECT,
COSY NIGHT IN.COSY NIGHT IN.
33Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Thanks to Click + Collect, the Greggs App and our
delivery partners, Greggs is truly a multi-channel
retailer, meaning we can give our customers what
they want, where and when they want it.
During 2024, we continued to extend the reach of our delivery
partnerships with Just Eat and Uber Eats, reaching more
customers at home and in the evenings, and tested and
introduced new products – particularly hot food – to provide
the types of food-on-the-go that people want, no matter
the time of the day.
Growing our delivery offer
Four years on from the launch of our partnership with Just Eat,
and just one year since we added Uber Eats as a delivery partner,
we now offer delivery from more than 1,550 shops. Delivery made
up 6.7% (2023: 5.6%) of total sales in 2024, with customers’ typical
basket size being more than twice that of walk-in customers.
Our focus during the year was on making our operational
procedures smoother and streamlining our menu. We have
reduced the number of different items on our online menu to
make it easier for our customers to scroll through the options and
make selections. We have also made things more straightforward
for our colleagues by using technology to streamline processes
and improve service levels.
Rewarding loyalty with the Greggs App
The number of customers downloading the Greggs App continues
to rise and it was scanned at 20.1% of transactions in company-
managed shops during 2024. A key driver of growth has been
Greggs Rewards, where we reward App users who collect nine
stamps in a category by giving them their tenth item free.
We reward customers’ loyalty in other ways too, giving them
unique access to special products and events. When we launched
our Baked in Gold jewellery range and our Greggs Top Trumps
cards, users of the App had a 30-minute head start on the general
public. For special events, we use geo-targeting to contact top
App users in a particular area and ask them to register for the
event (on a first-come, first-served basis). App users were invited
to a sommelier event at the Greggs Champagne Bar at Fenwick,
to the launch event of our Baked in Gold jewellery, and to join
a prize draw to win an all-expenses-paid trip to Ibiza to attend
Capital Dance Weekender, in partnership with Greggs.
The functionality of the App is also increasing uptake, with users
rating it 4.8 out of five on both on both Google Play Store and
Apple’s App Store. At numerous points in 2024, the Greggs App
held the top spot for free Food and Drink apps on the Apple App
Store and Google Play Store.
Click + Collect
We invite our customers to use Click + Collect through both the
Greggs App and our website – enabling them to browse our menu
easily, personalise their order and skip the queues. Click + Collect
improves sales by making it easier for customers to trade up and
speeds up service by removing payment at the till.
We will continue to explore the potential
for further growth in home delivery, growing
order volume where our delivery partners
already operate, and working with them
to add new shops.
We are always looking for ways to make our
processes better and are now working on
providing our delivery customers with more
accurate estimations of courier arrival times.
We remain committed to innovating to make
sure our range is right for our delivery channel.
This includes trialling hot Meal Boxes and Crispy
Chicken Bites, and capitalising on the extension
of our made-to-order range.
During 2024, we completed a review on the potential for Click +
Collect to support our strategy for made-to-order burgers, wraps
and pizza. In addition to offering sausage, bacon and egg rolls,
and baguettes at breakfast, we are now able to customise orders
of Fish Finger Wraps, Fish Finger Sandwiches, Chicken Wraps
and Chicken Burgers at 140 shops. As this is extended to more
shops, Click + Collect offers a real opportunity to bring speed
and convenience to our customisable products.
2025 PLANS
1,550+
(2023: 1,440+)
shops now have
delivery available
20.1%
transactions accompanied
by an App scan in
company-managed shops
34
OUR STRATEGY IN ACTION CONTINUED
EXTENDING EVENING TRADE
LATE NIGHTS, LATE NIGHTS,
TASTY BITES. TASTY BITES.
35Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
2025 PLANS
We have made excellent progress with our five-year
evening trade growth plan. Evening sales now
represent 9.0% of company-managed shop sales,
making it our fastest-growing daypart.
By further developing our evening menu proposition to meet
customer expectations for both walk-in and digital channels, we
believe we can unlock greater opportunity in the years ahead.
Menu
Our hot food range, particularly our Spicy BBQ Chicken Bites,
Southern Fried Chicken Goujons, Mozzarella and Cheddar Bites,
and Southern Fried Potato Wedges, continue to perform well
in the evening. We introduced a new pizza option, BBQ Chicken
& Bacon, and our pizza sharing boxes are now available in both
four-slice and six-slice boxes.
Our made-to-order hot food trials have been extended to additional
shops and now include the Fish Finger Sandwich and Fish Finger
Wrap, alongside our existing range of chicken burgers and wraps.
As ever, Greggs value for money offering shines through, with
customers able to enjoy a Chicken Wrap as part of a meal deal,
with wedges and a drink from £5.00. Our made-to-order products
are also available for our customers to purchase using our
Click + Collect service.
We plan to introduce these made-to-order options at a further
200 locations by the end of the first quarter of 2025.
Our new over-ice drinks range, including Iced Latte and Iced
Cloudy Lemonade, is proving popular with customers and
is now available in 1,175 shops. We have also launched chilled
‘Ready-to-Drink’ Latte and Caramel Latte canned products,
further extending the choice in our drinks range.
We continue to offer hot sweet treats in the evening, making
these core products appealing to the evening market, and
our Hot Chocolate Brownies and Hot Milk Chocolate Cookies
served with a chocolate or salted caramel dipping pot remain
popular with customers.
Our delivery partnerships
We launched our partnership with Just Eat in 2020 and, since
then, have rolled it out to around 1,500 shops nationwide.
In October 2023, Uber Eats became our second delivery
partner and we now have more than 1,260 shops on the platform.
We look forward to maximising the opportunities that lie ahead
as we extend our reach and further grow the delivery side of
our business.
Home delivery is key to our plans for extended trading, and we
intend to expand delivery in the coming year. Around 1,550 of
our evening shops now offer a delivery service after 6pm and
we will add more locations and menu choices to strengthen
this proposition further.
We will further explore our evening menu
proposition to meet customer expectations
for both walk-in and digital channels.
We will look for ways to reward evening
customers and expect evening to remain our
strongest-growing daypart in the year ahead.
9.0%
(2023: 8.5%)
evening sales as
percentage of company-
managed shop sales
1,175
(2023: 20)
shops serving
over-ice drinks
36
OUR STRATEGY IN ACTION CONTINUED
INVESTING IN OUR SUPPLY CHAIN AND TECHNOLOGY FOR A BIGGER BUSINESS
INVESTING INVESTING
FOR FOR
OUR FUTURE.OUR FUTURE.
37Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Greggs supply chain has evolved through the
acquisition of regional bakery businesses.
As recently as 2015, a typical Greggs manufacturing
site was making almost every one of our products
on labour-intensive production lines. Today,
our consolidated and centralised model has
seen a step-change in our cost structures and
improvements in both quality and capacity,
underpinning the growth in our shop estate.
As our shop estate grows, our supply chain operations must be
ready to meet that increased demand. In 2021, we set an ambition
to have significantly more than 3,000 shops. As we near that
number, we are now looking even further ahead.
Increasing our production capability
In 2024, our new savoury production line at Balliol Park
became operational, increasing the volume of bakes and rolls
we can produce by 35%. We also completed work at both our
Birmingham and Amesbury logistics hubs, adding a larger site
freezer to the former, and extending and streamlining operations
at the latter, enabling us to serve another 300 shops.
In 2024, we signed agreements for two new state-of-the-art sites
in the Midlands, which will allow us to support a total estate of up
to 3,500 shops, with developable white space, meaning we have
the space to grow further still. We will commission a new 23-acre
operation at SmartParc in Derby at the end of 2026, which will
be both a manufacturing and logistics facility. It will comprise an
automated cold store and will utilise automated picking down
to shop level, freeing capacity at our Radial Distribution Centres,
where shop picking is currently a manual operation.
The second site, in Symmetry Park, Kettering, will be operational
by early 2027. This new National Distribution Centre will be
for both ambient and chilled goods and, like Derby, will enable
upstream picking to shop level and increase throughput in our
whole supply chain.
Keeping our shops at the cutting edge
In addition to using automation technology in our supply chain,
we see it having a key role in the retail side of our business too.
We want to make our people’s jobs as easy as possible to let them
focus on delivering excellent customer service.
During 2024, we moved most shops to a new version of our till,
which improves how we manage pricing and promotions.
We also introduced a new solution for colleague scheduling
to make it easier for managers to assign shifts, and for their
teams to get advance notice of each week’s hours.
Good connectivity is key and, this year, we have invested in full
fibre broadband at every shop where it is available. We want to
ensure we are using the most efficient technology available and
have upgraded our chip and pin devices to the latest version,
as well as offering our franchise partners an integrated till and
chip and pin solution to improve their efficiency.
Investing in our systems
The scale of our business means we use sophisticated systems
to process data and manage complexity while providing our
people with simple interfaces.
The construction of our two new sites in the
Midlands is now underway. The Derby site is
leased, and the landlord has already completed
their phase of construction; the building itself is
complete and internal fit-out is now underway.
We will take operational control of the site in
early 2026. In January 2025 we completed the
purchase of the land for the Kettering site and
have begun building the facility which is
expected to be operational by early 2027.
We will continue the transition to SAP S/4HANA,
which will use AI and analytics to streamline
our processes.
2025 PLANS
During 2024, we successfully migrated all our core SAP
Business Suite solutions, including payroll, to the cloud and began
a multi-year programme to migrate to the new SAP S/4HANA
solution. This enterprise resource planning software system
improves how we access, generate and use data to drive our
business forwards.
35%
increase in production
capacity at Balliol Park
from additional line
3,500
shops can be supported
when new supply sites
come online
38
-30.5%
51.7%
23.0%
19.6%
11.3%
2024
2020
2022
2023
2021
-36.2%
52.4%
17.8%
13.7%
5.5%
2024
2020
2021
2022
2023
£203.9
£189.8
£188.3
£167.7
£148.3
£148.3
£145.6
£145.6
-£13.7
-
£13.7
2024
2020
2022
2023
2021
-12.9p
114.3p
114.3p
117.5p
117.5p
139.2p
123.8p
149.6p
137.5p
-12.9p
2024
2020
2022
2023
2021
KEY PERFORMANCE INDICATORS
TOTAL SALES GROWTH
11.3%
LIKE-FOR-LIKE SALES GROWTH
5.5%
PROFIT BEFORE TAX (£M)
£189.8m
DILUTED EARNINGS PER SHARE
137.5p
What this means
The percentage year-on-year change
in total sales for the Group.
What this means
Compares year-on-year cash sales in our
company-managed shops, with more than one
calendar year’s trading history. Like-for-like
sales growth includes selling price inflation and
excludes VAT. The impact of shop refits is included
in like-for-like sales growth. The calculation
of these figures can be found on page 172.
What this means
Reflects the performance of the Group before
taxation impacts and the underlying measure
excludes any exceptional items arising in the year.
What this means
Calculated by dividing profit attributable to
shareholders by the average number of dilutive
outstanding shares (as detailed in Note 9 to the
accounts). The underlying measure excludes any
exceptional items arising in the year.
Why this is important
This is a measure of the absolute growth
of the Group.
Why this is important
This measure provides valuable additional
information on the underlying sales performance of
the business and is a key measure used internally.
Why this is important
This is a measure of the absolute performance
of the Group.
Why this is important
This measure reflects the underlying earnings
for each share in the Company.
We use eight financial key performance indicators (KPIs) to
monitor the performance of the Group against our strategy.
The definition of these KPIs and our performance over the
last five years is detailed below. Details of our non-financial
KPIs relating to carbon emissions are given on page 58.
Results for 2020 were significantly impacted
by the closure of the Greggs shop estate for
most of the second quarter as a result of the
Covid-19 pandemic.
All of the non-GAAP measures detailed (other
than like-for-like sales growth calculated on
page 172) can be calculated from the GAAP
measures included in the Annual Accounts.
All of the underlying measures exclude the
exceptional items detailed in Note 4 to the
accounts. Commentary on these KPIs is
contained within the Financial Review.
Underlying
Including exceptional items
39Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
£5 8.7
£57.4
£110.8
£199.8
£249.0
2024
2020
2021
2022
2023
£1.5
£236.5
£198 .8
£257.1
£254. 2
2024
2020
2021
2022
2023
£106.8
£268.6
£261.6
£265.3
£225.3
2024
2020
2021
2022
2023
21.8
2 3.7
21.1
21
21
23
23
21.8%
20.3%
21.1%
2 3.7%
21.0%
21.0%
23.0%
23.0%
-2.4%
-2.4%
2024
2020
2022
2023
2021
NET CASH INFLOW FROM OPERATING ACTIVITIES
AFTER LEASE PAYMENTS (£M)
£254.2m
RETURN ON CAPITAL EMPLOYED (ROCE)
20.3%
CAPITAL EXPENDITURE (£M)
£249.0m
LIQUIDITY (£M)
£225.3m
What this means
Operating profit adjusted for the impact of
non-cash items, working capital movements and
repayment of the principal on lease liabilities.
The calculation of these figures can be found
on page 173.
What this means
Calculated by dividing profit before tax by the
average total assets less current liabilities
for the year. The underlying measure excludes
any exceptional items arising in the year.
The calculation of these figures can be found
on page 173.
What this means
The total amount incurred in the year on investment
in fixed assets.
What this means
This is calculated as cash and cash equivalents
plus undrawn committed facilities, taking into
account required minimum liquidity covenants.
Why this is important
This represents cash flows that could be used
for distribution of dividends or to fund our
strategic objectives and is reflective of the
strong cash-generative nature of the business.
Why this is important
This is a measure of the return generated on capital
invested by the Group and provides a guide to how
efficiently we are generating profit with the assets
used in the business.
Why this is important
This reflects the ongoing investment in the
business over time.
Why this is important
This measure provides useful information
on the Group’s net financial position, indicating its
ability to meet its short-term obligations, invest in
the business and return value to its shareholders
by way of dividend.
40
OUR PEOPLE
Our people are what makes Greggs successful.
We want to provide a great place to work, where
our colleagues feel valued, can be themselves
and want to stay with us – and where new people
are excited to join us.
Our culture and our values are what makes
Greggs, Greggs. As we grow, we keep these
at the heart of every decision we make. We talk
about our unique culture being our ‘secret sauce’,
because when people enjoy coming into work,
they do a better job, and that makes Greggs
a stronger, better business.
AMAZING COLLEAGUES
33,00033,000
41Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
OUR PEOPLE
LISTENING TO OUR COLLEAGUES
Union relationship, structure and engagement
As part of Greggs longstanding national recognition agreement
with the Bakers Food and Allied Workers Union (BFAWU) and
Union of Shop, Distributive and Allied Workers (USDAW) in
Scotland, regular meetings are held covering a variety of topics,
including trading, strategic initiatives, The Greggs Pledge and
annual pay negotiations.
The Greggs Negotiating Committee is our national union forum
and is attended by the General Secretary of the BFAWU, a
colleague representative from USDAW, and union representatives
from across our business. We have two regional forums, the Retail
Partnership Forum and Supply Partnership Forum, to discuss
operational issues across the retail estate and our supply sites,
which are attended by union representatives from these areas
of the business. More locally, every retail region and supply site
has a Joint Consultative Committee, where we discuss matters
which are specifically relevant to that region or site.
Your Ideas Matter
We invite colleagues to share their ideas on an internal platform,
Your Ideas Matter. Ideas can be submitted across any topic
relating to Greggs, and every idea is responded to and can be
reviewed and rated by colleagues.
Listening to our colleagues and engaging with them to hear their views and opinions
is key to ensuring that everyone feels valued. We do this in a variety of ways:
YOUR OPINION MATTERS
More than 27,000 of our colleagues took part in our annual
engagement survey ‘Your Opinion Matters’, telling us what is working
well and what could be improved. With an overall engagement score
of 74%, and the majority of colleagues (76%) saying they would
recommend Greggs as a great place to work, we know our people
are motivated and committed. Our 2024 score was in line with 2023,
and we continue to outperform the UK retail benchmark by 4%.
LISTENING TO LISTENING TO
OUR COLLEAGUESOUR COLLEAGUES
27,000
took part in our annual
engagement survey
‘Your Opinion Matters’
76%
of colleagues
recommend Greggs as
a great place to work
A VOICE IN
THE BOARDROOM
Throughout 2024, the Operating Board welcomed
colleagues from each of our teams to share the
activities and actions in place locally to support
colleague engagement. This continues to form an
important part of our engagement agenda for 2025.
The Board regularly engages with our colleagues
through their attendance at a variety of listening
groups across retail, supply and central support
teams as well as visits to our shops and supply sites.
Find out how the Board has engaged with all
stakeholders in our s172 statement on pages 81 to 87.
THE HUB
The Hub, which all colleagues can
access through Microsoft Teams,
includes our very own Greggs
newsfeed. We also use The Hub
to celebrate events and share
colleagues’ stories as part of our
wellbeing and inclusion activity.
42
OUR PEOPLE CONTINUED
EMBRACING DIVERSITY
Colleague inclusion networks
Our three inclusion networks (REACH, ENABLE, PRIDE), each
of which has two Operating Board sponsors, have developed
further during 2024. In September, we held our first Inclusion
Conference, celebrating our achievements so far and exploring
opportunities to improve. The networks provide a safe space
for minority communities and allies, as well as supporting our
diversity and inclusion agenda by sharing feedback, celebrating
events and taking an active part in the delivery of training.
Ensuring diversity across our development programmes
We’ve identified two key programmes within our Career
Pathways, which offer the greatest opportunity for a diverse
range of applicants, to support our ambition of creating a more
ethnically diverse talent pipeline:
• Aspiring Leaders – designed for colleagues who have the
potential to progress into a management role.
• Future Shop Leaders – our programme aimed at our shop
supervisors with the potential to become a shop manager.
NURTURING AN NURTURING AN
INCLUSIVE GREGGSINCLUSIVE GREGGS
We are proud that we achieved the National Equality Standard in 2022, and we will be assessed for
re-accreditation in 2025. We embrace diversity across Greggs and work hard to ensure we are truly inclusive.
We analyse the diversity data for the applicant pool for each
of these programmes to better understand the demographics
in each area of the business. We work hard to ensure each
programme is representative of the applicant pools.
During 2024, we launched our Inclusive Mentoring scheme,
which provides enhanced support for colleagues from an
ethnic minority background, specifically aimed at those
who are participating in either of these programmes.
Achieving greater ethnic diversity
By the end of 2027, we want people from an ethnic minority
background to make up 6% of our senior management defined
as our Operating Board and those in management positions
reporting directly to them. We defined this target after reviewing
data from the most recent census for the North East of England
(where the majority of our senior management roles are located),
as well as data on the ethnic diversity of the UK retail sector, and
the ethnic diversity of our talent pipeline. When we consider our
current representation at the senior management level, and the
potential vacancy opportunities, we feel this target is stretching
but appropriate.
Female Male
Ethnically
diverse
Board 4 4 1
Senior Managers
1
22 30 1
Senior Managers
2
61 78 4
Other Managers 335 342 50
All colleagues 20,756 12,390 6,309
1 Defined as Operating Board Directors plus Senior Managers directly reporting
into an Operating Board Director.
2 All Senior Managers.
Notes:
• Headcount figures as at 28 December 2024. 62.2% of total workforce is female –
20,756 of 33,377.
• As an inclusive organisation, we recognise all gender identities and understand
that not all our colleagues will identify as male or female. There are 231 colleagues
whose gender is recorded as ‘Other’, ‘Unknown’ or ‘Undeclared’, hence the total
figure of 33,377 is not the sum of the female and male totals presented in the table.
ACHIEVING GREATER
ETHNIC DIVERSITY
We recognise that we need to continue to work hard
to achieve greater ethnic diversity in our management
population, and into the most senior roles in the business.
As we have outlined, we are fully committed to this
through ensuring diversity across our Career Pathway
programmes and providing mentoring opportunities.
GENDER BREAKDOWN OF TOTAL WORKFORCE
Female 20,756
62.2%
37.1%
Male 12,390
43Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Championing women in our workforce
We are proud of our reputation for bringing the best talent
through the business regardless of gender, and the fact that 62%
of our total workforce is female. Women make up almost half of
the total management population at Greggs and hold 44% of our
senior management roles. We have great female representation
on our Board too and have already achieved the external FTSE
Women Leaders target of 40% by 2025.
Our Women’s Development Network, which has been running
since 2018, continues to flourish and has now had 89 participants,
with over 23% of attendees being promoted into more senior
roles in the business.
Pay gap reporting
In 2024, our mean gender pay gap was 8.33% (down 2.16% on
2023) and our median gender pay gap was 3.68% (up 0.44%).
Like many similar organisations, our gender pay gap is a
consequence of having more males than females in our most
senior roles, more females than males in our hourly-paid retail
roles, and more males in our hourly-paid roles in supply chain,
where shift premiums are applicable.
Our Ethnicity Pay Gap Report shows the difference in the average
hourly rate of pay of ethnically diverse colleagues compared to
that of white colleagues. We published our ethnicity pay gap for
the first time in our 2023 Annual Report. Our 2024 mean ethnicity
gap is 3.94% (5.78% in 2023) and our median ethnicity pay gap is
3.7% (2.13% in 2023).
Supporting people to have a ‘Fresh Start’
Our Fresh Start programme proactively offers training and work
experience to people transitioning into work who we would not
ordinarily meet, including care leavers, people who have been
unemployed for a long time, or those leaving the armed services
or prison. We provide employability workshops, mentoring, mock
interviews, placements and – most importantly – sustainable job
opportunities to candidates. Since launching the programme
in 2013, we have placed more than 360 Fresh Start candidates
in permanent roles – 16 of whom have since moved into a shop
manager role.
We are also very proud of our partnership with Workfit, an
organisation that supports people with Down’s syndrome
to access employment opportunities. Since the start of our
relationship, we have offered 24 permanent roles to candidates
who completed successful placements with us.
Our employability programmes are good for individuals, and
we know they have a positive impact on their families and
communities – as well as on our colleagues.
Further details are
available in our 2024
Pay Gap Report
44
OUR PEOPLE CONTINUED
SUPPORTING OUR COLLEAGUE HEALTH AND WELLBEING
Our health and wellbeing strategy – which we call ‘Balanced You’
– promotes information and activity in four main areas: healthy
eating and drinking; keeping active and physically well; support
and community; and positive mental wellbeing.
We have a Balanced You Steering Group, which is sponsored by
two Operating Board Directors and includes representation from
across the business at a senior level. Our Balanced You Advocates
support colleagues by sharing information and arranging
activities focused on health and wellbeing.
Building on the launch of our new health and wellbeing app in
2023, we have extended this provision to provide a total wellbeing
solution to all colleagues which includes access to a 24/7 helpline,
remote GP appointments, mental health support, physiotherapy,
financial and legal support, personal training, nutritional
consultations and cancer support.
We have a suite of digital learning modules designed to support
both colleagues and line managers to recognise signs and
symptoms of mental ill health, support conversations and
signpost to the available support, all of which is supported by our
mental health policy. In our ‘Your Opinion Matters’ survey, 80% of
our colleagues told us that they are aware of the mental health
support provided by Greggs and know how to access it. During
2024, we partnered with Mind to deliver Mental Health Champion
training to our Balanced You Advocates.
Following the successful launch of our menopause policy
and online learning modules, we have continued to support
colleagues through our virtual menopause cafés, providing
a space to connect, share and learn.
Greggs continues to be a company in growth, meaning
we need a strong pipeline of great people who can
build a successful career in Greggs. We have a series
of development programmes to support our
colleagues. These, combined with our succession
plan process, means we can meet the needs of our
people and our growing business.
In retail, we run two key development programmes: Future
Area Leaders and Future Shop Leaders. During 2024, we
promoted 734 team members to shop supervisors, over 330
shop supervisors to shop managers, and 12 shop managers
were promoted into area/trainee manager roles.
For our supply colleagues, we have our Striving for
Excellence programme to develop the people management
and leadership skills of our supervisors and managers.
In 2024 this programme has supported the development
of over 35 managers and supervisors.
Our supply team leaders, in turn, attend a programme of
four modules called Journey To Excellence to develop skills
in some of the fundamentals of team leadership such as
welcoming and training a new member of the team.
For our management teams, we run Career Pathways and
Core Management Development modules. In 2024, more than
170 colleagues participated in our ‘Aspiring’ and ‘Developing’
leaders programme and over 220 colleagues participated
in a ‘Core Management and Development’ module.
We also expanded our Apprenticeship scheme to include
opportunities in procurement and food technology, and
launched over 240 new items of digital content.
SUPPORTING OUR SUPPORTING OUR
GREGGS FAMILYGREGGS FAMILY
DEVELOPING OUR PEOPLE
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
45
Greggs plc Annual Report and Accounts 20244
Ensuring colleagues share in our success
We believe that rewarding colleagues for their contribution and
allowing them to share in the success of the business is critical
to support our growth. Each year, 10% of profits is shared with
colleagues who have at least six months’ service.
Ensuring colleagues share in our success
During 2024, we provided the opportunity for colleagues to
participate in colleague share ownership schemes through
a Sharesave plan, giving them the opportunity to save for
three years and purchase shares at a 20% discount. We also
have a Share Incentive Plan (SIP) which coincides with the
payment of profit share to provide colleagues with the option
to invest in Greggs. We are committed to increasing colleague
participation in our share plans to support retention and
engagement, and in 2024, we reduced the length of service
requirement for both schemes from 12 to three months.
Across these schemes we now have 5,444 participants, which
represents nearly 23% of the eligible colleague population.
Helping our colleagues make their money go further
All colleagues can access their colleague discount through the
Greggs App. Over 80% of colleagues now access their discount
in this way, enjoying 50% off Greggs products and 25% off
branded products. Our colleagues also have access to our
health and wellbeing app, which enables colleagues to access
high street and supermarket discounts to support them with
their everyday costs. To help our people in retail with the cost
of living, we continue to offer our ‘Magic Bag’ scheme, giving
colleagues big discounts on any unsold product at the end of
each trading day.
over 84%
of our workforce received
a pay increase of 6.1%
or more
Every year, to determine the annual pay award,
we undertake negotiations with the relevant trade
unions representing those colleagues covered by
a collective bargaining agreement. Following the
successful conclusion of the resulting ballot, our
retail, supply and support teams receive a pay
increase with effect from January in any year.
For 2025 we have once again implemented a tiered
pay award providing a greater percentage increase to
support our colleagues on our lower rates of pay who
have less disposable income. We implemented a base
increase of 3.5% across our wider workforce plus an
additional 3.3% (6.8% in total) for our retail team
members and an additional 2.6% (6.1% in total) for our
production and warehouse operatives. Additional
increases were also offered to our retail supervisors
– an additional 2.8% (6.3% in total) – and team leaders
in supply – an additional 2.1% (5.6% in total) – in order
to protect the differentials between roles. We also
continue to pay breaks to our front line colleagues
across the business in both retail and supply
supporting their wellbeing.
On this basis, 84.6% of our workforce received a pay
increase of 6.1% or more and 85.7% received 5.6%
or more.
We pay our retail and supply colleagues weekly, which helps
them with budgeting and managing their bills on a week-to-
week basis. We do not offer zero-hours contracts, and we
regularly review worked hours, increasing contracts for
colleagues where they have consistently worked above
their contract base and wish to increase their contractual
hours. We are proud to be one of the few employers that
continues to provide paid breaks.
PAYING OUR COLLEAGUES FAIRLYREWARDING OUR
COLLEAGUES
Supporting our colleagues to save for their future
To support colleagues to save for their future, we increased
our matched contribution rates for our Greggs pension in 2024
to 6% and we have extended this further to 7% from January
2025, meaning that all our colleagues can now access up to 7%
employer contributions.
46
SUSTAINABILITY REPORT
In February 2021, we launched
The Greggs Pledge, which
declared 10 commitments
to help make the world
a better place by the end
of 2025, and beyond.
We have always been committed to doing
the right thing, but we wanted to be more
specific about how we channel our efforts
and resources into doing good. We reflected
on what we could do to have the most
positive impact on the world around us, and
chose to dedicate our efforts to three areas:
communities, the planet, and our approach to
business. We have set ourselves ten stretching
targets to be achieved by the end of 2025.
Each of our pledges aligns with at least one
of the UN Sustainable Development Goals.
YEARS OF
DOING GOOD
85+85+
47Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
THE GREGGS PLEDGETHE GREGGS PLEDGE
Building stronger, healthier communities
We pledge to play our part in improving the nation’s
diet by helping to tackle obesity, providing free
breakfasts to school children and giving surplus
food to those who need it most.
1. Growing Greggs Breakfast Clubs
By the end of 2025, we will support 1,000 school Breakfast Clubs,
providing some 70,000 meals each school day.
2. Putting an end to food waste
By the end of 2025, we will create 25% less food waste than
in 2018 and will continue to work towards 100% of surplus food
going to those most in need.
3. Supporting our communities
By the end of 2025, we will have 50 Greggs Outlet shops providing
affordable food in areas of social deprivation, with a share of
profits given to local community organisations.
4. Helping our customers make healthier choices
By the end of 2025, 30% of the items on our shelves will be
healthier choices, and we will attract customers through
education and promotions.
5. Going carbon-neutral
By the end of 2025, we will be on our way to achieving
carbon neutrality by using 100% renewable energy across
all our operations.
6. Building the shops of the future
By the end of 2025, 25% of our shops will feature elements from
our Eco-Shop ‘shop of the future’ design.
7. Using less packaging
By the end of 2025, we will use 25% less packaging, by weight
(as a % of sales), than in 2019 and any remaining packaging will
be made from material that is more easily recycled.
8. Embracing diversity
By the end of 2025, our workforce will reflect the communities
we serve.
9. Sourcing sustainably
By the end of 2025, we will have a robust, responsible sourcing
strategy in place and will report annually on progress towards
our targets.
10. Protecting animal welfare
By the end of 2025, we will secure and maintain Tier 1 in the
BBFAW Animal Welfare standard.
Safer planet
We pledge to become a carbon-neutral,
zero-waste business.
Better business
We pledge to increase the diversity of our workforce,
and to use our purchasing power responsibly, with the
aim of making things better in our supply chain.
48
1,015 Breakfast Clubs fed over
75,000 children every school day.
We further reduced the cost
of manufacturing waste to 0.18%
of sales and increased redistribution
of unsold food to 45%. We
successfully trialled light van
collections of surplus food.
We have 38 Greggs Outlet shops
(vs target of 41).
We maintained over 30% of our
range as ‘healthier choice’ products.
60% of the gas we use across
our operations is from renewable
sources. We converted our
Enfield distribution depot to use
hydrotreated vegetable oil (HVO)
as a diesel replacement, meaning
we covered over two million miles
using a renewable fuel option. We
developed our policy to deal with
non-renewable electricity usage
in serviced locations.
Maintain support for the
schools in The Greggs Foundation
Breakfast Club programme ahead of
the transition to universal provision
announced by the Government.
Redistribute 47% of unsold food to
good causes. Maintain cost of waste
in manufacturing operations at 0.2%
of sales.
Open seven Outlet shops to take the
total to 45.
Maintain our ranging principles to
ensure at least 30% of our range
are ‘healthier choices’.
Increase HVO use across our fleet
to 30% of fuel requirement.
1. Growing Greggs
Breakfast Clubs
By the end of 2024,
2. Putting an end
to food waste
3. Supporting our
communities
4. Helping our
customers to make
healthier choices
5. Going carbon-neutral
During 2025, we will
OUR PROGRESS SO FAROUR PROGRESS SO FAR
How did we do against our 2024 targets?
Achieved
Partially achieved
Still to be achieved
SUSTAINABILITY REPORT CONTINUED
49Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Over 700 shops (27% of our
estate) feature Eco-Shop elements.
All but two items of our own
brand packaging can be more easily
recycled*. We reduced the amount of
packaging used within our supply
chain by moving to bulk-supply or
reusable containers, where options
were available.
Our core development
programmes, aimed at supporting
our potential future management
colleagues, are representative of
the ethnic diversity in our regional
talent pools.
100% declared soy in our
own operations is certified as
sustainable. We are working
with meat, egg and dairy suppliers
to move all soy in animal feed to be
from sustainable sources by the
end of 2025. We are using wheat
from a regenerative farmed source
in our wholemeal bread production.
We further improved our chicken
welfare standards, with 86.6%
reared at a stocking density of less
than or equal to 30kg/m
2
and the
remainder at less than or equal
to 38kg/m
2
. We published and
implemented our Chicken Welfare
Standard within our Farm Animal
Welfare Standard.
Continue to roll out existing
Eco-Shop elements across 30%
of the estate.
Move remaining own brand packing
to be ‘easily recyclable’ (with the
exception of hot drinks cups).
Complete National Equality Standard
reassessment and successfully
maintain accreditation.
Continue to work with meat, egg and
dairy suppliers to move 100% of soy
in animal feed to sustainable sources.
Ensure stocking densities of
a maximum of 30kg/m
2
for 100%
of our chicken sourcing.
6. Building the shops
of the future
7. Using less
packaging
8. Embracing
diversity
9. Sourcing
sustainably
10. Protecting
animal welfare
* Excluding hot drinks cups.
50
SUSTAINABILITY REPORT CONTINUED
TASK FORCE ON TASK FORCE ON
CLIMATE-RELATED CLIMATE-RELATED
FINANCIAL FINANCIAL
DISCLOSURESDISCLOSURES
Introduction
The Task Force on Climate-related Financial Disclosures (TCFD)
and other climate-related disclosures made in this TCFD Report
form part of the Company’s Annual Report and Accounts for the
52 weeks ended 28 December 2024, and are consistent with
the TCFD recommendations and recommended disclosures.
The following pages show our activity to date and our plans and
expectations for the future, as required under Listing Rule 6.6.6
(8) and as consistent with The Companies (Strategic Report)
(Climate-related Financial Disclosures) Regulations 2022.
Greggs believes that it is compliant with the Listing Rule, with
the exception that the disclosure of Scope 3 emissions has been
made in respect of 2023 and not 2024 as explained later in the
metrics and targets section of this report.
In 2022, we set near-term science-based emissions reduction
targets based on a 1.5°C pathway, which were approved by the
Science Based Targets initiative (SBTi). These targets are:
• To reduce absolute Scope 1 and 2 greenhouse gas (GHG)
emissions 46.2% by 2030 from a 2019 base year; and
• To reduce absolute Scope 3 GHG emissions from purchased
goods and services 46.2% within the same timeframe.
During 2024, we repeated our Scope 3 emissions modelling, with
the Carbon Trust providing independent assurance. To support
our Scope 3 emissions reduction ambition, we have engaged with
the suppliers of our most carbon-intensive ingredients, e.g. meat
and dairy products, to assess their alignment with our net zero
target date and their approach to emissions reduction. Our key
requests to those suppliers were that they:
• Demonstrate a public commitment to achieving net zero
by no later than 2050; and
• Measure and publicly report their Scope 1, 2 and 3 emissions.
As a consequence of our engagement, we have established that
a sizeable proportion of these suppliers are aligned with our
requirements and, where suppliers are at the beginning of their
journey, we have offered support and guidance to assist them in
aligning with our requirements.
Following on from this exercise, we have now identified a number
of potential initiatives to reduce our Scope 3 emissions in the
future and will evaluate these during 2025.
From a governance perspective, our Net Zero Steering Group, chaired
by our Commercial Director, continues to drive our decarbonisation
plan. Membership of this steering group includes a number of our
Operating Board members as well as senior representatives from
our finance, sustainability and procurement teams.
We have modelled the physical risks to our internal supply chain
sites based on moderate (i.e. 1.5°C temperature increase by 2040)
and high (4.4°C temperature rise by 2100) level impacts of climate
change. Outputs from this exercise continue to be reviewed and
updated to ensure risks to operations are mitigated.
We have also assessed the transition risks and opportunities
based on three potential future scenarios:
• A disorderly transition
• Societal shift
• Agricultural impact
Greggs understands the significance of climate
change and that we must reduce our own impact
and take action to mitigate against climate risk.
We believe that improved governance and reporting
across all industries and sectors will contribute to
the reduction of carbon emissions and assist in the
transition to a low-carbon future. This TCFD Report
describes our actions over the course of the year
and demonstrates how we continue to refine our
transition activity going forwards.
Audit Committee
The Board
Operating Board
Risk Committee Sustainability Committee
Net Zero Steering Group
Sustainability Reporting
Steering Group
51Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
The assessed risks and opportunities have been presented to the
Company’s Risk Committee. Further detail has been included in the
risk management section of the Annual Report on pages 64 to 71.
In 2023, we began including environmental, social and
governance (ESG) performance conditions in the long-term
incentive awards made to Executive Directors and senior
management. For the 2023 award, this is a carbon metric based
on the absolute reduction in Scope 1 and 2 emissions over the
three-year vesting period of the awards. In 2024, we included a
Scope 3 metric based on engagement with our supply chain to
drive measurement and reporting of its carbon footprint, and the
2025 award will include a Scope 1 and 2 metric to support ongoing
reduction of these emissions. Further details are given in the
Directors’ Remuneration Report on pages 95 to 118.
Greggs has clear ambitions, as detailed in The Greggs Pledge,
to be a net zero business by 2040 across Scopes 1, 2 and 3,
and to actively support the British Retail Consortium’s (BRC’s)
Climate Action Roadmap. The individual targets within this overall
ambition and their timeframes are discussed in further detail
in the metrics and targets section below.
Governance
Board oversight of climate-related risks
and opportunities
Our climate governance structure is set out below.
The Board has overall responsibility for climate-related risks and
opportunities – our approach to climate change is governed at
the highest level within our organisation.
The Board has received updates on progress during the year on
climate change matters, including the results from our Scope 3
modelling, our science-based targets, and regular reporting on
our reduction activities related to our Scope 1 and 2 emissions
footprint.
Our climate governance structure
We will continue to appraise climate risks and opportunities with
our senior leadership team to ensure ongoing climate knowledge
and support for our transition. The Board receives updates via the
Audit Committee within the scope of our routine risk reporting.
The Board will continue to oversee the development and delivery
of our transition plan in the coming years.
Management’s role in assessing and managing
climate-related risks and opportunities
Our Chief Executive is ultimately responsible for our
sustainability strategy, which includes climate-related risks
and opportunities. Strategic progress against relevant targets
and commitments is reported to the Board.
Our Risk Committee, chaired by our Company Secretary (the
membership of which includes all our Operating Board members
supported by key functional heads, including our Heads of
Business Assurance and Sustainability) is responsible for the
ongoing assessment of climate-related risks and mitigating
actions. The Risk Committee meets four times a year and
climate change is a standing agenda item. Outputs from the Risk
Committee are reported into the Company’s Audit Committee.
We continue to include ‘failure to respond effectively to climate-
related impacts on our business’ as a strategic risk within our
strategic risk register. During 2024, we reviewed and updated our
physical and transition risks, and this exercise will continue
in 2025 to ensure the appropriate level of focus is applied.
Our Sustainability Committee is responsible for approving
options for the delivery of our climate change strategy. Chaired
by our Company Secretary, the membership of this committee
includes all our Operating Board members and is supported by
the Head of Sustainability, the wider sustainability team and
relevant subject matter experts from across the business.
52
SUSTAINABILITY REPORT CONTINUED
Our Net Zero Steering Group is responsible for identifying and
proposing relevant actions to reduce carbon emissions. Once
proposals are agreed by the Sustainability Committee, these
are formally included in business plans as well as in the personal
objectives of relevant senior managers. This ensures a business-
wide focus on delivering the required activity.
