THE RECIPE FOR SUCCESS
Greggs plc Annual Report and Accounts 2025
WELCOME
Our customers come back to Greggs again and again
because we offer them a delicious and exciting range
of great value products. Once again, their loyalty
has helped us to outperform our competitors in the
food-to-go market and generate record sales.
Our presence continues to grow. On average, we opened four
new shops a week in 2025, taking Greggs into new locations and
new communities across the UK. We now have more than 2,700
shops and are investing in our manufacturing sites and logistics
operations to ensure that we can supply up to 3,500 shops in
the future.
We will keep on innovating to make sure that we give our customers
what they want, where they want it, and at a price they can afford.
Roisin Currie
Chief Executive, 3 March 2026
Find out more about our financial performance on pages 57 to 61.
* Detailed calculations of alternative performance measures, not otherwise shown in the Accounts and related Notes, are shown on pages 175 to 177.
** 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
£2,151m
2024: £2,014m
DILUTED EARNINGS PER SHARE
**
122.8p
2024: 137.5p
LIKE-FOR-LIKE (LFL) SALES
***
2.4%
PRE-TAX PROFIT
**
£171.9m
2024: £189.8m
COLLEAGUE PROFIT-SHARING
£20.2m
2024: £20.5m
TOTAL ORDINARY DIVIDEND
69.0p
2024: 69.0p
You can also read our
Annual Report online
at corporate.greggs.
co.uk/investors
COOKING UP COOKING UP
MORE SUCCESSMORE SUCCESS
FINANCIAL HIGHLIGHTS
*
1Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
NON-FINANCIAL HIGHLIGHTS
Strategic Report
Financial highlights IFC
Non-financial highlights 1
At a glance 2
Year in review 4
Chair’s Statement 8
Business model 10
Market review 12
Chief Executive’s Report 14
Our strategy 20
Our strategy in action 22
Key performance indicators 32
Our People 34
Sustainability Report 42
The Greggs Pledge 42
Task Force on Climate-related
Financial Disclosures 46
Financial review 57
Risk management 62
Viability statement 69
Directors’ Report
Board of Directors and Secretary 70
Governance Report 74
Our stakeholders 81
Audit Committee Report 88
Directors’ Remuneration Report 95
Statement of Directors’
Responsibilities 120
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 174
Alternative performance measures 175
Secretary and advisers 178
IN THIS REPORT
Find out more about
The Greggs Pledge on
pages 42 to 45 and at
www.greggs.com/
doing-good
* With the exception of hot drinks cups.
97%
renewable electricity
in all of our operations,
continuing our journey
to net zero.
Transitioned to using
Published our
1st
Responsible
Procurement Report,
setting a clear, transparent
supplier strategy.
Opened our
45th
Greggs Outlet, helping to
redistribute 45% of unsold
food to communities.
Branded packaging* moved
to ‘more easily recyclable’
OPRL
standard.
2
BETTER BETTER
BUSINESS BUSINESS
FOR EVERYONEFOR EVERYONE
To be the customers’
favourite for food-on-the-go
With ownership of our supply chain, multiple service channels for our customers
and more than 2,700 shops across the UK, we are in a unique position to make
great tasting, freshly prepared food and drink 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.
AT A GLANCE
OUR PURPOSE
OUR VISION
3
3
Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
We are a modern food-on-the-go retailer,
providing a wide menu of food and drink choices,
wherever and whenever our customers need us.
Manufacturing
In our manufacturing centres of excellence, we make great
tasting, freshly prepared food that our customers can trust.
Logistics
We move products from our 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 2,700 shops – including over 600 with
franchise partners – our grocery partnerships with Iceland
Foods and Tesco, 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.
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
profit is shared among our colleagues.
Read more about our people and culture on
pages 34 to 41.
COLLEAGUE
PROFIT-SHARING
£20.2m
2024: £20.5m
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 2025 to schools
and charitable organisations in the UK.
Read more about The Greggs Pledge on
pages 42 to 45.
Giving back to the communities we serve
DONATED TO THE
GREGGS FOUNDATION
£3.4m
2024: £3.1m
Creating sustainable value for our shareholders
TOTAL ORDINARY DIVIDEND
69.0p
2024: 69.0p
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 10 and 11.
WHAT WE DO HOW WE CREATE VALUE FOR OUR STAKEHOLDERS
4
YEAR IN REVIEW
From raising funds for Children in Need
and The Greggs Foundation, to celebrating
award wins, opening new shops, our Chief
Executive Roisin being awarded a CBE,
launching exciting new products and
partnerships, and trialling innovative shop
formats – there’s been so much to
celebrate and be proud of.
YEAR IN REVIEW
Greggs crowned ‘Consumer
Choice’ winner at MCA
Hospitality Awards
We started the year on a high! Greggs proudly
took home the Consumer Choice Award at the
MCA Hospitality Awards. Judged on customer
satisfaction, recommendations and experience,
this accolade celebrates our unwavering
commitment to delivering quality and value
every single day.
A YEAR OF A YEAR OF
HIGHLIGHTSHIGHLIGHTS
SPRING 2025
Feeding Brighter
Futures launches
to support children
beyond breakfast
The Greggs Foundation unveiled Feeding
Brighter Futures, an evolution of its Breakfast
Club programme. This initiative now funds
breakfast, after-school and holiday provision
clubs, ensuring children have equal access to
food, learning and play.
SPRING 2025
5Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Serving up bold,
new flavours
Our first vegetarian rotational bake launched
to rave reviews! The Red Pepper, Feta &
Spinach Bake combined premium ingredients
and bold flavours, quickly becoming a
customer favourite. Rotational bakes let us
bring fresh, modern tastes to our core range
– proving Greggs really does have something
for everyone.
SPRING 2025
Roisin Currie honoured
with CBE
A proud moment for Greggs when our Chief
Executive, Roisin Currie, was appointed
Commander of the Order of the British Empire
(CBE) in the King’s Birthday Honours List,
recognising her exceptional contribution to
hospitality. Roisin dedicated the honour to our
33,000 colleagues who serve our customers
brilliantly every day.
Greggs goes global on
National Sausage Roll Day!
We unveiled the world’s first Greggs Sausage
Roll waxwork at Madame Tussauds London,
after research crowned it a top British cultural
icon. The event generated hundreds of media
stories worldwide, and public demand kept
the pastry masterpiece on display throughout
the summer months.
SUMMER 2025
SUMMER 2025
6
YEAR IN REVIEW CONTINUEDYEAR IN REVIEW CONTINUED
Driving forward
sustainably
We opened our first Eco Drive-thru, trialling
innovative features to reduce environmental
impact – from sustainable building materials
to energy-saving initiatives. This marks
a bold step beyond our Eco-Shop concept.
Bag some joy with
Greggs at Tesco
We officially launched Greggs frozen range in
800 Tesco stores nationwide and online.
Customers can stock up on a variety of Greggs
goodies, including a twin pack of Steak Bakes
and a four pack of Sausage Rolls, ready to bake
at home, straight from the freezer.
Lunch got an upgrade
We introduced the ‘Big Deal’ meal offer,
giving customers even greater value and
choice with a three-part meal deal.
Combined with a refreshed sandwich range
and new protein-packed options, including
protein drinks and an egg pot – Greggs
remains the go-to for lunch.
Greggs hits 2,700 shop
milestone!
Our incredible shop development team opened an
average of four new shops a week throughout 2025.
With the support of our franchise partners, we hit
the 2,700 shop milestone, ensuring Greggs is
accessible to customers nationwide.
SUMMER 2025
AUTUMN 2025 AUTUMN 2025
AUTUMN 2025
7Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
7
Greggs raises the bar
with its first pop-up pub
We love to surprise and delight customers. In a new
collaboration with Fenwick, we opened The Golden
Flake Tavern – Greggs first pub. From carveries
and cocktails to puddings and pints (including two
limited-edition Greggs brews by Full Circle Brew Co.),
we proved our range is high-quality and full of flavour.
We brought the magic
of Wicked to Greggs
From shop transformations and limited-edition
travel cups to themed packaging and our new
Greggs App Quests, this partnership with Universal
Pictures UK delivered immersive experiences
across all channels – a truly wicked duet.
Over £1 million raised for
BBC Children in Need
Thanks to our customers and colleagues – every
Pudsey product, donation, and creative fundraiser
helped make life brighter for children and young
people across the UK.
Small but mighty!
We launched our first bitesize Greggs at
Sevenoaks railway station, offering a curated
range of bestsellers – from iconic savouries to
sweet treats and hot drinks. This agile format
can be delivered from a very small footprint,
enabling us to enter more high-footfall locations,
particularly travel hubs – many of which were
previously out of reach due to the size needed to
run a traditional Greggs shop format.
A major milestone
for growth
We successfully completed the external build
phase of both our new frozen logistics and
manufacturing facility in Derby and National
Distribution Centre in Kettering, ready to boost
supply chain capacity and support our
long-term expansion plans in 2026 and beyond.
AUTUMN 2025
WINTER 2025
WINTER 2025
WINTER 2025
WINTER 2025
8
CHAIR’S STATEMENT
Overview
Greggs benefits from a fantastic brand, strong market position
and a track record of innovating to adapt to changing customer
needs. These unique strengths helped us navigate a challenging
food-to-go market in 2025, increasing share and maintaining
the competitiveness of our offer despite the headwinds. The
financial outcome reflected these market headwinds but has
been well-managed and has not distracted the team from the
significant opportunities that lie ahead as we continue to
innovate and evolve our offer in line with consumer preferences
and leverage the benefits of our vertically-integrated model.
We also made good progress investing in the systems and
supply chain capacity that will help us to realise our ambition in
the years to come.
The Board’s agenda for the year reflected this growth context,
and the need to manage risk in a competitive and challenging
environment. Cyber security and our plans to manage the
business during a period of significant systems change were both
in focus, particularly given the well-publicised issues faced by
other retailers. Technological change continues to accelerate
and the Board received updates from management on the work
being undertaken to increase the organisation’s capability in
areas such as data analysis and the integration of AI into our
business processes.
As a food business, our processes for allergen management
continued to be an area of Board focus, given the material
risk associated with this. Strong progress has been made and
the Board received updates on this work and the further
measures being taken to ensure that protection for our
customers continues to advance and remains at the centre
of how we operate.
STRENGTH IN STRENGTH IN
A CHALLENGING A CHALLENGING
MARKETMARKET
Greggs outperformed a tough
market in 2025 and delivered the
continued strategic progress that
will support further growth in the
years ahead, demonstrating its
resilience. Our success is down to
the thousands of amazing people
who work in our business and the
energy they demonstrate every
day. We continue to be excited
by the many opportunities ahead
and our programme of investment
to support that ambition is
proceeding according to plan.
Matt Davies
Chair
9Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
The Greggs Pledge is our way of articulating our approach to
responsible business. I’m incredibly proud of the progress that
Greggs has made over the past five years against its original
five-year commitments. Quite apart from being the right thing
to do, this progress enhances our reputation with customers,
makes us a more attractive employer to our colleagues, and
reduces risk of reputational damage to the brand.
Our people and values
The Board works hard to stay close to our colleagues across the
business in order to listen to their feedback and ensure that we
are aware of their ideas and concerns. Our people offer their
views freely and this openness, characteristic of the culture of
the business over so many years, is important in making sure that
Board members are cognisant of this in our deliberations.
The Board’s ‘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
helps the Board to question and support management and makes
us better equipped to make informed decisions.
The Board
The composition of the Board was unchanged during 2025. We
planned succession for Kate Ferry, who will retire from the Board
on 6 March 2026 and for Mohamed Elsarky, who steps down after
the Annual General Meeting (AGM) in May 2026. Both Kate and
Mohamed have made an exceptional contribution to Greggs.
Richard Smothers joined the Board on 1 February 2026 and will
assume the role of Chair of the Audit Committee following Kate’s
retirement. Richard brings extensive financial expertise in a listed
company environment and great experience in retail which will be
of significant benefit to the business.
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 2025 the Board
declared an interim ordinary dividend of 19.0 pence per share
(2024: 19.0 pence per share). In line with our ordinary dividend
policy the Board intends to recommend at the AGM a final
dividend of 50.0 pence per share (2024: 50.0 pence per share),
giving a total ordinary dividend for the year of 69.0 pence per
share (2024: 69.0 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.
Looking ahead
Despite the challenging market conditions, the underlying
strengths of the business remain clear, and the breadth of
our appeal and value leadership have allowed us to continue to
outperform in a tough market. We expect consumer sentiment
to continue to be a headwind in 2026, but with a strong
competitive position and a clear opportunity for further
growth Greggs can weather these conditions and continue
to outperform the market.
Our investment plans are progressing well and will provide the
infrastructure with which to realise the significant growth
opportunity that lies ahead. At the same time, the Greggs team
continues to demonstrate its ability to navigate the short-term
challenges presented by the market. Our brand and financial
position remain strong and the Board remains confident in the
prospects for further profitable growth over the medium term.
Matt Davies
Chair
3 March 2026
19.0p
per share
interim ordinary
dividend
50.0p
per share
final dividend
10
Our purpose…
To make great tasting, freshly prepared food and drink accessible to everyone
BUSINESS MODEL
Our people…
33,000
amazing colleagues across our business
People are at the heart of everything we do. We have
over 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 and drive growth by…
…focus on our
core strategic pillars…
QUALITY
Great tasting,
freshly prepared
food and drink
SERVICE
Best customer
experience
VALUE
Competitive
supply chain
ENGAGE
First-class
support teams
1. Broadening customer appeal and
driving loyalty
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
Find out more about our strategy on pages 20 to 31.
11Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Our vision…
To be the customers’ favourite for food-on-the-go
CUSTOMERS
No.1
Greggs is rated No.1 for value on the YouGov
BrandIndex 2025*, 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 2,700-strong shop estate, as well as our
grocery and delivery partnerships. We have
also been developing and enhancing 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 directly with our
customers and reward them for their loyalty.
* YouGov BrandIndex, circa 23,900 sample, UK 18+
Nat Rep Total Population – data collected 1 January
to 31 December 2025, Quick Service Restaurant,
coffee shop and delivery services sector.
COMMUNITIES
£5.4m
(2024: £5.4m)
Greggs believes in giving back to the
communities we serve. With our support,
The Greggs Foundation was able to distribute
£5.4 million to schools and charitable
organisations in the UK.
SUPPLIERS
91.6%
(2024: 93.8%)
We’re also a great brand to work with.
Over 90% of invoices were paid to
suppliers within the terms agreed.
COLLEAGUES
72%
(2024: 74%)
Greggs is a great place to work, with an
overall engagement score of 72% in the most
recent colleague engagement opinion survey.
The engagement score for our retail
colleagues was 71% which is 2 percentage
points higher than the retail benchmark.
SHAREHOLDERS
69.0p
(2024: 69.0p)
We provide value to our shareholders, with
a 69.0 pence ordinary dividend proposed in
line with our progressive dividend policy.
…delivering value for all our stakeholders…
…and helping
realise The Greggs
Pledge to build…
Find out more about how we engage with our stakeholders on pages 81 to 87.
Stronger, healthier
communities
A safer planet
A better business
More about The Greggs Pledge on pages 42 to 45.
12
MARKET REVIEW
MACRO TRENDS
ADAPTING ADAPTING
TO CHANGETO CHANGE
At Greggs, we closely monitor evolving
macroeconomic and consumer trends to
anticipate challenges, mitigate risks and
seize new opportunities.
This proactive approach ensures we
remain resilient and relevant in a rapidly
changing environment.
Climate change and
extreme weather
Businesses play a critical role in reducing
carbon emissions and supporting the
transition to a low-carbon future.
Nature and
biodiversity
Human activity continues to
threaten biodiversity, with
deforestation and habitat loss
exacerbated by climate change.
Geopolitical
uncertainty
Global tensions and conflicts
create unpredictable operating
conditions.
Demographic
shifts
Demographic shifts such as an ageing
population, migration, and evolving household
structures are reshaping consumer
preferences and workforce dynamics.
Cyber
security
Cyber threats are intensifying,
increasing the risk to
operational systems and
sensitive data.
Retail crime
The rise in theft and anti-social
behaviour impacts profitability and
colleague safety.
Greggs response
We have assessed climate-related risks
and embedded them into our strategic risk
registers. Our Net Zero Steering Group is
driving action across all areas of the
business, challenging climate impact and
accelerating progress toward our goal of
achieving net zero by 2040 – ten years
ahead of the UK Government’s target.
Find out more in our TCFD Report on pages 46 to 56.
We’re committed to protecting
forests by sourcing only certified
sustainable commodities – covering
wood-based products, beef, palm oil
and soy. Through our partnership
with EcoVadis, we rigorously assess
supplier practices and drive
continuous improvement to ensure
responsible sourcing across our
supply chain.
We maintain resilience through
robust enterprise risk
management processes,
supported by diversified sourcing,
strong supplier relationships and
ongoing scenario planning. These
measures help us to understand
our potential exposure, mitigate
disruption, and ensure continuity
of supply across our operations in
an uncertain global environment.
We adapt our product range to meet
diverse lifestyles and dietary needs,
while implementing inclusive workplace
practices and flexible models to attract
and retain talent. Through continuous
insight and innovation, we stay ahead of
demographic trends to remain relevant
and competitive.
We treat cyber security
as a core business risk,
implementing technical,
operational and people-
focused controls. The
framework aligns with widely
recognised industry standards
and is subject to regular
reviews through formal
governance mechanisms.
13Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
MACRO TRENDS CONTINUED
CONSUMER TRENDS
* To find out more about NOVA classification please go to: https://www.food.gov.uk/safety-hygiene/ultra-processed-foods.
Healthy eating
Obesity and diet-related illness remain
major public health challenges.
Inflation and
cost of living
Economic pressures are reshaping consumer
behaviour and impacting affordability.
Greggs response
We commit to ensuring at least 30% of our range
qualifies as a healthier choice, expanding
options such as salads, yoghurt, fruit and
high-protein snacks including our new egg pot.
Reformulation efforts reduce sugar, salt, fat and
calories without compromising taste. Clear
nutritional information is provided in-store,
online, and via the Greggs App.
As a value-led business, we remain committed to
offering high quality, great tasting products, while
delivering exceptional value to customers who are
managing their budgets carefully.
Eco-conscious
consumers
Sustainability shapes purchasing decisions.
Ultra-processed
food
According to the Food Standards Agency, ultra-
processed food remains one of the key concerns
raised by consumers surveyed in its Consumer
Insights Tracker, with over three-quarters
expressing concern. These levels have remained
broadly stable since July 2023.
GLP-1 weight
management medications
The growing use of GLP-1 drugs for weight loss
is reshaping eating habits and reducing
demand for calorie-dense foods.
Greggs response
Our Eco-Shops serve as a test bed for energy,
waste and water-saving initiatives, with
elements now rolled out to over a third of our
estate. We redistribute unsold food daily
through our Outlet shops, charity partners and
Too Good To Go. Our branded packaging (with
the exception of hot drinks cups) is now the
‘more easily recyclable’ OPRL standard.
We adopt the NOVA* classification and collaborate
with industry and government to improve nutritional
standards. While processing supports food safety
and affordability, we continue reformulating
products to enhance nutritional value.
We research these trends and innovate with
products that support satiety and balanced
nutrition, including items that are high in fibre,
plant-based and protein-rich.
