Thousands of Greggs workers to share £17.6m in bonuses

It comes after Greggs delivered a bumper pre-tax profit of £188.3m for 2023, up from £148.3m the previous year after like-for-like sales in company-managed shops jumped 13.7 per cent.

On an underlying basis, pre-tax profits lifted 13.1 per cent to £167.7m.

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Greggs shares out 10 per cent of profits each year with staff who have worked for the firm for at least six months.

Ms Currie told the PA news agency the group was hoping its value offering would stand it in good stead this year and reiterated that she did not plan to increase prices over 2024.

But she added that Greggs was “not complacent” about tough high street trading conditions.

She said: “The consumer is still under pressure in terms of their disposable income.

“We’re certainly not complacent. Retaining that number one for value is very important to us.”

She said there may be a bounce in consumer confidence and spending after the national living wage is increased nationwide in April.

“That might well put more money into the pocket of the consumer,” she said.

The firm’s annual results showed slowing sales growth as there was less contribution from price inflation, paring back to 9.4 per cent in the final three months of the year.

The group added that comparable store sales growth has slowed further, to 8.2 per cent in the first nine weeks of 2024, though it said this reflected good growth by volume.

The firm said it was “confident that Greggs can deliver another year of good progress” and remains on track to open between 140 to 160 shops this year after opening a record 220 sites in 2023.

It added: “Inflationary pressures are reducing and we have improved visibility of costs in the coming year.

“There is no change to management’s expectations for 2024.”

The group said it expects its own cost inflation to be between 4 per cent and 5 per cent but cautioned this was “subject to geopolitical risks”.

It said it was on track with plans set in 2021 to double sales over five years, adding that “what started as a plan is now a solid

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, commented: "Greggs has enjoyed an excellent year despite the challenging economic environment.

"Sales and profits have both risen, despite significant cost inflation, and the group is returning more cash to shareholders through dividends. All in all, an impressive performance.

“There is no doubt Greggs' brand is resonating strongly with the UK consumer and is in fine fettle.

"A record 220 new shop openings and longer opening hours have also extended the brand's reach, contributing to market share gains.”

“This sales growth has enabled Greggs to continue increasing profits despite significant inflation in the cost of raw materials, energy and wages. Encouragingly, these cost pressures are now beginning to ease.”