In 2024, we expanded the role of our TCFD Steering Group
to incorporate all sustainability reporting and renamed it the
Sustainability Reporting Steering Group. This will allow us to
apply a strategic approach to reporting whilst maintaining our
focus on the continual development of our TCFD reporting.
This Steering Group is chaired by our Company Secretary
and includes senior members of our finance, sustainability,
risk and corporate communications teams. This group will
continue to support the ongoing development of our net zero
transition plan in 2025.
Strategy
Climate-related risks and opportunities and their impact
We continue to further develop our understanding of material
climate-related risks and opportunities, which fall into two
categories – physical and transition.
In this context we consider a material climate-related risk to
be one which could have a significant effect on or threaten the
resilience of our operations, strategy and financial planning if
not managed appropriately, based on our assessment of the
likelihood of occurrence. This is in line with the approach we take
to risk throughout the business as discussed in more detail in the
Risk Management section on pages 64 to 71. We plan to develop
a more quantifiable definition through the course of our work in
developing our transition plan.
We consider climate change to be a strategic risk to the business
within the time horizon for our current strategic plan.
In this context, we consider the following:
• Short-term horizon covers the next two years (2025/2026)
in line with our strategic business plan timeline.
• Medium-term horizon is the period from 2027-2030 in line
with our near-term Science-Based Targets timeline.
• Long-term horizon is from 2031 onwards.
In 2023, the TCFD Steering Group and the Net Zero Steering
Group worked with external advisers to highlight overarching
climate-related risks. Throughout 2024, we have continued
to further incorporate climate risks into our risk management
framework as discussed in the Risk Management section
on page 66.
Physical risks
In 2023, we modelled the physical risks to our manufacturing
and distribution sites, our main office locations and a sample
of our shops based on:
• Moderate (i.e. 1.5°C temperature increase by 2040); and
• High (4.4°C temperature increase by 2100) level impacts
of climate change.
These scenarios were chosen in conjunction with our advisers
and considering the views of colleagues across the business
as being the most relevant and plausible to the business.
They adopt a narrative-based, mixed methodology approach
which included a detailed analysis of data published in climate
scientific literature and Government resources, an analysis of
publicly available physical risk tools and a statistical analysis
of raw climate data outputs from the UK Climate Projections
2018. This approach was undertaken for several reasons: a lack
of downscaled data for all scenarios; model disagreement and
uncertainties; and the high-level nature of input data for the
supply chain.
The output from this modelling suggests that there are limited
physical risks to our operations that would have a material
financial impact on the Group (assessed in the same way as when
preparing the financial statements) in the short to medium term;
however, we continue to reassess this to ensure any identified
risks to operations are mitigated.
We have considered flood risk in more detail for those sites
where the risk has been assessed as above the average, and
we continue to review the need for additional flood mitigations.
In addition, climate risk is a key consideration when choosing
locations for new site development.
Transition risks
We have also assessed the transition risks and opportunities
based on three potential future scenarios:
• A disorderly transition, i.e. strong global legislative/policy
action to drive change, resulting in widespread carbon
taxation or carbon pricing.
• Societal shift, i.e. consumers making a significant move
to low-carbon diets and towards a circular economy, a
regenerative growth model where resources are used in a
way that minimises waste and pollution, keeps products and
materials in use for as long as possible and regenerates nature.
• Agricultural impact, i.e. the effects of climate change across
the globe and the resulting impacts on supply chains as
extreme weather occurrences increase in frequency and
temperature rises begin to have a significant effect.
53Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Climate-related risks, mitigations and opportunities
Our scenario analysis work, and our wider review/consideration of climate risks, through our embedded risk management framework (see Risk Management section on pages 64 to 71) have identified the
following main risks and any potential opportunities. We consider climate-related risks and opportunities when developing our business strategy.
Risk overview Impact Mitigation Time horizon Nature of risk Related scenario
Changes to climate-related
regulations, including the
introduction of carbon taxes.
Higher production costs would need to be offset or
passed on to consumers, potentially impacting the value
proposition of our products with higher carbon footprints.
We have a varied product range with an increasing number of
plant-based products, which offers choice for consumers looking
for lower-priced or lower-carbon products.
Medium to
long term
Transition Disorderly
transition
Changes in consumer
behaviour leading to an
increase in the need for
more sustainable products.
Inability to meet significant increased consumer demand
for more sustainable or weather-appropriate products may
lead to loss of sales and/or missed growth opportunities
as customers switch to products that meet their needs.
We are already developing our range to contain a higher proportion of
plant-based options. Our reputation for being a responsible business
provides a solid platform from which to communicate
our message.
Medium to
long term
Transition Societal
shift
The ongoing availability
of sufficient amounts
of renewable energy as
demand increases.
The energy dependency of our shop and supply chain
operations may cause issues in the event of energy
rationing/energy availability challenges.
We continue to focus on improving the energy efficiency of
our operations and monitoring developments in low-emission
technologies.
Medium to
long term
Transition Disorderly
transition
The impact of extreme
weather events on our own
operations and that of our
value chain.
We have assessed our own manufacturing and distribution
sites and identified six locations with a low to medium risk
of riverine flooding. We have also identified three sites
where there is a low to medium risk of exposure to spells
of extreme heat. In addition, we have identified one site
with a risk of longer-term surface flooding.
Our global supply chain presents a supply risk in the event
of more frequent extreme weather events, in terms of
product quality, availability and price volatility.
The geographical diversity of our operations is a key mitigation.
We are working closely with our insurers and risk management team
to identify and implement flood risk mitigation measures in sites where
risks have been identified. We continue to work with our engineering
teams to ensure that cooling and refrigeration systems are maintained
and remain able to operate in the event of extreme heat.
Our procurement team consider climate-related impacts during their
routine processes when selecting new suppliers and working with
existing ones. We are working with our key suppliers to develop more
climate-resilient ingredients as well as reviewing our sourcing regions.
In addition, we continue to invest in sustainable agricultural practices.
Short,
medium
and long
term
Physical Moderate
and high
Acute and chronic changes
in temperature.
Higher temperatures can impact food safety and quality,
particularly for perishable items. This can lead to increased
spoilage and food waste, affecting both our bottom line
and our sustainability goals. Changes in climate patterns
can affect agricultural yields, impacting the availability and
cost of key ingredients such as wheat, dairy and meat.
To address this, we have implemented advanced cooling systems
and temperature monitoring technologies across our shops and
warehouses. These systems ensure that our products are stored at
optimal temperatures, reducing the risk of spoilage and maintaining
food safety standards.
We are working with our key suppliers to develop more climate-
resilient ingredients as well as reviewing our sourcing regions. In
addition, we continue to invest in sustainable agricultural practices.
Medium to
long term
Physical Moderate
and high
54
SUSTAINABILITY REPORT CONTINUED
Opportunities
We have identified the following climate-related opportunities:
Consumer behaviours
• We constantly review the market for changes in consumer
behaviour and have good insight into consumer trends which
allows us to be agile in our future product development.
• Our reputation for offering great value and alternatives
to meat puts us in a good place to evolve our offer in line
with demand.
• Leading in sustainability can differentiate us from competitors,
enhancing brand value and customer loyalty. We continue to
show leadership in sustainability through visible and impactful
initiatives, helping to build a strong and loyal customer base.
Energy efficiency
• Implementing energy-saving measures, such as energy-
efficient appliances, and renewable energy sources,
can reduce operational costs and emissions.
• We continue to monitor developments in technologies
that support improvements in efficiency.
Value chain resilience
• Collaborating with suppliers to improve sustainability
practices, such as reducing emissions and enhancing
resource efficiency, can strengthen our supply chain
and reduce risk.
• We continue to work closely with our key strategic suppliers
to identify potential improvement opportunities.
Resilience
Although our scenario analysis will be repeated in future years,
we are continuing to discuss the issues already highlighted at the
highest levels of the organisation. For example, when examining the
results of our physical climate risk assessment, the outcomes have
pointed to climate risks in certain parts of the world where some
of our suppliers are based, such as Indonesia, Thailand and Brazil.
As a consequence of this, we will continue to engage with suppliers
in these areas, to understand their adaptation/mitigation plans.
The Transition Plan Taskforce (TPT) published guidance in 2023
on how to develop credible and robust climate transition plans.
We are in the process of developing our transition plan, in line with
the TPT guidance. To date we have established a clear transition
programme for Scopes 1 and 2, and in 2025, will focus on our
Scope 3 plan. We will also continue to monitor the development
of the International Sustainability Standards Board disclosure
standards and their potential adoption by UK regulatory bodies.
Risk overview Impact Mitigation Time horizon Nature of risk Related scenario
Physical impact on our retail
estate as a result of rising
sea levels.
Coastal shops and supply routes are increasingly at risk
from rising sea levels, which can lead to flooding and
erosion. This poses a long-term threat to our operations
in these areas.
Longer-term review of shop locations and relocation as and
when appropriate.
Long term Physical High
Failure to adopt changes in
technologies designed to
support improvements in
relation to climate change
mitigation, carbon reduction
and sustainability impacts.
The need to adopt new technologies to reduce emissions
and improve sustainability can be costly and complex.
Investment in energy-efficient equipment, renewable energy
sources, and sustainable packaging solutions. To ease this transition,
we are investing in research and development, collaborating with
technology providers, and piloting new technologies. This approach
allows us to stay at the forefront of technological advancements and
ensure that we are adopting the most effective solutions.
Short to
medium
term
Transition Societal
Climate and carbon
management strategy is
poorly developed, implemented
or communicated.
The Group’s approach to climate change results
in an inability to attract new colleagues.
To attract new talent, we emphasise our commitment to
sustainability, which is integrated throughout the organisation
and reflects our proactive stance on tackling climate change. This
commitment is prominently featured in our recruitment processes.
Medium to
long term
Transition Disorderly /
Societal
Failure to deliver effective
implementation of ESG
strategy.
The Group’s failure to deliver an effective ESG strategy
results in damage to investor relations and damage
to reputation resulting in erosion of brand.
• We have a sustainability strategy.
• Ongoing review of investor ESG ratings by the sustainability team.
• We report on key ESG rating indices.
• Bi-annual insight surveys across customer base and wider food
on the go customer base.
• Survey results presented to the Sustainability Committee.
Short,
medium
and long
term
Physical
and
transition
All
55Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Managing climate-related risks
Climate-related risk evaluation forms part of the Risk Committee’s
activity and is now included as a standing agenda item.
Integration of climate-related risks into overall
risk management
As explained above, we treat our climate-related risks in the
same way as all other risks and manage them in line with our
ERM framework.
By integrating climate-related risks into our overall risk
management framework, we ensure that they are appropriately
managed and mitigated. The Risk Committee reviews these
risks quarterly, providing oversight of our climate strategy.
This approach ensures that we remain resilient and responsive
to the evolving climate landscape.
Metrics and targets
Metrics used to assess climate-related risks
and opportunities
We have reported on our Scope 1 and 2 GHG emissions in our
Annual Report each year since 2013 and have set out our emissions
reduction targets. We now report this data internally on a monthly
basis and use it to monitor performance against our reduction
targets. In 2023, our near-term science-based targets were
approved by the SBTi. Our environmental management system
is certificated to ISO 14001:2015 and we disclose our emissions
through the Carbon Disclosure Project (CDP).
We regularly report on the proportion of Scope 1 and 2 energy
which comes from renewable sources and set targets each year
that align with our science-based targets.
Long-term incentive awards made in 2024 to Executive Directors
and senior management include an ESG performance condition
with a weighting of 10% of the award. It is a carbon metric based
on the percentage of our value chain which has set a public
net zero date (no later than 2050), and which is measuring and
publicly reporting its full Scope 1, 2 and 3 footprint over the
three-year vesting period of the awards.
GHG emissions and the related risks
In 2024, we modelled our Scope 3 emissions for 2023 using the
GHG Protocol Corporate Standard, World Resources Institute
guidance for the land sector as the basis for our calculation.
The calculations were reviewed and verified by the Carbon Trust.
Our 2023 TCFD Report contains more detail on the methodology
that we adopt and how we apply it. Total Scope 3 emissions for
2023 were 861,714 tonnes of carbon dioxide and equivalent gases
(CO
2
e) (2022: 784,774 tonnes CO
2
e).
We have included these 2023 emissions in this report as our
financial reporting timeframe prohibits full assessment and
verification of our 2024 emissions in time for inclusion in this
report. We will publish our 2024 emissions on our corporate
website in 2025.
We report on our Scope 1 and 2 GHG emissions each year.
The detailed disclosures and methodology can be found
in the section of this report titled ‘Our carbon footprint’.
Targets used to manage climate-related risks and
opportunities and performance against targets
As part of our strategy to manage climate-related risks,
we have committed to becoming a net zero carbon business
by 2040 in line with the BRC Climate Action Roadmap:
• Scope 2: Net zero by 2030
• Scope 1: Net zero by 2035
• Scope 3: Net zero by 2040
As noted above, we have also set science-based targets to
give us a clearly defined pathway to emissions reduction that
is aligned to climate science. The commitment to the BRC’s
roadmap is a more ambitious target – we always strive to achieve
the more stretching target.
SUPPLIER
ENGAGEMENT
We’re pleased that many of our suppliers
are adopting net zero targets, switching
to greener fuels and improving energy
efficiency. As a leader, we see ourselves as
having a proactive role to play in our supply
chain and are encouraging key suppliers to
measure and publicly report their carbon
footprint and set net zero goals by 2050. Our
ambition is for 30% of our supply chain to
disclose Scope 1, 2, and 3 emissions by 2027.
To improve Scope 3 accuracy, we request
carbon intensity data from key suppliers.
In 2024, our Net Zero Steering Group worked
directly with suppliers of high-impact
products like beef, pork, dairy, cereal and
coffee, hosting sessions to share best
practice around carbon management and
regenerative agriculture, and work will
continue in 2025.
Risk management
Identifying and assessing climate-related risks
We have an established risk process for the whole business,
as described in the risk management section on pages
64 to 71. Climate-related risks are integrated into our ERM
process, so that all our risks are identified, assessed and
managed consistently.
56
SUSTAINABILITY REPORT CONTINUED
In 2022, we set near-term science-based emissions reduction
targets based on a 1.5°C pathway, which were approved by the
SBTi. These targets are:
• To reduce absolute Scope 1 and 2 GHG emissions 46.2%
by 2030 from a 2019 base year; and
• To reduce absolute Scope 3 GHG emissions from purchased
goods and services 46.2% within the same timeframe.
Performance against these science-based targets is our primary
metric at present, although we are introducing additional metrics
and targets. The data is presented in the section of this Report
titled ‘Streamlined Energy and Carbon Reporting’ below. Progress
against the 2019 science-based target baseline for Scopes 1 and 2
is shown in the graph below along with the intensity measure.
As noted above, we do not yet have a Scope 3 emissions figure for
2024. The outcome of the modelling exercise described above
shows that Scope 3 emissions for 2023 were 861,714 tonnes CO
2
e
(2022: 784,774 tonnes CO
2
e). The 2019 emissions were recalculated
using this more refined methodology where possible, which has
resulted in a higher figure for 2019 emissions of 522,453 tonnes CO
2
e
ONGOING USE
OF RENEWABLES
In 2024, we increased our renewable gas
purchase from 30% to 60% and now install only
electric boilers and equipment in new shops, as
we phase out gas. While we buy 100% renewable
electricity, 6% of our shops are in serviced
locations where we lack control over utilities.
Our Landlord Recharge Group is encouraging
landlords to switch to green power, and we are
creating a policy to address non-renewable
electricity in these locations.
To reduce diesel use in our distribution fleet, we
aim to transition to electricity or hydrogen once
infrastructure allows. Meanwhile, we’ve begun
converting our fleet to HVO biofuel. In 2024, our
Enfield Distribution Centre switched to HVO,
cutting 3,000 tonnes of CO
2
across 2.2 million
miles. By adding Clydesmill and Manchester sites
in 2025, we’ll almost triple savings to over 8,000
tonnes, with nearly a third of journeys powered
by HVO by year-end.
(original 2019 baseline was 491,962 tonnes CO
2
e). The increase from
2019 as rebased is largely as a result of business growth.
We measure and report regularly on the proportion of Scope 1
and 2 energy that comes from renewable sources. Our targets
for 2024 were that:
• 100% of the electricity that we buy comes from renewable
sources, which was achieved. We have some shops where
we are not responsible for purchasing the electricity and in
those situations we are encouraging our landlords to change
to renewable electricity.
• 60% of the gas we use is from renewable sources, an increase
from 30% in 2023 – again this was achieved.
• We would trial the use of HVO in our logistics fleet as
an alternative to diesel. We converted one of our major
distribution depots which has allowed all of the vehicles
based out of that depot to run on HVO.
The two most recent long-term incentive awards made to
Executive Directors and senior management (in 2023 and 2024)
included carbon-based performance conditions and it is intended
that the award to be made in 2025 will have a Scope 1 and 2
emissions reductions performance condition. The conditions
are measured at the end of the three-year vesting period of
the awards so the first one will be measured in 2026. These
performance conditions are as follows:
Date award
granted
Performance condition % of award subject
to this condition
Vesting
date
May 2023 Based on the Company’s reduction in Scope 1 and 2 emissions in line with the
reductions required to meet our science-based targets by 2035 from a 2022 base.
10% May 2026
March 2024 A Scope 3 metric based on engagement with the wider supply chain to drive
measurement and public reporting by suppliers of their overall carbon footprint and
publicly committing to a net zero target no later than 2050.
10% March 2027
Market-based Scopes 1 and 2 absolute emissions
2019 2020
2021 2022 2023
Total Scopes 1 and 2 market-based (tCO
2
e)
Science-based target = Scopes 1 and 2 market-based (tCO
2
e)
Intensity market-based (tCO
2
e per £m turnover)
Absolute emissions (tCO
2
e)
Intensity (tCO
2
e per £m turnover)
0
10,000
20,000
30,000
40,000
50,000
40
35
30
25
15
20
10
5
0
57Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
We continue to report Scope 1 and 2 footprints in our monthly
performance reporting pack. This ensures our senior leadership
team has ongoing visibility of the delivery of our reduction strategy.
In 2025, we will develop quantitative metrics and targets for
material climate-related risks and opportunities, and incorporate
these into our business plan.
Next steps for Greggs
In 2025, we will continue to deliver reductions in line with our
science-based emissions reduction targets for our Scope 1 and
2 emissions while also delivering the second year of our supplier
engagement programme to support our Scope 3 emissions
reduction. We will review our scenario analysis process to
ensure we identify any additional physical or transition risks or
opportunities. In addition, we will continue the development of
our net zero transition plan, in line with the TPT framework and
guidance, with the intention of publishing this in late 2025.
Our carbon footprint
We disclose our GHG emissions through CDP. We continue to
drive efficiencies to further reduce our carbon footprint as we
work towards our net zero ambition. In 2024, we reduced our
gross location-based intensity (tonnes per £million turnover)
impact by 9.4% compared to 2023 (or 42.0% compared to 2019).
Our market-based carbon footprint for the 2024 financial year
was 41,710 tonnes of CO
2
e, with an intensity of 20.71 tonnes
of CO
2
e per £million turnover, which reflects our efforts in
generating and purchasing low-carbon energy.
Global GHG emissions data
In line with the Companies Act 2006 (Strategic Report and Directors’
Report) Regulations 2013, we are reporting our GHG emissions
as part of our annual Strategic Report. Our GHG reporting year
is the same as our financial year, from 31 December 2023 to
28 December 2024. We have reported on all the emission sources
which we deem ourselves to be responsible for, as required under
those Regulations. These sources fall within our operational
control and financial boundaries, and include emissions from
manufacturing, retail and distribution sites and the operation
of our distribution fleet, all of which are wholly based in the UK.
We do not have responsibility for any emission sources that are
outside of our operational control. The methodology used to
calculate our emissions is based on the GHG Protocol Corporate
Accounting and Reporting Standard, Defra Environmental
Reporting Guidelines and ISO 14064-3:2019 – Greenhouse gases
Part 3 – Specification with guidance for the verification and
validation of GHG statements.
Dual emissions reporting
Overall emissions have been presented to reflect location and
market-based methodologies, affecting both Scope 1 and
Scope 2 emissions.
Streamlined Energy and Carbon Reporting
In line with Streamlined Energy and Carbon Reporting
requirements, we have also reported on the underlying energy
used to calculate our GHG emissions.
Where original data was provided in litres of diesel, gas oil or
petrol, it has been converted to kWh. The reporting boundary has
been determined by operational control, whereby all emissions
have been included within scope, i.e. Scope 1 and Scope 2.
ECO-SHOP 2
We launched our first Eco-Shop in
Northampton in 2022, testing over 20
green initiatives that reduce energy use
by a fifth compared to standard shops.
New technology is being developed at pace,
so in 2024, we designed a next-generation
Eco-Shop, planned for construction in
early 2025. This shop will test cutting-
edge equipment to save energy, conserve
water and reduce waste. For example, its
refrigeration system will use lower carbon
impact refrigerant, reducing global warming
potential (GWP) from 1,387 to 146 GWP, below
the EU’s upcoming 150 GWP limit. Located
in Winchester, this drive-thru unit aligns
sustainability with our expansion plans,
featuring solar panels, rainwater harvesting,
a heat pump and eco-friendly cladding.
2024 REDUCTION IN GROSS LOCATION-BASED INTENSITY IMPACT
(TONNES CO
2
E PER £M TURNOVER)
9.41%
Energy efficiency initiatives
Greggs is committed to reducing the energy consumption and
the carbon impact from its operations. We have set our target
of net zero carbon emissions across the organisation by
2040 and have put in place a plan aligned to the BRC’s Climate
Action Roadmap.
58
SUSTAINABILITY REPORT CONTINUED
We have moved to renewable electricity sources across approximately 97% of our estate. In 2024, we further increased the use of biogas as a replacement for natural gas to 60%. This is covered by
Renewable Gas Guarantees of Origin certificates. As the GHG Protocol does not recognise any differentiation between natural gas and biogas, the data reported in the table below makes no allowance
for this. Using the UK Environmental Reporting Guidelines rather than the GHG Protocol would result in a reduction in Scope 1 emissions of 5,845 tonnes of CO
2
e, (2023: 2,468 tonnes of CO
2
e) using
market-based emissions calculations. We continue to investigate other renewable energy sources for our remaining Scope 1 emissions.
In 2024, we measured our 2023 value chain emissions with the Carbon Trust and found that Scope 3 emissions account for 95.3% of all market-based emissions with emissions from Scope 3 purchased
goods and services (products) having the biggest impact. We have set near-term Company-wide emissions reduction targets in line with climate science, which have been approved by the SBTi.
We continue to focus our internal teams on energy efficiency and carbon reduction programmes. Since the opening of our first Eco-Shop in 2022, 27.6% of our overall estate now has Eco-Shop initiatives
in place. We continue to replace high GWP refrigerants in refrigeration and air conditioning systems with lower GWP refrigerants, and all new refrigeration equipment uses low GWP refrigeration gas as a
specification requirement. We have successfully trialled electric refrigeration units on our delivery fleet, replacing diesel-powered refrigeration and we continue to replace existing units with this technology.
Location and market-based emissions
Current reporting
year 2024
(tonnes of CO
2
e)
Comparison
year 2023
(tonnes of CO
2
e)
Base
year 2019
(tonnes of CO
2
e)
Scope 1 Combustion of fuel and operation of facilities 32,172 34,325 33,155
Scope 1 Refrigerants 5,536 5,505 5,513
Scope 2 (location-based) Electricity purchased for own use (including photovoltaic-generated and green tariff) 58,237 55,318 57,294
Scope 2 (market-based) Residual electricity 4,002 2,981 2,909
Gross emissions (location-based) Total Scope 1 and 2 CO
2
e emissions 95,945 95,148 95,962
Gross emissions (market-based) Total Scope 1 and 2 CO
2
e emissions to account for use of renewable energy 41,710 42,810 41,577
Intensity measure (location-based) Tonnes of CO
2
per £m turnover 47.63 52.58 82.54
Percentage change 2024 compared with 2023 -9.41% -9.13% -36.29%
Intensity measure (market-based) Tonnes of CO
2
e per £m turnover 20.71 23.66 35.76
Intensity percentage change accounting for renewable energy 2024 compared with 2023 -12.47% -23.73% -33.84%
Location-based method is provided for disclosure only
UK Underlying energy use (kWh)
Total Scope 1 energy use Combustion of fuel and operation of facilities (natural gas, fleet fuel oils, company cars and LPG) 151,398,269 149,351,211 141,717,583
Total Scope 2 energy use Electricity 281,789,412 267,160,278 224,154,292
Total energy use (kWh) 433,187,681 416,511,489 365,871,875
We have been awarded the Carbon Trust Route to Net Zero Standard in recognition of our work on carbon efficiency and reduction and our environmental management system is certificated to ISO 14001:2015.
In addition, we disclose our GHG emissions through CDP.
59Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
FINANCIAL REVIEW
2024
£m
2023
£m Variance
Revenue 2,014.4 1,809.6 +11.3%
Underlying operating profit 195.3 171.7
+13.7%
Finance income 8.1 6.1
+32.8%
Finance expense (13.6) (10.1)
+34.7%
Underlying profit before tax 189.8 167.7
+13.2%
Exceptional income 14.1 20.6
Profit before tax 203.9 188.3
+8.3%
Income tax (50.5) (45.8)
+10.3%
Profit after tax 153.4 142.5
+7.6%
Underlying diluted earnings
per share 137.5p 123.8p
+11.1%
Underlying return on capital
employed 20.3% 21.1%
Sales
Total Group sales for the 52 weeks ended 28 December 2024
grew by 11.3% to £2,014 million (2023: £1,810 million). Growth was
delivered through both new shop openings and like-for-like sales
growth in existing shops, reflecting both volume growth and price
increases. Total Group revenue reflects sales from company-
managed shops, which include delivery sales, and sales through
the business-to-business channel to our franchise and grocery
wholesale partners.
Reporting ‘like-for-like’ sales (sales in company-managed
shops with more than one calendar year’s trading history)
is a key alternative performance measure for Greggs, as it
shows underlying company-managed estate sales performance
excluding the impact of new shop openings and closures.
In 2024 like-for-like sales were 5.5% up on 2023. The pattern of
like-for-like growth through the year reflected the annualisation
of trading hours extension and the roll-out of delivery services
with Uber Eats in Q4 2023, along with a generally-tougher
market context in the second half of the year. The challenging
market context resulted in us not achieving our 2024 target for
like-for-like sales growth.
GREGGS DELIVERED GREGGS DELIVERED
ANOTHER GOOD ANOTHER GOOD
FINANCIAL FINANCIAL
PERFORMANCE PERFORMANCE
IN 2024. IN 2024.
Greggs delivered another good financial
performance in 2024. Sales growth reflected
a record number of new shop openings as
well as continued progress in developing new
channels. The Company’s robust balance sheet
supports our growth strategy as we invest
in the capacity that will enable further growth
and strong returns.
Richard Hutton
Chief Financial Officer
60 Greggs plc Annual Report and Accounts 2024
This expansion in capacity relies on a number of key investment
projects:
• Completed – the expansion of manufacturing capacity at
Balliol Park in Newcastle, where a fourth production line was
commissioned in 2024, increasing capacity for savoury rolls
and bakes by 35%.
• Completed – extension and refurbishment works at our
Amesbury and Birmingham Radial Distribution Centres,
completed in 2024, have added capacity to serve an additional
300 shops across the south of the UK.
• In progress – our new site in Derby will manufacture and
distribute frozen products, bringing automated upstream
picking to the Greggs supply chain for the first time. This will
help our existing Radial Distribution Centres to support more
shops from mid-2026.
• In progress – a new National Distribution Centre in Kettering
will consolidate our existing operations there for chilled and
ambient goods as well as supporting the move to upstream
picking in 2027.
Offering great value to customers is key to our strategic purpose,
and we leverage our scale and vertical integration to keep costs
low. We have a rolling programme of cost-saving initiatives
with the aim of mitigating as much cost pressure as possible,
and in 2024 this delivered £10.6 million of savings. Through the
programme we look to leverage the scale in our manufacturing
operations, completing end-to-end process reviews to realise the
benefits of our vertical integration. The strength of our financial
covenant and our scale helps us secure the best procurement
rates. We also target waste reduction, which aligns with our
Greggs Pledge commitments.
To the extent that we cannot mitigate cost inflation through
savings, we recover it through careful pricing activity, whilst
ensuring that we protect our reputation for offering great value,
great quality products. We continually compare our prices with
the market across a range of products and ensure that our
relative price proposition remains strong, with prices comparable
to the grocery sector, but for freshly-prepared food and drink, and
at a strong discount compared to other food-to-go specialists.
Following a period of margin investment to support the
development of new channels and dayparts we have focused on
cost control and strong management of pricing and promotions
to improve profitability. This has resulted in an increased
underlying operating profit margin of 9.7% in 2024 (2023: 9.5%).
Investing for growth
We continue to see good returns on new shop openings, including
the relocation of existing shops to better premises that enable
them to reach their full potential. The scope for further growth in
the estate is material and we have set out plans to create capacity
in our supply chain to service around 3,500 shops in the medium
term, whilst also leaving open options to extend this further.
The performance of shops managed by franchise partners
proved more resilient to market conditions, being primarily
focused on roadside locations. Franchise like-for-like ‘system
sales’ (sales in franchised shops with more than one calendar
year’s trading history) grew by 7.4% in 2024, reflecting growing
consumer use of these locations and trading hours extension
to serve later dayparts.
Profit for the year
Underlying operating profit (profit before finance income and
expense, exceptional income and tax) was £195.3 million in 2024
(2023: £171.7 million). After financing costs and exceptional
income profit before taxation was £203.9 million in 2024
(2023: £188.3 million). The strong profit progression reflected
overall sales growth supported by good cost control and
margin management. Profits included a net exceptional gain
of £14.1 million which primarily relates to the sale of our legacy
Twickenham supply chain site.
The business experienced overall like-for-like cost inflation of
around 4% in 2024. This was primarily driven by employment
costs, with food and packaging costs marginally deflationary
following the significant increases experienced in 2022 and 2023.
Energy costs reduced year-on-year and our shop occupancy cost
ratio (shop costs such as rent, rates and service charges as a
percentage of sales) was stable.
Looking forward we currently expect overall input cost inflation
in 2025 to be around six per cent. Employment cost inflation will
again be the biggest driver of higher costs, including the impact
of the increase in the National Living Wage and an increase in
employer’s National Insurance contributions. We have good levels
of forward cover for commodity costs, with almost 100% of our
electricity requirements fixed for the year and forward purchase
agreements in place representing circa five months of our food
and packaging needs.
We continue to see good returns
on new shop openings and are
investing in capacity to grow
the estate further and expand
into new channels, continuing
the strategy that has been so
successful in recent years.”
FINANCIAL REVIEW CONTINUED
61Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Whilst carrying cash forward into the current investment
programme the business has maximised the opportunity to earn
interest income on cash deposits. In 2024 this income totalled
£8.1 million and will reduce in 2025 as cash levels normalise.
We plan to utilise the additional capacity created by this
investment programme as the business grows its shop numbers
in the years ahead. The expanded logistics network will allow for
around 900 further net new shops from the starting position in
2025, supporting six to nine years’ worth of expansion at recent
opening rates (100-150 net shops per annum). The short-term
impact will be an increase in fixed costs and a temporary
reduction in ROCE.
The additional fixed costs associated with the Derby site are
expected to present a circa 40 basis point headwind to operating
margin in 2026. A similar additional margin headwind is expected
in 2027 as these costs annualise and the Kettering site opens,
though this incremental cost will begin to be offset in that year
as we continue to grow the shop estate and start to utilise the
capacity created. We expect this trend to continue in the following
years, to the further benefit of margin and returns. We continue to
target a return to a ROCE of circa 20% in the medium term.
Financing charges
We earned £8.1 million (2023: £6.1 million) of finance income on
cash deposits during the year and incurred finance expenses of
£13.6 million (2023: £10.1 million) which comprised £13.0 million
(2023: £9.6 million) in respect of the IFRS 16 interest charge on
lease liabilities and a net £0.6 million (2023: £0.5 million) of facility
charges under the Company’s (undrawn) financing facilities,
interest on the defined benefit pension liability and foreign
exchange losses.
Taxation
The Group has a simple corporate structure, carries out its business
entirely in the UK and all taxes are paid here. We aim to act with
integrity and transparency in respect of our taxation obligations.
As the programme continues, the asset base will expand further,
with capital employed growing ahead of capacity utilisation
through to 2027.
Operating costs, primarily depreciation, will increase in steps
as the new operations are brought into use. The shell of the
Derby site was built in 2024, and work in 2025 will be focused on
fitting out the site, installing the automated logistics operations
and setting up the site’s first production line. We are targeting a
logistics ‘go live’ in the second quarter of 2026 and a production
‘go live’ in the final quarter of 2026. The land for the Kettering site
was purchased in January 2025 at a total cost of £30 million and
the focus for this coming year is to build the shell of the building,
before fitting this out through 2026. Commissioning at Kettering
is due to commence in the final quarter of 2026, with the site
expected to be fully operational in the second half of 2027.
We expect the cash-funded capital investment in the Kettering
site to be a further £105 million following the land purchase.
These investments collectively take the logistics capacity in
our network to around 3,500 shops. We have planned carefully
for this phase of growth and are financing the investment from
a combination of cash deliberately carried into the programme,
a long-term lease of the building at Derby and ongoing cash
generation. The impact of stepping up our capacity in this way
will increase our capital employed and create additional fixed
costs in the short term, with both subsequently utilised as we
expand our operations.
Capital employed will progressively build as the sites are
developed and brought into use. The cash retained to fund
investment has been part of the capital employed in the business
in recent years and will remain so as it is converted to fixed
assets. In addition, the 25-year lease of the building at Derby was
capitalised in 2024 (with a right-of-use asset and liability value of
£47 million) ahead of being fitted out with cash-funded assets.
We expect the cash-funded capital investment in the Derby site
to be £135 million, including the cost of the first production line.
62
Balance sheet
Capital expenditure
In line with our plans we invested a total of £249.0 million
(2023: £199.8 million) in capital expenditure during 2024.
Retail estate expenditure grew as we increased the number
of company-managed shop openings and relocations, and
completed more shop refurbishments. We also rolled out
additional equipment to support sales growth, including ice
machines to provide a new range of over-ice drinks to our
customers. In our supply chain we completed the commissioning
of a fourth production line for our iconic savoury rolls and bakes
at Balliol Park in Newcastle and completed the works to extend
logistics capacity at our Birmingham and Amesbury Distribution
Centres. In addition, we commenced the fit-out phase of the new
leased site in Derby, and made some deposit payments in respect
of the new Kettering site. IT investment also increased as we
began the work to upgrade our ERP system to SAP S/4HANA.
Depreciation and amortisation on property, plant and equipment
and intangibles in the year was £80.8 million (2023: £70.5 million).
A further £59.2 million (2023: £54.5 million) of depreciation was
charged in respect of right-of-use assets on capitalised leases.
As previously communicated, our capital investment will continue
at an elevated level until 2026 as we build additional capacity in
our supply chain to support our ambitious growth plans, whilst
also growing and refurbishing our retail estate. In 2025 we will
complete the work to bring into use the logistics capabilities of
our new site in Derby, and progress the construction of our new
site in Kettering having completed the purchase of the land in
early January 2025. We expect the Derby site to be operational
in 2026, with the Kettering site following in 2027.
Our shop opening and relocation plans mean that we will invest
in circa 160 new company-managed shops in 2025 and refurbish
around 120 existing company-managed shops as we modernise
older sites and introduce additional facilities to support our
growth plans. In our retail estate we continue to target a 25%
cash return on investment on new shops and typically exceed
this level after two to three years as shops mature. The focus of
the acquisition strategy means we are opening shops that trade
longer hours and have higher than average sales and returns.
The returns on newly-opened shops remain strong and, being
mainly in new catchments, have not impacted on the sales of
other shops in the estate.
Overall we expect capital expenditure in 2025 to be around
£300 million, with the delay in the purchase of the land for
Kettering altering the phasing of previous guidance. We anticipate
that capital expenditure will be around £200 million in 2026
before returning to a normalised level beyond this investment
phase, where we expect maintenance capital expenditure to be
up to 5% of revenue, with additional expenditure deployed to
support further growth as required.
Working capital
We ended the year with Group net current liabilities of £67.3 million
(2023: net current assets of £25.4 million) as our cash and cash
equivalents balance reduced as we progressed with our capital
investment plans. Stock and debtor levels increased primarily
due to sales growth. The net current liabilities position reflects
supplier funding as we receive payment from company-managed
shop customers ahead of paying suppliers on standard terms.
The Group’s overall effective tax rate on profit in 2024, including
the impact of exceptional items, was 24.8% (2023: 24.3%). The
headline rate for the year was 25.0% (2023: 23.5%) following the
increase from 19.0% to 25.0% in the corporation tax rate from
1 April 2023. The overall tax rate was lowered by the inclusion of
the exceptional gain on disposal of the Twickenham bakery site.
The underlying tax rate for the year was 25.7% (2023: 24.4%) – the
year-on-year movement in the underlying rate is almost entirely
due to the increase in the headline rate of tax.
We expect the effective tax rate for 2025 to be around 26.0% and
going forward the effective rate is expected to remain around
one percentage point above the headline corporation tax rate.
This is principally explained by expenditure for which no tax relief
is available, such as depreciation on properties acquired before
the introduction of structures and buildings tax allowances, and
acquisition costs relating to new shops.
Earnings per share and dividend
Underlying diluted earnings per share in 2024 was 137.5 pence
(2023: 123.8 pence per share). Including the net exceptional
income diluted earnings per share were 149.6 pence (2023: 139.2
pence per share).
The Board recommends a final ordinary dividend of 50.0 pence
per share (2023: 46.0 pence per share). Together with the interim
dividend of 19.0 pence (2023: 16.0 pence) paid in October 2024,
this makes a total ordinary dividend for the year of 69.0 pence
per share (2023: 62.0 pence per share). This is covered two times
by underlying diluted earnings per share and is in line with our
progressive ordinary dividend policy, which aims to increase the
dividend in line with growth in underlying earnings per share.
Subject to the approval of shareholders at the AGM, the final
ordinary dividend will be paid on 30 May 2025 to shareholders
on the register at 2 May 2025.
FINANCIAL REVIEW CONTINUED
63Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Looking forward
The significant investments that we are making to support
further profitable growth will create short-term ROCE and margin
headwinds as we bring important new sites into our supply chain.
However, this capacity will enable Greggs to realise the medium-
term opportunity to grow its estate and expand into new channels,
continuing the strategy that has been so successful in recent
years. Throughout this we will maintain a strong financial position
and the discipline that has delivered profitable growth and
excellent capital returns, to the benefit of all of our stakeholders.
Richard Hutton
Chief Financial Officer
4 March 2025
Our approach to capital allocation can be described as a series
of priorities:
1. Invest to adequately maintain the business in order to
support its continued success. As noted above, in normal
circumstances we expect maintenance capital expenditure
to be up to 5% of revenue.
2. Maintain a strong balance sheet. Reflecting the inherent
gearing in the Group’s leaseholds and working capital we aim,
in normal circumstances, to maintain a year-end net cash
position of circa 3% of revenue in order to allow for seasonality
in the working capital cycle and to protect the interests of
all creditors.