Climate change and
extreme weather
Businesses play a critical role in reducing
carbon emissions and supporting the
transition to a low-carbon future.
Nature and
biodiversity
Human activity continues to
threaten biodiversity, with
deforestation and habitat loss
exacerbated by climate change.
Geopolitical
uncertainty
Global tensions and conflicts
create unpredictable operating
conditions.
Demographic
shifts
Demographic shifts such as an ageing
population, migration, and evolving household
structures are reshaping consumer
preferences and workforce dynamics.
Cyber
security
Cyber threats are intensifying,
increasing the risk to
operational systems and
sensitive data.
Retail crime
The rise in theft and anti-social
behaviour impacts profitability and
colleague safety.
Greggs response
We have assessed climate-related risks
and embedded them into our strategic risk
registers. Our Net Zero Steering Group is
driving action across all areas of the
business, challenging climate impact and
accelerating progress toward our goal of
achieving net zero by 2040 – ten years
ahead of the UK Government’s target.
Find out more in our TCFD Report on pages 46 to 56.
We’re committed to protecting
forests by sourcing only certified
sustainable commodities – covering
wood-based products, beef, palm oil
and soy. Through our partnership
with EcoVadis, we rigorously assess
supplier practices and drive
continuous improvement to ensure
responsible sourcing across our
supply chain.
We maintain resilience through
robust enterprise risk
management processes,
supported by diversified sourcing,
strong supplier relationships and
ongoing scenario planning. These
measures help us to understand
our potential exposure, mitigate
disruption, and ensure continuity
of supply across our operations in
an uncertain global environment.
We adapt our product range to meet
diverse lifestyles and dietary needs,
while implementing inclusive workplace
practices and flexible models to attract
and retain talent. Through continuous
insight and innovation, we stay ahead of
demographic trends to remain relevant
and competitive.
We treat cyber security
as a core business risk,
implementing technical,
operational and people-
focused controls. The
framework aligns with widely
recognised industry standards
and is subject to regular
reviews through formal
governance mechanisms.
We have strengthened our approach to
retail crime through enhanced physical
and digital security measures, including
the rollout of Auror technology across all
of our shops. This enables improved
incident reporting, data-led insight and
intelligence sharing, helping us to better
prevent and respond to theft and
anti-social behaviour. We continue to
invest in CCTV coverage and work closely
with law enforcement and industry
partners to share intelligence and best
practice. Together, these actions
support colleague safety, protect our
assets and maintain safe, welcoming
environments for customers.
14
CHIEF EXECUTIVE’S REPORT
We are pleased with the Greggs brand’s resilience
against the backdrop of a tough environment for the
whole food-to-go market in 2025. We increased our
share of food-to-go market visits by 0.5 percentage
points to 8.6%, with gains across all dayparts, in a
market where visits shrank 3.1% (source: Circana,
12 months ended December 2025). Card spending
data also confirmed that we outperformed the wider
eating and drinking out-of-home market in the year to
December 2025.
We are seeing some emerging shifts in dietary preferences,
with certain consumers seeking greater choice in areas such as
increased protein, more fibre and smaller portions. We expect
this will be a developing trend and are confident in our ability to
evolve our range to appeal to those looking for different
nutritional profiles and portion sizes when eating out of home,
Our customers come back to
Greggs again and again because
we offer them a delicious and
exciting range of great value
products. Once again, their loyalty
has helped us to outperform our
competitors in challenging market
conditions, generating record
sales as we continue to expand
our range.
Roisin Currie
Chief Executive
building on our track record of responding to change and entering
new categories with value-based options. Our analysis of the
factors impacting sales performance suggests that pressure on
disposable incomes remains the key factor. We remain confident
that demand for convenient food-on-the-go as customers go
about their busy lives will continue to underpin the market.
In the year ahead we expect market conditions will remain
challenging for the consumer. We continue to stay focused on
value and are significantly ahead of our competitors on this
metric. Greggs value proposition makes it relatively resilient in
the face of cyclical pressure on consumers, and we will continue
to focus on this through strong cost control and structural
efficiency opportunities. At the same time we are successfully
increasing access to Greggs through the extension of our own
shop estate alongside partnerships with grocery, franchise and
delivery partners.
OUTPERFORMING OUTPERFORMING
IN CHALLENGING IN CHALLENGING
CONDITIONSCONDITIONS
15Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Financial results
Total sales grew to £2,151 million in 2025 (2024: £2,014 million),
a 6.8% increase on 2024. Within this, company-managed shop
like-for-like sales were 2.4% higher than 2024 and like-for-like
‘system sales’ in franchised units rose by 4.3%.
Underlying operating profit was 4% lower than in the previous
year, due to increased fixed costs in respect of manufacturing,
logistics and technology capacity and the operating leverage
impact of lower like-for-like volumes. Underlying pre-tax profit for
the year decreased by 9.4% to £171.9 million (2024: £189.8 million),
with reduced interest income on cash deposits and a higher lease
interest charge as the estate grows and leases are renewed.
For further detail, see the Financial Review. Including exceptional
items, statutory profit before tax for the year decreased to
£167.4 million (2024: £203.9 million including an exceptional
gain of £14.1 million primarily related to the sale of a legacy
bakery site).
Operational progress in 2025
The fastest-growing brand in the food-to-go market
Keeping the brand at the front of people’s minds and giving them
good reasons to choose Greggs is a key focus, and in 2025 we
once again topped the YouGov Brand Index, ranking first for both
value and consideration, proving that consumers believe we are
getting it right.
Market share data (source: Circana, 12 months ended December
2025) highlights our success, with Greggs remaining the number
one brand at breakfast, number two at lunch, number three for
snacking and now number four for both the dinner market and
delivery channel. Greggs is an inclusive brand that appeals to a
mix of customers that broadly reflect the market as a whole.
Our investment in marketing to drive brand awareness and
performance continues, promoting our menu through out-of-
home poster campaigns, radio advertising, and paid social media.
These have been bolstered by witty brand activation campaigns,
including the launch of our first home furnishings collection,
which included beanbags and cushions in the shape of Greggs
Sausage Rolls and Steak Bakes. We were pleased to partner with
Fenwick – this time to deliver The Golden Flake Tavern pop-up,
where customers could enjoy their Greggs meal in a pub
atmosphere, complete with exclusive Greggs beers.
In November we partnered with Universal Pictures UK to launch
the ‘Wicked: For Good’ film. We held a day of special events in two
iconic shops – London Leicester Square and Manchester Trafford
Centre – to mark the film’s launch, inviting customers to follow the
Yellow Bake Road. We also created a ‘Greggs x Wicked Baked For
Good’ box for customers in our delivery channel.
A highlight of the year was the Greggs Sausage Roll establishing
its status as a British icon. Throughout the summer of 2025, a
wax effigy of our famous bake rested on a velvet cushion in
Madame Tussauds – the first time a food item has been honoured
in this way – reminding us of the very real affection that people
have for the Greggs brand.
Range evolution and value leadership
We continue to keep our menu fresh and relevant, introducing
new flavours and products. Examples in 2025 included the Red
Pepper, Feta & Spinach Bake, the Sweet & Spicy Chicken Oval
INNOVATION: BAKING
FRESH IDEAS
Over the past year, we’ve continued to innovate
and strengthen our position as the UK’s leading
value food-on-the-go brand. This has been driven
by focused investment in our menu, digital
capabilities, manufacturing expansion and new
ways of building the Greggs brand.
We’ve broadened our appeal through new products, from
the rapid growth of our iced drinks range, including our
new matcha options, to the success of our ‘TikTok famous’
Mac & Cheese.
Our new bitesize shop formats are helping us meet evolving
customer needs, and we’re creating even more reasons to
visit our shops across every part of the day.
We’re also investing in the future of our operations, with
major upgrades to our manufacturing and logistics network
that will give us the capacity, efficiency and resilience to
support long term growth.
At the same time, our brand continues to break new ground.
From high end, limited time concepts like The Golden Flake
Tavern to ongoing improvements in the Greggs App that
make us even more convenient, we’re always finding fresh
ways to engage customers while staying true to what makes
Greggs special: our high-quality, great-value products.
16
CHIEF EXECUTIVE’S REPORT CONTINUED
Bite, the Tuna Crunch Roll, and expansion of our popular pizza
range with a new Tandoori Chicken option. Our innovation
pipeline reflected emerging dietary trends with the launch of
turmeric and ginger health shots, two protein shakes and a
convenient egg pot, broadening choice for customers looking for
quick, healthy, high-protein options.
Greggs has a track record of responding to changing dietary
needs and entering new categories with value-based options.
High-protein options such as chicken have been increasingly
popular in recent years and we have grown share of categories
such as coffee, breakfast, vegan-friendly options and iced drinks.
Most recently we added iced matcha lattes to our popular iced
drink range. Priced from just £3.00, they are the latest example of
Greggs embracing market trends whilst making products more
accessible to more people.
Increasing access to Greggs
Providing more convenient access to Greggs food and drink is
crucial to our success and continues to present a material growth
opportunity in the years ahead. Despite Greggs success over
many years, increasing the frequency of customer visits remains
a clear opportunity when compared with best in class for
food-to-go.
By bringing our shops to more catchments, introducing
convenient ways for customers to pick up Greggs favourites, and
offering services such as delivery we enable customers to shop
with us more frequently in a manner that suits their busy lives.
Increasingly this involves working in partnership with others to
extend access to Greggs beyond traditional locations, for
example roadsides, grocery retailers, and delivery partners.
In every case we are focused on ensuring that we generate
strong returns on the capital that we deploy.
As we grow our estate, we continually monitor customer
behaviour to ensure that new openings are not at risk of
cannibalising existing shop sales. Analysis of our Greggs App
customers continues to demonstrate that those who visit a new
shop increase the overall frequency with which they visit Greggs.
In 2025 53% of our new shop openings (excluding relocations)
were in areas with no other Greggs shop within a mile (2024: 60%
of new shop openings), with 2026 planned openings having a
similar profile. For openings in areas with existing access to
Greggs within a mile of the new shop, the transfer of sales from
existing shops across 2024 and 2025 averaged less than 5%. We
factor this into our rigorous new shop appraisal process to ensure
that increased access to Greggs improves catchment
performance and returns on investment.
Shop growth
In November 2025, we opened our 2,700
th
shop. Over the course
of 2025, we opened 121 net new shops, moved 50 existing shops
to better locations in the same area, and refitted 116 company-
managed shops and 47 franchise shops.
Our growing presence now extends well beyond the high street,
with over half of our new openings located in alternative sites
such as petrol forecourts, supermarkets, retail parks, hospitals
and university campuses. We remain focused on expanding our
presence in major transport hubs, opening new shops this year at
Manchester Airport and railway stations in Leeds and Dartford as
well as the western hall at St Pancras railway station in London.
2025 also saw the launch of our first ‘bitesize’ shop at Sevenoaks
railway station.
Some high-footfall locations offer less space than is needed for a
standard Greggs shop, so we are trialling the new ‘bitesize Greggs’
format that enables us to meet customer demand from a much
more compact unit. In 2025, we opened three bitesize shops,
each offering a focused range of customer favourites, and we
are now assessing the role this format can play in supporting
profitable future growth. In addition to the bitesize trial, we are
developing unattended retail solutions to serve additional
missions and further enhance returns.
In addition to identifying new sites, relocating existing shops is
an important part of our strategy to develop the Greggs estate.
During 2025, we closed shops in 50 locations to make way for a
better opportunity 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 serve more
customers. In these more traditional locations, typically in cities,
towns and suburbs, our customer base is already well established
17Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
and further investment unlocks swift and profitable growth.
Since 2019 we have relocated circa 15% of our estate in these
traditional locations.
Greggs is a trusted brand offering a strong covenant to landlords
and franchise partners and this continues to generate attractive
opportunities in new locations. Our new shop pipeline is strong,
and we expect to deliver around 120 net openings in 2026, with
the emphasis of our growth being in locations where Greggs
continues to be underrepresented, such as retail parks, railway
stations, airports, roadsides and supermarkets.
Delivery
Home delivery makes up 6.8% of our sales mix (6.7% in 2024)
and Greggs is now ranked number four in the market for delivery
(source: Circana, 12 months ended December 2025). Three
quarters of our company-managed shops now accept orders
via Just Eat and Uber Eats. Delivery sales are incremental to
our walk-in business. The basket value of a delivery order tends
to be around three times that of a walk-in customer, so we
continue to look for ways to extend the reach of this offer with
the evening daypart remaining a key opportunity. In the overall
market, home delivery continues to grow and is at its most
popular in the evening daypart. This remains an opportunity
for Greggs as we adapt products to suit the delivery channel.
For example, more than 70% of our sales of pizza boxes are
made via our delivery partners.
The success of our delivery business relies upon slick processes,
and we are constantly searching for ways to reduce complexity
and simplify our operations. We are now investing in a platform to
better manage menu availability and improve the amount of time
our shops are online. We have also trialled courier estimated
arrival time functionality with Uber Eats so we can better
anticipate when food will be collected, allowing us to make up an
order so it is as fresh as possible.
Loyalty
The Greggs App remains very popular with our regular customers,
giving them a free product for every nine they buy. Another 1.7
million customers downloaded the App in 2025 and it is now
scanned in more than a quarter of company-managed
transactions (26.7%, up from 20.1% in the previous year). At the
peak in December 2025, the App was used by over 1.5 million
customers a week – over three times more than the December
peak in 2022.
In May, we introduced a personalised inbox, Baked for You, to the
Greggs App, giving us more space to promote new products and
deals. In November, we launched Greggs Quests to ‘gamify’ the
App user experience and provide more opportunities to drive
engagement and frequency of purchase by accelerating rewards
for customers if they complete their Quest. By completing Greggs
Quests, customers had the opportunity to win a range of prizes –
from products and gift cards to a trip to Reykjavik with Universal
Pictures as part of our Wicked partnership.
Evening growth
Around 2,000 Greggs shops are open beyond 5pm, and at least
half of these are open until 7pm. Evening sales represent 9.4% of
company-managed shop sales (2024: 9.0%) and remained our
fastest-growing daypart in 2025. We are now ranked number four
in the market for dinner visits (source: Circana, 12 months ended
December 2025) as we continue to take market share.
Most of our evening sales come from walk-in customers on
grab-and-go missions, with our iconic savouries and pizza
remaining the backbone of these visits. Alongside this, we’re
strengthening our offer for sit-in and delivery occasions by
providing hot, filling meal options. Products like Southern Fried
Chicken Goujons, Southern Fried Potato Wedges and Mozzarella
& Cheddar Bites are key drivers of like-for-like volume growth in
the evenings, and this year we expanded the range further with
Mac & Cheese. We’ve also continued to test and refine our pizza
offer, introducing a new small pizza box and a single slice pizza
box exclusively for delivery.
Product innovation will continue to be central to our evening
growth strategy.
Grocery retailing
Iceland Foods continues to be a key commercial partner, and in
2025 we added new pastries to the Greggs ‘Bake at Home’ range
and expanded the rotational programme of limited-edition
products. During the year we also launched elements of the range
with Tesco, and Greggs products are now available at 800 larger
Tesco stores and online. From January 2026 a subset of this
range became available in a further 1,900 Tesco Express stores.
Managing costs and capital investment
Managing costs closely is, and always has been, strategically
important to us as a value retailer. Our teams delivered structural
cost savings of £13.0 million in 2025, £4 million ahead of our
stretch target, alongside short-term tactical control to manage
labour and other key variable costs. This will remain a focus in
2026 and going forward as we explore further structural cost
efficiency opportunities to increase productivity and support
strong returns for shareholders.
Our plans to open new National Distribution Centres in Derby and
Kettering remain on time and are both on track to come in under
budget. At the Derby site, we will be ready to roll out upstream
robotic picking of frozen goods from mid-2026. The 23-acre site
will be fully operational by the end of 2026, including our first
production line on the site, adding capacity to both our
manufacturing and logistics operations. Our Kettering site will
18
CHIEF EXECUTIVE’S REPORT CONTINUED
embrace increased levels of automation to enable upstream
picking of chilled and ambient goods, relieving pressure on our
existing Radial Distribution Centres. The site will be operational in
2027 and we have begun appointing key individuals to manage
this operation.
2025 was the peak of our capital investment programme and we
are now focused on completing and activating the new facilities
to utilise their capabilities. Free cash generation will increase
going forward as our investment requirements reduce materially.
This will improve returns as we move forward, leveraging the
investments we have made.
We continue to invest in upgrading our logistics infrastructure
and modernising our fleet of vehicles. During 2025, we purchased
more efficient double-deck trailers and introduced 25 urban
artics, both of which will take miles off the road. We now use the
renewable biofuel HVO at three sites, meaning that 28% of our
fuel usage has been switched to a renewable fuel source. Building
on this progress, we are exploring opportunities to expand HVO
usage across our Leeds and Kettering logistics sites in 2026,
aiming, where viable, to support increased adoption and further
reduce emissions. In addition, the introduction of real-time data
through vehicle telematics has enabled us to improve operational
efficiencies, cut emissions, and improve safety compliance and
driver performance.
During 2025 we successfully migrated our finance and
procurement team processes to the SAP S/4HANA platform,
strengthening the foundations for greater efficiency along with
data and insight capabilities across the business. We further
developed our use of Power BI and Microsoft AI tools to support
decision making. These developments are already helping us
unlock greater value from the vast volumes of data we manage.
For example, we’ve expanded the insight available to operational
teams with a single view of performance metrics across our
supply chain, and we now provide real-time sales updates to
shops so they can make intraday decisions on labour scheduling.
We’ve also introduced insight that helps teams understand how
operational choices affect queue times and service levels, and
we’re generating richer views of customer purchase behaviour
highlighting the positive impact of the Greggs App and our loyalty
scheme. We continue to experiment with ways to transform our
business using digital solutions. In 2025, we trialled self-service
ordering screens in a small number of shops, offering our
customers a convenient way to order and pay without queuing.
At our Head Office our support teams are benefiting from the
investment in CRM capability, with AI functionality being
developed to drive service standards and efficiencies. These
enhancements continue to strengthen our data and AI
capabilities and improve our ability to run efficient,
well-informed operations.
Looking after our people
We are proud to employ more than 33,000 people across the UK
in stable, fairly-paid jobs. In a wider environment of rising
unemployment, we are proud to be creating new jobs; in opening
121 net new shops we added over 1,200 colleagues to our team.
Everyone who works for Greggs benefits from a 50% colleague
discount on Greggs-branded products from the day they start
work. After three months with us, they can opt into our Sharesave
scheme, enabling them to buy Greggs shares at a discount, and
after six months they also become eligible for our longstanding
profit share scheme. Every year, 10% of the profits we generate
are divided between these colleagues and, at the end of March
2026, each will receive a share of £20.2 million.
We also offer a matched contribution pension scheme, of up to
7% of salary, for all colleagues. With our contribution, colleagues
can set aside the equivalent of 14% of every pay packet, helping
them to save for retirement.
We want to take good care of our people and, in spring 2025,
introduced a virtual GP service which enables them to speak to a
private doctor, at no cost to them. At a time when getting a
doctor’s appointment feels increasingly challenging, this service
removes some of the friction that can make it harder to seek
expert advice.