3. Deliver an attractive ordinary dividend to shareholders. We
continue to target a progressive ordinary dividend, normally
around two times covered by underlying profit after taxation.
4. Selectively invest to grow. As outlined above we intend
to continue to make capital investments in excess of the
maintenance level in the coming years to support our
growth plans
5. Return surplus cash to shareholders. Where net cash on
the balance sheet exceeds our minimum requirement, taking
into account that reserved for growth investments, we expect
to return cash to shareholders by way of special dividends.
The Company’s current cash position will continue to normalise
in 2025 and 2026 as we complete the current investment phase
to support our growth plans.
Pension scheme
During the year the Company made a special contribution of
£4.5 million to its closed defined benefit pension scheme, which
facilitated the purchase of a bulk annuity ‘buy-in’ policy with Aviva.
This policy will provide regular payments to the scheme Trustee
to fund future pension payments and significantly reduces the
Company’s exposure to the funding risks associated with its
defined benefit pension liabilities.
As a result, the scheme is in a net liability position of £0.4 million
(2023: net asset position of £6.6 million), reflecting the largely-derisked
position that it now benefits from.
Cash flow and capital structure
The net cash inflow from operating activities after lease
payments in the year was £254.2 million (2023: £257.1 million).
The strength of cash generation reflected the growth in profits
and the sale of the legacy supply chain site in the year, offset
by an increase in tax payments. At the end of the year the
Group had net cash and cash equivalents of £125.3 million
(2023: £195.3 million).
During the year we refinanced our revolving credit facility for
a three-year period to June 2027, with two further one-year
extension options. The facility provides liquidity of £100 million in
committed funds. Taking this into account, total available liquidity
at the end of 2023 was £225.3 million (2023: £265.3 million).
64
RISK MANAGEMENT
OUR APPROACHOUR APPROACH
TO RISK MANAGEMENTTO RISK MANAGEMENT
An effective risk management process is
fundamental to protecting our business, our
customers and colleagues, and shareholder value,
helping us to achieve our strategic priorities.
Risk management and internal control
To be able to deliver our strategy and make the right decisions
for the business, we need to understand and manage our risks.
Taking risks in a controlled way can help us to deliver value whilst
protecting the business, our people and our reputation. Risks
cannot be avoided, but an effective system of risk management
ensures that they are mitigated to an acceptable level.
A robust, embedded approach to risk management helps us to react
to new risks which emerge, and to take opportunities as they arise.
Roles and responsibilities
The Board has overall responsibility for risk management, and
determines the nature and extent of risks which we are prepared
to take in the pursuit of our strategy.
The Audit Committee, on behalf of the Board, maintains oversight
of the risk management approach, including reviewing its overall
effectiveness on an annual basis, and receiving regular updates
on assurance activity.
Risk is overseen by a Risk Committee, which has responsibility for
proactively managing risk, and meets quarterly. As a committee
of our Operating Board, it has representation from across the
entire business.
Our business assurance function supports with the documentation
and review of risk, and with the Audit Committee’s review process.
THE VARIOUS ROLES WITHIN THE RISK MANAGEMENT PROCESS ARE SET OUT BELOW:
Who? Role Key activities/responsibilities
The Board Direction and
oversight
Approving policy; overall responsibility for risk management; setting
and reviewing risk appetite; embedding the risk management
culture; setting the ‘tone at the top’.
Audit
Committee
Main Board activities
as delegated
Challenge and approval of the principal risks disclosure; oversees
risk management systems and controls; annual review of
effectiveness of approach.
Operating
Board
Ownership and
monitoring
Ownership and management of significant risk to reinforce
accountability; agreeing and monitoring actions to mitigate risks.
Risk
Committee
Identifying, assessing
and monitoring risk
Consideration of new and emerging risks; escalation of functional
risks; biannual strategic risk review and validation.
Business
Assurance
Team
Independent
overview
Managing the risk register; consolidation of significant risks;
providing independent assurance over controls as set out in the
internal audit plan; monitoring compliance with policy; updating
the Audit Committee at each meeting.
Heads of
business
functions
Operational risk
ownership and
implementing actions
Identifying risks which may prevent the achievement of objectives;
ongoing review of risks and controls within area of remit;
supporting strategic risk owners throughout the risk management
process; implementing controls to mitigate risk.
Process
owners
Day-to-day business
operations
Ensuring that mitigating controls are operating effectively; reporting
areas of new and emerging risk; ensuring compliance with policies
and procedures.
Top downBottom up
65Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Risk management process
Our risk management process is well-established, though it
continues to evolve and develop. We have an enterprise-wide
risk management policy and framework in place, both of which
have been approved by the Board. This provides us with a robust
structure and drives a consistent approach.
Our risk process works ‘top down’ and ‘bottom up’, as shown in the
diagram on page 64. Risks are identified by considering potential
events which could prevent the achievement of our objectives.
The Operating Board is responsible for maintaining the overall
corporate risk register, which documents the key risks to the
business. We conduct a formal review of our key strategic risks
twice a year via the Risk Committee, with input from each of the
risk owners who have an opportunity to highlight any changes.
This allows us to discuss the risk gradings, and ensure that the
level of risk remains within the tolerance of our risk appetite.
The Risk Committee also considers new risks escalated to it at
every meeting, and assesses whether or not these are significant
enough to merit inclusion on the strategic risk register.
Each of our heads of business functions is responsible for their
own risk register, which is produced in the same manner and
format as our corporate register. Functional risk registers are
reviewed at least annually. Where a functional risk is considered
to be sufficiently significant that it could impact on the wider
business, it is escalated to the Risk Committee for further
consideration and appropriate action.
The risk process is facilitated by members of the business
assurance team, who help to identify and assess key risks,
as well as providing support in developing an appropriate risk
response. In addition, the team provides an independent view on
the controls in place over specific risk areas within the internal
audit plan.
Our risk registers capture a description of each risk, and an
Operating Board member or a head of business function is
allocated as risk owner. Each risk owner is responsible for
ensuring that appropriate mitigating controls are in place, as
well as identifying actions to further enhance controls where
necessary. We record the key controls for each risk, and make
an assessment of their effectiveness. The likelihood and impact
of each risk arising is then calculated, both before and after the
introduction of mitigating controls.
Developments in 2024
We have reviewed and refocused our Risk Committee agenda
to allow more time for discussion and ‘deep-dive’ topics. A rolling
annual agenda ensures that matters such as policy approvals and
process reviews are completed when required.
To improve our communication of risk, we have developed a ‘risk
dashboard’, which provides a monthly summary of key issues to
the Operating Board, and is drawn up in conjunction with other
core functions.
During the year, we completed a fraud risk review in conjunction
with an external consultant, who provided guidance on the
process. Fraud risks were identified and recorded via workshops
attended by the Operating Board and a range of subject matter
experts from across the business. Findings were presented back
to the Risk Committee for sign-off, and the results have been
incorporated into our risk register. This improves our visibility of
fraud risk and the effectiveness of associated controls.
We have worked with our insurance broker to assess our risk
appetite, in line with best practice, to promote consistency in
our approach, and to guide colleagues on acceptable risk levels.
We now have ten categories of risk rather than the four previously
in use to give greater granularity of the appetite assessment.
Our risk appetite is low for all of our categories, driven by a strong
commitment to safety, compliance and long-term sustainability.
We have continued to engage with the heads of business
Functions, and as noted above, we have fully rolled out our risk
registers to a functional level. As part of our regular six-monthly
review with risk owners, we have reviewed risk and control
descriptions to make sure they remain relevant and accurate.
Risk registers have also been compiled for each of our Greggs
Pledge commitments.
Material controls
We have reviewed our risk and internal control framework
to establish which elements should be considered ‘material
controls’ and therefore require inclusion in our assurance
framework supporting the new UK Corporate Governance Code
requirements in due course.
Firstly, we considered all of our strategic and principal risks to
establish whether they would cause the business to fail, should
they materialise (our ‘material risks’). For this list of risks, we then
reviewed the associated controls to determine which of those
are material (i.e. they would have a significant effect in reducing
the impact of the risk, should it materialise). This review has been
carried out by small working groups of subject matter experts,
then sense checked by the Risk Committee who independently
gave a view on material risks and controls.
Discussions are ongoing, and we will continue to refine our
approach. Our view on material controls will evolve during 2025
as we evaluate our position. We will engage with the Audit
Committee regularly during the coming year.
For any material controls, we will identify and document our
assurance sources. Where such assurance is to be sourced
internally, we will ensure that appropriate processes are in
place to obtain it in a robust and timely manner.
66
Climate risks
Our climate-related risks are captured in a consistent manner
to all other risks, and are recorded within our strategic and
functional registers. Members of our business assurance team
participate in our Sustainability Reporting Steering Group to
ensure risks and opportunities are considered and recorded.
Further details can be found in our TCFD disclosure on pages
50 to 58.
We remain of the view that our strategic risk of ‘a failure to
respond effectively to climate-related impacts on our business’
does not constitute a principal risk within the time horizon of our
current plans.
Emerging risks
We conduct an emerging risk review on a quarterly basis as part
of our Risk Committee’s rolling agenda. This helps to anticipate
change and respond proactively. Various sources of information
are used to ensure this is as complete as possible, including:
• Horizon scanning by subject matter experts throughout
the business, with issues identified being escalated to our
Operating Board via a monthly risk dashboard;
• Engaging with our functional heads to discuss any areas
of concern within their remit;
• Monitoring customer and consumer trends; and
• Taking input from our advisers and other specialists with
whom we work.
Current areas of emerging and escalating risks which we are
monitoring include geopolitical uncertainty, market pressures
and consumer demand across the sector. We are undergoing a
significant systems upgrade project, which is also being closely
monitored as an emerging risk.
Emerging risks are reported to the Board each quarter.
Changes to principal risk disclosures
A principal risk is a risk or combination of risks that can seriously
affect our performance, future prospects or reputation. Not all of
our strategic risks are considered to be principal risks, only those
which would have a significant impact on our ongoing viability
within the timeframe of our strategic plan.
There have been no significant changes to our principal risks
during 2024.
The following table sets out the principal risks, shows the
movement during the year, and describes the impact and key
mitigations. The list is not in priority order, and does not include
all the risks which are faced by the business. Other risks which
are not included here could also have a negative impact on the
business, including those which are not presently known to
us. The position described below is a summary at the time of
publishing this Annual Report.
RISK MANAGEMENT CONTINUED
67Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Risk and description Impact Key mitigations Strategic pillars Movement
OPERATIONAL
BUSINESS
INTERRUPTION EVENT
We could suffer a significant business
interruption event impacting one or more of
our key locations. For example, a prolonged
power outage, denial of access or an
incident resulting in physical damage.
We would potentially be unable
to meet business requirements to
supply our customers for a period
of time. This could impact our
own customers, including those
of our franchise, grocery retail
and delivery partners.
– We have contingency plans in place for our sites, which are
tested periodically. This includes prioritising our key lines in
the event of any issues.
– Working with our insurance broker, we are in the process of
developing a standardised Business Continuity Management
approach, which will further enhance our resilience.
– Our diversified product range from multiple production sites
provides alternatives for our customers.
– We have flexibility within our network to enable us to continue
our operations.
– Insurance cover is in place, and we liaise closely with
insurers, particularly when designing new sites or improving
existing premises.
1
2
3
4
5
FOOD SAFETY/STRATEGIC
SUPPLY CHAIN
DISRUPTION
External supply could be interrupted,
resulting from issues such as third-party
business interruption, geopolitical
instability or a food safety concern.
A prolonged outage or other
significant issue at one of our key
suppliers or within their supply
chain could impact on our ability
to produce some of our range,
or otherwise affect our ability
to operate.
– We aim to avoid single source supply for key ingredients
where possible.
– Stock holdings of ingredients and key equipment provide
some cover.
– In the event of interruptions, we are agile in our response to
implementing contingency plans. These are regularly tested.
– Relationships with suppliers are managed centrally by our
procurement teams, including a risk assessment process.
– Food safety processes and audits confirm compliance with
our standards.
1
2
3
4
5
STRATEGIC PILLARS
Principal risks and uncertainties
1
Great tasting, freshly prepared food
2
Best customer experience
3
Competitive supply chain
4
First-class support teams
5
The Greggs Pledge
68
Risk and description Impact Key mitigations Strategic pillars Movement
INFORMATION SECURITY
CYBER AND DATA
SECURITY INCIDENT
A cyber incident may occur which impacts
on our IT infrastructure, causing a data
breach or impacting confidentiality/
integrity of data.
We could suffer a significant loss
of data, resulting in litigation
and fines.
Our operations could be disrupted
for a period of time.
– Third parties provide expertise and support, including regular
penetration testing and a Security Operations Centre
monitoring our networks around the clock.
– Our technical measures are constantly reviewed and updated
in line with changing requirements and recognised information
security control sets. An independent assurance programme
is in place to review this.
– Ongoing training and advice are provided to our colleagues to
improve awareness and strengthen our detection and prevention.
– An incident response process is in place.
2
3
4
OPERATIONAL
PROLONGED SYSTEM
DOWNTIME/
INTERRUPTION
A growing reliance on technology means
that system interruptions become more
disruptive, with an increased risk of
business operations being affected.
IT products and services which are
needed to support our business-
critical activities may be lost.
– Greater investment in our IT infrastructure, utilising
more cloud-based solutions, increases resilience within
our network.
– We have established disaster recovery processes, which
are tested periodically. We continue to develop our
business continuity arrangements, which enable us to
maintain operations.
– External partners are engaged to ensure they can provide
specialist support and expertise when required.
2
3
4
STRATEGIC
DETERIORATION OF
RELATIONSHIP WITH
KEY PARTNER
We continue to work closely with franchise,
grocery retail and delivery partners in order
to broaden our service offer into locations
where our customers want us to be. There
is a risk that our strategy and goals are not
fully aligned.
A lack of alignment could result
in targets not being met, due to
performance not being optimised.
Our brand’s reputation could be
damaged, and the relationship
would be put at risk.
– We work with a number of respected partners, and are
continuing to broaden the range of businesses with
whom we operate. This reduces the reliance on any one
individual partner.
– Contracts and service-level agreements are in place, along
with a robust onboarding process for new partners. Ongoing
performance is measured and action taken promptly in
the event of standards failing to be met.
– Regular dialogue ensures an alignment of goals, and early
identification of any issues.
1
2
3
4
RISK MANAGEMENT CONTINUED
STRATEGIC PILLARS
1
Great tasting, freshly prepared food
2
Best customer experience
3
Competitive supply chain
4
First-class support teams
5
The Greggs Pledge
69Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Risk and description Impact Key mitigations Strategic pillars Movement
OPERATIONAL
ABILITY TO ATTRACT/
RETAIN/MOTIVATE PEOPLE
Our people are an essential part of our
business and our culture. We may be
unable to attract and retain the right
talent within Greggs.
We may be unable to continue
to deliver the product range
and service standards that
our customers want and expect
from us.
A loss of existing resource results
in additional recruitment, which
in turn creates workload and
training requirements.
Ultimately, we may be unable
to grow the business in line with
our strategy.
– We recognise the importance of our people to the business’
success, and offer competitive packages and extensive
training and development opportunities, which help us to
improve our retention rates.
– We offer our colleagues additional benefits such as wellbeing
support and flexible working, helping to maintain positive
employee relations.
– Colleagues have a range of ways to communicate their ideas for
improvement, including annual opinion surveys, listening groups
and inclusion networks for minority communities and allies.
– Efficient recruitment processes allow us to fill vacancies
quickly and effectively.
1
2
3
4
5
REPUTATIONAL
DAMAGE TO REPUTATION
As brand awareness grows, there is
greater risk of damage to our reputation
by internal factors, third-party actions
or fraudulent behaviour.
Customers could lose their trust
in the brand, ultimately impacting
on our ability to grow our estate
and achieve our objectives.
Shareholder value could be reduced.
– We have a robust crisis management process in place, which
we test regularly. This is supported by appropriate third parties
(such as PR agencies) where specialist advice is required.
– Training and guidelines for our teams ensure proper processes
are followed.
– All of our shops and supply sites are required to follow
consistent procedures to ensure that our food complies
with standards.
– Our audit teams assess compliance with standards, across
both company-managed and franchise shops, as well as within
central functions.
2
3
70
Risk and description Impact Key mitigations Strategic pillars Movement
FOOD SAFETY
SIGNIFICANT FOOD
SAFETY INCIDENT/
PRODUCT QUALITY ISSUE
We may produce and/or sell products which
are unsafe, or not of the appropriate quality.
This could be a result of incorrect labelling
of allergens, product contamination, or
a failure to follow procedures correctly.
There could be harm to our
customers or colleagues.
Our reputation as a trusted brand
could be significantly impacted,
which in turn would affect our
financial performance. We could
also be exposed to significant fines.
– All new external suppliers require formal approval, and
all ingredients and products have agreed specifications,
to ensure consistency.
– Robust food safety standards and policies are in place,
independently assured by our Primary Authority.
– Our teams are trained, with specialists able to provide
additional knowledge.
– Audits are undertaken by our internal teams and external
bodies, with a focus on food safety.
– Our complaints process ensures all matters are investigated.
When a root cause is identified, we take action to address it.
1
2
3
4
5
GOVERNANCE, LEGAL AND REGULATORY
CHANGES IN THE
REGULATORY LANDSCAPE
New regulatory requirements could be
implemented, driven by environmental,
health or other concerns.
It may be necessary for us to make
changes to our product range.
Without an ability to respond
quickly, we could lose market share.
– Regular horizon-scanning activities are undertaken by
our teams, and we receive advisory information across all
professional disciplines.
– We engage with Trade Associations and government bodies
to ensure we are updated with developments.
– Participating in industry forums gives us an opportunity
to influence decision-making.
1
2
3
4
RISK MANAGEMENT CONTINUED
STRATEGIC PILLARS
1
Great tasting, freshly prepared food
2
Best customer experience
3
Competitive supply chain
4
First-class support teams
5
The Greggs Pledge
71Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
The Directors have assessed the Group’s prospects and viability
taking into account its current position, plans and principal risks.
In carrying out its assessment the Board has reviewed the
three-year operational and financial plans to 2027. This is the
period over which the Board reviews management’s business
planning and sets performance targets, and therefore the Board
believes that this remains the most appropriate timeframe over
which to make the viability assessment.
The Directors have carried out a robust assessment of the principal
risks facing the Group, including those that would threaten its
business model, future performance, solvency or liquidity.
The principal risks to which the Group is exposed ultimately affect
the ability of its shops to trade successfully, either due to reduced
demand or because of operational interruptions, including
those to its internal supply chain. A significant loss of sales is
particularly damaging given the Group’s vertical integration in that
the cost of the internal supply chain cannot be reduced quickly.
Scenarios were modelled to stress-test the Group’s financial
resilience to the impact arising from occurrence of the following
principal risks:
1. Pandemic threat – the risk that the Group is forced to close
its shops to walk-in customers for three months from
October 2025 as a result of lockdown rules, and subsequently
experiences subdued levels of walk-in trade as the economy
recovers (starting at 70% of previously forecast sales in
January 2026, building back to 100% by the start of 2027).
Delivery channel sales are assumed to continue through
the lockdown months, with a 2.5x increase in volume as
customers switch channels, as are ‘bake at home’ sales
through the Group’s wholesale relationship with Iceland
Foods. This forward scenario assumes that Government
support would be available for employment costs and that
relief from business rates would be available during the
periods of forced closure.
2. A brand-damaging food scare resulting in a significant
one-year sales reduction (circa 25% sales reduction
for initial six months) followed by gradual recovery of
confidence. In making assumptions the Directors
considered real examples of companies in the food
sector that had experienced such issues.
3. Temporary loss of production capacity for the Group’s iconic
pastry savoury products and the consequences for liquidity
as capacity is restored.
In each case the Directors reviewed the mitigating actions that
would be necessary to protect the Group’s liquidity.
These included:
• The temporary suspension of dividend payments in order
to preserve cash for operational use;
• Restriction of capital expenditure whilst protecting essential
infrastructure maintenance and commitments to strategic
investments;
• Access to Government support;
• Drawing on existing committed financing facilities; and
• Calling on the Group’s insurance arrangements on the
occurrence of an insured risk.
The scenarios tested were capable of being managed within
the Group’s existing, committed financing facilities with no
forecast breaches of lending covenants. Given the opening
cash position in 2025 the Group has sufficient existing and
committed financing facilities to manage in a situation where
multiple principal risk scenarios occur concurrently, including an
assumption that extension options will be agreed by lenders on
expiry of the current facility in June 2027. This will likely not be
the case in future years as we increase capital expenditure and
reduce the Group’s cash position. In the event of multiple principal
risk scenarios occurring the Directors believe that the borrowing
capacity of the Group would be sufficient to allow it access to
temporary additional facilities.
Based on the results of the analysis, the Directors have a
reasonable expectation that the Group will be able to continue
in operation and meet its liabilities as they fall due over the
three-year period of their detailed assessment.
The Strategic Report was approved by the Board on 4 March 2025.
Signed on behalf of the Board.
Roisin Currie
Chief Executive
4 March 2025
Viability
72
BOARD OF DIRECTORS AND SECRETARY
MATT DAVIES
Chair
ROISIN CURRIE
Chief Executive
RICHARD HUTTON
Chief Financial Officer
Matt is a widely experienced retailer and was previously the CEO
of Tesco UK and ROI, before which he held CEO positions at Pets
at Home and Halfords. As a Non-Executive Director, Matt chaired
N Brown Group plc and was on the Board of Dunelm Group plc.
Roisin was appointed Chief Executive from the role of
Retail and Property Director. Prior to joining Greggs in 2010,
Roisin worked at Asda where she held various People Director
roles, including responsibility for the organisation’s retail and
distribution operations.
Richard qualified as a Chartered Accountant with KPMG and
gained career experience with Procter & Gamble before joining
Greggs in 1998.
Appointed since
2 August 2022
Appointed since
1 February 2022
Appointed since
13 March 2006
Independent
Yes
Independent
n/a
Independent
n/a
Committee membership
Chair of the Nominations Committee.
External appointments
Chair of AutoTrader and a number of private equity-owned
businesses and is an Operating Partner at Advent International.
External appointments
Chair of the Employers Forum For Reducing Re-offending.
Trustee of Duke of Edinburgh Award Scheme.
Non-Executive Director of Howden Joinery Group Plc.
External appointments
Trustee Director of Business in the Community.
Trustee of The Greggs Foundation.
73Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
73
ACCOUNTS
Greggs plc Annual Report and Accounts 2024
MOHAMED ELSARKY
Non-Executive Director
KATE FERRY
Non-Executive Director
NIGEL MILLS
Senior Independent Non-Executive Director
Mohamed is currently the Group Chief Executive Officer of
The Unifrutti Group and is an experienced international food
manufacturing executive, who has held senior positions in Kelloggs,
Danone and Godiva Chocolatier. Mohamed has previously held
Non-Executive Director positions including at Nomad Foods,
a company listed on the New York Stock Exchange.
Mohamed is the designated Non-Executive Director for colleague
engagement.
Kate is currently Chief Financial Officer at Burberry Group plc.
Prior to joining Burberry Group, Kate was Chief Financial Officer
of Maclaren Group and TalkTalk Group, and has previously
held positions on the Dixons Carphone plc (now Currys plc)
Executive Committee. Kate began her career in audit with
PricewaterhouseCoopers.
Nigel has extensive expertise in financial markets, investors and
governance, having been Chief Executive at Hoare Govett and Chair of
Corporate Broking at Citi Group, advising a wide range of companies
including a significant number within the consumer sector.
Appointed since
21 June 2021
Appointed since
1 June 2019
Appointed since
7 March 2023
Independent
Yes
Independent
Yes
Independent
Yes
Committee membership
Member of the Audit, Remuneration and Nominations Committees.
External appointments
CEO Unifrutti Group, Executive Chairman at the Nu Company GmbH,
Senior Adviser at Bain Partners.
Committee membership
Chair of the Audit Committee. Member of the Remuneration and
Nominations Committees.
External appointments
CFO Burberry Group plc, Chair of the Audit Committee – British
Olympic Committee Foundation.
Committee membership
Member of the Audit, Remuneration and Nominations Committees.
External appointments
Senior Independent Non-Executive Director role at both John Wood
Group PLC and at Persimmon plc.
74
BOARD OF DIRECTORS AND SECRETARY CONTINUED
TAMARA ROGERS
Non-Executive Director
LYNNE WEEDALL
Non-Executive Director
SARAH DICKSON
Company Secretary and General Counsel
Tamara is the Global Chief Marketing Officer at Haleon plc, having
joined GSK Consumer Healthcare in 2018 as Region Head EMEA.
Prior to that, Tamara spent 25 years at Unilever holding leadership
positions including EVP Region Head Personal Care North America
and EVP Global Deodorants Category.
Lynne has been involved in the retail sector throughout her career,
latterly as Group People and Culture Director for Selfridges Group.
Prior to joining Selfridges Group, Lynne was Group Director of
Human Resources at Dixons Carphone plc (now Currys plc) and has
previously held senior positions in companies such as Whitbread.
Sarah joined the Company on 9 December 2024 from Marks &
Spencer plc, where she was Deputy General Counsel and Data
Protection Officer. Sarah is a lawyer by profession, having previously
held other senior legal roles at Asda. Sarah is also a Chartered
Governance Institute-qualified Secretary.
Appointed since
1 June 2024
Appointed since
17 May 2022
Appointed since
19 December 2024
Independent
Yes
Independent
Yes
Independent
n/a
Committee membership
Member of the Audit, Remuneration and Nominations Committees.
External appointments
Chair of Global Self-Care Federation.
Global Chief Marketing Officer at Haleon plc
Committee membership
Chair of the Remuneration Committee.
Member of the Audit and Nominations Committees.
External appointments
Senior Independent Non-Executive Director and Remuneration
Committee Chair at Dr. Martens plc and Non-Executive Director
and Chair of the Remuneration and Nominations Committees
at Softcat plc. Non-Executive Director of Stagecoach Limited.
Member of The King’s Trust Council.
External appointments
n/a
75Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
GOVERNANCE REPORT
Dear Shareholder
I’m delighted to introduce the governance sections of our
2024 Annual Report. As ever, if stakeholders have any questions
or comments, please don’t hesitate to contact us.
Board changes in 2024
We made one new appointment to our Non-Executive Director
team during the year, welcoming Tamara Rogers onto the Board
in June. Tamara is Global Chief Marketing Officer at Haleon
plc, the FTSE 100 consumer health business previously part of
GSK. Tamara brings to the Board a wealth of experience across
marketing, customer insight, and digital commerce, which will be
of significant value as Greggs continues its journey as a multi-
channel consumer business.
Culture and purpose
Last year, for the first time, we introduced a new section to our
Annual Report entitled ‘Our People’, emphasising the importance
of our colleagues right across the business. Without their
contribution, we could not achieve our purpose of making freshly
prepared food available to everyone. The latest ‘Our People’ report
can be found on pages 40 to 45. Those pages describe how we
set about listening to our colleagues, how we embrace diversity
though various colleague inclusion networks, pay gap reporting,
how we develop our colleagues, and much more.
Our sustainability strategy, The Greggs Pledge, has entered the
final year of it first five-year iteration, and I’m pleased to say we
continue to make great progress with our commitments. Our team
is focused on delivering the current commitments as we enter
that final year, but also in evolving The Greggs Pledge for launch
in 2026. We’ve provided more details on pages 46 to 49 of this
Annual Report, and online at: corporate.greggs.co.uk/doing-good.
Governance and reporting
We have continued with our regular Board meetings across the
year, which sees the Board meet at the Head Office in Newcastle,
and also at our supply chain sites or in London. We met formally
seven times in the year, with the meetings governed by a set
agenda, and we also met with our external evaluation facilitator,
Milena Djurdjevic, to receive feedback on her findings. We’ve set
out some of the findings from that evaluation on page 76 and
I’d like to take this opportunity to thank Milena for her work in
providing her report.
As always, our Non-Executive Directors are encouraged to
spend time across our shops, supply and logistic sites, and
central offices to give visibility of the Board as best we can
in the time available.
In September 2024, the Board visited our production facility
at Enfield, seeing the facilities and speaking with colleagues
involved in the production of our bread lines and pizza. More
details of the Board’s activities, and key decisions taken during
the year, are set out later in this section of our Annual Report.
I’m pleased to say that we were compliant with the UK Corporate
Governance Code (2018) (the ‘Governance Code’) throughout the
year, and the following pages set out further details. I invite you
to consider that alongside the report on how the Directors have
fulfilled their duties in accordance with s172 Companies Act
2006. We have been monitoring the changes resulting from the
revised UK Corporate Governance Code 2024 edition, and will be
adapting our reporting next year to reflect our compliance with
that amended regime.
Once again, we will be holding our AGM in Newcastle, this year
on Wednesday 21 May 2025, and we’d like to see as many of our
shareholders as possible at that event. This provides a great
opportunity to hear from and speak with members of the
Board and Operating Board, followed by lunch, including all
your Greggs favourites.
Matt Davies
Chair
4 March 2025
CHAIR’S INTRODUCTIONCHAIR’S INTRODUCTION
76
DIRECTORS’ REPORT AND GOVERNANCE REPORT
This Governance Report sets out how the
Company has applied the principles in the
2018 UK Corporate Governance Code during
its financial period ended 28 December 2024.
A copy of the Governance Code is available at
frc.org.uk/directors/corporate-governance/
uk-corporate-governance-code.
Board composition, succession and evaluation
During the year we welcomed Tamara Rogers to the Board on
1 June 2024. Tamara’s details can be found on pages 74 and 75
of this Annual Report.
As at 28 December 2024, 50% of the Board are women.
One senior position, that of Chief Executive, is held by a woman
and at least one Director comes from an ethnic background.
Further details outlining our commitment to diversity and
inclusion are provided in the ‘Our People’ section of this Annual
Report on pages 40 to 45. These details are incorporated by
reference into this Directors’ Report.
Our governance structure is such that all Non-Executive
Directors are independent and sit on each Board Committee,
a practice that has been deployed over many years and which
continues to work well for us. Each such Committee is chaired
by a Non-Executive Director with appropriate experience.
For example, our Audit Committee is chaired by Kate Ferry, a
Chartered Accountant and currently CFO of Burberry Group plc.
When any new Director is appointed, they undergo an induction
process that includes accompanied visits to shops, supply and
logistic sites, as well as meeting key team members of senior
management. The induction of new Directors was considered as
part of the externally-facilitated evaluation undertaken towards
the end of 2024, and in this context the report concluded that
‘the induction process for new Non-Executive Directors is well
thought-through and extremely helpful in allowing the individual
to really get under the skin of the business’.
In 2024, the Board resolved to have its annual evaluation externally
facilitated. The Chair and the Company Secretary conducted
a tender process, with Calibro Consulting (which has no other
connection with the Company or its Directors), led by Milena
Djurdjevic, being appointed. Milena attended several Board and
Committee meetings over a five-month period, and conducted
one-to-one meetings with all Directors and the Operating
Board members. Her report was then presented to the Board
at a meeting in December 2024.
Following that review, the Board has developed objectives
for itself during 2025, which include the following:
• Develop Board processes to ensure appropriate time is
allocated to strategy, operational updates, governance and
the work done in Committees.
• Validate that the operational structure is optimised towards
continued achievement of the business plan.
• Evolve the sustainability plan (The Greggs Pledge) for 2026-2030.
Any impact the evaluation may have on the composition of the
Board will be considered in 2025.
Sharing Board responsibility
There is a written statement of the split of responsibilities
between the Chair and the Chief Executive, and this is available on
the corporate website at corporate.greggs.co.uk. Matt Davies was
considered as independent on his appointment, and he continues
to be so, and all of the Non-Executive Directors are independent.
There is also a written statement of the responsibilities of the
Senior Independent Non-Executive Director. Nigel Mills has been
in the role since 17 May 2023, and at least annually spends formal
time with the Non-Executive Directors without the Chair being
present. At these sessions, the Non-Executive Directors consider
the Chair’s performance, which is then fed back to Matt by Nigel.
Nigel is also the Senior Independent Director at Persimmon plc
and John Wood Group PLC.
During the year, Matt Davies held regular and informal
conversations with the Non-Executive Directors, collectively
and individually, ensuring that they had plenty of opportunity to
raise any concerns that they might have or to express opinions.
Matt also had regular sessions with the Executive Directors and
members of the Operating Board. A short period of reflection is
now a part of every Board agenda, when the Directors are invited
to consider topics covered in the meeting, potential areas for
future consideration, and areas that need more focus.
The Board has three main Committees, being the Audit,
Remuneration and Nominations Committees, each chaired by
an Independent Non-Executive Director or the Chair. Terms of
reference for each of the Committees were last reviewed by the
respective Committee and the Board in November 2024, and
subsequently readopted. The readopted terms of reference can
be found on the corporate website. Details of the work of those
Committees can be found on pages 88 to 94 (Audit Committee
Report), pages 95 to 118 (Directors’ Remuneration Report), and
page 77 (Nominations Committee update).
The Board generally schedules seven meetings in each year,
including an annual formal strategy meeting, and then meets from
time to time as may be required. Board and Committee meetings
are well-attended, and attendance is set out in the following table:
Attendance Board
Audit
Committee
Remuneration
Committee
Nominations
Committee
Matt Davies 7/7 – – 1/1
Roisin Currie 7/7 – – –
Richard Hutton 7/7 – – –
Mohamed Elsarky 7/7 4/4 3/3 1/1
Kate Ferry* 5/7 4/4 2/3 1/1
Lynne Weedall 7/7 4/4 3/3 1/1
Nigel Mills 7/7 4/4 3/3 1/1
Tamara Rogers** 4/4 2/2 1/1 0/0
* Kate Ferry missed two Board sessions following a medical procedure from
which she has fully recovered.
** Tamara Rogers was appointed to the Board on 1 June 2024.
77Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Nominations Committee update
The Nominations Committee is chaired by the Board Chair and
has terms of reference that are reviewed each year, approved
by the Board and adopted by the Committee. Those terms of
reference, which are available on the Company’s corporate
website, set out the responsibilities of the Committee. All of
the Non-Executive Directors are members of the Committee,
in line with the Board’s current policy of having all Non-Executive
Directors appointed to each of the three main Committees. The
Chief Executive is a regular attendee at Nominations Committee
meetings, and from time to time the Chief Financial Officer and
the People Director are also invited.
The Committee’s primary responsibility is to ensure plans are
in place for orderly succession to the Board, and also to the
Operating Board, when that responsibility is not reviewed by the
Board as a whole. There is an agenda item at one Board meeting
each year when the Chief Executive and the People Director
present succession plans for each Operating Board Director.
During 2024, there were two appointments to the Operating
Board made as a result of retirements. The Chief Executive kept
the Board apprised of progress, and the Chair of the Board (and
Nominations Committee) met the final candidates, who were
both external appointees. The Board approved the appointment
of Sarah Dickson as Company Secretary and General Counsel,
replacing Jonathan Jowett. Further details about Sarah are set
out on page 74.
In the first part of 2024, the Nominations Committee completed
the appointment of a further Non-Executive Director. Spencer
Stuart was appointed, in 2023, to support the Board and
Nominations Committee with the search. Spencer Stuart has no
connections to the Company, nor to any of the Directors, other
than as recruitment adviser. The search culminated in the Board
accepting the Nominations Committee’s recommendation to
appoint Tamara Rogers. The appointment process included
a review of the skills on the Board and potential gaps, the
development of a role profile, a candidate assessment process
conducted by Spencer Stuart, a number of meetings with all
members of the Board, as well as taking formal and informal
references. The Board formally appointed Tamara with effect
from 1 June 2024.
As referred to in the process above, in selecting new
Non-Executive Directors, the Nominations Committee uses
a skills matrix to assess the necessary and preferred attributes
in potential candidates. The Nominations Committee also takes
into account other demands on potential candidates’ time and
asks them to confirm they will be able to commit the necessary
time to Greggs, with that commitment ultimately being included
in the letter of appointment.
The Nominations Committee has considered the contribution
of each of the Directors, and has confirmed to the Board its
recommendation that all Directors including the Chair should
be reappointed at the AGM in May 2025.
As noted in the Governance Report on page 76 there was an
externally-facilitated evaluation of the Board and its committees
during 2024, conducted by Calibro Consulting. The Committee
has considered the results of this evaluation and concluded that
it operates effectively and that the Board takes assurance from
the quality of its work.
Board activity in the year
The Board made a number of key decisions across the year, which
included the decision to fund the development of two sites in
the Midlands: one in Derby and one in Kettering – both to support
future shop growth. Site visits included tours of the production
facilities at Enfield, and the new investment in the North East at
the Balliol facility, which will support shop growth. Other matters
considered across the year included:
January Approval of budget 2024.
March Approve release of preliminary results and approval
of the 2023 Annual Report and Accounts.
Review of cash usage and approval of dividend.
Report on external review of allergen controls.
Supply chain investment.
May AGM preparation including consideration of proxy
adviser reports and voting.
Review of estate strategy.
Approval of defined benefit pension scheme
insurance policy buy-in.
June The approval of a new £100 million revolving
credit facility, replacing the previous one.
The annual strategy meeting.
July Approve release of interim results.
Business plan 2025 progress updates.
September People and succession strategy.
Franchise strategy.
SAP investment.
November The Greggs Pledge evolution.
Food safety, and health and safety review.
CRM strategy.
Diversity and inclusion
The Board as a whole, rather than the Nominations Committee,
monitors the gender balance in the Company.
The required disclosures are set out on page 42 and are
incorporated by reference into the Directors’ Report. The section
entitled ‘Our People’ contains information about our colleague
inclusion networks, team development, and engagement activity.
As part of the DTR 7.2.8A disclosure, the ‘Our People’ report on pages
40 to 45 is incorporated by reference into this Directors’ Report.
78
Other disclosures
Directors and their interests
The names of the Directors in office during the year, together
with their relevant interests in the share capital of the Company
at 31 December 2023 and 28 December 2024, are set out
in the Directors’ Remuneration Report on page 116. Details
of the Directors’ share options are set out in the Directors’
Remuneration Report on page 114.
Directors’ indemnities and conflicts
As at the date of this Annual Report, indemnities are in force
under which the Company has agreed to indemnify the Directors,
to the extent permitted by law, in respect of losses arising out of,
or in connection with, the execution of their duties, powers
or responsibilities as Directors of the Company. The indemnities
do not apply in situations where the relevant Director has been
guilty of fraud or wilful misconduct.
Under the authority granted to them in the Company’s articles
of association, the Board has considered carefully any situation
declared by any Director pursuant to which they have or might
have a conflict of interest and, where it considers it appropriate
to do so, has authorised the continuation of that situation.
At each Board meeting, a Schedule of Potential Conflicts of
Interest is reviewed and Directors are asked to declare any new
or changed interests. In exercising their authority, the Directors
have had regard to their statutory and other duties to the
Company. All Directors have access to the Company Secretary
as and when required.
Substantial shareholdings
At 3 March 2025, the only notified holdings of substantial voting
rights in respect of the issued share capital of the Company (which
may have altered since the date of such notification, without any
requirement for the Company to have been informed) were:
Shareholder
Number of shares
held
Percentage of
issued share
capital
Schroders plc 5,069,408 4.96%
Royal London Asset Mgt 5,050,276 4.94%
Blackrock, Inc Not disclosed <5%
Additional information
• Future business developments: details of future business
developments can be found throughout the Strategic Report
on pages 26 to 37.
• Financial risk management: details of our financial risk
management policies and objectives can be found in Note 2
to the accounts.
• The information set out within the Governance Report on
pages 75 to 80 forms part of the Directors’ Report.
• GHG emissions: all disclosures concerning the Group’s GHG
emissions (as required to be disclosed under the Companies
Act 2006 (Strategic Report and Directors’ Report) Regulations
2013) are contained in the TCFD Report on pages 50 to 58.
• Dividends: details of the dividends declared and paid are given
in Note 24 to the accounts.
• Stakeholder engagement: details of the Group’s engagement
with colleagues, suppliers, customers and others are given on
pages 81 to 87.
Non-financial and sustainability information regulations
The mandatory climate-related information required by sections
414CA and 414CB of the Companies Act 2006 is included within
the Strategic Report on pages 1 to 71 and the Directors’ Report on
pages 72 to 120.
Authority to purchase shares
At the AGM on 15 May 2024, the shareholders passed a resolution
authorising the purchase by the Company of its own shares to a
maximum of 10,100,000 ordinary shares of two pence each.
That authority had not been used as at 28 December 2024.
The authority remains in force until the conclusion of the AGM
in 2025 or 20 August 2025, whichever is the earlier. It is the
Board’s intention to seek approval at the 2025 AGM for the
renewal of this authority.
Takeover directive information
Following the implementation of the European Directive on
Takeover Bids by certain provisions of the Companies Act
2006, the Company is required to disclose certain additional
information in the Directors’ Report. This information is set
out below:
• The Company has one class of share in issue being ordinary
shares of two pence each. As at 4 March 2025, there were
102,255,675 such ordinary shares in issue. There are no shares
in the Company that grant the holder special rights with regard
to the control of the Company.
• At general meetings of the Company, on a show of hands,
every shareholder present in person or by proxy has one vote
only and, in the case of a poll, every shareholder present in
person or by proxy has one vote for every share in the capital
of the Company held.
• The Company’s articles of association set out the
circumstances in which shares may become disenfranchised.
No shareholder is entitled, unless the Directors otherwise
determine, in respect of any share held, to be present or
vote at a general meeting either personally or by proxy (or
to exercise any other right in relation to meetings of the
Company) in respect of that share in certain circumstances
if any call or other sum is payable and remains unpaid, if the
shareholder is in default in complying with a duly-served
notice under section 793(1) of the Companies Act 2006 or if
any shareholder has failed to reply to a duly-served notice
requiring them to provide a written statement stating they
are the beneficial owner of the shares.
• A notice convening a general meeting can contain a statement
that a shareholder is not entitled to attend and vote at a
general meeting unless their name is entered on the register
of members of the Company at a specific time (not more than
48 hours before the meeting) and if a shareholder’s name is
not so entered, they are not entitled to attend and vote.
DIRECTORS’ REPORT AND GOVERNANCE REPORT CONTINUED
79Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
• Under the Company’s articles of association, the Directors
may, in their absolute discretion, refuse to register the
transfer of a share in certified form in certain circumstances
where the Company has a lien on the share (provided that the
Directors do not exercise their discretion so as to prevent
dealings in partly-paid shares from taking place on an open
and proper basis), where a shareholder has failed to reply to a
duly-served notice under section 793(1) Companies Act 2006
or if a transfer of a share is in favour of more than four persons
jointly. In addition, the Directors may decline to recognise any
instrument of transfer unless it is in respect of only one class
of share and is deposited at the address at which the register
of members of the Company is held (or at such other place as
the Directors may determine) accompanied by the relevant
share certificate(s) and such other evidence as the Directors
may reasonably require to show the right of the transferor to
make the transfer. In respect of shares held in uncertificated
for, the Directors may only refuse to register transfers in
accordance with the Uncertificated Securities Regulations
2001 (as amended from time to time).
• Under the Company’s code on dealings in securities in the
Company, persons discharging managerial responsibilities and
some other senior executives may in certain circumstances be
restricted as to when they can transfer shares in the Company.
• There are no agreements between shareholders known to the
Company, which may result in restrictions on the transfer of
shares or on voting rights.
• Where, under a colleague share plan operated by the
Company, participants are the beneficial owners of shares
but not the registered owner, the voting rights are normally
exercised by the registered owner at the direction of the
participant.
• The Company’s articles of association may only be amended
by special resolution at a general meeting of the shareholders.
• The Company’s articles of association set out how Directors
are appointed and replaced. Directors can be appointed by
the Board or by the shareholders in a general meeting. At
each AGM, any Director appointed by the Board since the last
AGM must retire from office but is eligible for election by the
shareholders. Furthermore, the Board has resolved that, in
line with the Corporate Governance Code (2018 revision), all the
Directors will be subject to annual re-election by shareholders.
Under the Companies Act 2006 and the Company’s articles
of association, a Director can be removed from office by the
shareholders in a general meeting.
• The Company’s articles of association set out the powers of
the Directors. The business of the Company is to be managed
by the Directors who may exercise all the powers of the
Company and do on behalf of the Company all such acts as
may be exercised and done by the Company and are not by
any relevant statutes or the Company’s articles of association
required to be exercised or done by the Company in a general
meeting, subject to the provisions of any relevant statutes and
the Company’s articles of association and to such regulations
as may be prescribed by the Company by special resolution.
• Under the Companies Act 2006 and the Company’s articles of
association, the Directors’ powers include the power to allot
and buy back shares in the Company. At each AGM, resolutions
are proposed, granting and setting limits on these powers.
• The Company is not party to any significant agreements which
take effect, alter or terminate upon a change in control of the
Company, following a takeover bid.
• There are no agreements between the Company and its
Directors or colleagues providing for compensation for
loss of office or employment (whether through resignation,
purported redundancy or otherwise) that occurs because of a
takeover bid. However, provisions in the colleague share plans
operated by the Company may allow options to be exercised
on a takeover.
Significant relationships
The Group does not have any contractual or other relationships
with any single party which are essential to the business of the
Group and, therefore, no such relationships have been disclosed.
Colleagues
What makes Greggs so special is its culture – the way our
colleagues encourage and support each other. We want everyone
to feel welcome at Greggs and our colleagues to be able to be
themselves at work, whatever their background, preferences
or views. Where colleagues or prospective colleagues have
a disability then discussions will be had with individuals to
review any adjustments required and every effort will be made
to support them. Greggs is committed to creating a work
environment free of discrimination, bullying, harassment and
victimisation, where everyone is treated equally with dignity
and respect. This applies in all aspects of employment including
recruitment and selection, promotion, transfer, training or other
developmental opportunities, pay and benefits, other terms
of employment, discipline and selection for redundancy. Our
colleague networks, covering LGBTQ+, ethnicity and disability,
provide valuable insight and feedback, and help us to develop
training for our colleagues and understand how we can improve
the way we do things at Greggs. Details on the contribution of our
networks can be found on page 42.
Accountability, audit and going concern
The Board acknowledges its responsibility to present a fair,
balanced and understandable assessment of the Company’s
position and prospects. In order to assist the Board to comply
with the requirements within the Governance Code, each year
the Audit Committee is requested to undertake an assessment of
the Annual Report and to make a recommendation to the Board.
This request has been enshrined within the Audit Committee’s
terms of reference, which are available at corporate.greggs.co.uk
/investors/corporate-governance.
The actions undertaken by the Audit Committee in confirming
its advice to the Board include the consideration of a detailed
review that has been undertaken by the Head of Business
Assurance and reviewing the Annual Report as a whole to
confirm that it presents a fair, balanced and understandable
assessment. In considering the advice of the Audit Committee,
and having reviewed the Annual Report including the contents
80
of the Strategic Report, together with the statutory accounts
themselves, the Board duly considers the Annual Report and
Accounts, taken as a whole, is fair, balanced and understandable,
and provides the necessary information for shareholders to
assess the Company’s performance, business model and strategy.
A statement of Directors’ responsibilities in respect of
the preparation of accounts is given on pages 119 and 120.
A statement of auditor’s responsibilities is given in the report
of the auditor on page 126.
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue
in operational existence for the foreseeable future. For this
reason, they continue to adopt the going concern basis in
preparing the accounts (see ‘Basis of preparation’ in the notes to
the accounts on page 134). The Board’s viability statement made
in accordance with Governance Code Provision 31 can be found
on page 71.
Policies
Freedom of association
At Greggs, we recognise the right of all colleagues to freedom
of association and collective bargaining. Whilst we do not have
a formal freedom of association policy, the Company encourages
all its colleagues in supply sites, shops and offices to become,
and remain, members of a union.
Bribery and corruption
Greggs has an anti-bribery and corruption policy, which applies
to all employees and prohibits the offering, giving, seeking
or acceptance of any bribe in any form to any person or
company acting on its behalf, in order to gain an advantage
in an unethical way.
Business conduct
We have a specific policy that sets out the standards of ethical
behaviour that are expected of all employees. Graded managers,
and all members of the procurement team, are required to make
an annual confirmation of their compliance with the policy.
Whistleblowing
Our ‘whistleblowing’ policy creates an environment where
employees are able to raise concerns without fear of disciplinary
action being taken against them as a result of any disclosure.
Any matters raised are treated in confidence and an independent
review will be undertaken where it is appropriate. The Chair of
the Audit Committee is the designated first point of contact
for any concerns which cannot be addressed through normal
management processes.
Political donations
Greggs has a clear policy forbidding political donations or
contributions. This includes financial and in-kind contributions
made by the Company.
Disclosure of information to the auditor
Each of the Directors who held office at the date of approval
of this Directors’ Report confirms that, so far as they are
individually aware, there is no relevant audit information of which
the Company’s auditor is unaware and that they have taken all
the steps that they ought to have taken as a Director to make
themselves aware of any relevant audit information and to
establish that the Company’s auditor is aware of that information.
By order of the Board
Company Secretary
4 March 2025
Greggs plc (CRN 502851)
Greggs House, Quorum Business Park
Newcastle upon Tyne NE12 8BU
DIRECTORS’ REPORT AND GOVERNANCE REPORT CONTINUED
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
81Greggs plc Annual Report and Accounts 2024
OUR STAKEHOLDERS
The views of our key stakeholders and our
Company purpose remain front of mind
whenever the Board has decisions to make.
SECTION 172 SECTION 172
STATEMENTSTATEMENT
It is a key responsibility of the Executive Directors to maintain
strong connections with stakeholders. For example, the Chief
Executive hears from customers regularly, has ‘top-to-top’
meetings with key suppliers, and spends much of her time in
shops and our production sites speaking with colleagues.
The Chief Financial Officer leads on discussions with current
and potential investors, accompanied by the Chief Executive at
times across the year, and he also manages the relationships with
banking partners. The Chief Executive and Chief Financial Officer
report back to the Board on engagements of any significance,
including with shareholders, banks, colleagues and customers.
Working with the People Director, Mohamed Elsarky, our Non-
Executive Director who leads on colleague engagement, agrees
a schedule of events across the year when Board members have
the opportunity to hear from colleagues. These include listening
groups with colleagues, the annual management conference, and
formal and informal visits to shops, production and distribution
sites. At Board meetings, Directors are invited to comment on
their activities and learnings.
The following pages 81 to 87 comprise our section 172
statement and describe how the Directors individually
and collectively, acting in good faith, have exercised
their duties over the course of the year to promote
the long-term success of the Company for the benefit
of its members as a whole, and in doing so have had
regard to the matters set out in section 172(1) (a) to (f)
of the Companies Act 2006.
82
CUSTOMERS COLLEAGUES SUPPLIERS SHAREHOLDERS LENDERS COMMUNITIES
How and why we engage
With an increasing ability to interpret how our customers are
feeling about Greggs, as a result of our developing CRM systems,
the voice of the customer in the Boardroom is of ever-increasing
value. That voice comes in the form of insight reports and
presentations from the customer team, as well as updates from
the Chief Executive on how the Company is performing in terms
of brand health and share of market. By speaking to customers
in our shops, through our customer care and insight teams,
and across our digital channels, we’re constantly listening and
learning so we can understand how best to serve our customers.
How and why we engage
There are currently around 33,000 colleagues who come to
work at Greggs, many of them on a part-time basis to fit around
their family lives. It is our culture and values which we believe
attract people to come and work with us, and we take great
pride in referring to our colleagues as our ‘secret sauce’. For the
second time, and building upon the inaugural report in 2023, we
have produced a separate section of our Annual Report, titled
‘Our People’, to show how and where we engage with colleagues,
which can be found on pages 40 to 45 and which is incorporated
by reference into this statement. There you will find details of
our engagement with a variety of colleague groups, including
our diversity and inclusion networks, recognised unions,
along with our talent development activities and many other
interactions that the Board has with colleagues.
How and why we engage
Being a manufacturer, distributor and retailer of food means that
we need to source a wide range of products, from our proteins
and salad ingredients, to commercial and other company vehicles
and uniforms, and a wide range of services, including shop fit-out
contractors, property advice, marketing support and factory
constructors, to name but a few. It is important that we build and
maintain good relationships with our suppliers – we hold regular
meetings, undertake joint projects and visit our suppliers.
How and why we engage
Our shareholders are the owners of the business, and we have
obligations to keep them apprised of significant developments.
One of the ways we do this is through our regular reporting
schedule and meetings with institutional shareholders across
the year, conducted mainly by the Chief Executive, Chief Financial
Officer and Head of Investor Relations.
We hold an ‘in-person’ AGM after which Directors mix with
attendees over a Greggs lunch. Shareholders are also given the
opportunity to engage with the respective Committee Chairs
at this meeting to discuss any matters of significance that
they want to raise. Our ‘in-person’ AGMs are well-attended, and
resolutions put to the 2024 AGM were very well-supported.
How and why we engage
During the pandemic in 2020, it became clear that it would be
appropriate and prudent to have in place a formal bank facility,
and a revolving credit facility of £100 million was put in place.
That facility was refinanced during 2024, and remained undrawn.
As part of the ongoing relationship with the commercial banks
involved, the finance team provide regular performance and
covenant compliance updates to banking partners.
How and why we engage
Supporting the communities in which we operate is fundamental
to The Greggs Pledge. Members of those communities include
colleagues who work in our shops and production centres, and of
course our customers. In areas where support is needed, we are
setting up Greggs Outlets, which sell surplus food at discounted
prices. There are now 38 such outlets, and we aim to have 45 by
the end of 2025. Other support includes sharing a percentage
of profits with local community projects focused on improving
social mobility and tackling food poverty, and through The Greggs
Foundation Breakfast Club programme in which we provide a
nutritious breakfast to 75,000 children every school day who may
have otherwise gone without. We also use our shops nationwide
to collect donations on behalf of Children in Need, the Disasters
Emergency Committee, and the Royal British Legion Poppy
Appeal.
1
2
4
5 1
3
4
5 1
2
3
4
5 2
4
5 1
2
3
4
5 1
5
Impact on Board decisions
During the recent cost-of-living crisis and the inflationary
environment in which we have been purchasing products,
understanding how customers react to price increases has had
a significant impact in ensuring that our value for money offering
remains at the forefront of our decision-making.
Impact on Board decisions
Having good people working with us is fundamental to our
growth strategy. We continue to open new shops at pace, which
requires significant support from our retail and people teams
in planning and effecting recruitment. Having committed to
invest in new supply chain facilities in Derby and Kettering, we
will now be creating new jobs in those areas. The Remuneration
Committee has sight of the benefits available to colleagues and
is able to support the Operating Board in making sure we can
continue to attract people to become Greggs colleagues.
Details of the review and improvement in some colleague policies
are given in the Remuneration Committee Report.
Impact on Board decisions
In order to ensure we manage our food ingredient suppliers as
efficiently as possible, we use systems and processes to assist
our engagement. The Board has approved the installation of a
new specification system, known as Trace One, which will help
streamline our new product and product life cycle management
processes, whilst providing accurate allergen information to
customers more efficiently.
Impact on Board decisions
The Chief Financial Officer leads on the Board’s engagement
with institutional investors and analysts, has regular interaction
with existing and potential investors, and reports to the Board
on the key points that arise from those meetings. At each Board
meeting, a register of the top shareholdings is tabled, including
movements of buyers and sellers. Following the preliminary
and interim results roadshows, the Board receives feedback
from investors and analysts on Company performance and
levels of engagement. During the year, the Chair has met
with a number of significant shareholders, where topics
under discussion have ranged from Board succession to
risk management and sustainability.
Impact on Board decisions
Whilst the Company continues to be cash generative,
nevertheless it keeps in place a revolving credit facility
of £100 million. During the year, the Board approved the
refinancing of that facility with three commercial banks.
Impact on Board decisions
Knowing that there are so many communities in need of our
support drives the Board to continue donating 1% of profits to
The Greggs Foundation. In November 2024, over £1 million was
raised for Children in Need. Recognising that food allergens are
a significant and growing consumer issue, the Board approved
further donations to the Natasha Allergy Research Foundation,
contributing to important work in determining the causes and
prevention of food allergies.
OUR STAKEHOLDERS CONTINUED
STRATEGIC PILLARS
1
Great tasting, freshly prepared food
2
Best customer experience
3
Competitive supply chain
4
First class support teams
5
The Greggs Pledge
83Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
CUSTOMERS COLLEAGUES SUPPLIERS SHAREHOLDERS LENDERS COMMUNITIES
How and why we engage
With an increasing ability to interpret how our customers are
feeling about Greggs, as a result of our developing CRM systems,
the voice of the customer in the Boardroom is of ever-increasing
value. That voice comes in the form of insight reports and
presentations from the customer team, as well as updates from
the Chief Executive on how the Company is performing in terms
of brand health and share of market. By speaking to customers
in our shops, through our customer care and insight teams,
and across our digital channels, we’re constantly listening and
learning so we can understand how best to serve our customers.
How and why we engage
There are currently around 33,000 colleagues who come to
work at Greggs, many of them on a part-time basis to fit around
their family lives. It is our culture and values which we believe
attract people to come and work with us, and we take great
pride in referring to our colleagues as our ‘secret sauce’. For the
second time, and building upon the inaugural report in 2023, we
have produced a separate section of our Annual Report, titled
‘Our People’, to show how and where we engage with colleagues,
which can be found on pages 40 to 45 and which is incorporated
by reference into this statement. There you will find details of
our engagement with a variety of colleague groups, including
our diversity and inclusion networks, recognised unions,
along with our talent development activities and many other
interactions that the Board has with colleagues.
How and why we engage
Being a manufacturer, distributor and retailer of food means that
we need to source a wide range of products, from our proteins
and salad ingredients, to commercial and other company vehicles
and uniforms, and a wide range of services, including shop fit-out
contractors, property advice, marketing support and factory
constructors, to name but a few. It is important that we build and
maintain good relationships with our suppliers – we hold regular
meetings, undertake joint projects and visit our suppliers.
How and why we engage
Our shareholders are the owners of the business, and we have
obligations to keep them apprised of significant developments.
One of the ways we do this is through our regular reporting
schedule and meetings with institutional shareholders across
the year, conducted mainly by the Chief Executive, Chief Financial
Officer and Head of Investor Relations.
We hold an ‘in-person’ AGM after which Directors mix with
attendees over a Greggs lunch. Shareholders are also given the
opportunity to engage with the respective Committee Chairs
at this meeting to discuss any matters of significance that
they want to raise. Our ‘in-person’ AGMs are well-attended, and
resolutions put to the 2024 AGM were very well-supported.
How and why we engage
During the pandemic in 2020, it became clear that it would be
appropriate and prudent to have in place a formal bank facility,
and a revolving credit facility of £100 million was put in place.
That facility was refinanced during 2024, and remained undrawn.
As part of the ongoing relationship with the commercial banks
involved, the finance team provide regular performance and
covenant compliance updates to banking partners.
How and why we engage
Supporting the communities in which we operate is fundamental
to The Greggs Pledge. Members of those communities include
colleagues who work in our shops and production centres, and of
course our customers. In areas where support is needed, we are
setting up Greggs Outlets, which sell surplus food at discounted
prices. There are now 38 such outlets, and we aim to have 45 by
the end of 2025. Other support includes sharing a percentage
of profits with local community projects focused on improving
social mobility and tackling food poverty, and through The Greggs
Foundation Breakfast Club programme in which we provide a
nutritious breakfast to 75,000 children every school day who may
have otherwise gone without. We also use our shops nationwide
to collect donations on behalf of Children in Need, the Disasters
Emergency Committee, and the Royal British Legion Poppy
Appeal.
1
2
4
5 1
3
4
5 1
2
3
4
5 2
4
5 1
2
3
4
5 1
5
Impact on Board decisions
During the recent cost-of-living crisis and the inflationary
environment in which we have been purchasing products,
understanding how customers react to price increases has had
a significant impact in ensuring that our value for money offering
remains at the forefront of our decision-making.
Impact on Board decisions
Having good people working with us is fundamental to our
growth strategy. We continue to open new shops at pace, which
requires significant support from our retail and people teams
in planning and effecting recruitment. Having committed to
invest in new supply chain facilities in Derby and Kettering, we
will now be creating new jobs in those areas. The Remuneration
Committee has sight of the benefits available to colleagues and
is able to support the Operating Board in making sure we can
continue to attract people to become Greggs colleagues.
Details of the review and improvement in some colleague policies
are given in the Remuneration Committee Report.
Impact on Board decisions
In order to ensure we manage our food ingredient suppliers as
efficiently as possible, we use systems and processes to assist
our engagement. The Board has approved the installation of a
new specification system, known as Trace One, which will help
streamline our new product and product life cycle management
processes, whilst providing accurate allergen information to
customers more efficiently.
Impact on Board decisions
The Chief Financial Officer leads on the Board’s engagement
with institutional investors and analysts, has regular interaction
with existing and potential investors, and reports to the Board
on the key points that arise from those meetings. At each Board
meeting, a register of the top shareholdings is tabled, including
movements of buyers and sellers. Following the preliminary
and interim results roadshows, the Board receives feedback
from investors and analysts on Company performance and
levels of engagement. During the year, the Chair has met
with a number of significant shareholders, where topics
under discussion have ranged from Board succession to
risk management and sustainability.
Impact on Board decisions
Whilst the Company continues to be cash generative,
nevertheless it keeps in place a revolving credit facility
of £100 million. During the year, the Board approved the
refinancing of that facility with three commercial banks.
Impact on Board decisions
Knowing that there are so many communities in need of our
support drives the Board to continue donating 1% of profits to
The Greggs Foundation. In November 2024, over £1 million was
raised for Children in Need. Recognising that food allergens are
a significant and growing consumer issue, the Board approved
further donations to the Natasha Allergy Research Foundation,
contributing to important work in determining the causes and
prevention of food allergies.
84
OUR STAKEHOLDERS CONTINUED
Below, by stakeholder, are some examples of the activities undertaken by the Board, or relevant information that was presented to them.
COLLEAGUES
Attendance at Greggs Negotiating
Committee meetings
Attendance at listening groups with
our Retail Operations Managers and
manufacturing colleagues
Reviewing findings from the
‘Your Opinion Matters survey’
(see more on page 41 )
Undertaking shop visits to meet
our shop teams
Participating in colleague
development days
CUSTOMERS
Progress report on Greggs
App development
Market insight presentations
Pricing strategy review and
impact of inflation
Attendance at a menu tasting
session with our category and
food development teams
Attendance at ‘Customer
of the Future’ session
Presentations from the
customer insight team
SHAREHOLDERS
Declaration of dividends
Annual General Meeting
Share register monitoring and
development of an engagement plan
Investor relations strategy review
and the allocation of resource
85Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Colleague engagement
Board engagement
There have been a number of engagement events across the
year when Board members had the opportunity to meet with
colleagues. These have included informal visits to shops, and
organised visits to production centres at Enfield, Clydesmill
and Newcastle. The Chair and the Chief Executive visited the
Clydesmill manufacturing site to meet with colleagues. You
can read more about this on pages 86 to 87. Mohamed Elsarky
is the Non-Executive Director nominated with responsibility
for colleague engagement, and in that role he has met with
the People Director on several occasions to plan engagement
activities. These have included visiting supply sites across the
country, and meeting with retail management.
Union recognition and engagement
Details of engagement with recognised unions are set out in
the ‘Our People’ section of the Annual Report, found on pages
40 to 45.
Rewarding the workforce
Following our continued sales and profit growth in 2024, the
Board was again delighted to continue its long tradition of sharing
10% of profits with colleagues, enabling them to share in our
success. Payments to qualifying colleagues will be made in
late March 2025.
In order to determine the annual pay award, each year
we undertake negotiations with the relevant trade unions
representing those colleagues covered under a collective
bargaining agreement. Following the successful conclusion
of the resulting ballot, our 2025 pay award agreed for our
wider workforce consisted of a base pay award of 3.5%, with
an additional 3.3% (6.8% in total) for our hourly-paid retail
colleagues. Further details can be found on page 95 in the
Directors’ Remuneration Report, and in the ‘Our People’ section
on page 45. This increase was applied from January 2025.
In recent years, during which there were high levels of inflation,
we chose to tier our pay awards to management, with the more
senior people receiving a lower level of pay increase. This was
in recognition of the fact that high inflation had a greater impact
on lower paid colleagues. In the current environment, the
Remuneration Committee has determined that we should revert
to the previous standard of applying the same increase, 3.5%,
to all levels of management.
As well as pay, we have again increased the pension provision for our
wider workforce, allowing our colleagues to increase their pension
contribution up to 7% with matched employer contributions.
Provision 36 of the Governance Code requires the Remuneration
Committee to develop a formal policy for post-employment
shareholdings. At the AGM in May 2023, shareholders approved
a new remuneration policy setting out the post-employment
holding requirement, which applies to all Executive Directors at
the level of the shareholding guideline prior to departure or the
actual shareholding on departure if lower. Full details can be seen
in the Directors’ Remuneration Report on page 95.
Shareholders
The Chair takes responsibility for ensuring that key shareholders
are aware of, and supportive of, the Board’s approach to governance.
Much of the regular interaction with shareholders and the
analyst community is undertaken by the Chief Executive and
Chief Financial Officer, particularly around the times of the
release of the preliminary and interim results. In between, the
Chief Financial Officer is in regular contact with the investment
community, sharing details of the Company’s performance
and strategy. Following key announcements, the anonymised
views of shareholders are reported to the Board by UBS and
Investec, the Company’s retained brokers, and press and analyst
feedback is provided by Hudson Sandler, the Company’s financial
communications consultant. Committee Chairs would engage
with shareholders in the event of there being any significant
issues within their respective areas of responsibility.
Other stakeholder considerations
Greggs is committed to acting fairly towards all stakeholders
of the Company. The impact of the Company’s operations on
the environment is covered in The Greggs Pledge report on
pages 46 to 49 and in our TCFD report on pages 50 to 58.
Our business conduct policy is available on our website.
Roisin Currie
Chief Executive
4 March 2025
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OUR STAKEHOLDERS CONTINUED
VISIT TO CLYDESMILL MANUFACTURING
SITE IN MAY 2024
Matt Davies joined Roisin Currie on a visit
to our Clydesmill manufacturing site to
take a tour, find out more about what the
fantastic team have been up to and what
they may need support with.
They were welcomed to Clydesmill by
the Site Manufacturing Manager and the
Engineering Manager who between
them have been with Greggs for 58 years!
As Matt quickly discovered, this is not
unusual at Clydesmill, with many of the
colleagues he met on the visit proud of
their long service and highlighting the
warmth and feeling of community.
Something experienced by everyone
throughout the visit.
They were then taken through a
fascinating presentation which focused
on site history, colleague engagement,
quality improvement and a focus
on Clydesmill’s iconic product – the
Yum Yum!
In addition to Yum Yums, the team also
produce Belgian Buns, Apple Danish,
Fruit Scones, Cheese Scones and, for our
shops in Scotland and wholesale partner,
Iceland, they also produce Scotch pies.
It was great for Roisin and Matt to be able
to see in person the work that had been
done by the team to establish a quality
improvement team, following a visit to
Balliol Park and sharing learnings with the
team there. Through regular catch-ups,
period reports, insight and action, the
team, made up of colleagues from
different functions and areas of expertise,
are determined to continue to develop and
be the best team they can be.
It was then time for them to take a tour of
the manufacturing site and see the team
in action, starting with the Belgian Bun
production line where the team produce
over 200,000 Belgian Buns every week –
that’s 10.4 million a year!
After the Belgian Buns are baked,
they moved through to the finishing
room where every single Belgian Bun
is carefully hand-finished with icing.
87Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Roisin and Matt met with the distribution and
logistics team as they toured the warehouse.
The site operates 24/7 to supply its tasty
products to all shops in the UK, as well as
distributing to around 300 shops in Scotland
and Northern Ireland.
It wouldn’t have been a site visit without getting
to sample some of the tasty products we produce
fresh off the line – the Yum Yums in particular were
a favourite.
The team at Clydesmill provided such a warm
welcome, it was fantastic to see this busy and highly
productive site in action and for everyone to have
the opportunity to meet so many of our wonderful
colleagues who make it all happen.
Clydesmill produces all of the Yum
Yums for Greggs 2,600+ shop
network – that’s 41.6 million a year!
YUM YUMS PRODUCED EACH YEAR
41.6m
SHOPS SERVED IN SCOTLAND
AND NORTHERN IRELAND
300
88
AUDIT COMMITTEE REPORT
AUDIT COMMITTEE REPORTAUDIT COMMITTEE REPORT
Dear Shareholder
As Chair of the Audit Committee (the ‘Committee’), I am pleased
to present our report for the 52 weeks ended 28 December 2024.
The Committee plays an important part in the Company’s
governance framework providing independent oversight and
robust challenge on the integrity of financial reporting (inclusive
of the financial statements and any formal announcements
regarding the Company’s financial performance), quality and
effectiveness of internal and external audit, risk management
and the system of internal control.
In this report, I aim to share some of the Committee’s discussions
from the year, providing insight regarding the role of the
Committee, the main matters considered by it during the year
and the conclusions drawn. The Committee meets formally at
key times within the reporting calendar and the agendas for its
meetings are designed to cover all significant areas of risk over
the course of the year and to provide oversight and challenge
to the key financial judgements, controls and processes that
operate within the Company.
During 2024, in addition to its regular oversight responsibilities,
the Committee has:
• Started planning for the new requirement introduced in the UK
Corporate Governance Code 2024 for annual reports on the
effectiveness of material controls, from 2026. The Committee
is in the process of reviewing the risk and internal control
framework to establish which elements should be considered
material controls so that an assurance framework over these
controls can be developed.
• Continued to oversee the development of the Company’s
approach to risk management, including a specific focus on
fraud risk, and defining its risk appetite.
• Considered the findings of a Financial Reporting Council (FRC)
limited scope review of the Company’s Annual Report and
Accounts for the year ended 30 December 2023. It is pleasing
that the FRC did not take any further action in relation to
these Accounts and did not require a substantive response
to their findings. They raised several points that have been
considered and addressed while preparing this Annual Report
and Accounts in relation to alternative performance measures
and clarification of lease accounting assumptions.
• Refreshed its terms of reference – details of where to find
these on the Company’s website are given later in this report.
• Adopted the FRC’s ‘Audit Committees and the External Audit:
Minimum Standard’ recommendations, although this has
not led to any significant change as the Committee already
adhered to the principals set out in the Standard.
• Undergone an externally facilitated evaluation conducted by
Calibro Consulting. I am pleased that this evaluation concluded
that the Committee functions well both in absolute and relative
terms, there is a very good mix of skills on the Committee and
Committee members are always well prepared.
The Committee continues to keep its activities under review
in the light of the Government’s audit and governance reform
agenda. Key priorities for the Committee during 2025 will be:
• Further work on the agreement and development of an
assurance framework over material controls that will enable
the Board to meet the reporting requirements of the 2024
UK Corporate Governance Code when they come into force
from 2026.
• Monitoring management’s preparations for new climate
reporting frameworks/standards, including the introduction
of the two UK Sustainability Reporting Standards that are
expected in 2025, and overseeing the quality and reliability
of the underlying data and reported metrics.
• Overseeing the upgrade of the Company’s accounting
system as part of the transition to an updated ERP system,
SAP S/4HANA. The finance module is expected to be
implemented during 2025.
• Oversight of controls over GenAI, cybersecurity, and data
governance as their increased use presents new risks for
the Company.
Overall, I am satisfied that the activities of the Committee enable
it to gain a good understanding of the key matters impacting the
Company during the year along with oversight of the governance
and operation of its key controls, and ultimately to draw the
conclusions set out in the following report.
Kate Ferry
Chair of the Audit Committee
4 March 2025
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ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Composition
The Audit Committee is comprised of the following:
Kate Ferry (Chair)
Mohamed Elsarky
Lynne Weedall
Nigel Mills
Tamara Rogers (from 1 June 2024)
It is the practice of the Company for all independent
Non-Executive Directors to serve as members of the
Audit Committee.
Training is provided for any new members of the Audit Committee
by way of a thorough induction process which includes access
to the external auditor, the Head of Business Assurance and
relevant members of management.
The Committee provides independent and robust challenge to
management and our internal and external auditors, ensures
there are effective and high-quality controls in place and that
appropriate judgements are taken, with a particular focus on
matters that involve either a high degree of judgement and/or
are significant to the Accounts.
The Directors’ biographies on pages 72 to 74 detail the Committee
members’ previous experience and demonstrate that they have
experience individually in a range of disciplines relevant to Greggs
business. The Board considers that Kate Ferry has recent and
relevant financial experience.
Role and responsibilities
The terms of reference of the Committee were refreshed in 2024
and can be accessed at: http://corporate.greggs.co.uk/investors/
corporate-governance
The key responsibilities of the Audit Committee are:
• Ensuring that the accounting and financial policies and
practices of the Company are proper and effective;
• Assisting the Board in fulfilling its oversight responsibilities
by monitoring the integrity of the Accounts and information
published by the Company and reviewing and challenging
significant financial judgements contained in them;
• Advising the Board on whether it believes the Annual
Report and Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary
for shareholders to assess the Company’s position and
performance, business model and strategy;
• Reviewing the internal financial controls and the Group’s
approach to risk management;
• Overseeing whistle-blowing arrangements;
• Monitoring compliance with the Listing Rules and the
recommendations of the UK Corporate Governance Code;
• Overseeing the Company’s internal auditors and reviewing
the effectiveness and objectivity of the audit process;
• Overseeing the Company’s external auditors, reviewing
their independence and objectivity and monitoring the
effectiveness of the audit process;
• Developing and implementing policy on the external auditor’s
provision of non-audit services; and
• Reporting to the Board on how it has discharged its
responsibilities.
Meetings during the year
The Audit Committee met four times during the year. Details
of Committee members’ attendance are given on page 76.
All members attended every meeting that they were eligible to
attend. Detailed papers are prepared and circulated in advance
of Committee meetings by both management (including internal
audit) and the external auditor, thereby allowing informed discussions,
challenge and decision-making to take place at meetings.
The Committee normally invites the Company Chair, the
Executive Directors, the Head of Business Assurance and
the external auditor to attend its meetings. Time is set aside
bi-annually for discussion with the external auditor and with
the Head of Business Assurance, in each case in the absence
of all Executive Directors. The Committee also has access to the
Company’s management team and to its auditor and can seek
further professional advice, at the Company’s cost, if required.
The Chair has regular contact with the Chief Financial Officer,
and internal and external auditors, in addition to scheduled
Committee meetings to ensure that emerging issues are
addressed. She also has access to an audit partner independent
of the partner responsible for the audit.
Financial reporting
In 2024 the Audit Committee reviewed the 2023 preliminary
results announcement and Annual Report, the 2024 interim
results, and reports from the external auditor on the outcome
of their reviews and audits.
During the year, and up to the date of this report, the Committee
considered key accounting issues and judgements and related
disclosures in the Group’s accounts. The significant areas of
judgement considered by the Committee in relation to the accounts
for the 52 weeks ended 28 December 2024 are as follows:
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AUDIT COMMITTEE REPORT CONTINUED
Area of focus Action taken
Accounting for leases
Under IFRS 16 lease liabilities, representing the obligation to make lease payments,
are recognised on the balance sheet together with corresponding right-of-use
assets. In the income statement rent costs are replaced by a straight-line depreciation
charge on each right-of-use asset, and an interest charge that reduces over the
lease term.
At the end of 2024 the Group has recognised right-of-use assets of £387.2 million
(2023: £296.6 million) and lease liabilities totalling £415.1 million (2023: £319.6 million).
Charges to the income statement of £59.2 million (2023: £54.5 million) in respect
of depreciation, £2.1 million (2023:£2.5 million) in respect of net impairment and
£13.0 million (2023: £9.6 million) in respect of interest were recognised.
The sensitivities of the assumptions on this amount are set out on page 136.
The Committee continues to review and monitor developments in this area to ensure that judgements made are up
to date and remain valid and that the approach adopted is still appropriate to the Group’s circumstances.
The Committee considers that the judgements made are appropriate to the Group’s particular circumstances.
Accounting for defined benefit pension scheme buy-in transaction
In 2024 the Company made a special contribution of £4.5 million to its defined
benefit pension scheme which helped facilitate the purchase of a ‘buy-in’ bulk
annuity policy with Aviva. This policy provides regular payments to the scheme
to fund pension payments and significantly reduces the Company’s exposure
to the funding risks associated with its defined benefit pension liabilities.
The valuation of the assets held by the scheme following the buy-in results in an
actuarial loss. Although a buy-out of the scheme is possible in the future there is
no indication that this will be executed and finalised in the short term. The scheme
has retained all responsibility to meet future pension payments to pensioners and
the buy-in is therefore not recognised as a settlement.
In accordance with IAS 19 the assets and liabilities of the scheme remain on the
Company balance sheet. The loss associated with the purchase of the buy-in policy
and other actuarial movements in the year ended 28 December 2024 have been
recognised through other comprehensive income.
The Committee considered the nature of the buy-in transaction and in particular whether it constituted a settlement
of the scheme. The scheme retains responsibility for the administration and payment of pensions and other member
benefits and although the purchase of the bulk annuity policy reduces the Company’s exposure to funding risk it does
not absolve it of this risk. The Committee considers the judgements made are appropriate to the circumstances of
the transaction.
The Committee reviewed the accounting treatment and disclosures related to the buy-in transaction and is satisfied
that they are in compliance with the relevant accounting standards and provide a clear and transparent view of the
transaction’s impact on the Company’s accounts.
91Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Area of focus Action taken
Fair, balanced and understandable
The Committee is responsible for advising the Board on whether it believes the
Annual Report and Accounts, taken as a whole, is fair, balanced and understandable.
The Committee received a report from the Head of Business Assurance, who is not involved in the preparation of the
Annual Report and Accounts and who conducted an independent review of it. The following factors were considered
during the course of this review:
• Ensuring that all the statements are consistent with one another;
• Verifying that figures in the narrative sections are consistent with the relevant financial detail;
• Identifying any duplication of information;
• Confirming that ‘bad news’ is included, as well as ‘good news’; and
• Highlighting any inappropriate use of technical language or jargon.
The Audit Committee considered the feedback from this report alongside its own review of the Annual Report and
Accounts when making its recommendation to the Board regarding fair, balanced and understandable.
Going concern
The accounts continue to be prepared on a going concern basis.
Information provided by the Chief Financial Officer regarding future financial plans, risks and liquidity was presented
to the Committee to enable it to determine whether the going concern basis of accounting remained appropriate.
The Committee reviewed and challenged the assumptions used and concluded that the Board is able to make the
going concern statement on page 80 of the Directors’ Report.