Our colleague inclusion networks empower our colleagues from
minority groups (and their allies) to come together to share their
experiences and provide guidance and feedback to the business.
We held our second Inclusion Conference to celebrate our
success stories and discuss ways we can improve further.
19Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Giving back
In addition to paying taxes and providing stable employment to
tens of thousands of people across the country, we give back to
our communities through charitable support.
The Greggs Foundation
Every year, Greggs plc donates 1% of pre-tax profits to The
Greggs Foundation. We also work collaboratively to leverage the
ability of our Outlet shops to support their local community. In
2025, this support amounted to £3.4 million. Our colleagues and
customers give generously throughout the year, raising a further
£420,000 through donations at the till, our two Breakfast Club
appeal weeks and colleagues’ Give As You Earn donations.
Children in Need
2025 was our 19th year supporting BBC Children in Need. During
November, we raised over £1 million for the charity through shop
collections, merchandise, Pudsey Biscuits, and till donations.
Children’s Cancer North
We are long-time supporters of Children’s Cancer North’s annual
charity run, which takes place each May in Newcastle upon Tyne.
As well as providing funding towards the delivery of the event,
we put collection buckets in our shops in the North East and
increased local awareness of the event. We have raised almost
£9 million for the charity since we began supporting them back
in 1983.
The Greggs Pledge
We created The Greggs Pledge in 2021 to channel resources and
energy into the areas where we felt our business could make the
most difference to the wider world. We have spent the five years
since it was launched working to deliver ten bold commitments,
with the end of 2025 as our target delivery date. I am incredibly
proud of the progress that we have made.
We are now entering a new five-year cycle, with an evolved set
of commitments. As our approach to ESG and sustainability has
matured, our ambitions have grown; our new targets reflect that
and will require real focus and effort in the years ahead.
In some cases, a target that we set in 2021 has been delivered in
full. Typically, this means that the required change has been
embedded into ‘business as usual’ and will now be delivered by
existing processes. For example, our Eco-Shops are now fully
operational and are on-going test-beds for new, ‘greener’
equipment and technology, and any new item of packaging will
always be made from fully recyclable material.
Our priorities for the next five years are based around the same
three pillars: building stronger, healthier communities; making
our planet safer; and striving to be a better business. We are
focusing on empowering broader community action through The
Greggs Foundation’s Community Action Fund, maintaining our
climate ambition to reach Scope 2 net zero by 2030, and stay
firmly on track for full net zero across Scopes 1–3 by 2040, and
we are accelerating progress on our diversity agenda by building
a more diverse leadership pipeline.
Further detail on each of these pillars can be found in The Greggs
Pledge section of this Annual Report on pages 42 to 45.
A forward look
We expect that 2026 will be another tough year for the consumer
but are optimistic that inflationary pressure will ease a little,
providing some support to consumers and the food-to-go sector.
We will continue to open new Greggs shops, primarily in
catchments where we do not yet have a presence. Our flexible
formats and growing presence in areas such as petrol forecourts
and retail parks will continue to improve access to Greggs whilst
further diversifying our shop estate.
Our loyalty proposition will encourage customers to shop with us
more frequently and at different times of the day, supported by
continued evolution of our product range to suit different
dayparts and respond to dietary trends.
The key focus for management in the coming years will be
restoring the Company’s return on capital employed (‘ROCE’) back
to our target of around 20%. This will be supported by continued
action to drive like-for-like sales, deliver structural cost
reductions and develop additional income streams, alongside
opening more shops that deliver strong returns and leverage
the new supply chain capacity that we are building.
Current trading and outlook
We have a strong pipeline of new shop openings in 2026, primarily
in new catchments that drive strong returns, and our investment
in supply chain capacity is on track. Like-for-like sales in
company-managed shops have increased by 1.6% year-on-year
in the first nine weeks of 2026. Total sales increased by 6.3%
year-on-year as we continued to grow our shop estate and
benefited from the expansion of our grocery retail business,
with strong cost control supporting profit conversion and
year-on-year progression.
Our strong brand and robust balance sheet position us well and
management’s expectations for the year remain unchanged, with
profit before tax expected to be broadly in line with 2025 and any
year-on-year improvement contingent on a recovery in the
consumer backdrop. We expect to make profit progress in the
first half of 2026 due to the phasing of like-for-like cost inflation
across the year and will see an increase in fixed costs as we
commission the new Derby site, which will primarily impact the
second half.
I remain confident about the growth opportunities available to
Greggs and our ability to progress them.
Roisin Currie
Chief Executive
3 March 2026
20
OUR STRATEGYOUR 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 recent years
have brought significant success, our journey is far from over. We have bold growth
ambitions and continue to learn, innovate and adapt to stay ahead in a dynamic market.
Great tasting, freshly
prepared food and drink
Nothing beats freshly baked, freshly prepared
food. With bold flavours, responsibly sourced
ingredients and consistent quality at
outstanding value, Greggs sets the standard
for food-on-the-go.
Competitive
supply chain
By owning our supply chain, we make our
delicious products and deliver them directly
to our shops – ensuring exceptional quality
and unbeatable value for our customers.
Best customer experience
Fast, friendly service is one of the biggest
reasons customers choose Greggs and delivering that
consistently under pressure is no small feat. Our shop
teams do an incredible job making every visit feel effortless.
Through the Greggs App, we’re building deeper connections
with customers, rewarding loyalty and creating a seamless
experience that keeps them coming back.
First-class support teams
We’ve made significant investments in systems
and technology that empower our support teams
to deliver exceptional service – both to colleagues and,
ultimately, to our customers. These tools streamline
processes, enhance collaboration and ensure every
interaction reflects the quality and efficiency Greggs
is known for.
Dedicated to Doing Good
Find out more in our
Sustainability Report
– The Greggs Pledge on
our corporate website:
corporate.greggs.co.uk
Stronger, healthier communities
We pledge to play our part in improving the
nation’s diet by helping to tackle obesity,
providing free breakfasts to schoolchildren 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.
OUR CORE STRATEGIC PILLARS
THE GREGGS PLEDGE
21Greggs plc Annual Report and Accounts 2025
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.
Broadening
customer appeal
and driving loyalty
1.
We’re continuing to strengthen Greggs position as the go-to brand for
food-on-the-go. Through bold brand activity and timely, targeted
communication via the Greggs App and website, we’re demonstrating how
Greggs can be the choice for more people, in more places, at any time of day.
Growing and
developing the
Greggs estate
2.
We have a strong pipeline of new shop openings and a significant opportunity
to enhance our estate through strategic relocations and modern refits. We’re
investing in our supply chain to build the capacity required to support up to
3,500 shops across the UK – ensuring we’re ready to deliver on our ambitious
expansion plans.
Developing
our digital
channels
3.
Our digital channels give us the ability to compete effectively throughout the
day. Delivery partnerships with Just Eat and Uber Eats extend our reach
beyond passing footfall, driving higher-value orders by serving multiple
customers at once. Meanwhile, Click + Collect lets customers browse the
menu, customise their order, and skip the queue – making Greggs even more
convenient and accessible.
Expanding
our evening
trade
4.
By offering extended trading hours in many of our shops, introducing exciting
new menu additions and leveraging both walk-in and digital channels, we have
a clear strategic opportunity to grow food-to-go sales in the evening market.
Investing in our supply chain and technology for a bigger business
Significant investment in manufacturing and logistics underpins our ambition, building the capacity to support up
to 3,500 shops across the UK. At the same time, we’re driving forward our digital capabilities and embedding a culture
of continuous improvement to enable smarter, more efficient operations as the business grows.
OUR KEY DRIVERS OF GROWTH
2222
OUR STRATEGY IN ACTION
BROADENING CUSTOMER APPEAL AND DRIVING LOYALTY
BROADENING BROADENING
APPEAL. APPEAL.
DRIVING LOYALTY.DRIVING LOYALTY.
23Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
BROADENING BROADENING
APPEAL. APPEAL.
DRIVING LOYALTY.DRIVING LOYALTY.
Following a challenging year for food-to-go
brands, we continued to be the UK’s leading
food-to-go brand based on YouGov BrandIndex
scores, ending the year as the No.1 brand in 7 out
of 16 YouGov categories – including retaining our
position as the No.1 considered food-to go brand
for the second year running.
With consumer spending continuing to come
under pressure, we remained the No.1 brand for
value and have proudly held this position
since 2010.
No.1
overall
For the 8th year
running in YouGov’s
BrandIndex*
No.1
for Consideration
For the 2nd year*
No.1
for Value
Extending our lead to
achieve 37.4 points*
Serving customers throughout the day
To meet the food-to-go needs of UK consumers, we continued to
evolve our menu with new products being trialled and introduced to
the menu throughout 2025. We served up half a billion transactions,
with 1 in 3 adults in Great Britain enjoying a Greggs in 2025**.
We retained our position as the UK’s No.1 food-to-go brand for
breakfast, helping start the day for millions of customers across
the country**. We’ve made a significant investment in elevating our
lunchtime offering, strengthening both brand and menu appeal.
This included the launch of a refreshed sandwich range featuring
exciting additions such as the Cheese & Onion Roll and the Sweet &
Spicy Chicken Oval Bite. We also introduced standout innovations
such as the Red Pepper, Feta & Spinach Bake and Mac & Cheese –
bringing even more variety and flavour to our customers.
In September, we launched our new three-part ‘Big Deal’ offering
customers a wide range of choices. They can select any hot or
cold sandwich, salad, pasta or chicken goujons, add any drink,
then choose from a wide selection of sides including yoghurt, egg
pot, crisps, fruit pot and wedges.
We continued to keep the brand front of mind, investing across
audio-visual channels with our Greggs Gameshow ads as well as
the use of out-of-home, radio and paid social media to promote
our menu and support sales.
Our brand activations remained a central part of our strategy,
allowing us to execute and entertain in a way only Greggs can. In
June, the Greggs Sausage Roll became the first ever food item in
its own right to go on display at Madame Tussauds alongside
other British icons. Over the summer, we fed thousands of
festival goers across the country with our Greggs Van and
Double-decker Bus experience.
We launched The Golden Flake Tavern, a quintessentially British,
Greggs-inspired pop-up pub in partnership with Fenwick. It
served traditional pub fayre with a Greggs twist as well as our first
ever exclusive Greggs beers – produced by Full Circle Brew Co.
These brand activations all helped contribute to another strong
year for our brand health metrics, with Greggs being the most
considered food-to-go brand in the UK in 2025 for the second
year running*.
Delivering added value and driving
visits through digital investment
During 2025 we continued to develop a range of data-driven and
digital workstreams, with a focus on how data and AI can inform
and shape our wider strategy. This includes improving how we
segment customers who participate in our loyalty scheme, a
precursor to building a system that can give better targeted and
more relevant offers.
We also continued with our investment in CRM and data
capabilities – adding new App features including Greggs Quests –
whilst using real-time customer behaviour to inform and adapt
our wider business strategy.
2026 PLANS
Although the UK Government delayed the new
advertising regulations on Less Healthy Food until
January 2026, we adhered to the spirit of the legislation
from its planned introduction date of October 2025,
adapting our paid media strategy and content across
relevant channels. As we start to see the impact and
effect of the legislation, we will continue to adapt and
optimise our paid media strategy.
As part of our wider brand and marketing strategy,
we will continue to focus on earned media and brand
partnerships to ensure a fully integrated channel
approach. These help to drive sales and keep the
brand front of mind, while retaining the emotional
connection with customers of all ages and
backgrounds from across the UK.
* YouGov BrandIndex, circa 23,900 sample, UK 18+ Nat Rep Total Population
– data collected 1 January to 31 December 2025, Quick Service Restaurant,
coffee shop and delivery services sector.
** Source: Circana CREST & SnapMyEats 12 months ended December 2025.
24
24
OUR STRATEGY IN ACTION
GROWING OUR ESTATE
OPENING OPENING
DOORS DOORS
TO MORE TO MORE
MOMENTS.MOMENTS.
25Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
OPENING OPENING
DOORS DOORS
TO MORE TO MORE
MOMENTS.MOMENTS.
New shop openings
We opened 121 net new shops during 2025, ending the year with
more than 2,700 Greggs shops across the UK.
We continue to focus on broadening our presence beyond the
high street and over half of our shops are now in alternative
locations. Over the course of the year, we opened nine new
drive-thrus, six new supermarket shops and seven Outlet shops.
We also expanded our presence in UK transport hubs, opening
shops at Manchester Airport, and in railway stations in Leeds,
StPancras, Dartford and Sevenoaks.
We continued our expansion in Northern Ireland, opening eight
new shops in 2025 taking our total there to 28.
New shop format
We trialled a new shop format – bitesize Greggs – in three high-
footfall locations to test what we can achieve with a very small
footprint. This agile shop format will enable us to enter more
prime locations, particularly travel hubs, many of which were
previously out of reach due to the size needed to run a traditional
Greggs shop format.
The first bitesize shop opened in Sevenoaks railway station in
November. The unit is open seven days a week, creating nine new
jobs for the local area, and offers a tailored range of our best-
selling products. In December, we opened two more in Dartford
railway station and the designer discount outlet, Cheshire Oaks.
Upgrading our estate
Alongside expanding our presence, we want to make sure that
we are maximising the opportunities in our existing shops. We
continued our programme of refits, refreshing and upgrading
116 company-managed shops. Larger refits include the
Birmingham Bull Ring, Sheffield Meadowhall and Glasgow
Buchanan bus station.
We moved 50 shops to new locations which allowed us to better
serve our existing customer base. These included London
Ludgate Hill, Cardiff St Davids, Wandsworth Southside Shopping
Centre, Aberdeen Union Square and Bridgend McArthur Glen.
Grocery partnerships
We introduced our Bake at Home range in Iceland supermarkets
in 2011 and the relationship continues to flourish. During 2025, we
introduced new sweet pastries including Pain au Chocolat and All
Butter Croissants. We also offer a range of limited-edition
products that vary through the year, including the Spicy
Vegetable Curry Bake, Fajita Chicken Bake and the Festive Bake.
We launched a new partnership with Tesco in September 2025.
Our core range of Bake at Home Greggs products is now available
at 800 Tesco Extra stores and online. In January 2026, this
partnership was extended to a further 1,900 Tesco Express stores.
2026 PLANS
The pipeline of new shop opportunities remains
strong, and we expect to open in the region of 120
net new shops in 2026, including drive-thrus, petrol
forecourts, roadsides, travel hubs, retail parks and
supermarket locations. We estimate that around a
third of these will be with our franchise partners.
We will also focus on providing bigger and better
shops to serve all channels by targeting around
35 relocations and 85 refits.
When we launched our current strategy
in 2021, we set an ambition to have more than
3,000 shops. Just a few years later, our ambition
has grown, and we are now readying the business
for more than 3,500 shops in the longer term.
121
Net new shops
opened in the year
64%
Proportion of new
company-managed
shops opened in 2025
beyond the high street
(e.g. supermarkets,
petrol forecourts,
roadsides, retail parks)
50
Relocations
completed
116
Refits completed
(company-managed
shops)
26
26
OUR STRATEGY IN ACTION
DEVELOPING DIGITAL CHANNELS
CLICK. COLLECT.CLICK. COLLECT.
CONVENIENCE.CONVENIENCE.
27Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
CLICK. COLLECT.CLICK. COLLECT.
CONVENIENCE.CONVENIENCE.
Our digital presence continues to go from
strength to strength with record numbers of
customers choosing a delivery, downloading the
Greggs App, and skipping the queues in-shop by
using Click + Collect.
1,632
(2024: 1,556)
Shops have delivery
26.7%
(2024: 20.1%)
Of company-managed
shop transactions
accompanied
by an App scan
2026 PLANS
Our key focus will be on excellent retail execution
through improved technology. By giving our people
the right tools to make their jobs easier, we can
free them up to concentrate on delivering
excellent service.
We plan to simplify shop operations by putting
all digital orders through a single screen,
standardising our processes and freeing up
space in our digital prep areas.
We will continue to explore the potential for
further growth of our home delivery service,
working with our partners to increase order
volume from existing sites, and adding new shops.
We will continue to innovate to make sure our
range is right for our delivery channel.
Delivery partnerships
We are now offering home delivery from more than 1,600 Greggs
shops around the country through our partnerships with Just Eat
and Uber Eats. The basket value of a delivery customer is around
three times that of a walk-in customer helping to drive sales
growth, with delivery now representing 6.8% of company-
managed sales (2024: 6.7%).
Throughout 2025, we boosted awareness of the Greggs delivery
service with strategic PR partnerships. In August, we partnered
with KFC for the ‘Pastry Meets Gravy’ cross promotion with Uber
Eats in four key cities. In November, we partnered with Universal
Pictures UK to promote the release of the second Wicked film with
a ‘Wicked: for Good’ Bake Box delivered by Just Eat in ten key cities.
Improving our processes
The success of our delivery business relies upon slick processes,
and we are constantly searching for ways to reduce complexity
and simplify our operations. We are now investing in a platform to
better manage menu availability and improve the amount of time
our shops are online. We have also trialled courier estimated
arrival time functionality with Uber Eats so we can better
anticipate when food will be collected (allowing us to make up an
order so it is as fresh as possible).
Rewarding loyalty with the Greggs App
In 2025, 26.7% of all company-managed shop transactions were
accompanied by an App scan (2024: 20.1%).
The App is our key opportunity for rewarding customer loyalty,
giving people a free product for every nine they buy. Once again,
we offered double stamps in January and June, helping to
drive lunchtime sales. Also in June, we enhanced our App
sign-up incentive to include iced drinks, helping us to engage
younger audiences.
The App enables us to give our customers unique access to
special products and events. This year, these opportunities
included free entry to Madame Tussauds and Thorpe Park, getting
early access to Greggs new homeware line, entry to The Golden
Flake Tavern in Fenwick and the opportunity to win tickets to LA
with Fanta and to Reykjavik with Universal Pictures UK.
In May 2025, we added new functionality including an in-App
inbox that allows us to show customers tailored communications
regardless of marketing opt-in status. During 2025, our Baked For
You messages received over six million clicks into the articles.
We also launched Greggs Quests to gamify the user experience and
provide more opportunity to win free Greggs and other exciting
prizes. The Quests are fun, time-limited challenges that encourage
more engagement with the App. We can run Quests as App-wide
campaigns or personalise them for particular customer segments,
helping to make them as relevant and engaging as possible.
2828
OUR STRATEGY IN ACTION
EXPANDING EVENING TRADE
EVENINGS, EVENINGS,
ELEVATED.ELEVATED.
29Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Growth in the evening
In 2025, Greggs increased its share of visits across all dayparts,
including the important evening (post-5pm) time slot, where
share of visits increased to 2.9% (2024: 2.4%)*.
Hot food
We know that many of our customers are looking for hot food in
the evening and our range of hot products continues to be
popular in this daypart. Items such as Southern Fried Chicken
Goujons, Southern Fried Potato Wedges and Mozzarella &
Cheddar Bites continue to drive like-for-like volume growth and
evening performance, consistently outperforming our
expectations, even during the warmer summer months.
New meal options have boosted this category further still.
Following a successful trial, we launched Mac & Cheese in early
2025, and it is now available in over 1,830 shops.