Viability
The Board is required to consider the period over which it is able to conclude that
the Company will remain viable, having taken into account severe but plausible risks
and risk combinations.
The Committee reviewed the process undertaken by management to support and allow the Directors to assess the
Group’s long-term prospects and make its viability statement. The Committee considered and provided input into the
determination of which of the Group’s principal risks and combinations thereof might have an impact on the Group’s
liquidity and solvency.
The Committee reviewed the results of management’s scenario modelling and the stress testing of these models.
It also reviewed and challenged the assumptions used and concluded that the Board is able to make the viability
statement on page 71 of the Strategic Report.
The Committee also considered other key accounting issues and related disclosures in the Group’s accounts as follows:
• Whether the principles and judgements applied when management assess property, plant and
equipment and right-of-use assets for impairment remain appropriate;
• Whether the treatment and disclosure of material items of income or expense in the year is
appropriate, together with the FRC’s guidance on the subject;
• Whether the assumptions made in valuing the defined benefit pension scheme liabilities remain
appropriate, including consideration of the discount rate, inflation rates and mortality rates as
well as the requirements of IFRIC 14: IAS 19 – The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction;
• Whether any changes in accounting policy were required following changes in the business
or in legislation;
• Whether the Company’s tax policy remains appropriate;
• The impact of changes in accounting standards and their relevance, if any, to the Company;
• Whether the Company has considered the FRC’s key disclosure expectations, including the
points raised in its limited scope review of the Company’s 2023 Annual Report and Accounts; and
• Reports from the Company Secretary and Chief Financial Officer which assess the Company’s
compliance with the Listing Rules.
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AUDIT COMMITTEE REPORT CONTINUED
Sustainability reporting
The Committee plays a key role in the governance of climate-related reporting, including overseeing
the process adopted in relation to identification of the Company’s climate-related risks and
opportunities and the associated reporting of the Company’s TCFD disclosures which are on pages
50 to 58. This approach builds on the foundations adopted last year. The Committee continues to
monitor developments in sustainability reporting and will consider the requirements of the two new
standards issued by the International Sustainability Standards Board once the UK’s endorsement
and adoption of these standards is clear. It will also oversee the ongoing development of the
Company’s transition plan.
External audit
Assessing external audit effectiveness
The Audit Committee discussed and agreed the scope of the audit with the external auditor and
agreed their fees in respect of the audit.
The Committee reviewed the effectiveness of the external audit in line with the FRC’s ‘Practice
aid for audit committees’ (December 2019). It sought feedback from senior management, by way
of a detailed questionnaire, in respect of the effectiveness of the audit process.
The Committee also considered the effectiveness of the audit through the reporting from and
communications with the auditor and an assessment of the auditor’s approach to key areas of
judgement and any errors identified during the course of the audit.
The Committee concluded that the audit was effective and that the relationship with and
effectiveness of the external auditor be kept under review.
Appointing the auditor and safeguards on non-audit services
The Committee’s policy on auditor appointment is to consider annually whether to conduct an audit
tender for audit quality or independence reasons. During 2020 the Audit Committee conducted a full
tender exercise for the appointment of a new auditor which resulted in the appointment of RSM UK
Audit LLP (RSM) as auditor at the AGM in May 2021.
It is the responsibility of the Committee to monitor the independence and objectivity of the
external auditor (including the impact of any non-audit work undertaken by it) and its suitability
for reappointment.
The Company has a formal policy to ensure that the provision of non-audit services by the external
auditor for non-audit work does not compromise the auditor’s independence or objectivity. It monitors
the level and type of non-audit fees on an annual basis and ensures that the overall level of non-audit
fees remains in line with current ethical guidance governing the accounting profession.
The Audit Committee favours a presumption that non-audit work will be awarded to a firm other
than the audit firm unless there is a good reason to use the auditor. An annual base plan for non-audit
fees paid to the external auditor is agreed in advance by the Audit Committee. Expenditure in
accordance with this plan can then be committed without further referral to the Audit Committee.
Expenditure that is not included in the agreed plan is subject to strict authority limits and is reviewed
by the Committee.
All use of the external auditor for non-audit work must be reported to and approved by the
Committee. In circumstances where non-audit fees are significant relative to the audit fee an
explanation would be provided in the subsequent Audit Committee Report. In addition, the Audit
Committee ensures that the external auditor has its own policies and is subject to professional
standards designed to safeguard their independence as auditor.
The Audit Committee has reviewed whether, and is satisfied that, the Company’s current auditor,
RSM, continues to be objective and independent of the Company. The Committee has approved
RSM to provide non-audit services during 2024 in respect of the review of turnover certificates
as required by certain shop landlords. Fees of £24,450 were billed during the year for turnover
certificate reviews, which represents 7.8% of the audit fee for the year.
Appointment of auditor
In accordance with Section 489 of the Companies Act 2006, a resolution for the reappointment of
RSM UK Audit LLP will be proposed at the forthcoming AGM. The length of their tenure as external
auditor is four years.
Risk management and internal control
Internal control framework
Greggs has an internal control environment designed to protect the business, its customers and
our colleagues from the risks which it faces. Management is responsible for establishing and
maintaining adequate internal controls and the Audit Committee has responsibility for ensuring
the effectiveness of these controls.
93Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
The Head of Business Assurance provides an update on Greggs’ internal control environment at
every Audit Committee meeting, from both risk management and internal audit perspectives. This
frequency of reporting ensures timely escalation of any key issues. Whilst the Committee is updated
on all internal audit activity, any reports concluding only limited assurance are considered in greater
detail, including actions taken in response. This gives Committee members assurance that any
control weaknesses identified are being addressed.
As required by the revision to the FRC’s UK Corporate Governance Code, the Audit Committee
continues to work towards being able to report on the effectiveness of all of our material controls.
This will be a requirement from 1 January 2026, and we are in the process of defining our material
controls and attributing the relevant assurance sources.
The Committee considers the matters described above to be the main features of the Group’s
internal control and risk management systems in relation to the financial reporting process for the
undertakings included in the consolidation as a whole. The Committee has reviewed the Company’s
internal control environment and is satisfied that procedures are in place to ensure that assets
are well protected, authority levels for expenditure are clear, segregation of duties exists and
performance is regularly monitored. Processes are in place to ensure that key controls are
being operated and compliance with these processes is the subject of inspection by the internal
audit team within the business assurance function, and subsequent review and oversight by the
Audit Committee.
Whistle-blowing
The Company’s whistle-blowing policy is available to all employees via the intranet and our ‘People
Hub’, an electronic repository of all relevant colleague information. Posters are displayed in our
shops, supply sites and offices. Colleagues are guided regarding how to raise a concern in strict
confidence, and the process incorporates three escalation levels. We have also continued to engage
with our franchise partners, to support them in developing appropriate protocols where appropriate.
Our Audit Committee Chair is the ultimate contact and resolution point for this process, and
received a small number of contacts during the year. All issues raised were thoroughly investigated
and successfully resolved, with no formal action being taken.
Risk management process
The Audit Committee receives an update on risk management at each of its meetings. An annual
report provides detail on the overall process to identify, evaluate, monitor and manage risk. This
allows the Committee to meet its obligation to oversee the effectiveness of risk management,
and to confirm to the Board that arrangements remain appropriate.
The risk management process is explained in more detail on pages 64 to 71.
The Committee has reviewed the risk management process and is satisfied that appropriate
arrangements are in place to ensure that existing risks are properly managed across the
business and that processes are in place to identify and consider any new and emerging risks
in a timely manner.
During the year, the Audit Committee’s activities and discussions have included the following:
Area of focus Action taken
Financial reporting All judgemental areas in the accounts are considered by the Committee,
to provide independent challenge to the process.
TCFD The Committee considered and agreed the proposed statement regarding
TCFD disclosure requirements.
Cyber risk and
information security
Cyber risk and information security is considered at Audit Committee
meetings, with an update on activity from a risk management perspective,
ensuring an ongoing focus on cyber resilience.
Risk management The Audit Committee has received updates on the continued development
of the Company’s approach to risk management, including a specific focus
on fraud risk, and defining its risk appetite.
Business conduct
policy
As a key control over governance, the Committee received assurance that
senior colleagues within Greggs complied with the requirements of the
business conduct policy throughout the year.
New and emerging
risks
New and emerging risks are raised as they arise, and are then discussed
by members of the Risk Committee at its next meeting. Any significant
matters are escalated to the Audit Committee for further discussion.
Review of
principal risks and
uncertainties
The Risk Committee discussed and developed the content of the statement
of principal risks and uncertainties, based on the strategic risk register.
This in turn was considered by the Audit Committee, and approved. The
statement can be found on pages 64 to 71.
Viability and going
concern status
As part of the annual reporting process, the Committee has reviewed and
agreed the Viability Statement and the various scenarios modelled within it,
ensuring effective assessment and disclosure.
Effectiveness of
internal and external
audit
The Committee has reviewed the work and output of the internal audit
function during the year. The function’s effectiveness throughout the year
is formally considered on an annual basis within the year-end processes.
An annual review of the external audit is also conducted.
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AUDIT COMMITTEE REPORT CONTINUED
Internal audit
The work of the internal audit function is set out in more detail within the risk management section
of this Annual Report. The function is led by the Head of Business Assurance, supported by a team of
31 auditors. The majority of the audit resource is dedicated to the retail estate, including inspection
of franchised shops, providing the Audit Committee with assurance that the required controls for
safe operation within all of the shops are in place and have been operating effectively.
An annual audit plan is presented each year to the Audit Committee for approval, setting out how
the resource will be allocated across the business. Progress against this plan is monitored at
subsequent meetings. The effectiveness of the team and its level of resource are reviewed by the
Committee annually, including a consideration of outputs, and feedback received from the areas
of the business that have been audited.
Committee effectiveness
As noted in the Governance Report on page 76 there was an externally-facilitated evaluation of the
Board and its Committees during 2024, conducted by Calibro Consulting. We are pleased that the
overall conclusion of the evaluation is that the Audit Committee functions well both in absolute and
relative terms, there is a very good mix of skills on the Committee and Committee members are
always well prepared. The evaluation highlighted that there is a well-developed and effective audit
process and that the Committee focuses on the right issues and challenges appropriately.
The evaluation also identified areas for development, including consideration of the new requirements
in relation to the reporting of material controls and their effectiveness. We will look to build on the
evaluation feedback in 2025.
The Committee has considered the results of this evaluation and concluded that it operates
effectively and that the Board takes assurance from the quality of its work.
Kate Ferry
Chair of the Audit Committee
4 March 2025
95Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
DIRECTORS’ REMUNERATION REPORT
DIRECTORS’ REMUNERATION REPORTDIRECTORS’ REMUNERATION REPORT
Dear Shareholder
On behalf of the Remuneration Committee (the ‘Committee’), I am
pleased to present our Directors’ Remuneration Report for 2024
(the ‘Report’).
The Committee continues to have a transparent approach to
remuneration at Greggs. A key focus continues to be workforce
fairness and the pay arrangements and support provided to our
colleagues across the business. Our people are at the heart of our
business and what makes our business successful. Supporting our
colleagues and protecting our culture, alongside our shareholders’
and wider stakeholders’ interests, remains our priority. Our Report
aims to be clear, simple and easy-to-read, providing explanations
and rationale for our decision-making in the context of Company
performance, the longer-term Company strategy (including ESG
priorities) and pay arrangements for the wider workforce.
The Report is made up of three key sections:
• My annual Chair’s letter.
• Our Directors’ remuneration policy, which was formally
approved at our AGM on 17 May 2023 and operates for the three
years commencing with the 2023 financial year.
• Our Annual Remuneration Report, split into sections that
set out:
A. How our policy links to Company strategy and reward
across the wider workforce;
B. Remuneration Committee activity for the 52 weeks ended
28 December 2024;
C. How Directors’ remuneration will be implemented in 2025
in line with our current remuneration policy; and
D. How our remuneration policy was implemented in
2024. This is an audited section of the Report outlining
the remuneration of the Executive and Non-Executive
Directors during the 52 weeks ended 28 December 2024.
The Annual Remuneration Report, together with this Chair’s
letter, will be subject to an advisory shareholder vote at the
2025 AGM.
Remuneration policy
Our remuneration policy consists of the following elements:
• Fixed pay – base salary, pension and benefits; and
• Variable pay – annual bonus (paid in both cash and deferred
shares) and Performance Share Plan (PSP) measuring
long-term performance and delivered in shares.
Consideration of the wider workforce
Our colleagues are central to our continued financial success and
with this in mind, the Committee carefully monitors and reviews
the effectiveness of the Directors’ remuneration policy and its
impact on and alignment with the remuneration policies in the
wider workforce. To support decisions on Executive Directors’ pay,
the Committee is provided with information detailing the pay and
benefits of the wider workforce which gives additional context for
the Committee. As well as specific sessions held with colleagues
to discuss the work of the Committee, our current remuneration
policy and how reward is structured across the business,
members of the Committee have engaged with colleagues
through our various forums and listening groups throughout 2024
to continue to understand the colleague experience at Greggs. As
we move into the development of a new remuneration policy year
colleague engagement will form an important part of this process.
The Committee is pleased to see the significant support
provided to the wider workforce in the last three years both
across base pay awards as well as supporting additional benefits
for our teams such as paid breaks and profit share. In the last
three years the total base pay increase for our wider workforce
has been 19.6%, and based on colleague feedback, we have
increased our matched pension contributions from 4% to 6%,
significantly enhanced our family leave policies and in order to
further encourage colleague share ownership in the business
we reduced the eligibility criteria to three months service to
participate in our all colleague share schemes.
For 2025, we face significant headwinds as a business as we
address the impact of the National Insurance changes. We have
once again implemented a tiered pay award providing a greater
percentage increase to support our colleagues on lower rates of
pay who have less disposable income. We implemented a base
increase of 3.5% across our wider workforce plus an additional
3.3% (6.8% in total) for our retail team members and additional
2.6% (6.1% in total) for our production and warehouse operatives.
Additional increases were also offered to our retail supervisors –
an additional 2.8% (6.3% in total), and team leaders in supply – an
additional 2.1% (5.6% in total), in order to protect the differentials
between roles. We also continue to pay breaks to our front line
colleagues across the business in both retail and supply which,
as they tell us, supports their wellbeing.
On this basis, over 84% of our workforce has received a pay
increase of 6.1% or more in 2025 with 85.7% receiving 5.6% or
more. Our graded management teams were awarded the base
increase of 3.5%.
As well as the pay increase, from January 2025 we further increased
the pension provision for our wider workforce, allowing our colleagues
to increase their pension contributions up to 7% with matched
contributions. This now aligns the pension offering for all colleagues
across Greggs. We also increased our colleague discount offering by
10% per week. Colleague discount is offered to all colleagues from day
one and is open to an additional card holder after 12 months service.
96
Finally, one of the unique aspects of Greggs remuneration
approach continues to be profit share – with 10% of all our profits
being shared with eligible colleagues. We are delighted to say that
the profit-share payment this year will see over 27,000 colleagues
benefitting from this additional payment that will be made in
March 2025.
Business performance in 2024 and incentive outcomes
As outlined in the Chair’s Statement and Chief Executive’s Report,
2024 was another record breaking year for Greggs. We exceeded
£2 billion in sales for the first time and our colleagues have
worked tirelessly to deliver on our strategic ambition to become
a multi channel food-to-go retailer. We are now three years into
our ambitious five-year plan and our strategy is working, with
total sales up 63.8%, and we continue to build the foundations for
even more ambitious growth by investing in our manufacturing
and logistics capacity. As ever our colleagues’ hard work, week
after week, has ensured we have continued to grow progressively
all the while maintaining the great prices, high-quality products
and friendly service that keep our customers coming back again
and again.
Bonus 2024
As disclosed last year, the annual bonus scheme for 2024 was set
up with performance targets based on profit (50%), sales (20%)
and strategic objectives (30%). We set very stretching target
ranges which were designed to ensure that bonus payments
would only be made for appropriately significant levels of
performance. This included profit targets designed to incentivise
growth, sales targets aimed at like-for-like growth and separate
objectives linked to driving forward our strategic growth plans
in the areas of cost savings, evening sales, delivery sales digital
transactions and achieving our ESG targets of food redistribution.
As noted above Greggs had another record breaking year and
we were delighted to hit a record £2 billion in sales. Whether in
our shops, our manufacturing sites, our distribution network or
in head office, our teams stepped up to make sure that we kept
pace with the increased customer demand. Due to stretching
targets and a tough trading conditions in a highly competitive
retail space we missed our very stretching like-for-like sales
target despite our like-for-like sales in company-managed
shops being up 5.5% year-on-year. Therefore for our teams,
disappointingly, this element of the bonus scheme will not
pay out.
Despite this we had strong profit progression and through good
cost control and margin management across the year the profit
(50%) element of the bonus reached 36.7% payout.
The strategic objectives comprised of a number of separate
elements aligned to our strategy, with 10% based on business
efficiency/cost savings, 5% based on evening sales, 5% on
delivery sales, 5% on increasing food redistribution and 5% on
increasing the percentage of transactions on the Greggs App.
There was a strong focus on cost control during the year resulting
in the business efficiency/cost saving element paying out in full
at 10%.
5% of the bonus was focused on increasing evening sales and
5% in delivery sales and in both areas a very stretching target
was applied. The teams worked incredibly hard to manage our
growth in the evening and through delivery – there was significant
focus across our whole retail estate to support and engage our
teams in this initiative and drive customer numbers. Throughout
the year, evening continued to be the fastest growing day part,
with sales representing 9.0% of company-managed shop sales,
up from 8.5% in 2023. With delivery we increased the number of
shops offering home delivery to 1,555 (up from 1,440 in 2023) and
sales through this channel were up 28.9% compared with 2023.
Despite this great progress, these areas of the bonus failed to
reach the trigger levels set and therefore pay out. This reflects
the very stretching and ambitious targets that were set at the
start of the year and both continue to be key focus areas for the
business in 2025 with evening sales once again being a strategic
metric for the 2025 bonus.
5% of the bonus was focused on increasing the percentage
of average transactions involving a Greggs App reward scan.
We have continued to make excellent progress in this
area and use of the award-winning Greggs App continues
to grow, with customers scanning 20.1% of transactions in
company-managed shops during 2024 (versus 15.5% in 2023).
This strong performance led to a full 5% payout for this element
of the bonus.
The final 5% of the bonus was focused on an ESG metric –
increasing food redistribution. This again was a challenging
target and our teams across the business worked hard in this
area. There was an increase in the proportion of unsold food
redistributed compared with 2023, and the outcome for the year
was just above the threshold target set for this element of the
bonus, resulting in 1.3% payout.
The overall performance resulted in a bonus payout of 53.0%
of the maximum and the Committee agreed that this reflects
the stretching targets that were set and the ambitious plans
we set ourselves in a year of strong business performance.
The Committee carefully reviewed management’s performance
against these targets, taking the full business context and
stakeholder experience into account and determined that this
level of payout was appropriate with no need to apply discretion.
For both the Chief Executive and the Chief Financial Officer, this
equated to a payment of 66.2% of basic salary (out of a maximum
of 125%) for the year. The element of the bonus earned above
50% of the maximum will be paid in shares and will be subject
to a two-year holding period.
PSP vesting in 2024
The three-year performance period for the PSP awards
made in March 2022 and due to vest in March 2025 ended
on 28 December 2024.
50% of these awards were based on average annual growth
in earnings per share (EPS) in the three financial years
commencing FY2022 being between 3.0% and 8.0%,
DIRECTORS’ REMUNERATION REPORT CONTINUED
97Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
with the other 50% based on the average ROCE over the three
financial years commencing FY2022 being between 19.6% and
22.6%. In the event, average annual EPS growth was 6.57%
and average annual ROCE was 20.8%. This meant that the EPS
element vested at 39.3% and ROCE performance vested at 27.5%
giving a vesting performance of 66.8% for the total award.
The Committee has reviewed this outcome in the context of
wider business performance and stakeholder experience over
the performance period, and is very comfortable that vesting is
justified at this level with no need to apply discretion to adjust
the outcome.
Approach for 2025
As we move ahead with our strong growth plans we continue
to focus on the fundamental strategic pillars of our business
model and the four key growth drivers of our plan to reach our
potential in the years ahead, underpinned by The Greggs Pledge.
Our remuneration approach continues to align with this strategy.
While continuing to act with restraint in remuneration matters,
we believe we have a policy and incentive plans that strike the
right balance between setting stretching but achievable targets.
We ensure we set targets that drive the right decisions for the
business, support the wider workforce and shareholders, and at
the same time strongly motivate our management teams and
therefore enable the retention and recruitment of senior talent.
Salaries and fees
We have once again reviewed carefully the approach taken
with the wider workforce when considering the approach to
salary for the Executive Directors for the year ahead. As noted
above, over 84% of our workforce has received a pay increase
in 2025 of 6.1% or more with 85.7% receiving 5.6% or more. This
pay increase was implemented from January 2025 for all our
colleagues. Our graded management colleagues received an
increase of 3.5% in line with the base increase offered to our
wider workforce.
Subsequently the Committee reviewed the pay award of both
the Executive Directors and Operating Board and agreed that the
awards should be in line with the base increase of 3.5% across
the wider workforce.
A consistent approach was taken in relation to the fees for the
Board Chair and other Non-Executive Directors’ fees, which were
also increased by 3.5%.
Annual bonus
The maximum bonus opportunity for the Chief Executive and the
Chief Financial Officer will remain at 125% of salary.
The Committee believes that the current performance measures
– profit (50%), sales (20%) and strategic objectives (30%) – remain
appropriate and no changes are proposed to these weightings.
Profit and sales are critically important to Greggs, and are
measures that are closely followed by the market as indicators
of the financial health of the business. The strategic objectives
will comprise of separate elements with 10% based on business
efficiency/cost savings, 5% based on evening sales, 5% based on
basket size, 5% based on our digital strategy and 5% based on the
implementation of our SAP IT system upgrade programme Next
Generation SAP. The use of these measures reflects our desire to
incentivise and reward progress on achieving our strategic goals
and meeting key business objectives.
The definition of profit within the bonus plan for 2025 onwards
will be changed from profit before tax to operating profit. This
measure of profitability is considered to be a better measure of
underlying profitability that the broader management population
can influence and will be adopted as a Key Performance Indicator
from 2025 onwards in place of profit before tax.
Targets for these measures have been set in line with the business’s
annual financial budget and the rolling strategic business
plan and are considered to be stretching. Due to commercial
sensitivities they are not disclosed within this Report, but will
be disclosed retrospectively in next year’s Report.
PSP
For the FY2025 PSP award, as in 2024, the Committee concluded
in the interests of continuity of our normal grant policy and the
need to maintain appropriate levels of incentivisation, the award
should be granted to the Chief Executive and Chief Financial
Officer at the normal 150% of salary level (which remains lower
than the limit stated in the Directors’ Remuneration Policy).
The Committee has considered carefully the performance
conditions to apply. We will keep both EPS and ROCE, equally split
at 45% of the award. These measures have been used for a number
of years and are well understood by participants, by investors and
by the wider market as good indicators of long-term financial
performance. ROCE will also be key as we seek to secure the
benefits of the investments being made in the shop estate and
in the supply chain. As outlined in our Financial Review, as well
as a continued focus on our shop growth and shop relocation
programme we have set out plans to significantly increase
capacity in our supply chain. The impact of stepping up our
capacity in this way will create additional costs in the short term
that are subsequently utilised as we expand our operations. These
investments will also have impacts on the capital employed in the
business as well as operating costs and financing cash flows. These
factors have been taken into consideration when setting our PSP
targets for this coming year – full details of which are outlined in the
relevant section of the Remuneration Report. For FY2025, we will
also be continuing with an ESG metric with a weighting of 10%
of the award. Last year we focused on encouraging suppliers
to improve public reporting of their net zero commitments and
to commit publicly to a net zero target date. The Committee
believes that this encouragement has worked well so far, and so
for this year’s award we have switched back to focusing on our own
Scope 1 and 2 CO
2
e emissions out to 2027. As we look to grow the
business over that period, at a minimum this will require no increase
in our absolute CO
2
e emissions and, at a stretch performance, to
reduce our CO
2
e emissions in line with our 2035 net zero target.
This metric reflects the importance Greggs continues to place on
carbon neutrality and on effectively reducing our carbon footprint
intensity as we grow the business.
98
We have set appropriately stretching performance targets for
each measure reflecting the strategic plan and business outlook
over the performance period. Full details of the targets are set
out later in this Report.
Pensions
As noted above, having listened to our colleagues, we once
again have increased the matched pension contribution for
our wider workforce from 6% to 7% of pay as of January 2025.
We are committed to supporting our colleagues in saving for their
future as any contribution they wish to make up to a maximum
of 7% will now be matched by Greggs. All our Executive Directors
have had their pension contributions aligned to the majority of
the workforce (previously 6% of salary) since 1 January 2024.
As of January 2025 this alignment will continue and the pension
contribution for our Executive Directors will be increased to 7%
of salary.
Shareholder engagement
We continue to welcome feedback from our shareholders as
their views inform our thinking on remuneration matters, in
particular when evaluating and setting the remuneration policy
and its implementation. The Committee is committed to continue
consulting with key shareholders where appropriate and plans
to do so in 2025 as we consider the formulation of our new
three year Remuneration Policy which will be brought to the
AGM in May 2026.
Committee effectiveness
As noted in the Governance Report on page 76 there was an
externally-facilitated evaluation of the Board and its Committees
during 2024, conducted by Calibro Consulting.
The Committee has considered the results of this evaluation and
concluded that it operates effectively and that the Board takes
assurance from the quality of its work.
AGM
We trust that you will find this Report transparent, clear and
informative. The Committee has remained focused on ensuring
that executive remuneration is closely aligned to the delivery of
Greggs’ business strategy whilst continuing to take account of the
stakeholder experience, best practice and the wider workforce.
At the AGM this year we will be providing shareholders with the
usual advisory vote on the Annual Report on Remuneration. I look
forward to receiving your support. If you would like to contact me
directly to discuss any aspect of this Report then please email me
at investorrelations@greggs.co.uk.
Lynne Weedall
Chair of the Remuneration Committee
4 March 2025
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99Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Directors’ remuneration policy
This section of our Report describes our Directors’ remuneration policy, which applies to all
Executive and Non-Executive Directors. It explains the purpose and the operation of each
element of the remuneration package and explains how Executive Directors are incentivised to
achieve sustainable long-term growth and value to best serve the interests of the Company, its
shareholders, its colleagues and other stakeholders. Payments to Directors (including payments
for loss of office) can only be made if they are consistent with the terms of the approved policy.
The policy has been prepared in line with the relevant legislation for UK companies and was approved
by way of a binding vote at the AGM on 17 May 2023 and was applicable as of this date. Our current
intention is that the policy will remain in place for three years from the date it was approved.
The policy for the remuneration of the Executive and Non-Executive Directors is set out in the
tables below.
Executive Directors
Element Purpose and strategy Operation Maximum opportunity
Base salary To attract and retain high-calibre
individuals in order to promote the
long-term success of the business.
Normally reviewed and set annually in January.
Benchmarked periodically by the Committee against the remuneration levels for executives
in similar roles in companies of a comparable size. Individual performance and contribution
are recognised in setting salary levels.
Salaries are paid monthly in cash.
No maximum limit is prescribed. Key
reference points for salary increases are
market and economic conditions and,
in line with our values, the approach to
colleague pay throughout the organisation.
Benefits To support a competitive
remuneration package in the
marketplace.
Benefits include provision of a company car (or cash in lieu), private medical health care,
life assurance and permanent health insurance.
No maximum limit is prescribed,
particularly as the cost of providing insured
benefits fluctuates over time. However, the
Committee monitors on an annual basis the
overall cost of the benefit provision.
Pension To ensure that pension contributions
are aligned to the rate applying to the
majority of the workforce over time.
Executive Directors can elect to either:
• Participate in the Company defined contribution pension scheme (up to a cap). Above the
cap Executive Directors receive a salary supplement; or
• Take cash in lieu of this contribution paid as a supplement to their salary on a monthly basis.
The Executive Directors are able to make this choice on an annual basis.
The pension contributions rate of all
Executive Directors is aligned to the rate
applying to the majority of the workforce.
100
Element Purpose and strategy Operation Maximum opportunity
Annual bonus
(including profit
share)
To incentivise achievement of annual
targets and objectives consistent
with the short to medium-term
strategic needs of the business, so
as to encourage sustainable growth
in the Company’s operating profits.
The bonus will be based on a mix of business KPIs, with a majority based on financial measures.
Targets for each metric are set in advance by the Committee, in line with business
planning objectives.
Each Executive Director is entitled to participate in the Company’s profit-sharing scheme
available to all colleagues. The value of this is then deducted from their annual bonus and
is subject to the individual cap.
The Committee will use appropriate underpins for any non-profit based element of the annual
bonus such that payment under these elements may be scaled back (potentially to zero), at the
discretion of the Committee, if the operating profit performance for the year is judged to be
running significantly below that required for the achievement of the long-term strategy.
The Committee will be able to adjust the formula-driven outcome from any bonus plan if, in
the judgement of the Committee, this does not reflect broader Company performance or the
shareholder experience, or the payment level is otherwise inappropriate.
Any bonus paid in excess of 50% of the maximum will be payable in shares, which (after any sales
to pay tax and other statutory deductions) must be held in the Greggs Employee Benefit Trust
for two years after receipt.
The dividends payable on deferred bonus shares are paid to the individual as they fall due.
Recovery and withholding provisions allow the Company to recoup annual bonus payments
within three years in the event of misstatement of performance, error, misconduct, reputational
damage or corporate failure where this has led to an overpayment in the view of the Committee.
There is a flexible mechanism which allows the Company to withhold outstanding deferred or
future remuneration or recover the overpayment direct from the individual concerned.
Capped at 150% of base salary for all
Executive Directors.
On target performance delivers no more
than 50% of the maximum.
No more than 25% of the bonus
opportunity is payable under each
element for threshold performance.
DIRECTORS’ REMUNERATION REPORT CONTINUED
101Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Element Purpose and strategy Operation Maximum opportunity
Performance
Share Plan (PSP)
To incentivise long-term value
creation, retention of our talent
and ensure alignment of Executive
Directors’ and shareholders’ interests.
Awards are normally granted under the PSP annually at the discretion of the Committee.
Performance conditions will be based on long-term KPIs, with a majority weighting on financial
measures with targets being set for each metric which reflect the strategic plan and business
outlook over the respective performance period.
Performance will be measured over a three-year period with an additional mandatory holding
period of two years for the vested shares (net of tax and other deductions).
A PSP award holder may be entitled to a dividend equivalent payment in respect of any vested
shares.
The Committee will be able to adjust the formula-driven outcome from the PSP if, in the
judgement of the Committee, this does not reflect broader Company performance or the
shareholder experience, or the vesting level is otherwise inappropriate.
Recovery and withholding provisions allow the Company to recoup vested PSP awards within
three years in the event of misstatement of performance, error, misconduct, reputational
damage or corporate failure where this has led to an overpayment in the view of the Committee.
There is a flexible mechanism which allows the Company to withhold outstanding deferred or
future remuneration, or recover the overpayment directly from the individual concerned.
200% of base salary for the Chief Executive
and 175% of base salary for other
Executive Directors (200% of base salary
in exceptional circumstances).
Threshold vesting at 25% of the maximum.
All colleague
share schemes
(SAYE and SIP)
To encourage colleagues at all levels
within the Company to understand
better and so participate in the
growth in value of the Company.
No performance conditions have been attached to awards granted pursuant to the Company’s
SAYE and SIP schemes, which are available for all eligible colleagues.
Executive Directors may participate
alongside eligible colleagues to the extent
permitted by HMRC limits.
Share retention
guidelines
To further align the interests of
Executive Directors to those of
shareholders.
Executive Directors are required to build up a shareholding of 200% of base salary. Where an
Executive Director has not reached the required level, 50% of the shares vesting from incentive
schemes must be held until this requirement has been met.
This is achieved through vested awards granted via the PSP and deferred bonus shares.
For all Executive Directors there is a two-year post-employment holding requirement at the
lower of the level of the shareholding guideline immediately prior to departure or the actual
shareholding at departure.
n/a
102
Non-Executive Directors
Element Purpose and strategy Operation Maximum opportunity
Chair and
Non-Executive
Directors’ fees
To attract and retain high-quality
and experienced Non-Executive Chair
and Directors.
The Chair is paid an all-encompassing fee.
Non-Executive Directors are paid a basic fee and the Chairs of the Board Committees, the
Senior Independent Director and the Non-Executive Director with responsibility for colleague
engagement are paid an additional fee to reflect their additional responsibilities.
These fees are usually reviewed and set annually. Additional fees may be paid where there is
a material increase in the time commitments or responsibilities required of Non-Executive
Directors or following a review of market rates.
Non-Executive Directors are not eligible for pension scheme membership, bonus or
incentive arrangements.
They are entitled to reimbursement of reasonable business expenses and tax thereon.
They may also receive limited travel or accommodation-related benefits in connection
with their role as a Director.
There is no prescribed maximum.
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103Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Choice of performance measures and policy discretion
The remuneration policy provides the Remuneration Committee with the flexibility to choose
appropriate performance conditions for the annual bonus scheme and for PSP awards, subject to
the constraints set out in the table above. The choice of metrics will depend upon the strategic
focus for the Company at the time decisions around the awards are taken. The specific measures
and the targets used to assess performance will be disclosed in the Directors’ Remuneration Report
on an annual basis. For further information, please see the section titled ‘How our remuneration
links to strategy and reward across the wider workforce’ on pages 106 and 107.
The Committee will operate incentive plans in accordance with their respective rules, the Listing
Rules and HMRC limits where relevant. The Committee, consistent with market practice, retains
discretion over a number of areas relating to the operation and administration of certain plan rules.
These include (but are not limited to) the following:
• Who participates;
• The timing of the grant of award and/or payment;
• The size of an award (up to plan/policy limits) and/or a payment;
• Discretion relating to the measurement of performance in the event of a change of control
or reconstruction;
• Determination of a good leaver (in addition to any specified categories) for incentive plan
purposes and the treatment of leavers; and
• Adjustments required in certain circumstances (i.e. rights issues, corporate restructuring and
special dividends), and the ability to adjust, but not waive, existing performance conditions for
exceptional events so that they can still fulfil their original purpose.
Difference in remuneration policy across the Group and consideration of employment
conditions elsewhere in the Group
The remuneration policy for the Executive Directors is designed having regard to the policy for
colleagues across the business as a whole and wider workforce remuneration and related policies.
Further information is provided in the section titled ‘How our remuneration links to strategy and
reward across the wider workforce’ on pages 106 and 107.
Statement of consideration of shareholder views
When setting the remuneration policy and determining its implementation, the Committee takes
into account the views of shareholders, their representative bodies and other interested parties
such as proxy advisers. The Committee regularly consults major shareholders on proposed
changes to the policy, and did so during 2022 in respect of the current policy implemented in 2023.
The Committee considered comments received from shareholders before finalising the terms
of the policy.
Legacy arrangements
For the avoidance of doubt, in approving this policy, authority is given to the Company to honour
any commitments entered into with current or former Directors (such as the payment of a pension
or the unwinding of legacy share schemes) that have been disclosed to shareholders in previous
remuneration reports. Details of any of these payments to former Directors will be set out in the
Annual Report on Remuneration as they arise.
Policy on recruitment remuneration
The Committee will set a new Executive Director’s remuneration package in line with the Company’s
approved policy at the time of appointment. In arriving at a total package and in considering the
quantum for each element of that package, the Committee will take into account the skills and
experience of the candidate, the market rate for a candidate of that experience as well as the
importance of securing the best available candidate.
Annual bonus and PSP awards will not exceed the policy maxima (not including any arrangements
to replace forfeited pay). Participation in the annual bonus plan will normally be pro-rated for the
year of joining. The Committee may make one-off additional cash and/or share-based awards as
it deems appropriate, and if the circumstances so demand, to take account of pay forfeited by an
Executive Director on leaving a previous employer. Awards to replace pay forfeited would, where
possible, reflect the nature of awards forfeited in terms of delivery mechanism (cash or shares), time
horizons, attributed expected value and performance conditions. Other payments may be made in
relation to relocation expenses and other incidental expenses as appropriate. Any buyout awards
would be made under existing arrangements where possible or as permitted under the Listing Rules.
In the case of an internal appointment, any variable pay element awarded in respect of the prior role
would be allowed to pay out according to its terms and any other ongoing remuneration obligations
existing prior to appointment would continue.
In line with our remuneration policy, all new Executive Directors will have their pension contribution
aligned to the rate applying to the majority of the workforce.
For the appointment of a new Chair or Non-Executive Director, the fee arrangement would be set in
accordance with the approved remuneration policy at that time.
104
Service contracts and policy on cessation
Executive Directors’ service contracts contain the following remuneration-related aspects:
Provision Detailed terms
Remuneration • Salary, pension and benefits;
• Company car or cash allowance;
• Private medical health care for the Director;
• Permanent health insurance;
• Participation in annual bonus and profit share (subject to scheme rules);
• Participation in long-term incentive schemes or similar arrangements
(subject to scheme rules); and
• Life assurance.
Notice period • The Chief Executive’s service contract is terminable on 12 months’
notice served by either the Company or the Director;
• The Chief Financial Officer’s service contract is terminable on 12 months’
notice served by the Company or by six months’ notice served by the
Director; and
• Any future Executive Directors’ service contracts will be terminable
on up to 12 months’ notice served by either party.
Termination payment • Payment in lieu of notice equal to any unexpired notice of termination
given by either party; and
• Payment in lieu shall not include:
– Any bonus payment;
– Any payment in respect of benefits which the Director would have
been entitled to receive; and
– Any payment in respect of any holiday entitlement that would have
accrued during the period for which the payment in lieu is made.
Details of the circumstances in which the Committee has the ability
to exercise discretion with regards to termination payments are set
out below.
Under their service contracts, if notice is served the Executive Directors are entitled to salary,
pension contributions and benefits for their notice period save where a payment in lieu is to be
made. The Company would seek to ensure that any payment is mitigated by use of phased payments
and offset against earnings elsewhere in the event that an Executive Director finds alternative
employment during their notice period. There are no contractual provisions in force other than
those set out above that impact any termination payment.
Areas where the Committee can exercise discretion with regards to termination payments are set
out below:
• Any right to annual bonus in the year of departure would lapse unless the individual is leaving in
good-leaver circumstances, in which case a bonus may be payable pro-rated for that part of the
year worked;
• Deferred bonus shares must normally be retained in trust until the end of their two-year holding
period, but may be released early in exceptional circumstances, such as ill-health;
• Any unvested awards held under the PSP will lapse at cessation, unless the individual is leaving
in good-leaver circumstances (defined under the plan as death, injury, ill-health, disability,
redundancy, retirement, their office or employment being with either a Company which ceases
to be a Group member or relating to a business or part of a business which is transferred to a
person who is not a Group member, a change of control or any other reason the Committee so
decides). In these circumstances, unvested awards will normally vest at the normal vesting date
(other than on death or where the Committee decides they should vest at cessation) subject to
performance conditions being met and scaling back in respect of actual service as a proportion
of the total vesting period (unless the Committee decides that scaling back is inappropriate).
Vested awards will normally be subject to the mandatory two-year holding period although the
Committee will have discretion to waive this in exceptional circumstances; and
• The Committee may agree to payment of disbursements such as legal costs and outplacement
services if appropriate and depending on the circumstances of cessation.