Pizza
Another success story is our Pizza Boxes, with 19% of sales
occurring in the evening. We offer pizza slices in boxes of two,
four or six slices and our customers can choose from nine
different flavours. We have run successful promotional bundle
deals on our delivery platforms and more than 70% of our total
Pizza Box sales are now via Uber Eats or Just Eat. We continued
to diversify our popular pizza range with the addition of the new
Tandoori Chicken topping in the autumn.
Home delivery
Home delivery is growing across all dayparts but it is growing
fastest in the evening. We now have more than 1,300 shops
offering a delivery service after 5pm (2024: 1,200) and continue
to explore how we can strengthen this proposition further.
2026 PLANS
We continue to work on making sure that our
menu proposition reflects what our customers
want in the evenings, helping to make Greggs
mean more to more people.
Our Pizza Boxes are a key component of our
delivery offer in the evenings and we will test
new concepts to meet that demand.
With almost 2,000 Greggs shops staying open
after 5pm, the evening remains our fastest
growing daypart. We continue to develop our
evening menu proposition to make sure that we
are meeting our customers’ expectations,
whether they visit a shop or order a delivery.
19%
Pizza Box sales
occurring in
the evening
70+%
Pizza Box sales
via delivery
9.4%
(2024: 9.0%)
Evening sales as a percentage of
company-managed food sales
* Circana CREST, 12 months ended December 2025.
30
OUR STRATEGY IN ACTION
INVESTING IN OUR SUPPLY CHAIN AND TECHNOLOGY FOR A BIGGER BUSINESS
SMARTER SMARTER
SYSTEMS. SYSTEMS.
STRONGER STRONGER
SUPPLY.SUPPLY.
31Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Increasing production
Our supply chain team is the engine behind our shops, seamlessly
increasing production as demand grows and ever-ready to create
new products or flavours as customers’ tastes dictate. In 2025,
they supported the introduction of several new product lines –
including the Red Pepper, Feta & Spinach Bake, Lemon Meringue
Muffin and several new sandwich fillings – each requiring new
recipes and new processes.
We completed the final commissioning and expansion of our
latest savoury production line at Balliol Park, a key production site
for our bakes and rolls. The new equipment gives us the ability to
produce around four million more bakes per week, which was key
to managing record demand in the final quarter of the year.
We have embraced automation to enable us to produce more
units while maintaining the quality and consistent appearance
that our customers expect – all while reducing costs. We have
automated the production of cream cakes in Leeds, introduced a
new automated biscuit line in Penrith, and now use automated
topping of the seasonal savoury bakes at Balliol Park. The
introduction of ‘Pick by Voice’ into our warehouse operations has
improved both accuracy and efficiency.
Expanding our capacity
Building work at our new 23-acre manufacturing and logistics
facility in Derby is nearing completion, ready to begin operating
from mid-2026. As well as providing extra capacity for Yum Yum
production, it will have an automated warehouse system for
frozen goods allowing us to use robotic picking to increase the
efficiency and accuracy of stock deliveries to our shops.
We have now taken control of our new National Distribution
Centre in Kettering and are fitting it out ready for its launch in the
first quarter of 2027. We have begun labour planning and the
recruitment of key individuals who will run the new site.
Enhancing our logistics
We continue to invest in our logistics infrastructure to make
sure that we are using sustainable fuels, efficient vehicles and
useful telematics.
We now use renewable biofuel HVO at three sites, meaning that
28% of our fuel usage has been switched from fossil diesel to a
renewable biofuel. We are exploring opportunities to expand HVO
usage across our Leeds and Kettering sites in 2026.
We continue to invest in double-deck trailers and began purchasing
urban artics, both of which are helping us to reduce road miles. We
have expanded our use of the vehicle telematics system to
increase the operational efficiency of our fleet. We use real-time
data to inform route choice, improve fuel efficiency and confirm
that our drivers are complying with our safety standards.
Streamlining our IT systems
Our operations generate a great deal of data, and we want to
make the best possible use of it to streamline our processes,
improve our execution and drive our business forward.
Our mission is to reduce complexity by simplifying how our people
interact with data. The migration to SAP has been central to this
and we are now midway through moving our Enterprise Resource
Planning (ERP) software to SAP S/4HANA. Our finance and
procurement teams are now using the new system.
In the final quarter of 2025, we began an intensive
communications and training programme to equip our supply
teams with the knowledge and skills they will need to get the
maximum benefit from our Next Generation SAP programme.
We maintain a strong focus on managing cyber security as a key
business risk, using a mix of technical, operational and people
centric safeguards. Our approach is aligned with recognised
industry standards and is regularly reviewed through established
governance processes.
2026 PLANS
The new site in Derby is planned to go live as a
frozen logistics hub in the second quarter of 2026.
The new Yum Yum line will be installed and
operational in the later part of 2026.
Our development programme at Kettering will
continue, ready to open in 2027.
We will continue to support the growth of the
business by ensuring that we have the capacity to
meet rising consumer demand. We are evolving
the operating model at our Radial Distribution
Centres to allow for cross-docking, meaning that
goods will be transferred between inbound and
outbound vehicles without being stored,
unlocking capacity at these sites.
The four strategic growth drivers outlined
previously can only succeed if we can meet the
demand they generate. Our production and
logistics capacity must expand in parallel, and
our technological systems and processes must
be streamlined and fit for purpose.
28%
(2024: 13%)
Of fleet now powered
with a renewable
biofuel, HVO
4 million
Additional bakes
per week, due to
increased production
capacity at Balliol Park
32
£167.4
£171.9
£203.9
£189.8
£188.3
£167.7
£148.3
£148.3
£145.6
£145.6
2025
2023
2024
2022
2021
137.5p
122.8p
119.3p
149.6p
123.8p
139.2p
117.5p
117.5p
114.3p
114.3p
2025
2023
2024
2022
2021
51.7%
23.0%
19.6%
11.3%
6.8%
2025
2021
2022
2023
2024
52.4%
17.8%
13.7%
5.5%
2.4%
2025
2021
2022
2023
2024
KEY PERFORMANCE INDICATORS
TOTAL SALES GROWTH
6.8%
LIKE-FOR-LIKE SALES GROWTH
2.4%
PROFIT BEFORE TAX (£M)
£171.9m
DILUTED EARNINGS PER SHARE (PENCE)
122.8p
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 175.
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 key financial 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.
All of the non-GAAP measures (other than
like-for-like sales growth) detailed can be
calculated from the GAAP measures included in
the Annual Accounts. All of the underlying
measures exclude the items detailed in Note 4
to the Accounts. Commentary on these KPIs is
contained within the Financial Review on pages
57 to 61:
Excluding exceptional items
Including exceptional items
33Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
16.0%
15.6%
20.3%
21.8%
21.1%
23.7%
21.0%
21.0%
23.0%
23.0%
2025
2023
2024
2022
2021
£57.4
£110.8
£199.8
£249.0
£287.5
2025
2021
2022
2023
2024
£236.5
£198 .8
£257.1
£261.9
£273.7
2025
2021
2022
2023
202
4*
£268.6
£261.6
£265.3
£225.3
£145.8
2025
2021
2022
2023
2024
NET CASH INFLOW FROM OPERATING ACTIVITIES
AFTER LEASE PAYMENTS (£M)
£273.7m
RETURN ON CAPITAL EMPLOYED (ROCE)
16.0%
CAPITAL EXPENDITURE (£M)
£287.5m
LIQUIDITY (£M)
£145.8m
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 176.
*The 2024 net cash inflow from operating
activities has been restated as explained on
page 132.
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 176.
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.
34
33,00033,000
ENERGISED, ENERGISED,
AMAZING AMAZING
COLLEAGUESCOLLEAGUES
Our people are what makes Greggs successful.
As we continue to grow, keeping our culture and values
at the heart of what we do remains a priority. 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 colleagues consistently tell us that Greggs feels like a special
place to work – and we know that nurturing this ‘secret sauce’
makes us a stronger, better business.
OUR PEOPLE
35Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
LISTENING TO LISTENING TO
OUR COLLEAGUESOUR COLLEAGUES
Union relationships
We have longstanding national recognition agreements with the
Bakers Food and Allied Workers Union (BFAWU) and the Union of Shop,
Distributive and Allied Workers (USDAW) in Scotland. We hold regular
meetings with the unions covering a variety of topics including trading
performance, strategic initiatives and annual pay negotiations.
During 2025 we held regular meetings through:
• The Greggs Negotiating Committee which is attended by
the General Secretary of the BFAWU, a colleague representative
from USDAW and union representatives
from across our business.
• Our Retail Partnership Forum and our Supply Partnership Forum
which meet to discuss operational issues across our shops and
supply sites.
• More locally, every retail region and supply site has a Joint
Consultative Committee, where we discuss matters which are
relevant to that region or site.
These forums give colleagues opportunities to raise issues, provide
feedback and contribute to shaping the future of our business.
Listening to our colleagues is key to ensuring that everyone feels valued. Throughout 2025, we’ve
listened to our colleagues in a variety of ways, from our Your Opinion Matters survey which is our
formal colleague engagement survey, through to structured forums and informal listening groups.
Your Opinion Matters survey
Our 2025 colleague engagement survey received
responses from over 28,000 colleagues,
representing 88% of our workforce.
We achieved an overall engagement score of 72%;
whilst this was 2% lower than 2024, we continue
to outperform the UK retail benchmark by 2%.
73%
of colleagues said
they feel proud to
work for Greggs
73%
said they would
recommend Greggs as
a great place to work
A voice in the boardroom
The Board regularly engages with our
colleagues through their attendance at a
variety of listening groups, union meetings
and colleague networks as well as through
shop and supply site visits. This covers a
variety of topics including diversity and
inclusion, colleague engagement,
training and development, and
colleague wellbeing.
Find out how the Board has engaged with
all stakeholders on pages 81 to 87.
36
OUR PEOPLE CONTINUED
NURTURING AN NURTURING AN
INCLUSIVE GREGGSINCLUSIVE GREGGS
Our ambition is to create a workplace where
everyone feels they belong. In 2025, we were
re-accredited for the National Equality
Standard, building on our first accreditation
in 2022. We work to embrace diversity across
Greggs to ensure we are truly inclusive.
Colleague inclusion networks
Our three colleague-led networks continue to strengthen their
reach and influence:
• REACH (ethnicity)
• ENABLE (disability and neurodiversity)
• PRIDE (LGBTQ+)
Each network is supported by two Operating Board sponsors and
plays an important part in shaping our diversity and inclusion
priorities, delivering awareness events, supporting colleague
training and providing safe spaces for colleagues from minority
communities and allies.
In June 2025, we held our second annual Inclusion Conference,
attended by over 50 colleagues from across Greggs. We
celebrated our achievements, shared insights via a colleague
panel discussion and welcomed one of our franchise partners to
share with us their inclusion journey.
Representation and targets
We are proud of our reputation for bringing the best talent
through the business regardless of gender, and the fact that
61.7% of our total workforce is female. Women make up almost
half of the total management population at Greggs and hold
43.5% of our senior management roles.
We have great female representation on our Board too and have
achieved the external FTSE Women Leaders target of 40% by
2025. Our Women’s Development Network, launched in 2018,
continues to grow. In 2025 we had 38 women from our graded
management population taking part in the programme. The
network provides a dedicated space for high-potential female
colleagues to focus on their personal and professional
development, while also building strong cross-functional
relationships that support long-term career growth.
We remain committed to increasing ethnic diversity in our
management population. 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
senior management level, and the potential vacancy
opportunities, we feel this target is stretching but appropriate.
37Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Pay gap reporting
In April 2025, our mean gender pay gap was 8.89% and our
median gender pay gap was 2.24%.
Like many similar organisations, our gender pay gap is a
consequence of having more male colleagues in our most senior
roles, continuing to have more female colleagues in our hourly-
paid retail roles, and having more male colleagues in our
hourly-paid roles in supply operations, where roles are often
accompanied by shift premiums.
In April 2025, our mean ethnicity pay gap was 2.67% and our
median ethnicity pay gap was 1.30%.
Our ethnicity pay gap shows the difference in the average hourly
rate of pay of colleagues from an ethnic minority background
compared to that of white colleagues.
We’ve published our ethnicity pay gap data since 2023 and we have
built further on this to include our disability pay gap in our 2025 Pay
Gap Report.
In April 2025, our mean disability pay gap was 3.00% and our
median disability pay gap was -0.35%.
We are proud to be sharing our disability pay gap for 2025,
demonstrating our commitment to diversity and inclusion
at Greggs.
Please see our 2025 Pay Gap Report for further information.
Female Male
Ethnically
diverse
Board 4 5 1
Senior managers
1
27 31 2
Senior managers
2
63 83 8
Other managers 342 349 53
All colleagues 20,672 12,535 6,656
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 27 December 2025. 61.7% of total workforce is
female (20,672, of 33,493).
• As an inclusive organisation, we recognise all gender identities and understand
that not all our colleagues will identify as male or female. There are 286
colleagues whose gender is recorded as ‘Other’, ‘Unknown’ or ‘Undeclared’
hence the total figure of 33,493 is not the sum of the female and male totals.
Achieving greater 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 IN 2025
Female 20,672
61.7%
37.4%
Male 12,535
Other/unknown/undeclared (0.9%)
Creating opportunity
through 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, supported placements and –
most importantly – sustainable job opportunities
to candidates.
Since launching the programme in 2013, we have
placed 369 Fresh Start candidates in permanent roles
– 17 of whom have since moved into a shop manager
role and in 2025 we’re delighted that a colleague who
joined us through the Fresh Start programme has
been successfully promoted to trainee area manager.
369
candidates in
permanent roles
17
shop
manager roles
38
Developing our people remains central to
Greggs long-term success. As our business
continues to grow, so does our
responsibility to ensure colleagues have
the skills, confidence and opportunities they
need to build a rewarding career with us.
In 2025, we strengthened our approach to learning and development
across retail, supply and our management populations, and we
introduced two advancements in how we support career progression
through launching our new Talent Management System and Greggs
Competency Framework. We expanded our apprenticeship offering
to include food technology, procurement, digital capability and
leadership, and more than 20 new apprentices joined Greggs in 2025.
Retail development
In retail, our Future Shop Leaders and Future Area Leaders
programmes remained core to this success, supporting
colleagues to develop the people, operational and leadership
skills essential for progressing into management roles.
These programmes continue to underpin our retail succession plans
and ensure we can meet the needs of an expanding shop estate.
During 2025 we promoted 808 team members to shift managers,
85 shift managers to shop managers, four shop managers were
promoted into trainee area manager roles, and ten trainee area
managers were promoted to area manager.
Supply development
Supply colleagues participated in:
• Striving for Excellence – A structured leadership development
programme that equips managers and supervisors with the
essential skills to lead safely, effectively and confidently, while
supporting business performance.
• Journey to Excellence – A practical, hands-on development
programme that gives Team Leaders the confidence, tools
and behaviours needed to lead teams effectively, drive
operational standards, and support colleague development
from day one.
In 2025, 265 managers and supervisors completed development
programmes built around coaching, safety, team leadership and
communication.
In addition, to support the introduction of more automation on
our sites, we have trained colleagues in the safe operation of
Material Handling Equipment, ensuring safety and high
operational standards as our sites evolve.
DEVELOPING DEVELOPING
OUR PEOPLE OUR PEOPLE
OUR PEOPLE CONTINUED
39Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Our management teams
Our Career Pathways and Core Management
programmes have supported more than 500
colleagues, focusing on leadership, problem solving,
people management and strategic thinking. These
programmes continue to play a vital role in preparing
our leaders for the demands of a growing multi-
channel business, while supporting the development
of confident, capable managers who can nurture
our culture.
808
team members
promoted
to shift manager
in 2025
85
shift managers
promoted to shop
managers
Strengthening talent management
A key focus for 2025 was the introduction of our new Talent
Management System, a major step forward in how we identify,
support and progress talent across our management and
support colleagues. This new system provides visibility of
potential, supports succession planning and ensures
development conversations are consistent and meaningful.
It forms an important part of our future approach to building
strong internal pipelines and supporting colleagues to grow
their careers with us. Alongside this, we launched the Greggs
Competency Framework, giving colleagues and managers a
shared, practical understanding of the behaviours and skills
that matter most at Greggs.
In 2026, the framework will be rolled out beyond our management
and support colleagues to all colleagues across retail and supply.
We will also be embedding it through our recruitment processes
and across performance, development and leadership
programmes, helping colleagues gain clarity on what great
looks like and supporting managers to give effective,
consistent feedback.
40
Wellbeing at work helps people feel
supported, stay healthy and perform at their
very best. When colleagues thrive we know
this supports colleague engagement,
reduces absences, supports retention
and helps create a healthier and more
resilient workforce.
We have partnered with Mind to deliver Mental Health Champion
training to our Balanced You Advocates. 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 open conversations and signpost to the available
support, all of which is supported by our mental health policy.
In 2025, in partnership with our ENABLE colleague network and
our Balanced You Advocates, we developed a Wellbeing Menu,
providing a summary of the wide variety of support available to
colleagues covering physical, mental and emotional wellbeing.
We encourage managers and colleagues to use our Wellness
Action Plan to provide a practical and proactive way to support
mental health at work.
Following the successful launch of our menopause policy and
online learning modules, we continue to support colleagues
through our virtual menopause cafés, providing a space to
connect, share and learn.
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. In addition, 80% of colleagues
said their manager supports their wellbeing.
SUPPORTING OUR COLLEAGUES’ SUPPORTING OUR COLLEAGUES’
HEALTH AND WELLBEINGHEALTH AND WELLBEING
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 colleague
stories as part of our wellbeing and inclusion
activity. Colleagues can access our people
policies through the Hub, including our
family leave policies and wellbeing policies,
including mental health and menopause.
OUR PEOPLE CONTINUED
Balanced You
Our health and wellbeing strategy – which we call ‘Balanced You’ –
promotes information and activity across the four pillars of
wellbeing: physical, mental, social and financial. Our Balanced
You Steering Group includes representation from across the
business at a senior level and is sponsored by an Operating Board
Director. Our Balanced You Advocates support colleagues by
sharing information and arranging activities focused around the
four pillars of wellbeing.
At Greggs, we are committed to providing access to mental,
physical and financial wellbeing support. We provide a Total
Wellbeing App available to all colleagues which includes access to
a 24/7 helpline, virtual GP appointments, mental health support,
physiotherapy, financial and legal support, personal training,
nutritional consultations and cancer support.
41Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
REWARDING OUR REWARDING OUR
COLLEAGUESCOLLEAGUES
As well as focusing on physical and mental
wellbeing, we support our colleagues’
financial wellbeing through providing a
competitive total reward package.
products. Through our Total Wellbeing App, colleagues can
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.
Paying our colleagues fairly
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 which
has typically been effective from January each year.
Through our collective bargaining agreement with our unions
(BFAWU and USDAW), which covers 97% of our workforce, we
settled our pay award this year and agreed to change the
implementation date of our pay award to April moving forward.
To support this transition, in 2026, the agreed pay award for our
teams will be implemented in two stages – stage one in January
2026 and stage two in April 2026.
We have agreed a total increase in 2026 of 50 pence per hour
on all our hourly rates of pay. This ensures that we continue to
protect the pay differentials between our hourly paid roles. For
our colleagues on our lower rates of pay such as retail team
members and production and warehouse operatives (over 21,000
colleagues) this was the equivalent of a 4% increase on their base
rate of pay and for our hourly paid retail shift managers, this was
the equivalent of a 3.8% increase on their base rate of pay. For all
our salaried colleagues, including our shop managers, we agreed
a 3.2% increase, again implemented in two stages.
We continue to pay breaks for our front line colleagues across the
business in both retail and supply, supporting their wellbeing. We
are proud to be one of the few employers that continues to provide
paid breaks.
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.
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 extended this further to 7% from January 2025, meaning
that all our colleagues can now access up to 7% employer
contributions. With our top up, colleagues can set aside the
equivalent of 14% of every pay packet, helping them to save
for retirement.
Ensuring colleagues share in our success
Each year, 10% of profits is shared with colleagues who have at
least six months’ service. 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.
During 2025, we provided the opportunity for colleagues to
participate in colleague share ownership schemes through a
Sharesave scheme, giving them the opportunity to purchase
shares at a 20% discount and save for three years. 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. Across
these schemes we now have 5,740 participants, which
represents 23.8% 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
42
85+ YEARS 85+ YEARS
OF DOING OF DOING
GOODGOOD
At Greggs, we have long believed that being a successful
business goes hand in hand with doing the right thing.
From our earliest days supporting local
communities in the North East, that
commitment has shaped how we operate,
how we work with our partners, and how
we serve our customers.
In 2021, we brought this ambition together
through The Greggs Pledge – a set of ten
commitments focused on the areas where
we believed we could make the greatest
positive difference. Over the five years
that followed, colleagues, suppliers and
partners across our business worked with
energy and purpose to turn those
commitments into action.
Together, we have helped to build stronger
and healthier communities, supported
people to make more balanced choices,
reduced the environmental impact of our
operations and raised standards across
our supply chain. In many areas, these
ways of working are now embedded in
how we do business every day; in others,
our learning has enabled us to raise our
ambitions further.
We have delivered against the majority
of our commitments and, where targets
were not fully met, we are proud of the
progress made.
SUSTAINABILITY REPORT
1. Growing Greggs Breakfast Clubs
We have supported over 1,000 school Breakfast Clubs
feeding 79,500 children every school day.
2. Putting an end to food waste
We create 25% less food waste than in 2018 and continue to work
towards 100% of surplus food going to those most in need.
3. Supporting our communities
We have 45 Greggs Outlet shops providing affordable food in
areas of greatest need, with a share of profits given to local
community organisations.
4. Helping our customers to make healthier choices
Over 30% of the items on our shelves are healthier choices.
THE GREGGS PLEDGE 2021-2025
Achieved
Partially achieved
Still to be achieved
STRONGER
HEALTHIER
COMMUNITIES
43Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
5. Going carbon-neutral
We are on our way to achieving carbon neutrality by using 97%
renewable electricity across all of our operations. 47% of the
gas we use in our operations is greener gas.
6. Building the shops of the future
34% of our shops feature elements from our Eco-Shop
‘shop-of-the-future’ design.
7. Using less packaging
100% of Greggs own brand packaging is now ‘more
easily recycled’*.
* excluding hot drinks cups
8. Embracing diversity
Our workforce reflects the communities we serve.
9. Sourcing sustainably
We have a robust, responsible sourcing strategy in place and
will report annually on progress towards our targets.
10. Protecting animal welfare
We secured and maintained Tier 2 in the BBFAW Animal
Welfare standard.
SAFER
PLANET
BETTER
BUSINESS
44
GREGGS GREGGS
PLEDGE PLEDGE
EVOLUTIONEVOLUTION
Over the past five years, we have worked hard to deliver against ten ambitious
commitments and are proud of the progress made. We have set seven strong new
targets to drive even greater impact over the next five years.
Our approach to ESG and sustainability has matured significantly, and with that
maturity comes greater ambition. Our new targets reflect this evolution and will
demand continued focus and effort in the years ahead. Some of the goals we set in
2021 have now been fully achieved. In these cases, the changes have become part
of our everyday operations – for example – all new packaging is designed to be
easily recyclable.
In other areas, we are challenging ourselves to go further. While food waste is an
unavoidable reality of operating a ‘daily fresh’ business, we believe there is still
more we can redistribute, and we remain committed to pushing for improvement.
Similarly, although we have made significant progress on farm animal welfare
within our supply chain, we know there is more we can – and must do.
What remains constant are our three core pillars: build stronger, healthier
communities, make our planet safer and strive to be a better business.
SUSTAINABILITY REPORT CONTINUED
By the end of 2030…
THE GREGGS PLEDGE
2026 – END OF 2030
1. Supporting our communities
We will support 150 local organisations
to take action that strengthens
their communities.
2026 target: We will support 100 local
organisations to take action that strengthens
their communities.
2. Helping our customers
to make healthier choices
We will report on the healthiness of our sales
and set a target for further improvement.
2026 target: We will have developed a
methodology for measuring the healthiness
of our food sales.
3. Putting an end to food waste
We will build on our strong track record of
redistributing unsold food and commit to
increasing this to at least 50%.
2026 target: We will introduce a ‘Fighting
Food Waste’ performance metric into our
operational KPIs. We will continue to open
Greggs Outlets in line with our plan.
STRONGER
HEALTHIER
COMMUNITIES
45Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
By the end of 2030… By the end of 2030…
SAFER
PLANET
4. Going carbon-neutral
We will be net zero for our Scope 2
emissions whilst maintaining our trajectory
for all three Scopes by 2040.
2026 target: We will reduce Scope 2
emissions as per our net zero trajectory.
BETTER
BUSINESS
5. Embracing diversity
Through our inclusive talent attraction,
recruitment and development approach,
we will build a diverse talent pipeline
and increase diversity across our
leadership populations.
2026 target: We will have reported our 2025
disability pay gap, as part of our Pay Gap
Report, ahead of legislation.
6. Protecting animal welfare
Continue to improve our animal welfare
practices to ensure we remain in a
leadership position amongst our peers.
2026 target: We will maintain a Tier 2 rating
as evidenced in the next Business Benchmark
for Farm Animal Welfare (BBFAW) report.
7. Sourcing sustainably
We will advance our sustainable
procurement approach by improving our
EcoVadis score by 25%.
2026 target:
We will improve our Sustainable
Procurement EcoVadis score by 5%.
4646
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 27 December 2025 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
Disclosure) Regulations 2022. We are fully compliant with the
Listing Rule and for the first time have disclosed Scope 3 emissions
for the year on which we are reporting.
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.
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 by 46.2% by 2030 from a 2019 base year; and
• To reduce absolute Scope 3 GHG emissions from purchased
goods and services by 46.2% within the same timeframe.
We have since repeated our Scope 3 emissions modelling, with
the Carbon Trust providing independent assurance. To support
our Scope 3 emissions reduction ambition, we continue to engage
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 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.
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 during 2025 and
demonstrates how we continue to refine our transition activity.
Audit Committee
The Board
Operating Board
Risk Committee Sustainability Committee
Net Zero Steering Group
Sustainability Reporting
Steering Group
47Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
As part of our journey to address climate-related risks and
opportunities, we have continued to engage with our supply chain
partners, offering support and guidance to help them align with
our requirements. This collaborative approach is critical to
reducing emissions across our value chain.
Following this exercise, we identified a number of potential
initiatives to further reduce Scope 3 emissions, which we are
actively evaluating, including a review of opportunities to benefit
from regenerative agricultural practices as a means to reduce
emissions and enhance resilience.
During the year, we also completed the first phase of developing
our long-term nature strategy in partnership with external
consultants. This work has provided clear visibility of our
nature-related dependencies, impacts, risks and opportunities
(DIRO), forming a foundation for the next phase, which will be
delivered in 2026. This strategy will underpin our approach to
integrating nature considerations into climate-related decision-
making and disclosures.
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.
The assessed risks and opportunities were presented to the
Company’s Risk Committee. Further detail has been included in the
Risk management section of this Annual Report on pages 62 to 69.
In 2023, following our remuneration policy review, the
Remuneration Committee agreed to include ESG performance
targets in the long-term incentive awards made to Executive
Directors and senior management for the three-year remuneration
policy period following this review. The Remuneration Committee
conducts regular reviews of all targets to confirm their alignment
with future business objectives. Further details of these conditions
Our climate governance structure
are given in both the metrics and targets section of this TCFD
Report, the Directors’ Remuneration Report on pages 95 to 119 and
Note 23 to the Accounts.
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 was updated on progress during the year on climate
change matters, and there was regular reporting on our reduction
activities related to our Scopes 1, 2 and 3 emissions footprint.
We continue to appraise climate risks and opportunities with our
senior management to ensure ongoing climate knowledge and
support for our transition. The Board receives updates at each
meeting 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
48
SUSTAINABILITY REPORT CONTINUED
change is a standing agenda item. Outputs from the Risk
Committee are reported into the Company’s Audit Committee.
The Risk Committee Chair also provides an update to the Board
following each meeting on key activity and discussions.
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 2025, we continued to review and
update our physical and transition risks and will do so on an
ongoing basis to ensure the appropriate level of focus is applied.
Our Sustainability Committee is responsible for the delivery of
our climate change strategy. Chaired by our Company Secretary,
the membership of this Committee includes key members of our
Operating Board and is supported by the Head of Sustainability,
the wider sustainability team and relevant subject matter experts
from across the business.
Our Net Zero Steering Group is responsible for identifying and
proposing relevant actions to reduce carbon emissions. Chaired
by our Commercial Director, membership of this steering group
includes Operating Board members as well as senior
representatives from our finance, sustainability and procurement
teams. This group continues to drive our decarbonisation plan.
Once proposals are agreed by the Sustainability Committee, they
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.
The Sustainability Reporting Steering Group is responsible
for all sustainability reporting. This group is chaired by our
Head of Sustainability and includes members of our finance,
sustainability, risk and corporate communications teams. It will
continue to support the ongoing development of our net zero
transition strategy in 2026.
Strategy
Climate-related risks and opportunities and their impact
We continue to strengthen our understanding of material
climate-related risks and opportunities that could impact our
business over the short, medium and long term. These risks fall
into two categories: physical risks and transition risks.
• Physical risks may affect our operations and value chain
through extreme weather events such as flooding or droughts,
acute and chronic temperature changes and rising sea levels.
• Transition risks arise from the shift to a low-carbon economy
and could include changes in consumer preferences, climate-
related regulation (e.g., carbon taxes), renewable energy
availability and the adoption of carbon reduction technologies.
Climate change also presents opportunities to enhance business
resilience and efficiency, create products with a reduced
environmental impact for our customers and invest in innovative
carbon reduction technologies.
We consider a material climate-related risk to be one that could
significantly affect or threaten the resilience of our operations,
strategy, or financial planning if not managed appropriately,
based on our assessment of likelihood and impact. This approach
aligns with our broader risk management framework, detailed in
the Risk management section on pages 62 to 69.
We have categorised the potential impacts of climate risk and
associated time horizons as follows, and consider all severe and
major impacts to be material:
Financial impact ranges
Impact Financial range
Severe >£20 million
Major £10 million – £20 million
Moderate £5 million – £10 million
Minor £1 million – £5 million
Insignificant <£1 million
We plan to refine these definitions further as part of our
transition plan development.
In June, we opened our second Eco-Shop, a new-build
drive-thru, as part of our commitment under The Greggs
Pledge to achieve net zero by 2040. Located in
Winchester, this site builds on the success of our
first Eco-Shop and continues to act as a testbed for
sustainable design and operational practices.
The concept is designed to reduce carbon emissions
through energy efficiency, renewable integration and
low-impact materials. At this latest site, rooftop solar
panels generate renewable electricity, reducing reliance on
grid power and lowering Scope 2 emissions. Intelligent
lighting systems, daylight harvesting and heat pump
technology further optimise energy use, while heat
recovery systems help maintain a balanced shop
environment with minimal energy demand. Circular design
principles have also been embedded, with recycled
cladding, outdoor furniture, and flooring that can be reused
or recycled at end of life. Water-saving initiatives, including
rainwater harvesting and sensor-controlled taps, support
resource efficiency and reduce indirect emissions.
To measure impact, we have partnered with ZED-UK to
undertake thermal modelling, energy optimisation, and
carbon life cycle assessments. Early modelling suggests
this shop could achieve up to a 25% reduction in energy
consumption compared to a standard format, equating to
an estimated annual saving of 3–4 tonnes of CO
2
e. Insights
from this site are being used to inform future property
standards and accelerate the roll out of proven low-carbon
solutions across our estate, helping us move closer to our
net zero ambition.
ECO-SHOP 2
NOW OPEN
CASE STUDY
49Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Time horizons
Time period Years Reason
Short 2026–2027 In line with our strategic business plan
Medium 2028–2030 In line with our near-term science-
based targets
Long 2031 onwards Reflecting long-term climate scenarios
Progress and scenario analysis
In 2023, the Sustainability Reporting Steering Group and Net
Zero Steering Group worked with external advisers to
deepen our understanding of climate-related risks. In 2025,
we have continued to embed these risks into our ERM
framework (see Risk management section on page 64).
Physical risks
We have modelled physical risks to our manufacturing and
distribution sites, office locations, and a sample of shops
under two scenarios, chosen as being the most relevant and
plausible to the business:
• Moderate 1.5°C temperature increase by 2040.
• High 4.4°C temperature increase by 2100.
This analysis used a narrative-based mixed-method approach
which included a detailed analysis of data published in climate
science 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 data. This approach was adopted due to a lack of
downscaled data for all scenarios, model disagreement and
uncertainties, and the high-level nature of input data for the
supply chain. Current findings suggest limited material
financial impact from physical risks in the short to medium
term, due to geographic diversification. However, these risks
remain under active monitoring.
Flood risk has been assessed in detail for sites with
above-average exposure, and additional mitigations are
under review. Climate risk is also a key consideration for
new site development.
ACCELERATING LOW-CARBON LOGISTICS
In 2025, we accelerated our transition to lower-carbon
transport solutions, by expanding the use of HVO across our
logistics network.
HVO is now deployed across our Enfield, Clydesmill and
Manchester logistics sites, taking us close to our 2025 target
of 30% HVO usage in our fleet. This transition represents a
significant step forward and is already delivering an
estimated saving of 7,155 tonnes of CO
2
e. Building on this
progress, we are exploring opportunities to expand HVO
usage across our Leeds and Kettering logistics sites in 2026,
aiming, where viable, to support increased adoption and
further reduce emissions.
Complementing our fuel strategy, we continue to invest in
fleet efficiency. The deployment of double-deck trailers has
increased, and in 2025 we introduced 25 urban artics,
essentially a shorter, more manoeuvrable version of a
standard artic, enhancing load capacity and reducing the
number of journeys required.
These measures directly support our commitment to
operational efficiency and emissions reduction.
Additionally, the roll out of vehicle telematics is delivering
significant benefits. Real-time visibility and data-driven
insights are enabling us to optimise routing, improve driver
performance and enhance fuel efficiency. This technology
also strengthens safety compliance and underpins our
ability to make informed decisions that reduce
environmental impact.
CASE STUDY
7,155 tonnes
CO
2
e savings delivered in 2025
28%
HVO usage achieved in 2025
50
Transition risks
We assessed transition risks and opportunities under three
potential future scenarios:
• A disorderly transition: Strong global legislative action
driving widespread carbon pricing.
• Societal shift: Significant consumer move to low-carbon
diets and circular economy principles.
• Agricultural impact: Global climate effects disrupting
supply chains through extreme weather and
temperature changes.
Climate-related risks, mitigations and opportunities
Our scenario analysis and embedded risk management
processes (see Risk management section on pages 62 to
69) have identified key risks and opportunities set out on
pages 51 to 53 which inform our strategic planning and
investment decisions. These include:
• Risks: Regulatory changes, supply chain disruption and
increased input costs.
• Opportunities: Low-carbon product innovation, energy
efficiency, and investment in renewable technologies.
CLIMATE ACCOUNTABILITY
ACROSS OUR SUPPLY CHAIN
Recognising that most of our emissions lie within our value
chain, we have set clear expectations for suppliers who
contribute most to this footprint. We ask these suppliers to
report on two key climate measures:
• Publish their Scope 1, 2 and 3 emissions footprint.
• Commit to a net zero target date of no later than 2050.
To support this, we have established the Supplier Climate
Working Group and continue to monitor progress through
engagement sessions and quarterly reporting. We also measure
the proportion of our Scope 3 emissions covered by suppliers
meeting these requirements.
In 2025, we completed supplier engagement days with oil and
fats suppliers. Reporting has now been extended to packaging,
suppliers who provide goods and services we use internally, and
capital expenditure suppliers who provide long-term assets like
equipment, supported by quarterly in-house Scope 3 reporting
for food, drink and packaging categories.
We are pleased to report strong progress against our targets:
• 4% above our stretch target for suppliers publicly reporting
Scope 1, 2 and 3 emissions.
• 9% above our stretch target for suppliers committing to net
zero by 2050.
CASE STUDY
SUSTAINABILITY REPORT CONTINUED
51Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Risk overview Impact Mitigation Time horizon Nature of risk
Related
scenario
Financial
impact,
assuming
mitigation
action taken
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.
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.
Short,
medium
and long
term
Physical Moderate
and high
Minor
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.
Our procurement team consider climate-related impacts during their
routine processes when selecting new suppliers and working with
existing ones.
We work 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 Low,
moderate
and high
Moderate
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
Minor
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.
Inclusion of flood risk assessment in new shop development process.
Long
term
Physical High Minor
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 including a 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
Moderate
52
SUSTAINABILITY REPORT CONTINUED
Risk overview Impact Mitigation Time horizon Nature of risk
Related
scenario
Financial
impact,
assuming
mitigation
action taken
The reliance on animal
protein in our products
increases the financial risk
in the event of an animal
protein or carbon tax. Profit
margin may be eroded as a
result of moving to
low-carbon products.
Increased ingredient costs and margin
pressure, with potential implications
for pricing, competitiveness, and supply
chain resilience.
Continued product development into vegetarian and plant-based protein
products. Ongoing engagement with suppliers to identify lower-impact
meat protein ingredients.
Medium
to long
term
Transition Disorderly
transition
Moderate
Failure to respond to
changes in consumer
behaviour, driven by a
rise in average national
temperatures and
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 offer vegetarian and 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
Moderate
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.
We have invested in self-generation to cover base loads in our
supply sites.
Medium
to long
term
Transition Disorderly
transition
Moderate
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.
Our Eco-Shop allows us to trial the effectiveness of new technology
in shops.
Short to
medium
term
Transition Societal
shift
Moderate
Climate and carbon
management strategy
is poorly developed,
implemented or
communicated.
Our 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
featured in our recruitment processes.
Medium
to long
term
Transition Disorderly
transition
and
Societal
shift
Minor
53Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Risk overview Impact Mitigation Time horizon Nature of risk
Related
scenario
Financial
impact,
assuming
mitigation
action taken
Failure to deliver effective
implementation of
ESG strategy.
Failure to deliver an effective ESG
strategy results in damage to investor
relations and damage to reputation
resulting in erosion of brand.
The sustainability team conducts ongoing reviews of investor ESG ratings
to monitor performance and identify improvement opportunities.