The table below sets out the details of the Executive Directors’ service contracts:
Director Date of contract
Roisin Currie 1 February 2022
Richard Hutton 7 April 2006
The service contracts are available for inspection during normal business hours at the Company’s
registered office, and are available for inspection at the AGM.
DIRECTORS’ REMUNERATION REPORT CONTINUED
105Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Expected value of the proposed annual remuneration package for Executive Directors
The following charts indicate the level of remuneration payable to Executive Directors in 2025 based
on policy at minimum remuneration, remuneration in line with ‘on target’ Company performance, and
the maximum remuneration available.
Chief Executive – Roisin Currie
£3,500,000
£3,000,000
PSP
£2,000,000
£2,500,000
£1,500,000
£1,000,000
£500,000
£0
Bonus
Minimum
100%
£740,849
£1,668,840
£2,596,831
£3,103,008
45% 29% 24%
24%
32% 27%
31%
39%
49%
On target Stretch 50%
share price
appreciation
Fixed
remuneration
Minimum On target Stretch
50% share price
appreciation
Fixed remuneration:
– Salary £674,903 £674,903 £674,903 £674,903
– Pension £47,243 £47,243 £47,243 £47,243
– Benefits £18,703 £18,703 £18,703 £18,703
Bonus – £421,814 £843,628 £843,628
Performance Share Plan – £506,177 £1,012,354 £1,518,531
Total £740,849 £1,668,840 £2,596,831 £3,103,008
Assumptions used in the charts:
• Base salary levels as at 1 January 2025.
• Pension at the wider workforce rate (currently 7%).
• The value of taxable benefits is based on the cost of supplying the benefits at the agreed level.
Chief Financial Officer – Richard Hutton
£2,500,000
£2,000,000
PSP
£1,500,000
£1,000,000
£500,000
£0
Bonus
Minimum
100%
£485,681
£1,093,979
£1,702,277
£2,034,075
44% 28% 24%
25%
33%
27%
31%
39%
49%
On target Stretch 50%
share price
appreciation
Fixed
remuneration
Minimum On target Stretch
50% share price
appreciation
Fixed remuneration:
– Salary £442,398 £442,398 £442,398 £442,398
– Pension £30,968 £30,968 £30,968 £30,968
– Benefits £12,315 £12,315 £12,315 £12,315
Bonus – £276,499 £552,998 £552,998
Performance Share Plan – £331,799 £663,598 £995,396
Total £485,681 £1,093,979 £1,702,277 £2,034,075
Bonus
Minimum remuneration – assumes no award is earned under the annual bonus plan.
• On target remuneration – the annual bonus plan assumes the target level is reached for each
of the elements, resulting in a payout of 50% of the maximum.
• Stretch remuneration – assumes satisfaction of all performance conditions for all elements
under the annual bonus plan and therefore full payout.
106
PSP element is calculated as award percentage of base salary multiplied by the relevant vesting
percentage. Share price movement and dividend accrual have been excluded, other than in the
50% share price appreciation model.
• Minimum remuneration – assumes no vesting is achieved under the PSP.
• On target remuneration – assumes 50% vesting is achieved.
• Stretch remuneration – assumes 100% vesting is achieved.
Terms of appointment of Non-Executive Directors
Non-Executive Directors are appointed subject to the Company’s articles of association, retiring
and seeking election at the first AGM after appointment.
Thereafter, every Director will be subject to annual re-election by shareholders. The Nominations
Committee advises the Board as to whether Directors should be nominated for re-election. Non-
Executive Directors are not entitled to compensation for early termination of their appointments
prior to the date on which they would next be due to offer themselves for election or re-election,
or if not reappointed at such time.
The letters of appointment for the Non-Executive Directors are available for inspection during
normal business hours at the Company’s registered office, and are available for inspection at the
AGM.
The following table shows the effective date of appointment for each Non-Executive Director:
Non-Executive Director Original date of appointment
Matt Davies 2 August 2022
Kate Ferry 1 June 2019
Mohamed Elsarky 21 June 2021
Lynne Weedall 17 May 2022
Nigel Mills 7 March 2023
Tamara Rogers 1 June 2024
Current Non-Executive Directors are appointed on an understanding that the appointment will last
for at least six years, but without any commitment by either party.
All new Non-Executive Directors are appointed for an initial term of three years unless terminated
earlier by either party giving to the other party three months’ written notice.
A. How our remuneration links to strategy and reward across the wider workforce
Link to strategy
Growth drivers Strategic pillars and key drivers
of growth
The Greggs
Pledge
Remuneration at Greggs
is intended to incentivise
sustainable and profitable
business growth. This is
reflected in key metrics in
the variable pay incentive
plans including operating
profit, like-for-like sales,
cost savings, EPS and ROCE.
Delivery against the four strategic
pillars – ‘Great tasting, freshly
prepared food’, ‘Best customer
experience’, ‘Competitive supply
chain’ and ‘First-class support teams’
– is incentivised as appropriate by
strategic metrics in the annual bonus
scheme, for example, evening sales,
basket size, digital growth targets and
key strategic project deliverables.
Our commitment
to deliver these
goals is supported
with the inclusion
of ESG targets
in the incentive
schemes, such as
carbon reduction
targets.
DIRECTORS’ REMUNERATION REPORT CONTINUED
107Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Reward across the wider workforce
The remuneration policy for the Executive Directors is designed having regard to the policy
for colleagues across the Group as a whole and wider workforce remuneration and related
policies. There are differences in salary levels and in the levels of potential reward depending
upon seniority and responsibility, although a key reference point for Executive Director salary
increases is the average base pay increase across the general workforce.
We share 10% of our profits annually with our colleagues across the business, and everyone
is eligible to participate in this profit-sharing scheme after six months’ service.
Share incentive schemes and bonus participation extends below Board level, with a separate
share option scheme in place for senior management colleagues and a bonus scheme for
graded management. Both the share option and management bonus schemes are aligned
to those of the Executive Directors and are subject to the same performance targets and
measures. A higher proportion of the Executive Directors’ remuneration package is delivered
through performance-related incentive schemes, much of which is in share-based form, which
provides a good link to long-term Company performance and the shareholder experience.
All colleagues with three months’ service or more may participate in the sharesave scheme
(SAYE) (where colleagues can save to purchase shares at the end of a three-year period at a
20% discount to the price at the date of grant) and in the Share Incentive Plan (SIP) (where
colleagues can purchase shares from pre-tax salary subject to HMRC limits). These schemes
are generally offered annually.
For FY2025, we have implemented an increase in matched pension contribution up to 7% which
means all colleagues, irrelevant of level have the same matched pension contribution levels.
The pension contribution rate for our Executive Directors is aligned to the contribution rate for
the majority of our workforce now set at 7% as of January 2025.
Compliance with the UK Corporate Governance Code
The Directors’ remuneration policy is fully compliant with the relevant factors set out in the
UK Corporate Governance Code:
Clarity We are open and transparent in our approach to remuneration
taking into account the experience of our colleagues,
shareholders and stakeholders. We regularly engage with
stakeholders on remuneration matters.
Simplicity Our remuneration policy is simple and consistent in
its approach. Senior management share option and
management bonus schemes are aligned to those
of the Executive Directors and are subject to the same
performance criteria.
Predictability Our remuneration policy clearly outlines the details of
maximum opportunity levels for each component of pay.
Incentive levels vary depending on the level of performance
against specific metrics. The typical award levels and
potential pay-outs are disclosed in the remuneration policy
and it is demonstrated in each year’s Remuneration Report
how outcomes are aligned with performance and strategy.
Proportionality, risk and
alignment to culture
Pay outcomes are dependent upon performance linked to
our business strategy and growth plans, as well as taking
into account our wider workforce remuneration and specific
Greggs culture. This ensures a significant proportion of pay
is delivered in shares to provide alignment with investors
and incorporates other best practice features in line with the
UK Corporate Governance Code and investor guidelines.
The use of annual bonus deferral and PSP holding periods
provides a clear link to the ongoing performance of the
business and therefore alignment with shareholders.
The Committee has the discretion to apply malus and
clawback in both the annual bonus and PSP.
108
B. Remuneration Committee activity for the 52 weeks ended 28 December 2024
Meetings during the year
The Remuneration Committee met three times during the year. Details of the Committee members’
attendance are given on page 76.
All members are considered to be independent for the purpose of the UK Corporate Governance
Code. The Company Secretary acts as Secretary to the Committee.
Role and responsibilities
Responsibility is delegated to the Remuneration Committee to ensure that an effective
remuneration policy is in place for the Chief Executive, other Executive Directors, the Chair and
senior management, whilst reviewing and taking into account wider workforce remuneration and
the Company’s values and culture. It is the Committee’s role to establish a remuneration policy that
promotes both long-term shareholdings by Executive Directors and ensures alignment of policies
and practices to support business strategy, promote the long-term sustainable success of the
business and meet shareholder expectations.
Summary of Committee activity during 2024
Details of some of the activities the Committee has undertaken have been summarised below:
• Reviewed all colleague remuneration and the 2025 pay award for colleagues;
• Discussed and agreed Directors’ and Operating Board salaries for 2025;
• Agreed the targets for the 2025 bonus;
• Agreed the targets for the 2025 PSP award;
• Discussed the 2024 bonus outturn and 2022 PSP award vesting in the context of the original
performance targets set, as well as the wider socio-economic environment and the experience
of the wider workforce;
• Approved grants under the PSP to Executive Directors and the Operating Board and under the
share option scheme to senior managers below Executive Director and Operating Board level;
• Approved the all-colleague SAYE and SIP schemes for the year ahead;
• Discussed and agreed the fees for the Chair;
• Reviewed Executive Directors’ and Operating Board shareholdings in the Company, in the
context of shareholding guidelines;
• Reviewed and discussed the results of the external Board evaluation (as outlined in the
Governance Report); and
• Attended colleague forums to understand wider workforce views.
Structure and content of the Remuneration Report
The Remuneration Report has been prepared in accordance with the provisions of the relevant
remuneration reporting regulations (the ‘Regulations’). It also meets the requirements of the
UK Listing Authority’s Listing Rules.
The Regulations also require our auditor to report to shareholders on the audited information within
this Remuneration Report and to state whether, in their opinion, the relevant sections have been
prepared in accordance with the Act and the Regulations. The auditor’s opinion is set out on pages
121 to 127. and we have indicated appropriately the audited sections of this Remuneration Report.
Remuneration advice
The Chief Executive along with Jonathan Jowett (Company Secretary and General Counsel) and
Emma Walton (People Director) are normally invited to attend Committee meetings in order to
provide advice and support to the Committee. The Chief Financial Officer attends where required.
During the year Korn Ferry (which has no other connection to the Company or any individual Director)
provided remuneration advice to the Committee. Korn Ferry was appointed by the Committee in
2017 following an informal tender process.
Korn Ferry is a signatory to the Remuneration Consultants’ Code of Conduct in relation to executive
remuneration consulting in the UK.
The Committee reviewed the operating processes in place at Korn Ferry and is satisfied that the
advice it receives is objective and independent. Fees paid to Korn Ferry during the year were £25,565.
AGM voting outcomes
The Directors’ Remuneration Report was the subject of an advisory vote at the 2024 AGM and the
results are outlined below.
Approve the Remuneration Report
Total number
of votes
% of
votes cast
For 74,087,096 97.85%
Against 1,627,737 2.15%
Total votes cast (excluding votes withheld) 75,714,833 100.00%
Votes withheld 15,130
Total votes cast (including votes withheld) 75,729,963
DIRECTORS’ REMUNERATION REPORT CONTINUED
109Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Shareholders were asked to approve the remuneration policy at the 2023 AGM and the results are
outlined below:
Approve the remuneration policy
Total number
of votes
% of
votes cast
For 72,411,666 97.89%
Against 1,564,590 2.11%
Total votes cast (excluding votes withheld) 73,976,256 100.00%
Votes withheld 67,008
Total votes cast (including votes withheld) 74,043,264
C. How our remuneration policy will be implemented in 2025 – Executive Directors
The section below summarises the implementation of our remuneration policy for 2025.
Base salary 2025
The annual base salaries for the Executive Directors were reviewed with effect from 1 January 2025;
increases and current salaries are outlined below:
Director
Salary
1 January 2024
Salary
1 January 2025 % increase
Roisin Currie (Chief Executive) £652,080 £674,903 3.5%
Richard Hutton (Chief Financial Officer) £427,438 £442,398 3.5%
With over 84% of the workforce receiving a pay increase of 6.1% or more for 2025, and over 85%
receiving 5.6% or more, the Committee is comfortable the increase for the Executive Directors is
appropriate, being proportionally lower than the wider workforce while ensuring that salary for the
Executive Directors does not fall materially behind mid-market levels.
Pension contribution 2025
We are delighted to confirm that we have further increased the matched pension contribution
for our wider workforce from 6% to 7% of pay as of January 2025. This ensures our pension
contributions for all colleagues at Greggs are now aligned irrelevant of role and we continue to
support our colleagues in saving for their future as any contribution they wish to make up to a
maximum of 7% will now be matched by Greggs. The pension contributions for the Executive
Directors are aligned with the rate for the majority of the workforce, accordingly the rate has
increased to 7% of salary with effect from 1 January 2025.
The pension contribution rates for 2025 (all of which are cash in lieu) are:
Roisin Currie 7.0%
Richard Hutton 7.0%
Annual bonus 2025
The annual bonus opportunity for 2025 is outlined below:
Chief Executive Maximum opportunity of 125% of base salary. Bonus in excess of 50%
of maximum will be payable in shares deferred for two years.
Chief Financial Officer Maximum opportunity of 125% of base salary. Bonus in excess of 50%
of maximum will be payable in shares deferred for two years.
The annual bonus is based on performance against a range of financial and strategic performance
measures. This range of metrics measures achievement of the Company’s key operational
objectives. The Committee reviews the KPIs each year and varies them as appropriate to reflect the
priorities for the business in the year ahead. Where appropriate a sliding scale of targets is set for
each KPI to encourage continuous improvement or sustained high performance, with a maximum
of 10% bonus paid out for threshold performance for the profit and sales elements.
Targets are normally set at the start of the year by the Committee using the outturn and performance in
the previous year, as well as the business plan, to determine appropriately stretching sliding scales. Bonus
targets for the forthcoming year are considered to be commercially sensitive. Retrospective disclosure of
the targets and performance against them will be made in next year’s Annual Report on Remuneration.
The bonus metrics are:
Measure Profit Sales Strategic objectives
Weighting 50% of total 20% of total 30% of total
Detail and link to
strategy
Reflects the profit
1
of
the Group (excluding
exceptional items) before
tax. This will be based on
meeting and exceeding
budget for the year.
Based on company-
managed shop like-for-
like sales excluding any
additional shops opened
during the bonus year.
Outlined below.
1 The definition of profit within the bonus plan for 2025 onwards will be changed from profit before tax to operating profit. This measure
of profitability is considered to be a better measure of underlying profitability that the broader management population can influence
and will be adopted as a KPI from 2025 onwards in place of profit before tax.
110
The strategic objectives for each bonus cycle are based on measures which will provide a strong link
to strategy and our four key growth drivers.
For the 2025 bonus there will be five strategic objectives. They are:
• 10% based on business efficiency/cost savings;
• 5% based on growth in evening sales;
• 5% based on growth in basket size;
• 5% based on digital metrics linked to the Greggs App; and
• 5% based on the implementation of our SAP IT system upgrade programme Next Generation SAP.
Following a review of performance by the Committee, any payment under the non-profit based
element of the bonus may be scaled back (potentially to zero) at the discretion of the Committee in
the event that the profit performance for the year is judged to be running significantly below that
required for the achievement of the long-term strategy.
PSP award 2025
The Committee has concluded that in the interests of continuity of our normal grant policy and the
need to maintain an appropriate level of incentivisation, the FY2025 PSP award should be granted
to the Chief Executive and Chief Financial Officer at the normal 150% of salary level (which remains
lower than the limit stated in the Directors’ Remuneration Policy). A provision has been added to the
award that will require the Committee to review the value of the award on vesting. If, at that time,
the Committee considers that there has been a windfall gain for Directors, the Committee may scale
back the number of shares vesting to what it considers to be a more appropriate value.
Chief Executive 150% of base salary
Chief Financial Officer 150% of base salary
The PSP awards for the Executive Directors are normally granted in the period following the
announcement of the financial results for the prior year.
For the awards in FY2025 we will have three performance measures. We will keep both EPS and
ROCE, equally split at 45% of the award, with an ESG metric comprising the remaining 10% of the
award. This will be focused on our own Scope 1 and 2 CO
2
e emissions out to 2027, ensuring we
maintain a strategic link to The Greggs Pledge within our PSP award.
With regard to the EPS and ROCE metrics this year, the Committee considered carefully the current
strategic business plan and business outlook. Across the three-year period of this award, managing
ROCE will be key as we seek to secure the benefits of the investments being made in the shop estate
and in our supply chain. As outlined in our financial review, the impact of stepping up our capacity in
this way is to create additional costs in the short term that are subsequently utilised as we expand
our operations. These investments will impact the capital employed in the business as well as
operating costs and financing cash flows.
In the context of this investment phase, for the 2025 awards the target ranges will be as follows:
• The EPS performance condition will require average annual growth in EPS over the performance
period to be between 2% and 5%. This growth range is based on the FY2024 EPS, which was an
all-time-high level of earnings;
• The ROCE condition will require average ROCE over the performance period to be between 16.1%
to 18.5%; and
• The ESG carbon metric will require a reduction in absolute Scope 1 and 2 CO
2
emissions over
the performance period in line with our net zero target (based on the underpin of no increase in
absolute emissions at the end of 2027:
– 25% of the incentive is awarded if absolute Scope 1 and 2 CO
2
e emissions are maintained at
2024 levels (41,710 tCO
2
e) despite business growth.
– on a sliding scale up to a maximum of;
– 100% of the incentive is awarded if absolute Scope 1 and 2 CO
2
e emissions are reduced in line
with our 2035 net zero target (30,164 tCO
2
e).
The Committee is satisfied that the EPS and ROCE target ranges are appropriately stretching and
are equivalently demanding as the targets set for prior years’ awards. For all three performance
measures, 25% of an award will vest on achieving threshold performance and thereafter straight-
line sliding scales will apply until stretch performance is achieved. The performance period of this
award will be 2025 to 2027.
A holding period is attached to vested PSP awards, requiring the vested shares to be held (net of tax
and other deductions) for a further two years.
DIRECTORS’ REMUNERATION REPORT CONTINUED
111Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
How our remuneration policy will be implemented in 2025 – Non-Executive Directors
In order to ensure that no Director is involved in deciding their own remuneration, the fees payable
to Non-Executive Directors are set, after consultation with the Chair, by a Committee of the
Board consisting only of the Executive Directors. The fees payable to the Chair are set by the
Remuneration Committee.
The Non-Executive Directors are paid an annual base fee and additional responsibility fees for the
role of Senior Independent Director (SID), for chairing a Board Committee or for being the Non-
Executive Director with responsibility for colleague engagement.
These fees are usually reviewed and set annually. The fees were increased by 3.5% on 1 January 2025
in line with the base salary increase agreed for Executive Directors and similarly the fee for the Chair
was increased by 3.5% on 1 January 2025.
Details of the fees being paid to Non-Executive Directors in 2025 are set out below:
Name Position
Base fee from
1 January 2025
Annual additional
fee from 1 January
2025
Total fee
2025
Matt Davies Board Chair £270,394 – £270,394
Kate Ferry Chair of the Audit Committee £59,200 £13,498 £72,698
Mohamed Elsarky Non-Executive Director with
responsibility for colleague
engagement
£59,200 £5,408 £64,608
Lynne Weedall Chair of the Remuneration
Committee
£59,200 £13,498 £72,698
Nigel Mills Non-Executive Director and SID £59,200 £13,498 £72,698
Tamara Rogers Non-Executive Director £59,200 – £59,200
These fees may be subject to change during the year based on any change in responsibility or time
commitment or to ensure they remain in line with market rates.
D. How our remuneration policy was implemented in 2024
Total Executive Director remuneration payable for 2024 (audited)
The following table presents the remuneration payable for 2024 (showing the equivalent figures
for 2023) for the Executive Directors.
Salary
£
Pension contribution
(including salary in lieu)
£
Taxable benefits
3
£
Total fixed
remuneration
£
Annual incentives
(including profit share)
£
Performance Share
Plan
1
£
Total variable
remuneration
£
Total remuneration
£
Roisin Currie
2024 652,080 37,912 18,703 708,695 432,003 670,273 1,102,276 1,810,971
2023 624,000 23,747 24,771 672,518 661,785 424,056
2
1,085,841 1,758,359
Richard Hutton
2024 427,438 24,434 12,314 464,186 283,178 439,361 722,539 1,186,725
2023 409,032 15,149 12,307 436,488 433,800 577,358
2
1,011,158 1,447,646
1 The values of the PSP award for 2024, due to vest on 28 March 2025 for Richard Hutton and 18 May 2025 for Roisin Currie are based on
the level of vesting (66.8%) and the average share price over the final three months of the 2024 financial year (£27.88). The amount
attributable to share price appreciation is £148,981 for Roisin Currie and £45,486 for Richard Hutton. Figures will be trued up in the 2025
Report to reflect the share price at the vesting date.
2 For the 2023 PSP award the value last year was based on the average share price over the three months prior to the 2023 year end
(£24.62). The value has now been updated for the actual price on vesting on 6 April 2024 of £27.62, together with the updated total
remuneration figures. The values were increased by £46,031 for Roisin Currie and £62,672 for Richard Hutton.
3 Taxable benefits relate to cash-in-lieu of a company car, private medical health care and travel expenses paid.
112
Fees for Non-Executive Directors (audited)
The fees for Non-Executive Directors were as follows:
2024 2023
Matt Davies £261,250 £250,000
Kate Ferry £70,240 £67,215
Mohamed Elsarky £62,423 £57,826
Lynne Weedall £70,240 £67,215
Nigel Mills £70,240 £52,443
Tamara Rogers
1
£33,366 –
Helena Ganczakowski
2
– £20,823
Sandra Turner
2
– £25,946
1 Tamara Rogers joined the Board on 1 June 2024.
2 Helena Ganczakowski and Sandra Turner retired from the Board on 17 May 2023.
Annual bonus 2024 (audited)
The table below outlines the bonus performance conditions in respect of the 2024 bonus scheme.
Measure Strategic objective Weighting Entry Target Stretch Actual %
Profit (£) To deliver target
profit before
tax (excluding
exceptional items
and property profits)
50% £176.3m £185.3m £194.3m £189.5m
1
36.7%
Sales (%) Like-for-like sales
performance
20% 8.1% 9.1% 10.1% 5.5% 0.0%
Strategic (£) Cost savings 10% £3.0m £5.0m £7.0m £10.6m 10.0%
Strategic
(£m)
Evening sales 5% £171.9m £191.9m £211.9m £161.5m 0.0%
Strategic Increase in
delivery sales
5% £131.2m £146.2m £161.2m £121.2m 0.0%
Strategic Increase unsold
food redistribution
2
5% 45% 50% 45.1% 1.3%
Strategic Increase in digital
transactions
2
5% 16.0% 19.0% 19.9% 5.0%
Total weighting based
on balanced scorecard
100% 53.0%
1 The actual result is calculated as profit before tax of £189.8m (see page 128) less property profits of £0.3m.
2 Further details on these strategic targets are set out below.
Increase food redistribution (5%)
Metric Maximum 5%
Distribute an increased
percentage of unsold
food ahead of the 2023
end of year actual of
42.0%
7% increase in
amount of unsold food
redistributed year-
on-year (increase to
45.0%)
sliding scale to… 19% increase in
amount of unsold food
redistributed year-
on-year (increase to
50.0%)
DIRECTORS’ REMUNERATION REPORT CONTINUED
113Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Increase in digital transactions (5%)
Metric Maximum 5%
Increase % of average
transactions involving
a Greggs App Rewards
scan or Click +
Collect order across
the full year 2024
(31 December 2023 to
28 December 2024)
ahead of year end 2023
figure of 15%
One percentage
point increase in
average transactions
across the year
(increase to 16%)
sliding scale to… Four percentage
point increase in
average transactions
across the year
(increase to 19%)
Bonus achieved for 2024
As % of maximum
Roisin Currie 53.0%
Richard Hutton 53.0%
In line with the remuneration policy, the proportion of the bonus in excess of 50% of the maximum
(pro rata) will be payable in shares, deferred for two years.
Details of the shares awarded in 2024 for the 2023 bonus year are outlined below. These were awarded
on 25 March 2024 and will be released on 25 March 2026.
Number of shares
awarded
Roisin Currie 5,195
Richard Hutton 3,405
Performance Share Plan award for performance in 2022 to 2024 (audited)
The PSP award granted in 2022 measured two performance targets to be achieved by the end of
2024. The performance targets that were set, together with the performance achieved are set out
in the table below.
Metric Condition Threshold target Stretch target Actual % vesting
EPS (50%) Average annual
growth in EPS over
the performance
period
3.0%
(12.5% vesting)
8.0%
(50% vesting)
6.57% 39.3%
ROCE (50%) Average ROCE over
the performance
period
19.6%
(12.5% vesting)
22.6%
(50% vesting)
20.8% 27.5%
Total vesting 66.8%
The Committee considered the vesting outcome in the context of overall Company performance,
the shareholder experience and the wider stakeholder experience over the performance period.
The Committee was satisfied that the vesting outcome was an appropriate reflection of wider
business performance and the experience of all stakeholders (including shareholders). Accordingly,
the Committee did not exercise any discretion to reduce the level of vesting.
The table below sets out the number of shares which will vest for each Executive Director under the
2022 PSP award. All awards were granted as nil-cost options.
Executive Director Date of grant Date of vesting
Number
of shares
awarded Vesting %
Number
of shares
vesting
Expected
total vesting1
Roisin Currie –
performance
measured PSP
18 May 2022 18 May 2025 36,014 66.8% 24,045 £670,273
Richard Hutton
– performance
measured PSP
28 March 2022 28 March 2025 23,607 66.8% 15,761 £439,361
1 Calculated using average share price over the final three months of the 2024 financial year (£27.88).
114
Performance Share Plan awards granted in 2024 (audited)
Performance Share Plan awards granted during 2024 are as follows:
Executive Type of award
Basis of award
granted
Share price
and date of
grant
Number of
shares over
which award
was granted
Face value
of award
Percentage
of face value
that would vest
at threshold
performance
Vesting
performance
measurement
period
Roisin Currie
Nil-cost
options
150% of
salary
£27.74
(25 March
2024)
35,260 £978,112
25%
Financial
year 2026
Richard Hutton 150% of
salary
£27.74
(25 March
2024)
23,113 £641,155
For the 2024 grant there are three independent performance targets applying to the awards.
Two of the performance targets each account for 45% of the award and one performance target
accounts for 10% of the award:
• 45% is subject to a performance target based on the Company’s average annual growth in EPS
over a performance period of three financial years commencing with the financial year 2024
being between 5% and 10%.
• 45% is subject to a performance target based on the Company’s average ROCE over a
performance period of three financial years commencing with the financial year 2024 to be in the
range 18.4% to 20.8%.
• 10% of the award is subject to Greggs using it commercial leverage with its supply chain to drive
measurement and public reporting by suppliers of their carbon footprints and declare a public
commitment to achieving net zero no later than 2050 (the current UK Government legislative net
zero date).
For each metric, 25% of the award will vest on achieving threshold performance and thereafter
straight-line sliding scales will apply until stretch performance is achieved. A holding period will
apply to vested PSP awards requiring the vested shares to be held (net of tax) for a further two years.
Outstanding share awards (audited)
The following table sets out details of the PSP and savings-related share options held by,
or granted to, the Executive Directors who served during the year:
At 31 December 2023
number
Granted
number
Exercised
number
Lapsed
number
At 28 December 2024
number
Exercise price
Date of grant
Market price of each
share at date of grant
Date from which
exercisable
Expiry date
Scheme
Roisin
Currie
5,902 – 5,902
1
– – £nil Apr 19 £18.30 Apr 22 Apr 29 PSP
11,514 – 11,514
1
– – £nil Oct 20 £14.07 Oct 23 Oct 30 PSP
5,687 – 5,687
1
– – £nil Apr 21 £22.72 Apr 24 Apr 31
Restricted
stock
option
3
9,668 – 9,668
1
– – £nil Apr 21 £22.72 Apr 24 Apr 31 PSP
36,014 – – – 36,014 £nil May 22 £21.68 May 25 May 32 PSP
33,669 – – – 33,669 £nil May 23 £27.62 May 26 May 33 PSP
– 35,260 – – 35,260 £nil Mar 24 £27.74 Mar 27 Mar 34 PSP
75 – 75
2
– – £16.72 Apr 21 Jun 24 Nov 24 SAYE
91 – – – 91 £19.68 Apr 22 Jun 25 Nov 25 SAYE
94 – – – 94 £21.06 May 23 Jun 26 Nov 26 SAYE
– 95 – – 95 £22.50 May 24 Jun 27 Nov 27 SAYE
102,714 35,355 32,846 105,223
Richard
Hutton
17,268 – 17,268
4
– – £nil Oct 20 £14.07 Oct 23 Oct 30 PSP
20,906 – 20,906
4
– – £nil Apr 21 £22.72 Apr 24 Apr 31 PSP
23,607 – – – 23,607 £nil Mar 22 £21.68 Mar 25 Mar 32 PSP
22,070 – – 22,070 £nil May 23 £27.62 May 26 May 33 PSP
– 23,113 – – 23,113 £nil Mar 24 £27.74 Mar 27 Mar 34 PSP
75 – 75
5
– – £16.72 Apr 21 Jun 24 Nov 24 SAYE
91 – – – 91 £19.68 Apr 22 Jun 25 Nov 25 SAYE
94 – – – 94 £21.06 May 23 Jun 26 Nov 26 SAYE
– 95 – – 95 £22.50 May 24 Jun 27 Nov 27 SAYE
84,111 23,208 38,249 - 69,070
1 The market value on the date of exercise was £27.14 and the resultant gain on exercise was £889,528.
2 The market value on the date of exercise was £28.42 and the resultant gain on exercise was £878.
3 The restricted stock option was granted in April 2021 prior to Roisin Currie’s appointment to the Board.
4 The market value on the date of exercise was £27.42 and the resultant gain on exercise was £1,046,720.
5 The market value on the date of exercise was £29.40 and the resultant gain on exercise was £951.
DIRECTORS’ REMUNERATION REPORT CONTINUED
115Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Options granted under the all-colleague SAYE scheme are not subject to performance conditions.
All PSP options are subject to performance conditions as detailed elsewhere in this Report.
The mid-market price of ordinary shares in the Company as at 28 December 2024 was £27.60.
The highest and lowest mid-market prices of ordinary shares during the financial year were
£31.90 and £24.38 respectively.
Legacy defined benefit pension scheme (audited)
The following table sets out the change in each Director’s accrued pension in the Company’s defined
benefit pension scheme during the year and their accrued benefits in the scheme at the year end:
Executive Director Date of birth
Date service
commenced
Accrued
annual
pension
entitlement
as at
31 December
2023
1
£
Accrued
annual
pension
entitlement
as at
28 December
2024
£
Increase
in accrued
pension
entitlement
for the year
£
Increase
in accrued
pension
entitlement
for the
year net of
inflation of
1.571%
2
£
Transfer
value of
increase
in accrued
pension
entitlement
for the year
£
Richard Hutton 3/6/68 1/1/98 27,283 29,099 – – –
1 The pension entitlement shown is that which would be paid annually on retirement based on service to the end of the year, but
excluding any statutory increases which would be due after the year end.
2 The inflation rate of 1.571% shown in the table above is that published by the Secretary of State for Work and Pensions in accordance
with Schedule 3 of the Pensions Schemes Act 1993.
Cash equivalent
transfer value as
at 30 December
2023
£
Cash equivalent
transfer value as
at 28 December
2024
£
Increase in the
cash equivalent
transfer value
since 31 December
2023
£
Richard Hutton 392,930 440,415 –
Cash equivalent transfer values have been calculated in accordance with Actuaries Guidance Note GN11 and the increase is stated net of
contributions made by the Director. The transfer values disclosed above do not represent a sum paid or payable to the individual Director.
Instead they represent a potential liability of the pension scheme.
The main features of the defined benefit pension scheme are:
• Pension at normal retirement age of 1/60th of member’s final pensionable salary for each complete year and a proportionate amount
for each additional complete month of service from the date of joining the scheme until 5 April 2008 when the scheme was closed to
future accrual;
• Choice of giving up part of the pension in exchange for a tax-free cash sum subject to a limit of 25% of the total value of the member’s
benefits under the scheme;
• Pension payable in the event of ill health;
• Spouse’s pension on death; and
• Normal retirement at age 65.
Chief Executive pay compared to performance
The graph below shows a comparison of the total shareholder return for the Company’s shares for
each of the last ten financial years against the total shareholder return for the companies comprised
in the FTSE 250 Index (excluding Investment Trusts).
This index has been chosen for this comparison because it includes companies of broadly similar
size to the Company.
Total shareholder return (£)
Greggs
3 Dec
2015
2 Jan
2016
31 Dec
2016
30 Dec
2017
1 Jan
2022
2 Jan
2021
29 Dec
2018
28 Dec
2019
28 Dec
2024
30 Dec
2023
31 Dec
2022
0
600
500
400
200
300
100
FTSE 250 Index (excluding Investment Trusts)
116
Remuneration outcomes for Chief Executive over last ten years
The table below shows the total remuneration figure for the Chief Executive over the same ten-year period as the graph above. The total remuneration figure includes the annual bonus, pension and PSP/
option awards which vested based on performance in those years.
2015 2016 2017 2018 2019 2020 2021
2022
Roger Whiteside
2022
Roisin Currie
1
2023 2024
Total remuneration £2,473,695 £2,147,229 £1,689,265 £1,737,953 £2,540,966 £649,319 £1,839,679 £1,064,204 £1,238,214 £1,758,359 £1,810,971
Bonus (% of max potential) 93.7% 86.7% 64.3% 59.2% 97.7% 0.0% 99.7% 75.4% 75.4% 84.8% 53.0%
PSP/options
(% max potential)
100% 100% 100% 80.2% 100% 0.0% 50% 75% 75% 100% 66.8%
1 Reflects pay in the Chief Executive role during 2022.
Directors’ shareholding and share interests (audited)
Details of the shareholdings of each Executive Director and their connected persons as at
28 December 2024 and their interests in shares are detailed below with the percentage holding
calculated using the share price at that date. As stated in the Directors’ remuneration policy,
Executive Directors are required to build a shareholding equivalent in value to 200% of basic salary.
Director
Beneficially
owned at
28 December
2024
Beneficially
owned at
30 December
2023
Outstanding
PSP awards
(nil cost
options)
Vested PSP
awards not
exercised
Outstanding
SAYE awards
%
shareholding
achieved at
28 December
2024
2
Roisin Currie 29,424 6,703 104,943 – 280 124.5
Richard Hutton 62,105 103,456 68,790 – 280 401.0
Kate Ferry 562 562 – – – n/a
Mohamed Elsarky – – – – – n/a
Lynne Weedall 1,000 1,000 – – – n/a
Matt Davies 2,000 2,000 – – – n/a
Nigel Mills – – – – – n/a
Tamara Rogers
1
– – – – – n/a
1 Tamara Rogers was appointed to the Board on 1 June 2024.
2 Percentage shareholding is calculated taking into account the value of beneficially owned shares and the net of tax value of vested
PSP awards not exercised.
There have been no changes since 28 December 2024 in the Directors’ interests noted above.
Further details of outstanding share awards are given on page 114.
External directorships
Executive Directors may take up one Non-Executive Directorship outside of the Company subject
to the Board’s approval and provided that such an appointment is not likely to lead to a conflict of
interest. It is recognised that this can support a Director’s development and enhance experience
as well as benefit the Company. Executive Directors will be entitled to retain the fees of such an
appointment. Roisin Currie was appointed as Non-Executive Director of Howden Joinery Group Plc
in July 2024.
Relative importance of spend on pay
The Committee is aware of the importance of pay across the business and the table below shows
the expenditure and percentage change in the overall spend on all colleague costs compared to
other key financial indicators.
2024
£m
2023
£m
% increase/
(decrease)
All colleague costs 686.6 593.1 15.8%
Dividends
1
106.8 60.8 (75.7%)
1 2024 dividends include a special dividend of 40.0p.
DIRECTORS’ REMUNERATION REPORT CONTINUED
117Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Percentage change in remuneration of all Directors
The table below sets out the percentage change in remuneration for all Directors (Executive and Non-Executive) compared to the wider workforce.
2024 2023 2022 2021 2020
Salary
% change
Benefits
% change
Bonus
% change
Salary
% change
Benefits
% change
Bonus
% change
Salary
% change
Benefits
% change
Bonus
% change
Salary
% change
Benefits
% change
Bonus
% change
Salary
1
% change
Benefits
% change
Bonus
% change
Roisin Currie 4.5% (24.5%) (34.7%) 4.0% 32.4% 50.1% n/a
2
n/a n/a n/a n/a n/a n/a n/a n/a
Richard Hutton 4.5% (0.1%) (34.7%) 4.0% 1.7% 17.0% 3.5% 27.4% (2.2%) 21.6% (9.0%) 100.0% (3.3%) (13.6%) (100.0%)
Matt Davies 4.5% n/a n/a 0.0% n/a n/a n/a
2
n/a n/a n/a n/a n/a n/a n/a n/a
Kate Ferry 4.5% n/a n/a 4.6% n/a n/a 5.3% n/a n/a 10.9% n/a n/a (8.3%) n/a n/a
Lynne Weedall 4.5%
3
n/a n/a 4.6% n/a n/a n/a
2
n/a n/a n/a n/a n/a n/a n/a n/a
Mohamed
Elsarky
12.8% n/a n/a 9.9%
8
n/a n/a 3.5% n/a n/a n/a
5
n/a n/a n/a n/a n/a
Nigel Mills 4.9%
3
n/a n/a n/a
7
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Tamara Rogers n/a
9
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
All colleagues 15.8%
5
(12.1%) (31.8 %)
6
9.4%
5
(15.8%) 9.4%
6
5.8% (15.8%) (24.3%) 1.9% (1.2%) 100% 4.1% 3.2% (100%)
1 For the period of 1 April 2020 to 31 August 2020 the salaries of the Executive Directors and Non-Executive Directors were voluntarily
reduced by 20%.
2 Roisin Currie, Matt Davies and Lynne Weedall were appointed during 2022 and therefore no annual change is shown.
3 In order to provide a meaningful comparison where a Director was appointed or retired during the year, the percentage change figures
have been calculated on a full-year equivalent value.
4 Mohamed Elsarky was appointed during 2021 and therefore no annual change is shown.
5 For the purpose of salary the wider workforce is defined as all colleagues.
6 For the purpose of bonus the wider workforce is defined as management colleagues who are entitled to receive a bonus.
7 Nigel Mills was appointed during 2023 and therefore no annual change is shown.
8 Mohamed Elsarky was appointed as Non-Executive Director responsible for colleague engagement during 2023 and therefore received
an additional payment for this role for part of the year.
9 Tamara Rogers was appointed during 2024 and therefore no annual charge is shown.
Chief Executive pay ratio reporting
The adjacent tables outline the ratio of the Chief Executive’s single figure of total remuneration for
2024 expressed as a multiple of total remuneration for UK colleagues.
The three ratios are calculated by reference to the colleagues at the 25th, 50th and 75th percentile.
We additionally disclose the total pay and benefits and base salary of the colleagues used to
calculate the ratios.
In time, the table below will build to represent ten years of data:
Financial year Method
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
2024 Option B 69:1 68:1 63:1
2023 Option B 69:1 64:1 61:1
2022 Option B 90:1 84:1 80:1
2021 Option B 99:1 98:1 68:1
2020 Option B 30:1 30:1 28:1
2019 Option B 132:1 126:1 108:1
The 25th, median and 75th percentile data were calculated as at 4 February 2025. Full-year pay data
for the 2024 financial year has been used to calculate the ratios.
Disclosure of colleague data used to calculate the ratios 25th percentile Median 75th percentile
Total pay and benefits £26,300 £26,669 £28,887
Base salary £25,012 £25,358 £26,665
118
The following adjustments have been made in order to calculate the figures above:
• We have used the assumption of a 40-hour week in order to calculate the hourly rate for the
Chief Executive from the single total remuneration figure.
• As the hours our colleagues work vary week-to-week we have converted their hourly rate of pay
into the equivalent 40-hour week in order that this is directly comparable with the hourly rate for
the Chief Executive.
• For the 2022 figure for the Chief Executive we used a combined calculation for Roisin Currie and
Roger Whiteside, based on the number of days each served as Chief Executive in 2022.
Of the three options set out in the legislation for calculating the Chief Executive pay ratio, we are
using Option B – which uses Gender Pay Gap (GPG) data – to calculate the pay ratio. We believe the
steady nature of our workforce ensures that the representative group remains the same as those
individuals who are identified through the GPG reporting process. The individuals represented at the
25th, median and 75th percentile are all colleagues within our front line retail and supply operations.
The nature of our workforce and demographics are such that we have over 95% of our colleagues
working in our front-line operations – be that in retail or in our supply chain.
Our pay reflects the key markets in which we operate and we also support our colleagues with
additional benefits such as profit share, paid breaks, colleague discount and discounted SAYE
participation. As previously outlined in this Report, a key focus continues to be workforce fairness
and the pay arrangements and support provided to our colleagues across the business. Our people
are what makes our business successful and protecting our culture alongside our shareholders’
and wider stakeholders’ interests remains our priority.
We have once again reviewed carefully the approach taken with the wider workforce when
considering the approach to salary for the Executive Directors for the year ahead. As noted earlier
in the Remuneration Report, we implemented a tiered pay award providing a great percentage
increase to support our colleagues on our lower rates of pay who have less disposable income.
Over 84% of our workforce received a pay increase of 6.1% or more and over 85% received 5.6%
or more. Our graded management teams were awarded the base increase of 3.5%.
As in previous years, the Committee reviewed the pay award of both the Executive Directors and
Operating Board and agreed that the awards should again be proportionally lower than the general
increases across the wider workforce and this was set at 3.5%.
As well as the pay increase, from January 2025 we further increased the pension provision for our
wider workforce, allowing our colleagues to increase their pension contributions up to 7% with
matched contributions. This now aligns the pension offering for all colleagues across Greggs.
We also increased our colleague discount offering by 10%. Colleague discount is offered to all
colleagues from day one and is open to an additional card holder after 12 months service.
As such and as required in the regulations, we confirm our belief that the median pay ratio for
the year is consistent with the Company’s wider pay, reward and progression policies affecting
our colleagues.
This Report was approved by the Board on 4 March 2025,
Signed on behalf of the Board.
Lynne Weedall
Chair of the Remuneration Committee
4 March 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
119Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
STATEMENT OF DIRECTORS’ STATEMENT OF DIRECTORS’
RESPONSIBILITIESRESPONSIBILITIES
The Directors are responsible for preparing
the Strategic Report and the Directors’
Report, the Directors’ Remuneration Report
and the Accounts in accordance with
applicable law and regulations.
Company law requires the Directors to prepare Group and
Parent Company accounts for each financial year. The Directors
have elected under company law and are required under the
Listing Rules of the Financial Conduct Authority to prepare the
Group accounts in accordance with UK-adopted International
Accounting Standards. The Directors have elected under
company law to prepare the Company accounts in accordance
with UK-adopted International Accounting Standards.
The Group and Parent Company accounts are required by law
and UK-adopted International Accounting Standards to present
fairly the financial position of the Group and the Parent Company
and the financial performance of the Group; the Companies Act
2006 provides in relation to such accounts that references in the
relevant part of that Act to accounts giving a true and fair view
are references to their achieving a fair presentation.
Under company law the Directors must not approve the accounts
unless they are satisfied that they give a true and fair view of the
state of affairs of the Group and the Parent Company and of the
profit or loss of the Group for that period.
In preparing each of the Group and Parent Company accounts,
the Directors are required to:
a. Select suitable accounting policies and then apply them
consistently;
b. Make judgements and accounting estimates that are
reasonable and prudent;
c. State whether they have been prepared in accordance with
UK-adopted International Accounting Standards; and
d. Prepare the accounts on the going concern basis unless
it is inappropriate to presume that the Group and the Parent
Company will continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group’s and
the Parent Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Group and the
Parent Company and enable them to ensure that the Accounts
and the Directors’ Remuneration Report comply with the
Companies Act 2006. They are also responsible for safeguarding
the assets of the Group and the Parent Company and hence for
taking reasonable steps for the prevention and detection of fraud
and other irregularities.
120
Directors’ Statement pursuant to the Disclosure
and Transparency Rules
Each of the Directors, whose names and functions are listed
in the Directors’ Report confirm that, to the best of each
person’s knowledge:
a. The accounts, prepared in accordance with the applicable
set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit of the Parent
Company and the undertakings included in the consolidation
taken as a whole; and
b. The Strategic Report and the Directors’ Report contained in
the Annual Report include a fair review of the development
and performance of the business and the position of the
Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties that they face.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Greggs plc website.
Legislation in the United Kingdom governing the preparation
and dissemination of accounts may differ from legislation
in other jurisdictions.
Roisin Currie Richard Hutton
Chief Executive Chief Financial Officer
4 March 2025 4 March 2025
STATEMENT OF DIRECTORS’ RESPONSIBILITIES CONTINUED
121Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GREGGS PLC
Opinion
We have audited the financial statements of Greggs plc (the ‘parent company’) and its subsidiaries
(the ‘group’) for the 52 week period ended 28 December 2024 which comprise the Consolidated
Income Statement, the Consolidated Statement of Comprehensive Income, Balance Sheets,
Statements of Changes in Equity, Statements of Cash Flows and notes to the financial statements,
including significant accounting policies. The financial reporting framework that has been applied
in the preparation of the group financial statements is applicable law and UK-adopted International
Accounting Standards. The financial reporting framework that has been applied in the preparation of
the parent company financial statements is applicable law and UK-adopted International Accounting
Standards and, as regards the parent company financial statements, as applied in accordance with
the provisions of the Companies Act 2006.
In our opinion:
• the financial statements give a true and fair view of the state of the group’s and of the parent
company’s affairs as at 28 December 2024 and of the group’s profit for the 52 weeks then ended;
• the group financial statements have been properly prepared in accordance with UK-adopted
International Accounting Standards;
• the parent company financial statements have been properly prepared in accordance with UK-
adopted International Accounting Standards and as applied in accordance with the Companies
Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent
of the group and parent company in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the Financial Reporting Council’s (FRC’s)
Ethical Standard as applied to listed public interest entities and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Summary of our audit approach
Key audit matters Group & Parent Company
• Valuation of Lease Liabilities
• Accounting for Pension Buy In Transaction
Materiality Group
• Overall materiality: £9.25 million (2023: £8.20 million)
• Performance materiality: £6.94 million (2023: £6.15 million)
Parent Company
• Overall materiality: £9.00 million (2023: £8.00 million)
• Performance materiality: £6.75 million (2023: £6.00 million)
Scope Our audit procedures covered 100% of revenue, total assets and
profit before tax.
Key audit matters
In our audit of the group and parent company financial statements of the current period and
include the most significant assessed risks of material misstatement (whether or not due to
fraud) we identified, including those which had the greatest effect on the overall audit strategy,
the allocation of resources in the audit and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the group and parent company financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
122
Valuation of Lease Liabilities
Key audit matter
description
Refer to page 90 – Audit Committee Report
Refer to page 136 – Basis of preparation (Key estimates and judgements)
Refer to page 153 and 154 – Note 11, Leases
Lease Liability – £415.1 million (2023: £319.6 million)
The group occupies and manages approximately 2,000 shops, the majority of which are leased. In addition, during the current financial period the group entered into
a material lease for a new supply site in Derby. As such the application of IFRS 16 is considered to give rise to a significant risk of material misstatement. IFRS 16 involves
a significant element of judgement and estimation derived from a number of key assumptions. We consider the most significant assumptions affecting the valuation
of lease liabilities to be:
• the lease term assumed in determining the lease liability (particularly in respect of circumstances where the group remains in occupation using rights from the
Landlord and Tenant Act 1954); and
• the discount rate applied to calculate the lease liability.
Changes to the assumptions included above are likely to have a material impact on the valuation of lease liabilities and given the value of lease liabilities in comparison to
group materiality, we consider this area to represent a significant audit risk. Given the economic uncertainty and changing needs of the business in terms of shop size and
location, judgements made in respect of lease term may need to be revisited.
How the matter was
addressed in the audit
Our audit work relating to lease liabilities included:
1. Testing the accuracy and completeness of the underlying data/leases used in the application of IFRS 16.
2. Critically assessing the key assumptions utilised by management, including the lease term and discount rate.
3. Testing that the calculations made were accurate through reperformance.
4. Assessing treatment of related balances including; lease incentives, dilapidations and rent accruals/prepayments.
5. Assessing the application of and accounting for changes throughout the year including the treatment of new leases, modifications to leases, the unwinding of interest
and capital payments in respect of lease liabilities.
6. Review disclosures relating to lease liabilities to ensure they are in accordance with the applicable financial reporting framework.
Key observations Our audit work in respect of the valuation of lease liabilities concluded that we did not identify any material misstatements and the disclosures management have made
are appropriate.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GREGGS PLC CONTINUED
123Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Accounting for Pension Buy In Transaction
Key audit matter
description
Refer to page 90 – Audit Committee Report
Refer to page 136 – Basis of preparation (Key estimates and judgements)
Refer to pages 162 - 165 – Note 21, Employee benefits – Pensions
Net remeasurement losses on defined benefit pension plans – £11.9 million (2023: £nil)
During the period the group made a special contribution of £4.5 million to its defined benefit pension scheme which helped facilitate the purchase of a bulk annuity policy
which provides monthly payments to the scheme to cover the anticipated payments to be made to pensioners (“Buy In”).
There is currently no formal obligation to “Buy-out” the policy, which would be considered a transfer of responsibility to a third-party for future pension payments. A schedule
of contributions have been agreed, however current information shows these are anticipated to be immaterial.
There is judgement involved in determining whether this transaction should be accounted for as a scheme settlement which would result in the assets and liabilities of
the scheme no longer being recognised on the parent company and group balance sheets and in the loss resulting from the pension Buy In being recognised in the Income
Statement. If the transaction was considered not to represent a settlement of the scheme then the loss would be recognised in Other Comprehensive Income. Given the
unusual nature of the transaction the level of senior audit resource, technical specialist and actuarial experts involved in the audit work and judgement involved and the
potential impact on the Income Statement the accounting for this transaction was considered to result in a significant risk of material misstatement.
How the matter was
addressed in the audit
Our audit work relating to the Buy-In transaction included:
1. Obtaining and reviewing management’s assessment of the transaction, including key documents such as legal agreements, schedule of contributions, minutes for key
meetings and key project documents.
2. With assistance from our in-house technical specialists, we critically challenging the judgement that the transaction should not be accounted for as a settlement of the scheme
and therefore that the loss arising as a result of the Buy In transaction should not be recognised within the Income Statement, but within Other Comprehensive Income.
3. Engaging with our auditors actuarial expert to review the calculations of the loss arising from the Buy In transaction.
4. Review of the disclosures around the transactions, assessing they are consistent with the underlying supporting information and adequately explain the judgement.
Key observations Our audit work in respect of the accounting for the Buy-In transactions concluded that we did not identify any material misstatements and the disclosures management have
made are appropriate.
124
An overview of the scope of our audit
The group consists of the parent Company and nine subsidiaries all of which are dormant or non-
trading. The group audit team audited the only significant component being the parent Company.
In doing so the coverage achieved by our audit procedures was 100% of group revenue, total assets
and profit before tax.
The impact of climate change on the audit
In planning our audit, we considered the potential impact of the possible risks arising from
climate change on the group’s and the parent company’s financial statements and obtained an
understanding of how management identifies and responds to climate-related risks. Further
information on management’s risk assessment, progress and commitments is provided in the
group’s climate-related risk disclosures on pages 50 to 58 of the annual report.
We performed risk assessment procedures including making enquiries of management, reading
board minutes and applying our knowledge of the group and the parent company and the sector
within which it operates, to assess the potential impact on the financial statements.
Taking account of the nature of the business, the extent of the headroom in impairment testing to
reasonably possible changes in future cashflows, and useful economic lives of tangible/intangible
assets to changing regulation, weather patterns or business activities, we have not assessed
climate-related risk to be significant to our audit. There was also no impact on our key audit matters.
In accordance with our obligations with regards to other information, we have read the Group’s climate-
related risk disclosures on pages 50 to 58 of the annual report and in doing so have considered whether
those disclosures are materially inconsistent with the financial statements or our knowledge obtained
during the course of the audit, or otherwise appear to be materially misstated.
We have not been engaged to provide assurance over the accuracy of the climate-related risk
disclosures set out on pages 50 to 58 in the Annual Report.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of
the directors’ assessment of the group’s and parent company’s ability to continue to adopt the going
concern basis of accounting included:
1. Assess the forward-looking assumptions used by management in their assessment of going concern.
2. Corroborate to supporting evidence provided by the management key assumptions including
financing arrangements in place.
3. Challenge management’s assumptions including performing downside sensitivities in respect
of key assumptions.
4. Consider the adequacy of management’s scenario analysis and contingency plans.
5. Check the integrity and mechanism of the forecast model provided by management,
using specialists where we consider it to be necessary.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GREGGS PLC CONTINUED
Our application of materiality
When establishing our overall audit strategy, we set certain thresholds which help us to determine the nature, timing and extent of our audit procedures. When evaluating whether the effects of
misstatements, both individually and on the financial statements as a whole, could reasonably influence the economic decisions of the users we take into account the qualitative nature and the size
of the misstatements. Based on our professional judgement, we determined materiality as follows:
Group Parent company
Overall materiality £9.25 million (2023: £8.2 million) £9.00 million (2023: £8.0 million)
Basis for determining overall materiality 4.9% (2023: 4.9%) of profit before tax before excluding exceptional items 4.7% (2023: 4.7%) of profit before tax before excluding exceptional items
Rationale for benchmark applied Profit before tax is the primary measure used by the shareholders in assessing
the performance of the group and is a generally accepted auditing benchmark
Profit before tax is the primary measure used by the shareholders in assessing
the performance of the group and is a generally accepted auditing benchmark
Performance materiality £6.94 million (2023: £6.15 million) £6.75 million (2023: £6.00 million)
Basis for determining
performance materiality
75% of overall materiality 75% of overall materiality
Reporting of misstatements
to the Audit Committee
Misstatements in excess of £462,000 (2023: £410,000) and misstatements below
that threshold that, in our view, warranted reporting on qualitative grounds.
Misstatements in excess of £450,000 (2023: £400,000) and misstatements below
that threshold that, in our view, warranted reporting on qualitative grounds.
The materiality for the audit, was reassessed to reflect the actual results for the period-end. This did not result in any change in the original materiality.
125Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
6. Obtain evidence the budgets and forecasts have been authorised by the board.
7. Assess the historical forecasting accuracy.
8. Recalculating management’s covenant calculations for the current year (if relevant) and forecast
period to assess if there is a risk of non-compliance.
9. Evaluating the adequacy of going concern related disclosures in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the group’s or the
parent company’s ability to continue as a going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
In relation to the group’s and parent company’s reporting on how they have applied the UK Corporate
Governance Code, we have nothing material to add or draw attention to in relation to the directors’
statement in the financial statements about whether the directors considered it appropriate to
adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other
information contained within the annual report. Our opinion on the financial statements does not
cover the other information and, except to the extent otherwise explicitly stated in our report,
we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in
the course of the audit or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly
prepared in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Directors’ Report for the financial year for
which the financial statements are prepared is consistent with the financial statements; and
• the Strategic Report and the Directors’ Report have been prepared in accordance with applicable
legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their
environment obtained in the course of the audit, we have not identified material misstatements in
the Strategic Report or the Directors’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate
for our audit have not been received from branches not visited by us; or
• the parent company financial statements and the part of the directors’ remuneration report
to be audited are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Corporate governance statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and
that part of the Corporate Governance Statement relating to the parent company’s compliance with
the provisions of the UK Corporate Governance Code specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the Corporate Governance Statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
• Directors’ statement with regards the appropriateness of adopting the going concern basis
of accounting and any material uncertainties identified set out on pages 79 and 80;
• Directors’ explanation as to their assessment of the group’s prospects, the period this
assessment covers and why the period is appropriate set out on page 71;
• Directors’ statement on whether it has a reasonable expectation that the group will be able
to continue in operation and meets its liabilities set out on page 80;
• Directors’ statement on fair, balanced and understandable set out on pages 79 and 80;
126
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal
risks set out on page 66;
• Section of the annual report that describes the review of effectiveness of risk management and
internal control systems set out on pages 92 and 93; and
• Section describing the work of the audit committee set out on pages 88 to 94.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on pages 119 and 120 the
directors are responsible for the preparation of the financial statements and for being satisfied that
they give a true and fair view, and for such internal control as the directors determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the
parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the directors either intend to
liquidate the group or the parent company or to cease operations, or have no realistic alternative but
to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities,
including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our
audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and
regulations that have a direct effect on the determination of material amounts and disclosures in
the financial statements, to perform audit procedures to help identify instances of non-compliance
with other laws and regulations that may have a material effect on the financial statements, and
to respond appropriately to identified or suspected non-compliance with laws and regulations
identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material
misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit
evidence regarding the assessed risks of material misstatement due to fraud through designing
and implementing appropriate responses and to respond appropriately to fraud or suspected
fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with
governance, to ensure that the entity’s operations are conducted in accordance with the provisions
of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including
fraud, the group audit engagement team:
• obtained an understanding of the nature of the industry and sector, including the legal and
regulatory framework that the group and parent company operates in and how the group and
parent company are complying with the legal and regulatory framework;
• inquired of management, and those charged with governance, about their own identification
and assessment of the risks of irregularities, including any known actual, suspected or alleged
instances of fraud; and
• discussed matters about non-compliance with laws and regulations and how fraud might occur
including assessment of how and where the financial statements may be susceptible to fraud
for regulated entities, as defined in ISA 250B: having obtained an understanding of the overall
control environment.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GREGGS PLC CONTINUED
127Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
The most significant laws and regulations were determined as follows:
Legislation / Regulation Additional audit procedures performed by the Group audit engagement team included:
IFRS/UK-adopted IAS,
and Companies Act 2006
• Review of the financial statement disclosures and testing to
supporting documentation.
• Completion of disclosure checklists to identify areas of
non-compliance.
Tax compliance
regulations
• Inspection and review of tax computations prepared by management
• Input from a tax specialist was obtained regarding significant and
complex matters.
• Consideration of whether any matter identified during the audit
required reporting to an appropriate authority outside the entity.
Distributable profits
legislation
• Assessment of compliance as part of our audit work relating
to reserves.
Pension legislation • Assessment of extent of compliance as part of our audit work relating
to defined benefit pensions.
Food Safety/Health and
Safety/Employment/
General Data Protection
Regulation
• Inquiry of management and Directors.
• Inspection of correspondence with legal advisors and regulators
(where applicable).
The areas that we identified as being susceptible to material misstatement due to fraud were:
Risk Audit procedures performed by the audit engagement team:
Revenue recognition –
cut off
• Testing a sample of transactions accounted pre and post-year-
end for each significant revenue stream ensuring that revenue is
recognised in the correct accounting period in line with the group’s
accounting policy.
Management override of
controls
• Testing the appropriateness of journal entries and other adjustments.
• Assessing whether the judgements made in making accounting
estimates are indicative of a potential bias.
• Evaluating the business rationale of any significant transactions that
are unusual or outside the normal course of business.
A further description of our responsibilities for the audit of the financial statements is located
on the FRC’s website at: http://www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Other matters which we are required to address
Following the recommendation of the audit committee, we were appointed by the shareholders on
14 May 2021 to audit the financial statements for the year ending 1 January 2022 and subsequent
financial periods.
The period of total uninterrupted consecutive appointments is four years, covering the periods
ending 1 January 2022 to 28 December 2024.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or
the parent company and we remain independent of the group and the parent company in conducting
our audit.
Our audit opinion is consistent with the additional report to the audit committee in accordance with
ISAs (UK).
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to
the company’s members those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
In due course, as required by the Financial Conduct Authority (FCA) Disclosure Guidance and
Transparency Rules, these financial statements will form part of the Annual Financial Report
prepared in Extensible Hypertext Markup Language (XHTML) format and filed on the National
Storage Mechanism of the UK FCA. This auditor’s report provides no assurance over whether
the annual financial report has been prepared in XHTML format.
For and on behalf of RSM UK Audit LLP , Statutory Auditor
Chartered Accountants
1 St. James’ Gate
Newcastle upon Tyne
NE1 4AD
4 March 2025
128
CONSOLIDATED INCOME STATEMENT
FOR THE 52 WEEKS ENDED 28 DECEMBER 2024 (2023: 52 WEEKS ENDED 30 DECEMBER 2023)
| 2024 | 2024 | 2023 | 2023 | ||||
| Excluding | Exceptional items | 2024 | Excluding | Exceptional items | 2023 | ||
| exceptional items | (see note 4) | Total | exceptional items | (see Note 4) | Total | ||
| Note | £m | £m | £m | £m | £m | £m | |
Revenue | 1 | ||||||
Cost of sales | ( | ( | ( | ( | |||
Gross profit | |||||||
Distribution and selling costs | ( | ( | ( | ( | |||
Administrative expenses | ( | ( | ( | ( | |||
Other income | |||||||
Operating profit | |||||||
Finance income | 6 | ||||||
Finance expense | 6 | ( | ( | ( | ( | ||
Profit before tax | 3-6 | ||||||
Income tax | 8 | ( | ( | ( | ( | ( | ( |
Profit for the financial year attributable to equity holders of the Parent Company | |||||||
Basic earnings per share | 9 | ||||||
Diluted earnings per share | 9 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 28 DECEMBER 2024 (2023: 52 WEEKS ENDED 30 DECEMBER 2023)
| 2024 | 2023 | ||
| Note | £m | £m | |
Profit for the financial year | |||
| Other comprehensive income | |||
| Items that will not be recycled to profit and loss: | |||
Remeasurements on defined benefit pension plans | 21 | ( | |
Tax on remeasurements on defined benefit pension plans | 8 | ||
Other comprehensive income for the financial year, net of income tax | ( | ||
Total comprehensive income for the financial year |
129Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
BALANCE SHEETS
AT 28 DECEMBER 2024
Group | Parent Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| Note | £m | £m | £m | £m | |
| ASSETS | |||||
| Non-current assets | |||||
Intangible assets | 10 | 24.9 | 18.3 | ||
Property, plant and equipment | 12 | 665.3 | 510.9 | ||
Right-of-use assets | 11 | 387.2 | 296.6 | ||
Investments | 13 | 5.0 | 5.0 | ||
Defined benefit pension asset | 21 | – | 6.6 | ||
| Current assets | 1,082.4 | 837.4 | |||
Inventories | 15 | 55.2 | 48.8 | ||
Trade and other receivables | 16 | 62.4 | 53.8 | ||
Cash and cash equivalents | 17 | 125.3 | 195.3 | ||
242.9 | 297.9 | ||||
Total assets | 1,325.3 | 1,135.3 | |||
| LIABILITIES | |||||
| Current liabilities | |||||
Trade and other payables | 18 | ( | ( | (251.6) | (218.8) |
Current tax liabilities | 19 | ( | ( | (9.1) | (4.9) |
Lease liabilities | 11 | ( | ( | (53.8) | (52.5) |
Provisions | 23 | ( | ( | (3.4) | (4.0) |
| Non-current liabilities | ( | ( | (317.9) | (280.2) | |
Other payables | 20 | ( | ( | (1.8) | (2.3) |
Lease liabilities | 11 | ( | ( | (361.3) | (267.1) |
Deferred tax liability | 14 | ( | ( | (72.0) | (54.1) |
Long-term provisions | 23 | ( | ( | (2.9) | (2.2) |
Defined benefit pension liability | 21 | ( | (0.4) | – | |
( | ( | (438.4) | (325.7) | ||
Total liabilities | ( | ( | (756.3) | (605.9) | |
Net assets | 569.0 | 529.4 | |||
| EQUITY | |||||
| Capital and reserves | |||||
Issued capital | 24 | 2.0 | 2.0 | ||
Share premium account | 24 | 25.1 | 25.1 | ||
Capital redemption reserve | 24 | 0.4 | 0.4 | ||
Retained earnings | 541.5 | 501.9 | |||
Total equity attributable to equity holders of the Parent | 569.0 | 529.4 |
All of the Group profit for the current and prior year is dealt with in the books of the Parent Company.
Company Registered Number 502851
130
STATEMENTS OF CHANGES IN EQUITY
FOR THE 52 WEEKS ENDED 28 DECEMBER 2024 (2023: 52 WEEKS ENDED 30 DECEMBER 2023)
Group
52 weeks ended 30 December 2023
| Attributable to equity holders of the Company | ||||||
| Capital | ||||||
| Issued | Share | redemption | Retained | |||
| capital | premium | reserve | earnings | Total | ||
| Note | £m | £m | £m | £m | £m | |
Balance at 1 January 2023 | ||||||
| Total comprehensive income for the year | ||||||
Profit for the financial year | ||||||
Other comprehensive income | ||||||
Total comprehensive income for the year | ||||||
| Transactions with owners, recorded directly in equity | ||||||
Issue of ordinary shares | 24 | |||||
Purchase of own shares | 24 | ( | ( | |||
Sale of own shares | 24 | |||||
Share-based payment transactions | 22 | |||||
Dividends to equity holders | 24 | ( | ( | |||
Tax items taken directly to reserves | 8 | ( | ( | |||
Total transactions with owners | ( | ( | ||||
Balance at 30 December 2023 |
52 weeks ended 28 December 2024
| Attributable to equity holders of the Company | ||||||
| Capital | ||||||
| Issued | Share | redemption | Retained | |||
| capital | premium | reserve | earnings | Total | ||
| Note | £m | £m | £m | £m | £m | |
Balance at 31 December 2023 | ||||||
| Total comprehensive income for the year | ||||||
Profit for the financial year | ||||||
Other comprehensive income | ( | ( | ||||
Total comprehensive income for the year | ||||||
| Transactions with owners, recorded directly in equity | ||||||
Purchase of own shares | 24 | ( | ( | |||
Sale of own shares | 24 | |||||
Share-based payment transactions | 22 | |||||
Dividends to equity holders | 24 | ( | ( | |||
Tax items taken directly to reserves | 8 | ( | ( | |||
Total transactions with owners | ( | ( | ||||
Balance at 28 December 2024 |
131Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
STATEMENTS OF CHANGES IN EQUITY CONTINUED
FOR THE 52 WEEKS ENDED 28 DECEMBER 2024 (2023: 52 WEEKS ENDED 30 DECEMBER 2023)
Parent Company
52 weeks ended 30 December 2023
Attributable to equity holders of the Company
Note
Issued
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Retained
earnings
£m
Total
£m
Balance at 1 January 2023 2.0 23.1 0.4 419.0 444.5
Total comprehensive income for the year
Profit for the financial year 7 – – – 142.5 142.5
Other comprehensive income – – – 0.4 0.4
Total comprehensive income for the year – – – 142.9 142.9
Transactions with owners, recorded directly in equity
Issue of ordinary shares 24 – 2.0 – – 2.0
Purchase of own shares 24 – – – (5.0) (5.0)
Sale of own shares 24 – – – 1.6 1.6
Share-based payment transactions 22 – – – 4.6 4.6
Dividends to equity holders 24 – – – (60.8) (60.8)
Tax items taken directly to reserves 8 – – – (0.4) (0.4)
Total transactions with owners – 2.0 – (60.0) (58.0)
Balance at 30 December 2023 2.0 25.1 0.4 501.9 529.4
52 weeks ended 28 December 2024
Attributable to equity holders of the Company
Note
Issued
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Retained
earnings
£m
Total
£m
Balance at 31 December 2023 2.0 25.1 0.4 501.9 529.4
Total comprehensive income for the year
Profit for the financial year 7 – – – 153.4 153.4
Other comprehensive income – – – (11.0) (11.0)
Total comprehensive income for the year – – – 142.4 142.4
Transactions with owners, recorded directly in equity
Purchase of own shares 24 – – – (5.0) (5.0)
Sale of own shares 24 – – – 4.7 4.7
Share-based payment transactions 22 – – – 4.5 4.5
Dividends to equity holders 24 – – – (106.8) (106.8)
Tax items taken directly to reserves 8 – – – (0.2) (0.2)
Total transactions with owners – – – (102.8) (102.8)
Balance at 28 December 2024 2.0 25.1 0.4 541.5 569.0
132
STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED 28 DECEMBER 2024 (2023: 52 WEEKS ENDED 30 DECEMBER 2023)
| Group and Parent Company | |||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Operating activities | |||
Cash generated from operations | |||
Income tax paid | ( | ( | |
Interest paid on lease liabilities | 6 | ( | ( |
Interest paid on borrowings and other related charges | 6 | ( | ( |
Net cash inflow from operating activities | |||
| Investing activities | |||
Acquisition of property, plant and equipment | ( | ( | |
Acquisition of intangible assets | ( | ( | |
Proceeds from sale of property, plant and equipment | |||
Interest received | 6 | ||
Net cash outflow from investing activities | ( | ( | |
| Financing activities | |||
Proceeds from issue of share capital | |||
Sale of own shares | |||
Purchase of own shares | ( | ( | |
Dividends paid | ( | ( | |
Repayment of principal on lease liabilities | ( | ( | |
Net cash outflow from financing activities | ( | ( | |
Net (decrease)/increase in cash and cash equivalents | ( | ||
Cash and cash equivalents at the start of the year | 17 | ||
Cash and cash equivalents at the end of the year | 17 |
133Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
STATEMENTS OF CASH FLOWS CONTINUED
FOR THE 52 WEEKS ENDED 28 DECEMBER 2024 (2023: 52 WEEKS ENDED 30 DECEMBER 2023)
Cash flow statement – cash generated from operations
| Group | |||
| 2024 | 2023 | ||
| Note | £m | £m | |
Profit for the financial year | |||
Amortisation | 10 | ||
Depreciation – property, plant and equipment | 12 | ||
Depreciation – right-of-use assets | 11 | ||
Net impairment charge– property, plant and equipment | 12 | ||
Impairment charge – right-of-use assets | 11 | ||
(Profit)/loss on sale of property, plant and equipment | 3 | ( | |
Release of Government grants | 3 | ( | ( |
Share-based payment expenses | 22 | ||
Finance income | 6 | ( | ( |
Finance expense | 6 | ||
Income tax expense | 8 | ||
Increase in inventories | ( | ( | |
Increase in receivables | ( | ( | |
Increase in payables | |||
Increase/(decrease) in provisions | ( | ||
Defined benefit pension scheme special contribution | 21 | ( | |
Cash generated from operations |
134
NOTES TO THE ACCOUNTS
135Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
136
Significant accounting policies continued
(b) Basis of preparation continued
Determining the rate used to discount lease payments (judgement)
NOTES TO THE ACCOUNTS CONTINUED
137Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
138
Significant accounting policies continued
(g) Leases continued
NOTES TO THE ACCOUNTS CONTINUED
139Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
140
Significant accounting policies continued
NOTES TO THE ACCOUNTS CONTINUED
141Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
142
Significant accounting policies continued
(r) Revenue continued
NOTES TO THE ACCOUNTS CONTINUED
143Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
144
Significant accounting policies continued
| 2024 | 2024 | 2023 | 2023 | |||
| Retail company- | Business-to- | 2024 | Retail company- | Business-to- | 2023 | |
| managed shops | business | Total | managed shops | business | Total | |
| £m | £m | £m | £m | £m | £m | |
Revenue | 1,781.7 | 232.7 | 2,014.4 | 1,610.9 | 198.7 | 1,809.6 |
Trading profit 1 | 277.3 | 55.5 | 332.8 | 250.1 | 41.1 | 291.2 |
Overheads including profit share | (137.5) | (119.5) | ||||
Operating profit before exceptional items | 195.3 | 171.7 | ||||
Finance income | 8.1 | 6.1 | ||||
Finance expense | (13.6) | (10.1) | ||||
Profit before tax (excluding exceptional items) | 189.8 | 167.7 | ||||
Exceptional items (see Note 4) | 14.1 | 20.6 | ||||
Profit before tax | 203.9 | 188.3 |
NOTES TO THE ACCOUNTS CONTINUED
145Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
2. Financial risk management
146
2. Financial risk management continued
Capital management
NOTES TO THE ACCOUNTS CONTINUED
147Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 2024 | 2024 | |||
| Excluding | Exceptional items | 2024 | 2023 | |
| exceptional items | (see Note 4) | Total | Total | |
| £m | £m | £m | £m | |
| Amortisation of intangible assets | 4.2 | – | 4.2 | 3.9 |
| Depreciation of owned property, plant and equipment | 76.6 | – | 76.6 | 66.6 |
| Depreciation of right-of-use assets | 59.2 | – | 59.2 | 54.5 |
| Net impairment of owned property, plant and equipment | 2.9 | – | 2.9 | 1.4 |
| Net impairment of right-of-use assets | 2.1 | – | 2.1 | 2.5 |
| Loss/(profit) on disposal of property, plant and equipment | 2.0 | (13.8) | (11.8) | 2.0 |
| Release of government grants | (0.5) | – | (0.5) | (0.5) |
4. Exceptional items
The exceptional items are as follows:
| 2024 | 2023 | ||
| £m | £m | ||
| Settlement of Covid-19 business interruption insurance claim | – | 16.3 | |
| Settlement of business interruption insurance claim in respect of 2020 bakery flooding | – | 4.0 | |
Provisions no longer required: | Onerous lease | – | 0.3 |
| Redundancy / dilapidations | 0.3 | – | |
| Profit on disposal of Twickenham bakery site (net of fees) | 13.8 | – | |
| 14.1 | 20.6 |
| 2024 | 2023 | |
| Number | Number | |
Management | 789 | 723 |
Administration | 512 | 472 |
Production | 3,747 | 3,456 |
Shop | 27,210 | 25,434 |
30,085 |
148
5. Personnel expenses continued
| 2024 | 2023 | ||
| Note | £m | £m | |
Wages and salaries | 599.5 | 519.6 | |
Compulsory social security contributions | 46.9 | 38.2 | |
Pension costs – defined contribution plans | 21 | 35.5 | 30.3 |
Equity-settled transactions (including compulsory social security contributions) | 22 | 4.9 | 5.0 |
686.8 | 593.1 |
| 2024 | 2023 | |
| £m | £m | |
Cost of sales | 5.3 | 4.6 |
Distribution and selling costs | 12.7 | 10.9 |
Administrative expenses | 2.5 | 2.1 |
Amount shared with employees | 20.5 | 17.6 |
Compulsory social security contributions | 2.3 | 2.0 |
22.8 | 19.6 |
| 2024 | 2023 | |
| £m | £m | |
Salaries and fees | 3.5 | 3.5 |
Taxable benefits | 0.1 | 0.1 |
Annual bonus (including profit share) to be paid in March 2024 | 2.2 | 1.9 |
Post-retirement benefits | 0.2 | 0.2 |
Equity-settled transactions | 2.2 | 2.3 |
8.2 | 8.0 |
| 2024 | 2023 | |
| £m | £m | |
Aggregate Directors’ remuneration | 2.8 | 2.7 |
Aggregate amount of gains on exercise of share options | 1.9 | – |
4.7 | 2.7 |
NOTES TO THE ACCOUNTS CONTINUED
149Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 6. Finance income and expense | 2024 | 2023 | |
| Note | £m | £m | |
| Finance income | |||
Interest income on cash balances | 8.1 | 6.1 | |
Total finance income | 8.1 | 6.1 | |
| Finance expense | |||
Interest expense on borrowings and other related charges | (0.9) | (0.7) | |
Foreign exchange loss | (0.1) | (0.1) | |
Interest on lease liabilities | (13.0) | (9.6) | |
Net interest income on defined benefit pension liability | 21 | 0.4 | 0.3 |
Total finance expense | (13.6) | (10.1) | |
Net finance expense | (5.5) | (4.0) |
7. Profit attributable to Greggs plc
All of the Group profit for the current and prior year is dealt with in the accounts of the Parent Company. The Company has taken advantage of the exemption permitted by s408 of the Companies Act 2006
from presenting its own income statement.
8. Income tax expense
Recognised in the income statement
| 2024 | 2023 | |||||
| Excluding | 2024 | 2024 | Excluding | 2023 | 2023 | |
| exceptional items | Exceptional items | Total | exceptional items | Exceptional items | Total | |
| £m | £m | £m | £m | £m | £m | |
| Current tax | ||||||
Current year | 26.3 | – | 26.3 | 12.2 | 4.8 | 17.0 |
Adjustment for prior years | 7.1 | – | 7.1 | 0.7 | – | 0.7 |
33.4 | – | 33.4 | 12.9 | 4.8 | 17.7 | |
| Deferred tax | ||||||
Origination and reversal of temporary differences | 22.3 | 1.7 | 24.0 | 29.0 | – | 29.0 |
Adjustment for prior years | (6.9) | – | (6.9) | (0.9) | – | (0.9) |
15.4 | 1.7 | 17.1 | 28.1 | – | 28.1 | |
Total income tax expense in income statement | 48.8 | 1.7 | 50.5 | 41.0 | 4.8 | 45.8 |
150
8. Income tax expense continued
Reconciliation of effective tax rate
The tables below explain the differences between the expected tax expense calculated at the UK statutory rate of 25% (2023: 23.5%) and the actual tax expense for each year for both the total tax expense
and the underlying tax expense, excluding the effect of exceptional items.
| 2024 | 2024 | 2023 | 2023 | |||||
| Excluding | Excluding | 2024 | 2024 | Excluding | Excluding | 2023 | 2023 | |
| exceptional items | exceptional items | Total | Total | exceptional items | exceptional items | Total | Total | |
| £m | £m | £m | £m | |||||
Profit before tax | 189.8 | 203.9 | 167.7 | 188.3 | ||||
Income tax using the domestic corporation tax rate | 25.0% | 47.5 | 25.0% | 51.0 | 23.5% | 39.4 | 23.5% | 44.2 |
Items not taxable for tax purposes | – | – | (0.9%) | (1.8) | (0.6%) | (1.0) | (0.6%) | (1.0) |
Non-tax-deductible depreciation | 0.6% | 1.1 | 0.6% | 1.1 | 0.6% | 1.1 | 0.6% | 1.1 |
Impact of increase in deferred tax rate | – | – | – | – | 1.0% | 1.7 | 0.9% | 1.7 |
Adjustment for prior years | 0.1% | 0.2 | 0.1% | 0.2 | (0.1%) | (0.2) | (0.1%) | (0.2) |
Total income tax expense in income statement | 25.7% | 48.8 | 24.8% | 50.5 | 24.4% | 41.0 | 24.3% | 45.8 |
The rate of corporation tax increased from 19% to 25% from 1 April 2023. Therefore the 25% rate has been applied to any timing differences in both the current and prior year.