We report against key ESG rating indices to maintain accountability
and demonstrate progress. To ensure alignment with customer
expectations, we run bi-annual insight surveys across our core and
wider food-on-the-go customer base, with findings presented to the
Sustainability Committee for strategic consideration and action.
Short,
medium
and long
term
Physical
and
Transition
All Minor
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
animal protein products 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 continue to build a strong
and loyal customer base.
Energy efficiency
• Implementing energy-saving measures, such as energy-
efficient appliances, and renewable energy sources, can
further 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.
54
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 continue to engage with suppliers in these
areas, to understand their adaptation/mitigation plans. We also
engage with investors through ESG briefings, customers via
sustainability campaigns, and employees through internal climate
awareness programmes.
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 continue to review Scope 3 reduction
opportunities. We also continue to monitor the development
of the International Sustainability Standards Board disclosure
standards and their potential adoption by UK regulatory bodies.
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 62 to 69.
Climate-related risks are integrated into our ERM process, so that
all our risks are identified, assessed and managed consistently.
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 above, we treat our climate-related risks in the same way as all
other risks and manage them in line with our ERM framework.
SUSTAINABILITY REPORT CONTINUED
Date award
granted Performance condition
% of award
subject to
this condition
Measurement
period
Vesting
date
May 2023 Based on the absolute reduction in Scope 1 and 2 emissions over the three-
year vesting period in line with the reductions required to meet our science-
based targets by 2035 from a 2022 base.
10% 2023-2025 May 2026
March 2024 A Scope 3 metric based on encouraging suppliers to improve public reporting
of their net zero commitments and to commit publicly to a net zero date.
10% 2024-2026 March 2027
March 2025 Based on the absolute reduction in Scope 1 and 2 emissions over the three-
year vesting period.
10% 2025-2027 March 2028
remuneration policy period following this review. Details of the
ESG condition for each award are given in the table above.
GHG emissions and the related risks
We report on our Scope 1 and 2 GHG emissions each year and
during the year we have updated our processes for collecting and
verifying our Scope 3 emissions data which has allowed us to
include the Scope 3 emissions for 2025 in the GHG data disclosed
at the end of this report. The detailed disclosures and methodology
can be found in the following section titled ‘Our carbon footprint’.
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 for modelling Scope 3 emissions and how we apply it.
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
By integrating climate-related risks into our overall risk
management framework, we ensure that they are appropriately
managed and mitigated. The Sustainability Reporting Steering
Group reviews these risks at least every six months and provides
updates to the Risk Committee, 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 in more granular detail which we use 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 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.
In 2023, following our remuneration policy review, the
Remuneration Committee agreed to include ESG performance
targets in the long-term incentive awards made to Executive
Directors and senior management for the three-year
55Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
more ambitious target – we always strive to achieve the more
stretching target.
In 2022, we set near-term science-based emissions reduction
targets based on a 1.5°C pathway which were approved by the
SBTi in 2023. These targets are:
• To reduce absolute Scope 1 and 2 GHG emissions by 46.2% by
2030 from a 2019 base year; and
• To reduce absolute Scope 3 GHG emissions from purchased
goods and services by 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 Streamlined Energy and
Market-based Scopes 1 and 2 absolute emissions
2019 2020
2021 2022 2023 2024 2025
Actual emissions (tCO
2
e)
Science-based target (tCO
2
e)
Intensity metric (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
Carbon Reporting section below. Progress against the 2019
science-based target baseline for Scopes 1 and 2 is shown in the
graph to the left, along with the intensity measure.
We measure and report regularly on the proportion of Scope 1 and
2 energy that comes from renewable sources. Our targets for
2025 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 2024.
Following our external audit, the verified figure for 2025
was 47.1%. While this fell short of our target, the variance
reflects updated supplier data rather than a change in our
operational approach.
• We would trial HVO in our logistics fleet as an alternative to
diesel, supporting our target for 30% HVO usage.
During 2025, we introduced HVO at three logistics sites, going
beyond the scope of a single-depot trial. This expansion
contributed to meaningful emissions reductions and helped
mitigate the impact of the shortfall in renewable gas.
We continue to report Scope 1 and 2 footprints in our monthly
reporting pack and, on a quarterly basis, we review the proportion
of suppliers meeting our public reporting target. This ensures our
senior management has ongoing visibility of the delivery of our
reduction strategy.
Long-term incentive awards made to Executive Directors and senior
management included ESG performance targets as noted on the
previous page.
In 2026 we will continue to consider and develop quantitative
metrics and targets for material climate-related risks and
opportunities and incorporate these into our business plan.
Next steps for Greggs
In 2026 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 third 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.
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 2025, we reduced our
gross location-based intensity (tonnes per £million turnover)
impact by 15.6% (compared to 2024, or 51.3% compared to 2019).
Our market-based carbon footprint for the 2025 financial year
was 38,567 tonnes of carbon dioxide and equivalent gases (CO
2
e)
(2024: 41,710 tonnes of CO
2
e), with an intensity of 17.93 tonnes of
CO
2
e per £million turnover (2024: 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 29 December
2024 to 27 December 2025. 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
13.4%
2025 reduction in gross
market-based intensity impact
(tonnes CO
2
e per £m turnover)
56
SUSTAINABILITY REPORT CONTINUED
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.
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.
We have moved to renewable electricity sources across
approximately 97% of our estate. In 2025 we maintained the use of
biogas as a replacement for natural gas at 47.1% (2024: 60%). This is
covered by Renewable Gas Guarantee 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 4,480 tonnes of CO
2
e (2024: 5,845 tonnes of
CO
2
e), using market-based emissions calculations. We have rolled
out energy efficient selectors into a significant number of shops,
reducing our Scope 1 emissions due to refrigeration to 4,239 tonnes
of CO
2
e (2024: 5,536 tonnes of CO
2
e), a 23.4% improvement. We
continue to investigate other renewable energy sources for our
remaining Scope 1 emissions.
GHG emissions
Location-based (tCO
2
e)
Market-based (tCO
2
e)
UK underlying energy consumption (kWh)
Emission source 2025 2024 2019 2025 2024 2019 2025 2024 2019
Scope 1 Combustion of fuel and operation of facilities,
including refrigerants 34,014 37,708 38,668 34,014 37,708 38,668 157,861,066 151,398,269 141,717,583
Scope 2 Electricity purchased for own use (including
photovoltaic-generated and green tariff) 52,441 58,237 57,294 4,553 4,002 2,909 297,319,431 281,789,412 224,154,292
Total Scopes 1 and 2 CO
2
e emissions 86,455 95,945 95,962 38,567 41,710 41,577 455,180,497 433,187,681 365,871,875
Scopes 1 and 2 intensity measure Tonnes of CO
2
e per £m turnover 40.19 47.63 82.54 17.93 20.71 35.76
Percentage change year-on-year (15.62%) (13.42%)
Scope 3 CO
2
e emissions 880,091 913,769 522,453 880,091 913,769 522,453
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.
In 2025 we measured both our 2025 and 2024 value chain
emissions with the Carbon Trust and found that Scope 3 emissions
account for 95.8% (2024: 95.6%) 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, 34% of our overall estate now has Eco-Shop
initiatives in place. We continue to replace high Global Warming
Potential (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.
57Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
FINANCIAL REVIEW
2025
£m
2024
£m Variance
Revenue 2,151.2 2,014.4 +6.8%
Underlying operating profit 187.5 195.3 -4.0%
Finance income 1.8 8.1 -77.8%
Finance expense (17.4) (13.6) +27.9%
Underlying profit before tax 171.9 189.8 -9.4%
Cost of prior year VAT correction (4.5) –
Exceptional income – 14.1
Profit before tax 167.4 203.9 -17.9%
Income tax (45.2) (50.5) -10.5%
Profit after tax 122.2 153.4 -20.3%
Underlying diluted earnings
per share 122.8p 137.5p -10.7%
Underlying return on capital
employed 16.0% 20.3%
Sales
Total Group sales for the 52 weeks ended 27 December 2025 grew
by 6.8% to £2,151 million (2024: £2,014 million). Growth was
delivered through both new shop openings and like-for-like sales
growth in existing shops. Company-managed like-for-like sales
grew by 2.4% in the year, whilst like-for-like ‘system sales’ in
franchised units rose by 4.3%. 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 retail partners.
Reporting like-for-like sales (sales in shops with more than one
calendar year’s trading history) is a key alternative performance
measure for Greggs, as it shows underlying sales performance
excluding the impact of new shop openings and closures. In 2025
like-for-like sales growth was limited by challenging market
conditions and particularly impacted by prolonged high
temperatures experienced in June and July. The performance of
shops managed by franchise partners proved more resilient to
market conditions, being primarily focused on roadside locations.
Despite challenging market conditions in
2025, Greggs delivered further sales
growth through new shop openings, the
development of further partnerships that
improve access to the brand and continued
progress in the evening daypart and
delivery channel. Subdued consumer
confidence impacted trading but the
Company’s growth strategy remains intact,
with work progressing to develop
additional income streams and accelerate
cost efficiencies. This, along with the
leveraging of new logistics capacity, will
support the medium-term plan to restore
returns in line with our historic targets.
Richard Hutton
Chief Financial Officer
FINANCIAL FINANCIAL
REVIEWREVIEW
58
FINANCIAL REVIEW CONTINUED
Investment and returns
2025 was the peak year of our investment in capital expenditure
as we developed the logistics infrastructure that will support the
next phase of growth. When complete, we will have the logistics
capacity to support a network of 3,500 shops in the medium term
and the flexibility to extend this further if appropriate.
As we have previously guided, the development and
commissioning of these sites will bring additional operating and
financing costs in the short term, which will subsequently be
leveraged as the new facilities allow us to open further profitable
new shops.
Greggs targets a ROCE of around 20% and this remains one of our
key objectives. The impact of our investments on margin and
capital employed remains in line with our plans but the operating
conditions in the market at present have presented an additional
headwind. In 2025 underlying ROCE was 16.0%, reflecting this
headwind and the planned increase in capital employed (2024:
20.3% underlying). The ratio will reduce further in 2026 as the
costs, including the impact of the increase in employer’s National
Insurance contributions from April 2025, and rising costs of food
and packaging. Energy costs marginally increased 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 expect like-for-like costs to be less
inflationary in 2026, with overall input cost inflation of around 3%.
Employment cost inflation will again be the biggest driver of
higher costs, but at a lower level than seen in recent years,
reflecting changes to the National Living Wage. We currently
have good levels of forward cover for commodity costs, with
100% of our electricity requirements fixed for the year and
forward purchase agreements in place representing circa four
months of our food and packaging needs.
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
2025 this delivered £13.0 million of savings (2024: £10.6 million).
Through the programme we look to leverage the benefits of our
vertical integration in manufacturing and logistics operations,
completing end-to-end process reviews to optimise the way that
we procure and utilise resources. The strength of our financial
covenant, coupled with our scale, helps us secure the best
possible procurement rates.
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, and at a strong
discount compared to other food-to-go specialists. Our prices
are comparable to the grocery sector, however, our food and
drink offering is freshly prepared in shops each day. Our analysis
of Greggs prices against the market demonstrates that this value
position has been maintained and improved through the cycle of
cost inflation seen in the market over recent years.
Profit for the year
Underlying operating profit (profit before net finance charges,
exceptional items and tax) was £187.5 million in 2025 (2024:
£195.3 million) and underlying profit before tax (profit before
exceptional items and tax) was £171.9 million (2024: £189.8
million). Underlying operating profit margin was 8.7% in 2025
(2024: 9.7%). After exceptional items profit before taxation was
£167.4 million in 2025 (2024: £203.9 million after exceptional
income). The year-on-year profit position reflected challenging
market conditions, compounded by the spell of particularly hot
weather that had a material impact on footfall and consumer
behaviour. Profit before tax included the one-off impact of
accounting for £4.5 million related to previous years’ VAT costs.
The net exceptional gain of £14.1 million in 2024 primarily related
to the sale of a legacy supply chain site.
The business experienced overall like-for-like cost inflation of
around 5.5% in 2025. This was primarily driven by employment
59Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
We expect the effective tax rate for 2026 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, as outlined above.
Earnings per share, cash inflow per share and dividend
Underlying diluted earnings per share in 2025 were 122.8 pence
(2024: 137.5 pence per share). Including exceptional items diluted
earnings per share were 119.3 pence (2024: 149.6 pence per share
including net exceptional income). Diluted operating cash inflow
per share grew by 4.6% in 2025 to 267.1 pence (2024: 255.4 pence).
The Board recommends a final ordinary dividend of 50.0 pence
per share (2024: 50.0 pence per share). Together with the interim
dividend of 19.0 pence per share (2024: 19.0 pence per share) paid
in October 2025, this makes a total ordinary dividend for the year
of 69.0 pence per share (2024: 69.0 pence per share). The Board
recommends maintaining the ordinary dividend through this
investment phase, before returning to an ordinary dividend that is
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.
The Group’s overall effective tax rate on profit in 2025, including
the impact of exceptional items, was 27.0% (2024: 24.8%) whilst
the underlying effective rate for the year was 26.8% (2024:
25.7%). The headline rate for the year was 25.0% (2024: 25.0%).
The overall effective tax rate was higher than the headline rate
due to 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, as well as the reduction in the Company’s
share price during the year, which results in a lower deduction
available on share option exercises.
new distribution facilities in Derby and Kettering are brought into
use. Thereafter we expect ROCE to stabilise in 2027 before
recovering from 2028 onwards, driven by:
• Our shop opening programme, adding attractive new locations
with strong returns that utilise the capacity we are creating to
reach customers more frequently.
• Continued relocation of a proportion of our traditional shop
estate to stronger locations, improving their returns on capital.
• A disciplined approach to capital allocation with a material
reduction in the Company’s requirement for capital
expenditure, starting in 2026 as discussed below.
• Further structural cost efficiency opportunities increasing
productivity.
• Wider market performance and the generation of additional
income streams as we capitalise on the appeal of the
Company’s brand, infrastructure and products.
This activity is designed to recover the Company’s ROCE toward
the 20% target. The pace of this will clearly be affected by market
conditions but we believe that Greggs is well placed to weather
the short-term pressures whilst also benefiting as the consumer
environment improves.
Financing charges
We earned £1.8 million (2024: £8.1 million) of finance income on
cash deposits during the year as we deployed cash to support our
investment in logistics capacity, and incurred finance expenses
of £18.1 million (2024: £13.6 million) which comprised £16.7 million
(2024: £13.0 million) in respect of the IFRS 16 interest charge on
lease liabilities and an aggregate £1.4 million (2024: £0.6 million)
of charges under the Company’s revolving credit facility (RCF),
interest on the defined benefit pension liability, foreign exchange
losses and a provision of £0.7 million in respect of interest
payable on the historic sales tax correction.
60
Depreciation and amortisation on property, plant and equipment
and intangibles in the year was £95.4 million (2024: £80.8 million).
A further £65.2 million (2024: £59.2 million) of depreciation was
charged in respect of right-of-use assets on capitalised leases.
2025 was the peak year of our capital investment programme
and, as previously communicated, expenditure will reduce
materially from this point. Our shop opening and relocation plans
mean that we will invest in circa 135 new company-managed
shops in 2026 and refurbish around 45 existing company-
managed shops. 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. Our acquisition
strategy is targeting shops that have higher than average sales
and returns and, being mainly in new catchments, do not impact
on the sales of other shops in the estate.
Overall, we expect capital expenditure in 2026 to be around
£200 million in line with previous guidance. From 2027 onwards
we currently expect capital expenditure to reduce further to a
range of £150-170 million. At these levels the Company’s strong
operating cash generation creates material capacity for
cash returns.
Working capital
We ended the year with Group net current liabilities of
£151.8 million (2024: £67.3 million) as our cash and cash
equivalents balance was deployed in line with our capital
investment plans. The stock balance was stable 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.
Pension scheme
The Company’s closed defined benefit pension scheme has a
bulk annuity ‘buy-in’ policy with Aviva, which provides regular
payments to the scheme Trustee to fund pension payments.
covered two times by underlying diluted earnings per share. This
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 29 May 2026 to shareholders on
the register at 1 May 2026.
Balance sheet
Capital expenditure
We invested a total of £287.5 million in capital expenditure during
2025 (2024: £249.0 million). Retail estate expenditure was lower
year-on-year due to a reduction in the number of company-
managed shop openings, relocations and refurbishments. Supply
chain capital expenditure increased as we purchased the land for
our chilled and ambient National Distribution Centre in Kettering
and progressed the build of that site, whilst also continuing the
fit-out of our new frozen National Distribution Centre in Derby. IT
investment increased as we progressed the upgrading of our ERP
system to SAP S/4HANA.
FINANCIAL REVIEW CONTINUED
61Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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. In normal circumstances we
expect maintenance capital expenditure to be around 5% of
revenue. The level of maintenance capital expenditure will
reduce following the significant investment in the new sites in
Derby and Kettering.
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. We will continue to invest in
opportunities that deliver attractive returns, including the
expansion of our estate and to support the generation of
additional income streams where relevant.
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 either special dividends
or share buybacks.
Looking forward
The significant investments we are making to support further
profitable growth create short-term ROCE and margin headwinds
as we bring important new sites into our supply chain in a period
where underlying trading has seen pressure from market
operating conditions. Our investment in additional capacity will
enable Greggs to realise the medium-term opportunity to grow its
estate and expand into new channels, whilst also progressing
opportunities to develop additional income streams and
accelerate structural cost savings. In doing so, we remain
focused on driving strong returns on capital, with consequential
benefits for all our stakeholders.
Richard Hutton
Chief Financial Officer
3 March 2026
This 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 £0.3 million
(2024: £0.4 million net liability), 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 £273.7 million (2024: £261.9 million).
The strength of cash generation reflected the growth in cash
profits, excluding non-cash depreciation and amortisation
charges. At the end of the year the Group had net cash and cash
equivalents of £45.8 million (2024: £125.3 million), representing
£70.8 million of cash and cash equivalents, offset by £25 million
drawn on the Company’s RCF.
Our RCF is committed until June 2028, with a further one-year
extension option. The facility provides liquidity of £100 million in
committed funds. Taking this into account, total available liquidity
at the end of 2025 was £145.8 million (2024: £225.3 million).
62
RISK MANAGEMENT
OUR APPROACH TO OUR APPROACH TO
RISK MANAGEMENTRISK MANAGEMENT
Effective risk management is a key part of our
strategic thinking and supports our business
operations in the delivery of our objectives.
Having a robust risk management process
in place also helps the Board to comply with
its obligations as set out in the UK Corporate
Governance Code 2024 (the ‘Code’).
Risk management and internal control
Risk management is a key step in our business processes,
supporting our decision making and the delivery of our strategy.
Risks cannot be avoided, but good risk management ensures that
they are mitigated to an acceptable level, in line with our agreed risk
appetite. Managing our risks helps us to protect our colleagues,
ourcustomers and our reputation.
Our risk management approach
Our core risk management process remains consistent with prior
years – this is now well established and embedded. There have
been no significant changes, though we do continue to develop
and improve our framework.
Identify: Risks are identified from both ‘top-down’ and ‘bottom-
up’ by the groups set out on page 63. We hold workshops with the
relevant teams to record and update risks at a functional level.
More significant risks are recorded in our strategic risk register
and are the responsibility of the Risk Committee. New and
emerging risks are considered at least quarterly.