Tax recognised in other comprehensive income or directly in equity
| 2024 | 2024 | 2024 | 2023 | |
| Current tax | Deferred tax | Total | Total | |
| £m | £m | £m | £m | |
| Debit/(credit): | ||||
Relating to equity-settled transactions | – | 0.2 | 0.2 | 0.4 |
Relating to defined benefit pension plans – remeasurement losses | (1.5) | 0.6 | (0.9) | (0.4) |
(1.5) | 0.8 | (0.7) | – |
The deferred tax movements in both the current and prior years relating to equity-settled transactions are in respect of share-based payments and arise as a result of fluctuations in share price in the year
and the stage of maturity of existing schemes.
The current and deferred tax movements in both the current and prior years relating to defined benefit pension plans are in respect of plan remeasurements accounted for in other comprehensive income
and special contributions made to the scheme.
During 2023 legislation was enacted to implement the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) Pillar Two income inclusion rule (IIR) in the
UK, which will apply to accounting periods that begin on or after 31 December 2023. Although the Group has turnover in excess of the Pillar Two threshold, all trade is carried out through a single UK-based
trading company and so there are not expected to be any ‘top-up’ tax requirements arising from this new regime.
NOTES TO THE ACCOUNTS CONTINUED
151Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
9. Earnings per share
Basic earnings per share
Basic earnings per share for the 52 weeks ended 28 December 2024 is calculated by dividing profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during
the 52 weeks ended 28 December 2024 as calculated below.
Diluted earnings per share
Diluted earnings per share for the 52 weeks ended 28 December 2024 is calculated by dividing profit attributable to ordinary shareholders by the weighted average number of ordinary shares, adjusted for
the effects of all dilutive potential ordinary shares (which comprise share options granted to employees) in issue during the 52 weeks ended 28 December 2024 as calculated below.
Profit attributable to ordinary shareholders
| 2024 | 2024 | 2023 | 2023 | |||
| Excluding | Exceptional items | 2024 | Excluding | Exceptional items | 2023 | |
| exceptional items | (see Note 4) | Total | exceptional items | (see Note 4) | Total | |
| £m | £m | £m | £m | £m | £m | |
Profit for the financial year attributable to equity holders of the Parent | 141.0 | 12.4 | 153.4 | 126.7 | 15.8 | 142.5 |
Basic earnings per share | 138.5p | 12.2p | 150.7p | 125.0p | 15.6p | 140.6p |
Diluted earnings per share | 137.5p | 12.1p | 149.6p | 123.8p | 15.4p | 139.2p |
Weighted average number of ordinary shares
| 2024 | 2023 | |
| Number | Number | |
Issued ordinary shares at start of year | 102,255,675 | 102,112,581 |
Effect of own shares held | (480,247) | (879,975) |
Effect of shares issued | – | 86,106 |
Weighted average number of ordinary shares during the year | 101,775,428 | 101,318,712 |
Effect of share options in issue | 782,816 | 977,753 |
Weighted average number of ordinary shares (diluted) during the year | 102,558,244 | 102,296,465 |
152
| Assets under | |||
| Software | development | Total | |
| £m | £m | £m | |
| Cost | |||
Balance at 1 January 2023 | 40.3 | – | 40.3 |
Additions | 3.1 | 5.6 | 8.7 |
Disposals | (1.7) | – | (1.7) |
Transfers | 0.3 | (0.3) | – |
Balance at 30 December 2023 | 42.0 | 5.3 | 47.3 |
Balance at 31 December 2023 | 42.0 | 5.3 | 47.3 |
Additions | 3.8 | 7.0 | 10.8 |
Transfers | 0.2 | (0.2) | – |
Balance at 28 December 2024 | 46.0 | 12.1 | 58.1 |
| Amortisation | |||
Balance at 1 January 2023 | 26.8 | – | 26.8 |
Amortisation charge for the year | 3.9 | – | 3.9 |
Disposals | (1.7) | – | (1.7) |
Balance at 30 December 2023 | 29.0 | – | 29.0 |
Balance at 31 December 2023 | 29.0 | – | 29.0 |
Amortisation charge for the year | 4.2 | – | 4.2 |
Balance at 28 December 2024 | 33.2 | – | 33.2 |
| Carrying amounts | |||
At 1 January 2023 | 13.5 | – | 13.5 |
At 30 December 2023 | 13.0 | 5.3 | 18.3 |
At 31 December 2023 | 13.0 | 5.3 | 18.3 |
At 28 December 2024 | 12.8 | 12.1 | 24.9 |
NOTES TO THE ACCOUNTS CONTINUED
153Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 2024 | 2023 | |
| £m | £m | |
| Right-of-use assets | ||
Land and buildings | 377.3 | 292.3 |
Plant and equipment | 9.9 | 4.3 |
387.2 | 296.6 |
| 2024 | 2023 | |
| £m | £m | |
| Lease liabilities | ||
Current | 53.8 | 52.5 |
Non-current | 361.3 | 267.1 |
415.1 | 319.6 |
| 2024 | 2023 | |
| £m | £m | |
Less than one year | 71.1 | 64.9 |
One to two years | 69.2 | 56.8 |
Two to three years | 61.7 | 49.9 |
Three to four years | 54.2 | 42.0 |
Four to five years | 46.5 | 34.5 |
Five to ten years | 149.6 | 100.4 |
Ten to twenty years | 62.5 | 19.3 |
More than twenty years | 18.2 | – |
Total undiscounted lease liability | 533.0 | 367.8 |
154
11. Leases continued
| 2024 | 2023 | |
| £m | £m | |
| Depreciation charge on right-of-use assets | ||
Land and buildings | 56.8 | 53.2 |
Plant and equipment | 2.4 | 1.3 |
59.2 | 54.5 | |
Net impairment charge on right-of-use assets – land and buildings | 2.1 | 2.5 |
Interest expense (included in finance expense) | 13.0 | 9.6 |
Expense included for short-term leases (included in cost of sales and administrative expenses) | 0.1 | – |
Expense related to lease of low-value assets that are not shown above as short-term leases (included in administrative expenses) | 0.3 | 0.3 |
Expense related to variable lease payments not included in lease liabilities (included in distribution and selling costs) | 11.4 | 8.5 |
| 2024 | 2023 | |
| £m | £m | |
Opening total liability | 319.6 | 301.3 |
Additions in respect of new leases | 143.8 | 70.3 |
Lease modifications | 8.4 | 1.7 |
Interest on lease liabilities recognised in the income statement | 13.0 | 9.6 |
Interest on lease liabilities capitalised to property, plant and equipment | 0.4 | – |
Rental payments (including interest paid on lease liabilities within operating activities) | (70.1) | (63.3) |
Closing total liability | 415.1 | 319.6 |
NOTES TO THE ACCOUNTS CONTINUED
155Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
12. Property, plant and equipment
Group
| Plant and | Fixtures and | Assets under | |||
| Land and buildings | equipment | fittings | construction | Total | |
| £m | £m | £m | £m | £m | |
| Cost | |||||
Balance at 1 January 2023 | 193.5 | 204.8 | 414.1 | 9.7 | 822.1 |
Additions | 0.3 | 25.5 | 107.3 | 58.0 | 191.1 |
Disposals | (2.2) | (8.9) | (47.9) | – | (59.0) |
Transfers | 0.5 | 0.4 | – | (0.9) | – |
Balance at 30 December 2023 | 192.1 | 221.8 | 473.5 | 66.8 | 954.2 |
Balance at 31 December 2023 | 192.1 | 221.8 | 473.5 | 66.8 | 954.2 |
Additions | 11.2 | 25.7 | 124.4 | 76.9 | 238.2 |
Disposals | (3.8) | (3.6) | (42.9) | – | (50.3) |
Transfers | 56.7 | 4.6 | 0.2 | (61.5) | – |
Balance at 28 December 2024 | 256.2 | 248.5 | 555.2 | 82.2 | 1,142.1 |
| Depreciation | |||||
Balance at 1 January 2023 | 62.9 | 113.0 | 256.2 | – | 432.1 |
Depreciation charge for the year | 6.5 | 18.5 | 41.6 | – | 66.6 |
Impairment charge for the year | – | – | 3.0 | – | 3.0 |
Impairment release for the year | – | – | (1.6) | – | (1.6) |
Disposals | (2.1) | (8.7) | (45.4) | – | (56.2) |
Balance at 30 December 2023 | 67.3 | 122.8 | 253.8 | – | 443.9 |
Balance at 31 December 2023 | 67.3 | 122.8 | 253.8 | – | 443.9 |
Depreciation charge for the year | 8.1 | 22.0 | 46.5 | – | 76.6 |
Impairment charge for the year | – | – | 4.1 | – | 4.1 |
Impairment release for the year | – | – | (1.2) | – | (1.2) |
Disposals | (2.0) | (3.5) | (40.5) | – | (46.0) |
Balance at 28 December 2024 | 73.4 | 141.3 | 262.7 | – | 477.4 |
| Carrying amounts | |||||
At 1 January 2023 | 130.6 | 91.8 | 157.9 | 9.7 | 390.0 |
At 30 December 2023 | 124.8 | 99.0 | 219.7 | 66.8 | 510.3 |
At 31 December 2023 | 124.8 | 99.0 | 219.7 | 66.8 | 510.3 |
At 28 December 2024 | 182.8 | 107.2 | 292.5 | 82.2 | 664.7 |
Assets under construction at 28 December 2024 relate to the building of new logistics/manufacturing facilities in Derby and Kettering.
156
12. Property, plant and equipment continued
Group continued
Assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable and provision is made where necessary. The method and assumptions
used in these calculations, together with the associated sensitivities and reasons for impairment, are set out in the basis of preparation – key estimates and judgements on page 135. Any impairment
charge/(reversal) is charged/(credited) to distribution and selling costs in the income statement.
Parent Company
| Land and | Plant and | Fixtures and | Assets under | ||
| buildings | equipment | fittings | construction | Total | |
| £m | £m | £m | £m | £m | |
| Cost | |||||
Balance at 1 January 2023 | 194.0 | 205.3 | 414.6 | 9.7 | 823.6 |
Additions | 0.3 | 25.5 | 107.3 | 58.0 | 191.1 |
Disposals | (2.2) | (8.9) | (47.9) | – | (59.0) |
Transfers | 0.5 | 0.4 | – | (0.9) | – |
Balance at 30 December 2023 | 192.6 | 222.3 | 474.0 | 66.8 | 955.7 |
Balance at 31 December 2023 | 192.6 | 222.3 | 474.0 | 66.8 | 955.7 |
Additions | 11.2 | 25.7 | 124.4 | 76.9 | 238.2 |
Disposals | (3.8) | (3.6) | (42.9) | – | (50.3) |
Transfers | 56.7 | 4.6 | 0.2 | (61.5) | – |
Balance at 28 December 2024 | 256.7 | 249.0 | 555.7 | 82.2 | 1,143.6 |
| Depreciation | |||||
Balance at 1 January 2023 | 63.2 | 113.2 | 256.6 | – | 433.0 |
Depreciation charge for the year | 6.5 | 18.5 | 41.6 | – | 66.6 |
Impairment charge for the year | – | – | 3.0 | – | 3.0 |
Impairment release for the year | – | – | (1.6) | – | (1.6) |
Disposals | (2.1) | (8.7) | (45.4) | – | (56.2) |
Balance at 30 December 2023 | 67.6 | 123.0 | 254.2 | – | 444.8 |
Balance at 31 December 2023 | 67.6 | 123.0 | 254.2 | – | 444.8 |
Depreciation charge for the year | 8.1 | 22.0 | 46.5 | – | 76.6 |
Impairment charge for the year | – | – | 4.1 | – | 4.1 |
Impairment release for the year | – | – | (1.2) | – | (1.2) |
Disposals | (2.0) | (3.5) | (40.5) | – | (46.0) |
Balance at 28 December 2024 | 73.7 | 141.5 | 263.1 | – | 478.3 |
| Carrying amounts | |||||
At 1 January 2023 | 130.8 | 92.1 | 158.0 | 9.7 | 390.6 |
At 30 December 2023 | 125.0 | 99.3 | 219.8 | 66.8 | 510.9 |
At 31 December 2023 | 125.0 | 99.3 | 219.8 | 66.8 | 510.9 |
At 28 December 2024 | 183.0 | 107.5 | 292.6 | 82.2 | 665.3 |
NOTES TO THE ACCOUNTS CONTINUED
157Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Land and buildings
The carrying amount of land and buildings comprises:
Group | Parent Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Freehold land | 11.6 | 12.3 | 11.6 | 12.3 |
Freehold property | 169.7 | 111.8 | 169.9 | 112.0 |
Long leasehold property | 0.3 | 0.3 | 0.3 | 0.3 |
Short leasehold property | 1.2 | 0.4 | 1.2 | 0.4 |
182.8 | 124.8 | 183.0 | 125.0 |
| Shares in | |
| subsidiary | |
| undertakings | |
| £m | |
| Cost | |
Balance at 1 January 2023, 30 December 2023 and 28 December 2024 | 5.8 |
| Impairment | |
Balance at 1 January 2023, 30 December 2023 and 28 December 2024 | 0.8 |
| Carrying amount | |
Balance at 1 January 2023, 30 December 2023, 31 December 2023 and 28 December 2024 | 5.0 |
| Proportion of | |||
| Address of | voting rights and | ||
| Principal activity | registered office | shares held | |
Charles Bragg (Bakers) Limited | Non-trading | 1 | 100% |
Greggs (Leasing) Limited | Dormant | 1 | 100% |
Thurston Parfitt Limited | Non-trading | 1 | 100% |
Greggs Properties Limited | Property holding | 1 | 100% |
Olivers (UK) Limited | Dormant | 2 | 100% |
Olivers (UK) Development Limited* | Non-trading | 2 | 100% |
Birketts Holdings Limited | Dormant | 1 | 100% |
J.R. Birkett and Sons Limited* | Non-trading | 1 | 100% |
Greggs Trustees Limited | Trustees | 1 | 100% |
Solstice Zone A Management Company Limited | Non-trading | 3 | 28% |
158
13. Investments continued
Non-current investments continued
Parent Company continued
Assets | Liabilities | Net | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | £m | £m | |
Property, plant and equipment | – | – | (76.7) | (61.5) | (76.7) | (61.5) |
Employee benefits | 3.2 | 4.8 | – | – | 3.2 | 4.8 |
Short-term temporary differences | 0.9 | 0.7 | – | – | 0.9 | 0.7 |
Unused tax losses | – | 1.3 | – | – | – | 1.3 |
Tax assets/(liabilities) | 4.1 | 6.8 | (76.7) | (61.5) | (72.6) | (54.7) |
| Balance at | Recognised in | Recognised in | Balance at | |
| 1 January 2023 | income | equity | 30 December 2023 | |
| £m | £m | £m | £m | |
Property, plant and equipment | (33.2) | (28.3) | – | (61.5) |
Employee benefits | 4.9 | 0.2 | (0.3) | 4.8 |
Short-term temporary differences | 0.7 | – | – | 0.7 |
Unused tax losses | 1.3 | – | – | 1.3 |
(26.3) | (28.1) | (0.3) | (54.7) |
Balance at | ||||
| Balance at | Recognised in | Recognised in | 28 December | |
| 31 December 2023 | income | equity 2024 | ||
| £m | £m | £m | £m | |
Property, plant and equipment | (61.5) | (15.2) | – | (76.7) |
Employee benefits | 4.8 | (0.8) | (0.8) | 3.2 |
Short-term temporary differences | 0.7 | 0.2 | – | 0.9 |
Unused tax losses | 1.3 | (1.3) | – | – |
(54.7) | (17.1) | (0.8) | (72.6) |
NOTES TO THE ACCOUNTS CONTINUED
159Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Assets | Liabilities | Net | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | £m | £m | |
Property, plant and equipment | – | – | (76.1) | (60.9) | (76.1) | (60.9) |
Employee benefits | 3.2 | 4.8 | – | – | 3.2 | 4.8 |
Short-term temporary differences | 0.9 | 0.7 | – | – | 0.9 | 0.7 |
Unused tax losses | – | 1.3 | – | – | – | 1.3 |
Tax assets/(liabilities) | 4.1 | 6.8 | (76.1) | (60.9) | (72.0) | (54.1) |
| Balance at | Recognised in | Recognised in | Balance at | |
| 1 January 2023 | income | equity | 30 December 2023 | |
| £m | £m | £m | £m | |
Property, plant and equipment | (32.6) | (28.3) | – | (60.9) |
Employee benefits | 4.9 | 0.2 | (0.3) | 4.8 |
Short-term temporary differences | 0.7 | – | – | 0.7 |
Unused tax losses | 1.3 | – | – | 1.3 |
(25.7) | (28.1) | (0.3) | (54.1) |
| Balance at | Balance at | |||
| 31 December | Recognised in | Recognised in | 28 December | |
| 2023 | income | equity 2024 | ||
| £m | £m | £m | £m | |
Property, plant and equipment | (60.9) | (15.2) | – | (76.1) |
Employee benefits | 4.8 | (0.8) | (0.8) | 3.2 |
Short-term temporary differences | 0.7 | 0.2 | – | 0.9 |
Unused tax losses | 1.3 | (1.3) | – | – |
(54.1) | (17.1) | (0.8) | (72.0) |
160
15. Inventories
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Raw materials and consumables | 38.6 | 31.8 |
Work in progress | 16.6 | 17.0 |
55.2 | 48.8 |
Inventory recognised as an expense during the year was £613.2 million (2023: £570.3 million). The write-down of inventories that was recognised as an expense in the period was £49.3 million (2023: £46.2 million).
There was no reversal of write-down of inventories in the current or prior year.
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Trade receivables | 35.0 | 33.3 |
Other receivables | 13.8 | 9.5 |
Prepayments | 13.6 | 11.0 |
62.4 | 53.8 |
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Not past due date | 30.6 | 29.8 |
Past due 1-30 days | 3.9 | 2.8 |
Past due 31-90 days | 0.2 | 0.5 |
Past due over 90 days | 0.3 | 0.2 |
| 35.0 | 33.3 |
NOTES TO THE ACCOUNTS CONTINUED
161Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
17. Cash and cash equivalents
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Cash and cash equivalents | 125.3 | 195.3 |
Group | Parent Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Trade payables – capital | 22.7 | 14.8 | 22.7 | 14.8 |
Trade payables – other | 97.8 | 84.3 | 97.8 | 84.3 |
Amounts owed to subsidiary undertakings | – | – | 7.7 | 7.7 |
Other taxes and social security | 10.3 | 12.0 | 10.3 | 12.0 |
Other payables | 63.0 | 48.0 | 63.0 | 48.0 |
Accruals | 33.5 | 45.3 | 33.5 | 45.3 |
Deferred income | 16.1 | 6.2 | 16.1 | 6.2 |
Deferred government grants | 0.5 | 0.5 | 0.5 | 0.5 |
243.9 | 211.1 | 251.6 | 218.8 |
19. Current tax
The current tax liability of £9.1 million in the Group and the Parent Company (2023: Group and Parent Company: £4.9 million) represents the estimated amount of income taxes payable in respect of current
and prior years.
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Deferred government grants | 1.8 | 2.3 |
162
21. Employee benefits – Pensions
Scheme background
NOTES TO THE ACCOUNTS CONTINUED
163Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Defined benefit obligation | (80.5) | (82.8) |
Fair value of plan assets | 80.1 | 95.4 |
Net defined benefit pension (deficit)/surplus before IFRIC 14 adjustment | (0.4) | 12.6 |
IFRIC 14 adjustment | – | (6.0) |
Net defined benefit pension (liability)/asset after IFRIC 14 adjustment | (0.4) | 6.6 |
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Opening defined benefit pension obligation | 82.8 | 82.5 |
Interest income | 3.6 | 3.8 |
| Remeasurement losses/(gains): | ||
– changes in mortality assumptions | 1.4 | (1.9) |
– changes in financial assumptions | (8.6) | 1.9 |
– experience | 5.7 | 0.3 |
Benefits paid | (4.4) | (3.8) |
Closing defined benefit pension obligation | 80.5 | 82.8 |
| Group and Parent Company | ||
| 2024 | 2023 | |
| £m | £m | |
Opening fair value of plan assets | 95.4 | 94.6 |
Net interest on plan assets | 4.3 | 4.4 |
Remeasurement (losses)/gains | (19.7) | 0.2 |
Company special contribution | 4.5 | – |
Benefits paid | (4.4) | (3.8) |
Closing fair value of plan assets | 80.1 | 95.4 |
164
21. Employee benefits – Pensions continued
Defined benefit pension asset/(liability) continued
| Group | ||
| 2024 | 2023 | |
| £m | £m | |
Interest income on net defined pension liability | 0.7 | 0.6 |
Associated movement in IFRIC 14 adjustment | (0.3) | (0.3) |
Net interest income | 0.4 | 0.3 |
| Group | ||
| 2024 | 2023 | |
| £m | £m | |
Remeasurement losses on defined benefit pension plans | (18.2) | (0.1) |
Associated movement in IFRIC 14 adjustment | 6.3 | 0.1 |
Net remeasurement losses on defined benefit pension plans | (11.9) | – |
| Group and Parent Company | |||
| 2024 | 2023 | ||
| £m | £m | ||
Bulk annuity policy – UK | 79.3 | – | |
Equities | – UK | – | 4.0 |
– Overseas | – | 7.1 | |
Bonds | – Corporate | – | 29.1 |
– Government | – | 43.6 | |
Cash and cash equivalents/other | 0.8 | 11.6 | |
80.1 | 95.4 |
| Group and Parent Company | ||
2024 | 2023 | |
Discount rate | 5.50% | 4.55% |
Future salary increases | n/a | n/a |
Future pension increases | 1.90%–2.80% | 1.95%–2.55% |
Rate of price inflation (RPI) | 3.15% | 3.00% |
Rate of price inflation (CPI) | 2.75% | 2.60% |
NOTES TO THE ACCOUNTS CONTINUED
165Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Change in assumption | Impact on scheme liabilities | |
Discount rate | 0.5% increase | Decrease of £4.3m |
Inflation | 0.5% decrease | Decrease of £2.7m |
Mortality rates | 1 year increase | Increase of £3.2m |
166
| Number of shares | Contractual | |||||
Date of grant | Employees entitled | Exercise price | granted | Vesting conditions | life | |
Executive Share Option Scheme 17 | April 2014 | Senior employees | £5.00 | 598,225 | Three years’ service and EPS growth of 1%-4% over RPI on average over those | 10 years |
| three years | ||||||
Executive Share Option Scheme 18 | March 2015 | Senior employees | £10.22 | 298,045 | Three years’ service and EPS growth of 1%-7% over RPI on average over those | 10 years |
| three years | ||||||
Executive Share Option Scheme 19 | April 2016 | Senior employees | £10.88 | 235,857 | Three years’ service and EPS growth of 2%-8% over RPI on average over those | 10 years |
| three years | ||||||
Executive Share Option Scheme 20 | April 2017 | Senior employees | £10.33 | 246,219 | Three years’ service and EPS growth of 5%-11% on average over those three years | 10 years |
Performance Share Plan 10 | April 2019 | Senior executives | £nil | 128,534 | Three years’ service, EPS average annual growth of 5%-11% over those three | 10 years |
| years and average annual ROCE of 24%-28% over those three years | ||||||
Executive Share Option Scheme 22 | April 2019 | Senior employees | £18.30 | 140,913 | Three years’ service, EPS average annual growth of 5%-11% over those three | 10 years |
| years and average annual ROCE of 24%-28% over those three years | ||||||
Performance Share Plan 11 | October 2020 | Senior executives | £nil | 166,366 | Three years’ service, EPS performance in FY2022, ROCE performance in FY2022 | 10 years |
| and two strategic objectives | ||||||
Executive Share Option Scheme 23 | November | Senior employees | £17.20 | 121,202 | Three years’ service, EPS performance in FY2022, ROCE performance in FY2022 | 10 years |
| 2020 | and two strategic objectives | |||||
Savings-Related Share Option Scheme 22 | April 2021 | All employees | £16.72 | 291,979 | Three years’ service | 3.5 years |
Performance Share Plan 12 | April 2021 | Senior executives | £nil | 120,022 | Three years’ service, EPS performance in FY2023, ROCE performance in FY2023 | 10 years |
Performance Share Plan 12 (retained) | April 2021 | Senior executives | £nil | 29,512 | Three years’ service | 10 years |
Executive Share Option Scheme 24 | April 2021 | Senior employees | £22.63 | 120,994 | Three years’ service, EPS performance in FY2023, ROCE performance in FY2023 | 10 years |
Savings-Related Share Option Scheme 23 | April 2022 | All employees | £19.68 | 265,209 | Three years’ service | 3.5 years |
Performance Share Plan 13 | March 2022 | Senior executives | £nil | 91,305 | Three years’ service, EPS average annual growth of 3%-8% over those three years | 10 years |
| and average annual ROCE of 19.6%-22.6% over those three years | ||||||
Performance Share Plan 13a | May 2022 | Senior executives | £nil | 36,014 | Three years’ service, EPS average annual growth of 3%-8% over those three years | 10 years |
| and average annual ROCE of 19.6%-22.6% over those three years | ||||||
Executive Share Option Scheme 25 | March 2022 | Senior employees | £24.31 | 118,357 | Three years’ service, EPS average annual growth of 3%-8% over those three years | 10 years |
| and average annual ROCE of 19.6%-22.6% over those three years | ||||||
Savings-Related Share Option Scheme 24 | May 23 | All employees | £21.06 | 268,478 | Three years’ service | 3.5 years |
NOTES TO THE ACCOUNTS CONTINUED
167Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| Number of shares | Contractual | ||||||
Date of grant | Employees entitled | Exercise price | granted | Vesting conditions | life | ||
Performance Share Plan 14 | May 23 | Senior executives | £nil | 109,583 | Three years’ service, EPS average annual growth of 4%-9% over those three | 10 years | |
| years, average annual ROCE of 18.7%-21.2% over those three years and a CO | |||||||
| 2 | |||||||
| emissions reduction target | |||||||
Executive Share Option Scheme 26 | May 23 | Senior employees | £27.92 | 130,075 | Three years’ service, EPS average annual growth of 4%-9% over those three | 10 years | |
| years, average annual ROCE of 18.7%-21.2% over those three years and a CO | |||||||
| 2 | |||||||
| emissions reduction target | |||||||
Performance Share Plan 15 | March 24 | Senior executives | £nil | 114,763 | Three years’ service, EPS average annual growth of 5%-10% over those three | 10 years | |
| years, average annual ROCE of 18.4%-20.8% over those three years and a Scope 3 | |||||||
| CO | emissions target | ||||||
| 2 | |||||||
Executive Share Option Scheme 27 | March 24 | Senior employees | £28.29 | 148,587 | Three years’ service, EPS average annual growth of 5%-10% over those three | 10 years | |
| years, average annual ROCE of 18.4%-20.8% over those three years and a Scope 3 | |||||||
| CO | emissions target | ||||||
| 2 | |||||||
Savings-Related Share Option Scheme 25 | May 24 | All employees | £22.50 | 340,160 | Three years’ service | 3.5 years | |
Performance Share Plan 15a (retained) | December 24 | Senior executive | £nil | 2,000 | One year’s service | 1 year | |
Performance Share Plan 15b (retained) | December 24 | Senior executive | £nil | 2,000 | Two years’ service | 2 years |
168
22. Share-based payments – Group and Parent Company continued
2024 | 2023 | |||
| Weighted average | Weighted average | |||
exercise price | Number of options | exercise price | Number of options | |
Outstanding at the beginning of the year | £14.60 | 1,680,816 | £11.84 | 1,819,739 |
Forfeited during the year | £24.77 | (55,906) | £13.88 | (207,148) |
Exercised during the year | £9.04 | (516,902) | £7.78 | (439,911) |
Granted during the year | £19.56 | 608,610 | £18.27 | 508,136 |
Outstanding at the end of the year | £17.75 | 1,716,618 | £14.60 | 1,680,816 |
Exercisable at the end of the year | £14.70 | 206,449 | £10.13 | 264,675 |
2024 | 2023 | |||||||
| Savings-Related | Performance | Performance | Savings-Related | |||||
| Performance | Executive Share | Share Option | Share Plan | Share Plan | Performance | Executive Share | Share Option | |
| Share Plan 15 | Option Scheme 27 | Scheme 25 | 15a (retained) | 15b (retained) | Share Plan 14 | Option Scheme 26 | Scheme 24 | |
| March 2024 | March 2024 | May 2024 | December 2024 | December 2024 | May 2023 | May 2023 | May 2023 | |
Fair value at grant date | £26.49 | £6.12 | £8.65 | £27.19 | £26.59 | £25.91 | £7.48 | £10.92 |
Share price | £28.29 | £28.29 | £28.12 | £27.80 | £27.80 | £27.62 | £27.62 | £28.46 |
Exercise price | £nil | £28.29 | £22.50 | £nil | £nil | £nil | £27.92 | £21.06 |
Expected volatility | 30.52% | 30.52% | 29.99% | 28.66% | 28.66% | 40.11% | 40.11% | 40.52% |
Option life | 3 years | 3 years | 3 years | 1 year | 2 years | 3 years | 3 years | 3 years |
Expected dividend yield | 2.19% | 2.19% | 2.20% | 2.23% | 2.23% | 2.14% | 2.14% | 2.07% |
Risk-free rate | 4.07% | 4.07% | 4.47% | 4.32% | 4.26% | 4.05% | 4.05% | 3.82% |
NOTES TO THE ACCOUNTS CONTINUED
169Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 2024 | 2023 | |
| £m | £m | |
Share options granted in 2020 | – | 0.4 |
Share options granted in 2021 | 0.4 | 1.3 |
Share options granted in 2022 | 1.2 | 1.6 |
Share options granted in 2023 | 1.7 | 1.3 |
Share options granted in 2024 | 1.2 | – |
4.5 | 4.6 | |
Social security contributions | 0.4 | 0.4 |
Total expense recognised as employee costs | 4.9 | 5.0 |
| Group and Parent Company | ||||||||||
| 2024 | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | 2023 | |
| Dilapidations | National Insurance | Redundancy | Other | Total | Dilapidations | National Insurance | Redundancy | Other | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Balance at start of the year | 4.1 | 1.3 | 0.1 | 0.7 | 6.2 | 3.6 | 1.6 | 0.1 | 1.0 | 6.3 |
Additional provision in the year | 2.8 | 0.5 | – | 0.1 | 3.4 | 1.8 | 0.4 | – | 0.1 | 2.3 |
Utilised in the year | (1.0) | (0.9) | – | (0.2) | (2.1) | (0.7) | (0.7) | – | (0.1) | (1.5) |
| Provisions reversed during the year | ||||||||||
- Ordinary provisions | (0.6) | – | – | (0.3) | (0.9) | (0.6) | – | – | – | (0.6) |
- Exceptional provisions (Note 4) | (0.2) | – | (0.1) | – | (0.3) | – | – | – | (0.3) | (0.3) |
Balance at end of the year | 5.1 | 0.9 | – | 0.3 | 6.3 | 4.1 | 1.3 | 0.1 | 0.7 | 6.2 |
Included in current liabilities | 2.7 | 0.6 | – | 0.1 | 3.4 | 2.5 | 1.0 | – | 0.5 | 4.0 |
Included in non-current liabilities | 2.4 | 0.3 | – | 0.2 | 2.9 | 1.6 | 0.3 | 0.1 | 0.2 | 2.2 |
5.1 | 0.9 | – | 0.3 | 6.3 | 4.1 | 1.3 | 0.1 | 0.7 | 6.2 |
170
| Ordinary shares | ||
| 2024 | 2023 | |
| Number | Number | |
In issue and fully paid at start of year – ordinary shares of 2p | 102,255,675 | 102,112,581 |
Issued on exercise of share options | – | 143,094 |
102,255,675 | 102,255,675 |
| 2024 | 2023 | |
| Per share | Per share | |
| pence | pence | |
2022 final dividend | – | 44.0p |
2023 interim dividend | – | 16.0p |
2023 final dividend | 46.0p | – |
2023 special dividend | 40.0p | – |
2024 interim dividend | 19.0p | – |
105.0p | 60.0p |
NOTES TO THE ACCOUNTS CONTINUED
171Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 2024 | 2023 | |
| £m | £m | |
2022 final dividend | – | 44.6 |
2023 interim dividend | – | 16.2 |
2023 final dividend | 46.8 | – |
2023 special dividend | 40.7 | – |
2024 interim dividend | 19.3 | – |
106.8 | 60.8 |
Amounts owed to related parties | Amounts owed by related parties | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Dormant subsidiaries | 7.7 | 7.7 | – | – |
172
TEN-YEAR HISTORY
2015
1
2016 2017 2018 2019
2,3
2020
1
2021
1
2022 2023 2024
Turnover (£m) 835.7 894.2 960.0 1,029.3 1,167.9 811.3 1,229.7 1,512.8 1,809.6 2,014.4
Total sales growth/(decline) (%) 3.7% 7.0% 7.4% 7.2% 13.5% (30.5%) 51.6% 23.0% 19.6% 11.3%
Company-managed shop like-for-like sales growth/(decline) (%) 4.7% 4.2% 3.7% 2.9% 9.2% (36.2%) 52.4% 17.8% 13.7% 5.5%
Operating profit/(loss) excluding exceptional items (£m) 73.1 80.3 82.2 89.8 114.8 (7.0) 153.2 154.4 171.7 195.3
Profit/(loss) before tax excluding exceptional items (£m) 73.1 80.3 81.7 89.8 114.2 (12.9) 145.6 148.3 167.7 189.8
Profit/(loss) before tax margin excluding exceptional items (%) 8.7% 9.0% 8.5% 8.7% 9.8% (1.59%) 11.8% 9.8% 9.3% 9.4%
Pre-tax exceptional (charge)/gain (£m) – (5.2) (9.9) (7.2) (5.9) (0.8) – – 20.6 14.1
Profit/(loss) on ordinary activities including exceptional items and before tax (£m) 73.0 75.1 71.9 82.6 108.3 (13.7) 145.6 148.3 188.3 203.9
Diluted earnings/(loss) per share excluding exceptional items (pence) 55.8 60.8 63.5 70.3 89.7 (12.9) 114.3 117.5 123.8 137.5
Ordinary dividend per share declared (pence) 28.6
4
31.0 32.3 35.7 11.9 – 57.0 59.0 62.0 69.0
Special dividend per share declared (pence) 20.0 – – – 35.0 – 40.0 – 40.0 –
Total shareholder return (%) 87.1% (23.8%) 47.5% (7.4%) 84.7% (22.0%) 87.3% (26.8%) 13.5% 10.6%
Capital expenditure (£m) 71.7 80.4 70.4 73.0 86.0 58.7 57.4 110.8 199.8 249.0
Return on capital employed (excluding exceptional items) (%) 26.8% 28.1% 26.9% 27.4% 20.0% (2.4%) 23.0% 21.0% 21.1% 20.3%
Number of shops in operation at year end 1,698 1,764 1,854 1,953 2,050 2,078 2,181 2,328 2,473 2,618
1 2014 and 2020 were 53 week years, impacting on total sales growth for that year and the year immediately following.
2 IFRS 16 leases was implemented at the start of the financial year using the modified retrospective approach. Prior year comparatives have not been restated.
3 The final dividend declared in respect of 2019 was cancelled as a cash preservation measure during the Covid-19 crisis.
4 Restated for a change in accounting policy relating to deferred tax.
All of the non-GAAP measures detailed above can be calculated from the GAAP measures included in the annual accounts with the exception of those detailed on pages 172 and 173.
Calculation of alternative performance measures
Like-for-like sales growth – compares year-on-year cash sales in our company-managed shops, with more than one calendar year’s trading history and is calculated as follows:
2024
£m
2023
£m
Current year like-for-like sales 1,564.0 1,444.3
Prior year like-for-like sales 1,483.1 1,270.0
Growth in like-for-like sales 80.9 174.3
Like-for-like sales growth percentage 5.5% 13.7%
173Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Like-for-like sales can be reconciled to total revenue as follows:
2024
£m
2023
£m
Like-for-like sales in company-managed shops 1,564.0 1,444.3
Non-like-for-like sales in company-managed shops 217.7 166.6
Total revenue in retail company-managed shops 1,781.7 1,610.9
Business to business sales 232.7 198.7
Total revenue 2,014.4 1,809.6
Franchise like-for-like system sales growth – compares year-on-year cash sales in our franchised shops, with more than one calendar year’s trading history and is calculated as follows:
2024
£m
2023
£m
Current year franchise like-for-like sales 280.1 227.9
Prior year franchise like-for-like sales 260.8 198.2
Growth in franchise like-for-like sales 19.3 29.7
Franchise like-for-like sales growth percentage 7.4% 14.9%
Franchise system sales are different from revenue. They are the sales made in our franchised shops whereas the Company’s revenue from business-to-business sales comprises sales of products to franchise
and wholesale partners together with the licence fee charged to franchise partners.
Return on capital employed – calculated by dividing profit before tax by the average total assets less current liabilities for the year.
2024
Underlying
£m
2024
Including
exceptional items
(see Note 4)
£m
2023
Underlying
£m
2023
Including
exceptional items
(see Note 4)
£m
Profit before tax 189.8 203.9 167.7 188.3
Capital employed:
Opening 857.2 857.2 730.3 730.3
Closing 1,009.5 1,009.5 857.2 857.2
Average 933.4 933.4 793.8 793.8
Return on capital employed 20.3% 21.8% 21.1% 23.7%
Net cash inflow from operating activities after lease payments – calculated by deducting the repayment of principal of lease liabilities from net cash flow from operating activities.
2024
£m
2023
£m
Net cash inflow from operating activities 310.9 310.8
Repayment of principle of lease liabilities (56.7) (53.7)
Net cash inflow from operating activities after lease payments 254.2 257.1
ALTERNATIVE PERFORMANCE MEASURES
174
Secretary
Sarah Dickson
Registered Office
Quorum Business Park
Newcastle upon Tyne
NE12 8BU
Registered number
502851
Bankers
Barclays Bank plc
Barclays House
5 St Ann’s Street
Quayside
Newcastle upon Tyne
NE1 3DX
Auditor
RSM UK Audit LLP
1 St James’ Gate
Newcastle upon Tyne
NE1 4AD
Stockbrokers
UBS
5 Broadgate Circle
London
EC2M 2QS
Investec
2 Gresham Street
London
EC2V 7QP
Solicitors
Linklaters LLP
One Silk Street
London
EC2Y 8HQ
Registrars
MUFG Corporate Markets
10th Floor
Central Square
28 Wellington Street
Leeds
LS1 4DL
SECRETARY AND ADVISERS
175Greggs plc Annual Report and Accounts 2024
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
NOTES
176
NOTES
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The paper is Carbon Balanced with World Land Trust, an international
conservation charity, who offset carbon emissions through the
purchase and preservation of high conservation value land.
Through protecting standing forests, under threat of clearance,
carbon is locked-in, that would otherwise be released.