Assess: We describe each risk in our registers and allocate an
owner. We record the key controls for each risk and assess their
effectiveness. The likelihood and impact of each risk arising is
then determined, both before and after the introduction of
mitigating controls. Each of our functional heads is responsible
for their own risk register, which is produced in a manner
consistent with the strategic register. Functional risk registers
are reviewed at least twice per year.
Respond: Each risk owner is responsible for ensuring that
appropriate mitigating controls remain in place, as well as
identifying actions to further mitigate risk where necessary
(for example, if the risk is outside our appetite level).
Monitor and report: The Risk Committee (all members of our
Operating Board plus key heads of business functions) meets at
least quarterly. We conduct a formal review of our key strategic
risks at least twice a year, with input and update from each of the
risk owners. Our business assurance team provides support to
the process and also provides an independent opinion on the
effectiveness of controls within the internal audit programme.
Anupdate on the risk process is provided to each Audit
Committee meeting, with an annual update to the Board.
63Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Roles and responsibilities
The various roles within the risk management process are set out below:
Role Key activities/responsibilities
Direction and
oversight
The Board
• Confirms the effectiveness of our material controls in line with Code requirements.
• Ultimately accountable for ensuring that risks are identified and appropriately managed.
• Approves the risk appetite and other policies.
• Provides oversight of assurance for risk management.
• Ensures an appropriate risk culture is embedded through the ‘tone at the top’.
Audit
Committee
• Monitors the Greggs risk management and internal control approach and undertakes
a review of its effectiveness on behalf of the Board.
• Challenges the principal risks disclosure.
Ownership and
monitoring
Risk
Committee
• Undertakes proactive risk management reviews and ensures risk mitigation measures
are put in place to manage significant risks appropriately.
• Reviews current risks and controls and the need for additional actions.
• Agrees and monitors actions to mitigate risks.
• Discusses new and emerging risks.
• Makes decisions on business cases for additional risk treatment options.
Operating
Board
• Owns and manages significant risks, which are reviewed and validated bi-annually.
• Escalates any functional risks.
• Identifies risks which may prevent the achievement of objectives.
Day-to-day
risk
management
Risk and
process
owners
• Responsible for managing any assigned risks. This will include:
– Ensuring that risks are assessed on a regular basis and within Greggs risk appetite.
– Putting in place adequate levels of controls.
– Enhancing controls where required.
• Ensures compliance with policies and procedures.
Assurance Risk
Management
Team
• Responsible for the overall risk management framework and proposing amendments/
developments to the Risk Committee.
• Manages the corporate risk register.
• Provides support to Greggs business areas and individual risk owners to enable them
toeffectively manage risks.
• Reviews information provided by the risk owners.
Independent
overview
Internal Audit
Team
• Provides independent assurance on the effectiveness of risk management and
internal controls.
• Challenges current risk management practices to confirm their adequacy.
Developments in 2025
The Risk Committee met four times during the year. The focus of
meetings outside standing agenda items has been on material
controls and contingency plans for business-critical activities.
Wehave continued to include break-out sessions to allow an
opportunity for focused debate and discussion.
Our one page ‘risk dashboard’ developed last year remains a key
part of our risk communication process. As well as providing
amonthly summary of key issues to the Operating Board, the
content is now also shared with the heads of function via our
dedicated SharePoint site and presented to the Board via the
Company Secretary’s report.
Having conducted an externally-facilitated fraud risk review last
year, the output is now reviewed by the relevant risk owners in
line with all other risks. However, we also considered broader
fraud risk as the breakout topic in our October Risk Committee
meeting. Existing fraud risks were considered by the Committee,
to identify any omissions. Our fraud risk assessment policy and
procedure will continue to be subject to informal review until the
next formal review takes place in January 2027.
As part of our climate-related risk discussions, we identified a
number of opportunities linked to our management of climate
risks. A small working group was set up to consider whether the
recording of such opportunities should form part of our standard
risk management approach. At this stage, it was agreed that
opportunity recording should remain limited to climate risks. We
will consider a wider roll out in time, if there is a demonstrable
benefit to doing so.
Our ERM policy and procedure have been reviewed and updated
to reflect the above changes. Both documents have been
reviewed and approved by the Risk Committee at its January
meeting, in line with our normal governance process.
64
RISK MANAGEMENT CONTINUED
Although we continue to refine our methodology, we are
confident that the process in place during 2025 was sufficiently
robust to ensure that our risks were being appropriately managed.
Having defined our risk appetite for the first time in 2024, we have
made changes to our methodology in 2025, to make the model a
better fit to the business. Our original appetite was measured on
a five-point scale. However, this proved to be inconsistent with
how the ERM framework operates in practice. Following further
consultation, we have agreed a change to a three-point scale.
We have also amended our risk assessment heat map to a
three-point scale for consistency.
We have maintained a ‘low’ overall risk appetite, driven by a strong
commitment to safety, compliance and long-term sustainability.
Although we allocated a separate risk appetite to each of our risk
types, a rating of ‘low’ was agreed for all ten.
Material controls
Identifying and documenting our material risks and associated
controls has been a key area of focus for us this year, and this has
been included on the agenda at all of our Risk Committee and
Audit Committee meetings.
For each material control, we have identified and documented
our assurance sources, along with relevant evidence of the
control being operational. Our business assurance team has then
audited the stated sources of evidence to assess compliance at
the end of 2025. The Audit Committee has confirmed that it is
satisfied with the level of assurance provided.
The Audit Committee will receive bi-annual updates on our
material controls during 2026. This will ensure that the Board is
able to comply with the requirements of the Code at the end of
the current financial year, and confirm the effectiveness of the
material controls.
Climate risks
Our climate-related risks are integrated within our risk
management process and are captured within our strategic and
functional registers. Our Sustainability Reporting Steering Group
has responsibility for ensuring that risks and opportunities are
considered and recorded in a consistent way. Further details can
be found in our TCFD Report on pages 46 to 56.
We remain of the view that our strategic risk of ‘a failure to
effectively respond to climate-related impacts on our business’
does not constitute a principal risk within the time horizon of our
current plans.
Emerging risks
We formally review and discuss any emerging risks as part of our
quarterly Risk Committee’s rolling agenda. Many of these risks are
identified during ongoing discussions across the business. This
helps to anticipate and prepare for any changes.
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 recorded in our monthly
risk dashboard for consideration by the Operating Board;
• Engaging with senior colleagues in the business to discuss any
areas of concern within their remit;
• Monitoring customer and consumer trends both internally and
externally; and
• Taking input from our advisers and other specialists with
whom we work.
Examples of emerging and escalating risks identified during the
year include IT outages (including those suffered by our key
suppliers), geopolitical impacts, increasing use of AI and
economic conditions.
Emerging risks continue to be reported to the Board each quarter.
Changes to principal risk disclosures
A principal risk is one which can seriously affect our performance,
future prospects or reputation, taking into account the potential
impact and likelihood of occurrence. Not all of our strategic risks
are considered to be principal risks, only those which could have
a significant impact on our ongoing viability within the timeframe
of our strategic plan. Principal risks are discussed and monitored
at least quarterly, through the mechanisms set out above.
Following the definition of our material risks (as described above),
we have reflected on our principal risk disclosure, and agreed that
we should include a financial risk relating to access to liquidity.
This would be in the context of a material reduction in solvency
without prior warning, rather than a gradual decline over a period
of time.
The risk relating to internal business interruption has decreased,
as we consider the impact of any such issue has been reduced by
our mitigating actions. We recognise that the overall level of
cyber risk in the market has increased, although we continue to
take significant steps to improve our controls and strengthen our
resilience. All other principal risks remain unchanged in their
assessed level of net risk.
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 we face. 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 and those which are
considered less material. The position described below is a
summary at the time of publishing this report.
65Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Risk and description Impact Key mitigations Strategic pillars Movement
OPERATIONAL
BUSINESS
INTERRUPTION EVENT
We could suffer a significant reduction in
product availability as a result of the total
loss of capacity at a key production facility.
We would potentially be unable to
supply our customers with our full
range of products for a period of
time. This would primarily impact
our own customers, including those
of our franchise partners, but also
potentially our grocery retail sales.
– We have contingency plans in place for our sites, which are
reviewed and tested periodically. Key product lines are
prioritised in the event of any issues.
– We are continuing to roll out a standardised Business
Continuity Management approach across our supply sites.
– Our diversified product range provides alternatives for our
customers in the event of items being unavailable.
– Flexibility and spare capacity within our network enables us to
continue our operations at other sites. We also monitor surplus
capacity across the market.
– We liaise regularly with insurers and our broker, particularly
when designing new sites or improving existing premises. This
ensures that our facilities meet the expected standards.
1
2
3
4
5
FOOD SAFETY/STRATEGIC
SUPPLY CHAIN
DISRUPTION
Supply from a key third party could be
interrupted. This could be a result of
issues such as external 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 avoid single source supply for key ingredients as far as
possible, with risk mitigations plans in place where necessary.
– Stock holdings of ingredients and key equipment provides
contingency in the event of an interruption to supply.
– If we suffer any significant interruptions, we are quick and agile
in our response to find alternatives. These processes are
regularly tested by our teams.
– Relationships with suppliers are managed centrally by our
procurement teams, including a risk assessment process.
– Governance processes and supplier audits confirm compliance
with our standards.
1
2
3
4
5
Principal risks and uncertainties
STRATEGIC PILLARS
1
Great tasting, freshly prepared food and drink
2
Best customer experience
3
Competitive supply chain
4
First-class support teams
5
The Greggs Pledge
66
RISK MANAGEMENT CONTINUED
STRATEGIC PILLARS
1
Great tasting, freshly prepared food and drink
2
Best customer experience
3
Competitive supply chain
4
First-class support teams
5
The Greggs Pledge
Risk and description Impact Key mitigations Strategic pillars Movement
INFORMATION SECURITY
CYBER/DATA
SECURITY INCIDENT
Our IT infrastructure may be affected by a
cyber incident, resulting in a data breach, or
the confidentiality/integrity of our data
being impacted.
We could suffer a significant loss of
data, resulting in litigation and fines.
Data may be unavailable or lost,
making it difficult for us to operate.
– We work with third parties who provide expertise and support,
ensuring that our controls are appropriate. This includes a
Security Operations Centre monitoring our networks around
the clock, along with regular penetration testing.
– Our technical measures are constantly reviewed and
updated in line with changing requirements and recognised
information security control sets. This is confirmed by various
external assessments.
– We train and test our colleagues to improve awareness
and strengthen our detection and prevention, including
phishing simulations.
2
3
4
OPERATIONAL
PROLONGED SYSTEM
DOWNTIME/INTERRUPTION
Our reliance on technology means that
system interruptions and cyber incidents
are potentially more disruptive, with a more
significant impact on business operations.
IT products and services which are
needed to support our operations
and business-critical activities
may be lost for a prolonged period.
This could lead to extended
business disruption.
– We work with external partners to ensure we have access to
specialist support and expertise.
– We monitor the external environment, taking learnings
from other organisations and enhancing our controls and
response accordingly.
– We continue to move towards more cloud-based solutions
across our operations, which increases resilience within
our network.
– We have identified our most critical business activities and
have an ongoing programme which continually improves our
business continuity and disaster recovery capability.
2
3
4
STRATEGIC
DETERIORATION OF
RELATIONSHIP WITH
KEY PARTNER
Our strategy and goals may not be fully
aligned with those of our partners in
franchise, grocery retail or delivery.
This would limit our ability to offer
our service in locations where our
customers want us to be.
Performance could be affected,
with targets not being met.
This in turn could damage our
brand reputation.
– We work with a number of respected partners, avoiding undue
reliance on any one individual organisation.
– Contracts and service level agreements are in place. Ongoing
performance is measured and robust action taken promptly
ifour standards are not met.
– Regular dialogue at a senior level ensures an alignment of
goals, and early identification of any issues.
1
2
3
4
67Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Risk and description Impact Key mitigations Strategic pillars Movement
OPERATIONAL
ABILITY TO ATTRACT/
RETAIN/MOTIVATE PEOPLE
We may be unable to attract and
retain the right talent within Greggs to
maintain our culture and operate as our
customers expect.
We may be unable to continue to
deliver our existing product range
and service standards.
Higher staff turnover creates a
need for additional recruitment,
in turn increasing workload and
training requirements.
Ultimately, we may be unable to
grow the business in line with
our strategy.
– We recognise that our people are a key asset to the business.
We offer competitive packages, comprehensive training and
development opportunities, as well as additional benefits.
– Colleagues have a range of ways to communicate their ideas
for improvement, including our annual opinion survey and
listening groups. This helps to maintain positive relations and
an open culture.
– Efficient recruitment processes leveraging technology allow
us to fill vacancies quickly and effectively.
1
2
3
4
5
REPUTATIONAL
BRAND REPUTATION
There is greater risk of damage to our brand
reputation by internal or external sources
as our brand profile grows.
Customers could lose their trust in
the brand, impacting on our ability
to deliver our strategy.
Shareholder value could be reduced.
– Policies and guiding principles are in place to control our use of
the brand.
– Our colleagues are given training, advice and guidance on
dealing with customers and other contacts.
– We have a robust well-established crisis management process
in place, which we test regularly. This is supported by
appropriate third parties (such as corporate communication
agency and insurers) where specialist advice is required.
2
3
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 comply with procedures.
There could be harm to our
customers or colleagues.
Our brand reputation could be
significantly impacted, which in
turn would affect our sales
performance. We could also be
exposed to significant fines.
– External suppliers of products with a food safety risk must
comply with our manufacturing standard.
– Robust food safety management systems and policies are in
place, independently assured by our Primary Authority.
– Our teams are trained in accordance with our policies, across
all levels of the business.
– Audits are undertaken by our internal teams, and external
bodies, with a focus on Food Safety compliance. These cover
both production and retail processes. Our manufacturing sites
are independently accredited by a third party.
– Allergen guides are available to our customers.
1
2
3
4
5
68
Risk and description Impact Key mitigations Strategic pillars Movement
GOVERNANCE, LEGAL AND REGULATORY
CHANGES IN THE
REGULATORY LANDSCAPE
New regulatory requirements could be
implemented, driven by environmental,
health or other concerns.
We may need to take action such as
introducing new products to our
range, or changing our approach to
advertising or promotions. Without
an ability to respond quickly, we
could lose market share, or face
regulatory action.
– Our teams undertake regular horizon scanning activities,
and we receive advisory information across all
professional disciplines.
– We put appropriate policies and procedures in place to manage
key risk areas.
– We monitor upcoming legislative changes through Trade
Associations and government bodies.
– Participating in industry forums gives us an opportunity to
influence decision making.
1
2
3
4
FINANCIAL
FINANCIAL LIQUIDITY
The business may not be able to access the
liquidity facilities required to deliver on
its plans.
Investment plans may have to be
delayed in order to prioritise our
financial commitments to our
employees, suppliers and
property providers.
– We have discretion over our uncommitted investment plans
and can reduce capital expenditure in the short term to
improve liquidity.
– Credit customers are vetted before being approved and then
their payment performance is regularly monitored to ensure
compliance with agreed terms.
– A committed RCF is in place, with significant undrawn capacity.
– Treasury policies control access to finance and security limits
for cash deposits.
– Reporting and approval controls provide management and the
Board with visibility of the current financial position of the
business and its medium-term liquidity expectations.
1
2
3
4
New Risk
STRATEGIC PILLARS
1
Great tasting, freshly prepared food and drink
2
Best customer experience
3
Competitive supply chain
4
First-class support teams
5
The Greggs Pledge
RISK MANAGEMENT CONTINUED
69Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
VIABILITY STATEMENT
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 2028. 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 trade is significantly subdued
as a result of lockdown rules, with the Group continuing to
trade as an essential retailer selling food, which was permitted
during the Covid-19 pandemic. This subdues walk-in trade
through the lockdown period and as the economy recovers (a
circa 30% reduction in overall Group sales through a three-
month lockdown in the final quarter of 2026, with a phased
recovery through 2027). Delivery sales and ‘Bake at Home’
sales through the Group’s grocery retail relationships with
Iceland Foods and Tesco are assumed to be most resilient.
This forward scenario assumes no Government support given
it is assumed that we will trade through the period.
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. Operational disruption impacting product availability, resulting
from either the loss of supply of savoury products from Balliol
Park or loss of key IT systems.
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;
• 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. The Group has sufficient existing
and committed financing facilities to manage in a situation where
multiple principal risk scenarios occur concurrently. If this were
not the case, the Directors believe that the borrowing capacity of
the Group would be sufficient to allow it access to temporary
additional facilities. Although the Group has sufficient existing
and committed financing facilities to manage in a situation where
multiple principal risk scenarios occur concurrently, the
simulation showed a breach of loan covenants in 2027, but the
directors consider the likelihood of this to be remote. Given the
Group’s relationship with lenders, and the actions of banks
through the Covid-19 pandemic, the Directors believe it is
reasonable to conclude that a waiver would be secured.
Based on the results of the analysis, the Directors have a
reasonable expectation that the Group will be able to continue
inoperation 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 3 March 2026.
Signed on behalf of the Board.
Roisin Currie
Chief Executive
3 March 2026
70
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 in 2022, having previously
been Retail and Property Director. Prior to joining Greggs in 2010,
Roisin worked at Asda where she held various roles, including
People Director, with 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
No
Independent
No
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.
Committee membership
None.
External appointments
Chair of the Employers Forum For Reducing Re-offending and
Trustee of Duke of Edinburgh Award Scheme. Non-Executive
Director of Howden Joinery Group Plc. Advisory role on the Food
Strategy Advisory Board.
Committee membership
None.
External appointments
Trustee Director of Business in the Community.
Trustee of The Greggs Foundation.
71Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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
McLaren 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
Unifrutti Group CEO, Executive Chairman at the Nu Company GmbH
and 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 and Chair of the Audit Committee at British
Olympic Committee Foundation.
Committee membership
Member of the Audit, Remuneration and Nominations Committees.
External appointments
Senior Independent Non-Executive Director at John Wood Group PLC.
72
BOARD OF DIRECTORS AND SECRETARY CONTINUED
TAMARA ROGERS
Non-Executive Director
RICHARD SMOTHERS
Non-Executive Director
LYNNE WEEDALL
Non-Executive Director
Tamara is the former 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.
Richard served as Chief Financial Officer of Greene King for seven
years until his retirement in early 2025. Prior to that, he was Chief
Financial Officer at Mothercare plc, Director of Group Finance for
Rexam plc and held senior finance roles both in the UK and
internationally at Tesco plc.
Lynne has built her executive career within the retail industry, where
from 2015 to 2019, she served as Group People and Culture Director
for Selfridges Group. Before joining Selfridges Group, she was Group
Director of Human Resources at Dixons Carphone plc (now Currys
plc), and previously held senior leadership roles at other large
organisations such as Whitbread.
Lynne has previously served as Non-Executive Director and
Remuneration Committee Chair at Greene King and has also served
in the same role at William Hill plc.
Appointed since
1 June 2024
Appointed since
1 February 2026
Appointed since
17 May 2022
Independent
Yes
Independent
Yes
Independent
Yes
Committee membership
Member of the Audit, Remuneration and Nominations Committees.
External appointments
Former Chair of Global Self-Care Federation and Global Chief
Marketing Officer at Haleon plc.
Committee membership
Chair of the Audit Committee from 6 March 2026. Member of the
Remuneration and Nominations Committees.
External appointments
Non-Executive Director of Greene King and Non-Executive Director
and Chair of the Audit and Risk Committee at RM 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.
73Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
73Greggs plc Annual Report and Accounts 2025
SARAH DICKSON
Company Secretary and General Counsel
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
19 December 2024
Independent
n/a
External appointments
n/a
Stakeholder
engagement
We’re committed to listening, learning and
staying closely connected with the people
who matter most to Greggs. From regular
shop, manufacturing and logistics visits,
to conversations with customers,
suppliers, investors and colleagues, our
Executive Directors stay hands-on and
deeply engaged. Alongside this, our Board
members take part in dedicated colleague
listening sessions and events throughout
the year to make sure every voice helps
shape our decisions and long-term success.
Explore how we build and maintain these
relationships on pages 81 to 87.
74
GOVERNANCE REPORT
Dear Shareholder
I’m delighted to introduce the governance section of our 2025
Annual Report.
Board changes in 2025
During 2025, there were no changes to the Board. Richard
Smothers joined the Board on 1 February 2026 and he takes over
as Chair of the Audit Committee on 6 March 2026. We are
delighted that Richard has joined our business. He has significant
financial expertise in a listed company environment and strong
experience in the retail sector which will be of great benefit to us
in the coming years.
Kate Ferry and Mohamed Elsarky will both retire from the Board in
2026, Kate on 6 March 2026 and Mohamed following the AGM on
13 May 2026. Thank you to both Directors for their long service
and valuable contributions to Greggs. They will always be great
friends to our business.
The Greggs Pledge
This year marked the conclusion of our initial Greggs Pledge – our
sustainability strategy launched in 2021. I am really proud of what
we have achieved as a business in the last five years, with the
following achievements being particularly noteworthy:
• We’ve made significant progress toward our sustainability
goals, continuing to reduce our operational carbon footprint
through renewable electricity and the transition to HVO as a
diesel replacement for our transport fleet.
• Although slightly below our five-year target, we more than doubled
the number of Greggs Outlets to 45. Outlets not only help us to
redistribute unsold food by selling it at a big discount to
customers, we also donate a portion of the profits to good
causes, aimed at supporting the communities Greggs serves.
• We’ve transformed our packaging approach, with all branded
items, except hot cups which remain a focus, now carrying the
widely recognised OPRL ‘more easily recyclable’ labels to help
customers to recycle more effectively.
• We published our first Responsible Procurement Report,
setting out a clear strategy for working with suppliers and our
wider value chain in a responsible and transparent way.
Despite our progress, we know there is so much more to do and so
we have spent the last year working on our new set of commitments.
The evolved ‘The Greggs Pledge’ report is available to view on
pages 44 and 45.
Governance and reporting
Throughout the year, we held our regular schedule of seven formal
Board meetings, convening at the Head Office in Newcastle, some
of our supply chain sites and in London. Through our external
evaluation in 2024 and our internal evaluation in 2025, we continue
to seek to improve as a Board and have implemented a number of
changes to enhance our Board processes and meeting outcomes.
Further details can be found on page 75.
Our Non-Executive Directors are encouraged to spend time
across our shops, manufacturing and logistic sites, and central
offices to give visibility of the Board as best we can in the time
available. We have reinforced the effectiveness of these visits by
creating a Non-Executive Director engagement tracker. This is an
online tool to record Non-Executive Director stakeholder activity
and keep a log of any actions for the Company as a result of
Non-Executive Director visits.
In September 2025, the Board conducted a visit to the newly
completed facility at Derby. The construction phase has concluded,
and the building has been officially transferred to Greggs. Further
details regarding this visit can be found on pages 86 and 87 of this
Annual Report. The Derby site features numerous impressive
elements, including an advanced refrigeration system, which
reflects our commitment to reducing carbon emissions. This
system includes comprehensive heat recovery capabilities,
capturing waste heat that is stored and subsequently redistributed
throughout the building. The recovered heat is used for both hot
water systems and general facility heating, resulting in lower
energy costs and contributing to our broader sustainability initiatives.
A summary of the Board’s activities and major decisions made
during the year is provided on pages 76 and 77.
Following a thorough review of the Principles and Provisions of
the new UK Corporate Governance Code 2024 in effect during
2025, I’m pleased to confirm that we have been compliant with all
of the Provisions throughout the year, and further details are set
out below. Our Section 172 statement on page 81 also shows how
the Directors have fulfilled their wider stakeholder duties during
the year.
Finally, I am pleased to announce that our AGM will be held in
Newcastle on Wednesday, 13 May 2026. We encourage all
shareholders to attend this great event, which offers an excellent
opportunity to engage with members of the Board and Operating
Board. As always, a lunch will follow, featuring both classic Greggs
selections and new tasty products too. Stakeholders are welcome
to contact us with any questions or comments.
Matt Davies
Chair
3 March 2026
CHAIR’S INTRODUCTIONCHAIR’S INTRODUCTION
75Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
As a commercial company listed on the
London Stock Exchange, Greggs is required
under the FCA UK Listing Rules to comply
with the Provisions of the Financial Reporting
Council’s (FRC’s) UK Corporate Governance
Code (the ‘Code’)* or otherwise explain its
reasons for non-compliance.
For the financial year ended 27 December
2025, the Company has complied with the
provisions of the Code.
Board composition and succession
The Board ordinarily consists of a Non-Executive Chair, five
independent Non-Executive Directors and two Executive
Directors (Chief Executive and Chief Financial Officer). On
1 February 2026, Richard Smothers was appointed to the Board as
an independent Non-Executive Director. Richard’s details can be
found on page 72 of this Annual Report and information about the
process used for his appointment is set out on page 76. Kate Ferry
will step down from the Board on 6 March 2026 and Mohamed
Elsarky will do so following the AGM on 13 May 2026.
Following their appointment, every new Director engages in a
thorough induction programme coordinated by the Company
Secretary, encompassing visits to shops and manufacturing and
logistics operations, as well as meetings with senior
management. Richard Smothers is presently undertaking his
induction programme at Greggs.
As at 27 December 2025, 50% of the Board were women.
As at 3 March 2026, following Richard’s appointment to the Board
on 1 February 2026, 44.4% of the Board are women. One senior
position (as defined by UKLR 6.6.6(9)), that of Chief Executive, is
held by a woman and one Non-Executive Director comes from an
ethnic background. Further details outlining our commitment to
diversity and inclusion, which also incorporates the Board’s
approach to diversity and inclusion at Board level are provided in
the ‘Our People’ section of this Annual Report on pages 34 to 41.
The Board’s governance philosophy is that all of the Non-Executive
Directors should be independent (as defined in Provision 10 of the
Code). The Board reviews the independence of the Non-Executive
Directors each year to ensure that they continue to be
independent. The latest review was undertaken in February 2026
when it was confirmed that each of the current Non-Executive
Directors is still considered to be independent. Another element
of the Board’s governance philosophy is the inclusion of all
Non-Executive Directors on every Board Committee. This
established practice continues to serve the Board effectively, as it
ensures that each Non-Executive Director is directly involved in
the activities of all Committees.
Board reviews
Following the externally facilitated Board performance review
conducted at the close of 2024, the Board developed an action
plan and enacted the following measures throughout 2025:
• The Board planner was restructured into four principal categories
– Strategy and Growth, Operational Matters, Board Governance,
and Committees – to enable a more intentional and balanced
allocation of time during Board meetings. Updates to the agenda
format, planning approach, and scheduling were also
implemented to ensure the Board gives due attention to strategic
priorities while maintaining oversight of operational matters.
• Board packs were streamlined with a more systematic
structure to enhance efficiency, improve transparency and
enable a deeper understanding of strategic initiatives.
• Reporting processes were redesigned to provide the Board
with enhanced visibility into progress towards key strategic
milestones, supported by clearly defined KPIs.
• The frequency of meetings between the Chief Executive and
individual Non-Executive Directors, as well as between the
Chair and each Non-Executive Director, has been increased.
An internal Board evaluation was conducted in November 2025
using the online BoardClic programme. The results showed that
the Board’s performance exceeded the BoardClic benchmark.
Several valuable insights were identified during the review and
subsequently presented at the January 2026 Board meeting.
Consequently, forthcoming Board agendas will incorporate new
discussion topics including: Diversity and Inclusion, Operating
Board Succession, and Sustainability. Updates will also be made to
the Board skills matrix.
Division of Board responsibilities
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 in 2022.
There is also a written statement of the responsibilities of the
Senior Independent Non-Executive Director on the corporate
website at corporate.greggs.co.uk. Nigel Mills has been in the role
since 2023, and spends formal time with the Non-Executive
Directors without the Chair being present at least once per year.
At these sessions, the Non-Executive Directors consider the
Chair’s performance, which is then fed back by Nigel to the Chair.
Throughout 2025, Matt Davies met with each of the Non-
Executive Directors – as a group and individually. Such meetings
provide opportunities for them to voice any concerns and share
perspectives. In addition, the Chair regularly engages with
Executive Directors and Operating Board members. Typically, the
Board agenda concludes with a short reflection period. During this
time, Directors assess the topics discussed at the meeting,
identify prospective areas for future consideration and highlight
issues that require additional review.
The Board operates through three principal Committees: the
Audit, Remuneration and Nominations Committees. The terms of
reference for each of the Committees were reviewed and
readopted by the Board in November 2025. These terms of
reference are available to review on the corporate website.
* A copy can be found on the website of the Financial Reporting Council www.frc.org.uk
76
GOVERNANCE REPORT CONTINUED
Comprehensive information regarding each Committee’s activities
can be found in the Audit Committee Report (pages 88 to 94), the
Directors’ Remuneration Report (pages 95 to 119), and the
Nominations Committee update (below).
The Board generally schedules seven meetings each year, including
an annual formal strategy meeting, and then meets as required. Board
and Committee meeting attendance is set out in the following table:
Name Board
Audit
Committee
Remuneration
Committee
Nominations
Committee
Matt Davies 7/7 – – 2/2
Roisin Currie 7/7 – – –
Richard Hutton 7/7 – – –
Mohamed Elsarky* 6/7 3/4 4/5 1/2
Kate Ferry** 6/7 4/4 5/5 2/2
Lynne Weedall 7/7 4/4 5/5 2/2
Nigel Mills 7/7 4/4 5/5 2/2
Tamara Rogers** 6/7 3/4 4/5 2/2
* Mohamed Elsarky missed one Board session due to a family bereavement.
** Tamara Rogers and Kate Ferry both missed one Board session due to
pre-existing commitments.
Nominations Committee update
The Nominations Committee is chaired by the Board Chair. The
Chief Executive attends Nominations Committee meetings
regularly, while the Chief Financial Officer and People Director
participate when invited to do so.
The Committee’s primary responsibility is to ensure that
comprehensive succession plans are in place for both the Board
and the Operating Board. Succession planning is reviewed
annually by the Committee as a dedicated agenda item, with the
Chief Executive and People Director presenting tailored strategies
for each Operating Board Director position. In 2025, an Operating
Board appointment was made following the creation of the new
position of Strategy and Implementation Director. The Chief
Executive provided the Board with regular progress updates
regarding this appointment, who was selected through an external
recruitment process.
In August 2025, the Company announced its intention to appoint
Robert Moorhead to the Board as Non-Executive Director and
Chair of the Audit Committee, succeeding Kate Ferry who had
noted her intention to retire from the Board. Following an
announcement by WHSmith plc on 19 November 2025 concerning
the findings of an independent review regarding its results for the
year ended 31 August 2025, Robert withdrew his candidacy before
he was formally appointed to the Board.
Following a new search in December 2025, the Nominations
Committee completed the process for the appointment of a new
Non-Executive Director and Chair of the Audit Committee. The
search process was supported by Spencer Stuart, who acted as
recruitment adviser to both the Board and the Nominations
Committee. Spencer Stuart maintains no affiliations with the
Company or any of its Directors outside of this role. The
appointment process encompassed a comprehensive review of
the Board’s existing skills and potential gaps, the development of
a detailed role profile, candidate assessment conducted by
Spencer Stuart, several meetings between candidates and Board
members, and the collection of both formal and informal
references. Following the recommendation of the Nominations
Committee, the Board formally appointed Richard Smothers to
the Board with effect from 1 February 2026.
As outlined in the process above, the Nominations Committee
utilises a skills matrix to evaluate both the essential and desirable
attributes of prospective Non-Executive Directors. In addition, the
Committee considers any existing commitments that candidates
may have and requires confirmation that they can devote the
necessary time to their role at Greggs; this commitment is
subsequently formalised 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 2026, with the exception of Kate
Ferry and Mohamed Elsarky who are both intending to retire from
the Board.
Board activity in the year
The Board made a number of key decisions across the year,
which included:
Meeting Key discussion Why this was discussed
January Approval of 2025
budget
Governance approval to
ensure that resources are
being allocated to the
correct strategic priorities.
February Review of data and
AI strategy
To provide oversight of the
ongoing evaluation of
efficiency improvement
initiatives and leveraging
data to deepen customer
insights.
Update on grocery
retailing plans
Reviewed proposal to
extend grocery retailing as
part of our business plan.
Approve release of
preliminary results
and approval of the
2024 Annual Report
and Accounts
Governance approval.
Approval of dividend Governance approval.
Colleague and
stakeholder
engagement
To review our engagement
plans for the year.
May AGM preparation Review of shareholder
sentiment prior to the AGM.
Update on supply
chain initiatives
Progress report and
discussion about the
construction of Derby and
Kettering facilities.
77Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
June Annual strategy
meeting
Comprehensive progress
reports from the business
on key strategic initiatives,
allowing the Board to
challenge and shape the
overall direction of the
strategy and identify the
key strategic priorities with
the Operating Board.
July Approve release of
interim results
Governance approval.
September People and
succession strategy
Ongoing review of our
people strategy.
SAP update To ensure the successful
implementation of a key
business system.
Supply chain
overview
Board visit to new Derby
facility.
November CRM update Discussion on key
marketing initiatives,
implementation and
success rates.
Data and AI session Ongoing evaluation of
efficiency improvement
initiatives and leveraging
data to deepen customer
insights.
Supply chain
progress
Progress report and
discussion on construction
of Derby and Kettering
supply chain facilities and
the ongoing strategy for
supply chain.
The Board and culture
The Board regularly and thoroughly monitors Greggs corporate
culture through various means, including the involvement of our
Non-Executive Directors – particularly Mohammed Elsarky, who
has served as the designated Non-Executive Director for
workforce engagement – as well as regular reports from the
Chief Executive detailing scores and action plans derived from
the annual ‘Your Opinion Matters’ colleague engagement survey.
The Board supports the anti-harassment and other training
programmes and colleague inclusion networks designed to
build an inclusive culture at Greggs.
The relaunch of the competency framework in 2025 was
accompanied by comprehensive training for all graded
management and support teams at Greggs. The new
competencies will be extended to all colleagues across retail and
supply throughout 2026. Additionally, plans are underway to
further enhance Greggs whistleblowing procedures during 2026.
Further details regarding the ways in which Greggs culture is
cultivated and developed can be found in the ‘Our people’ section
on pages 34 to 41.
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 37 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.
The Board’s approach to diversity is consistent with the
Company’s wider diversity policy which is set out in the
‘Our people’ section on pages 34 to 41.
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
during the year ended 27 December 2025, are set out in the
Directors’ Remuneration Report on pages 95 to 119. Details of the
Directors’ share options are set out in the Directors’
Remuneration Report on page 115.
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 27 December 2025 and 3 March 2026, 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
J.P. Morgan
Securities plc 5,268,899 5.15%
Silchester
International
Investors LLP 5,112,962 5.00%
78
GOVERNANCE REPORT CONTINUED
Additional information
• Future business developments: Details of future business
development activities can be found throughout the Strategic
Report on pages 1 to 69.
• 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 74 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 46 to 56.
• Dividends: Details of the dividends declared and paid are given
in Note 25 to the accounts.
• Stakeholder engagement: Details of the Group’s engagement
with colleagues, suppliers, customers and others in a
business relationship with Greggs and the effect of that
regard on the principal decisions taken by Greggs are given
on pages 81 to 87.
Non-financial and sustainability information statement
Respect for human rights
The Greggs approach to human rights is that everyone has the
right to live and work with dignity and respect. This commitment
extends not only to colleagues but also to those colleagues of
suppliers and business partners. There is a zero tolerance
approach to slavery, forced labour, or human trafficking in any form
– whether within Greggs own operations or across the supply chain,
both in the UK and overseas. The Board is dedicated to taking
proactive steps to ensure these practices have no place in Greggs
business or across the supply chain. To reinforce this commitment,
the Board publishes a dedicated Modern Slavery Statement
and a Responsible Procurement Report, which can be found at:
corporate.greggs.co.uk/investors/corporate-governance.
Anti-corruption and anti-bribery matters
Greggs maintains a comprehensive anti-bribery and corruption
policy that applies to all colleagues. This policy strictly prohibits
the offering, giving, soliciting or acceptance of any bribe, in any
form, by any individual or entity acting on behalf of Greggs for the
purpose of securing undue advantage.
Colleagues
Greggs acknowledges the rights of all colleagues to freedom of
association and collective bargaining. While there is no formal
policy in place specifically addressing freedom of association, the
Company actively encourages all colleagues across supply sites,
shops and offices to join and participate in trade unions.
Business ethics
A dedicated business ethics policy outlines the standards
of ethical conduct expected from every Greggs colleague.
Graded managers and all members of the procurement team
are required to formally confirm their adherence to this policy
on an annual basis.
Whistleblowing
The whistleblowing policy at Greggs fosters an atmosphere in
which colleagues can report concerns without fear of reprisal.
All disclosures are managed confidentially, and independent
investigations are conducted when appropriate. The Chair
of the Audit Committee serves as the primary point of contact
for matters that cannot be resolved through standard
management channels.
Environmental matters
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 69 and the Directors’ Report on
pages 70 to 120.
Authority to purchase shares
At the AGM on 21 May 2025, 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 2 pence each (being
no more than 10% of the issued share capital of the Company).
That authority had not been used as at 27 December 2025 and
remains in force until the conclusion of the AGM in 2026 or
20 August 2026, whichever is the earlier. It is the Board’s intention
to seek approval at the 2026 AGM for the renewal of this authority.
Share capital structure and restrictions
• The Company has one class of share in issue being ordinary
shares of 2 pence each. As at 3 March 2026, 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.
79Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
• 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.
• 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
form, 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 UK
Corporate Governance Code 2024 (the ‘Code’), 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.
The table below shows where (if applicable) to locate information
required to be disclosed under Rule 6.6.1R of the UK Listing
Rules (UKLR).
(a) A statement of the amount of interest capitalised
by the group during the period under review with
an indication of the amount and treatment of any
related tax relief.
Referenced in
Note 11 to the
accounts
(b) Various financial information if the company has
published unaudited financial information as
required by UKLR 6.2.23R.
n/a
(c) Details of long-term incentive schemes where the
only participant is a director and where the
scheme is to facilitate recruitment or retention.
n/a
(d) Details of any director’s waiver of, or agreement to
waive, any emoluments or future emoluments.
n/a
(e) Specified details of any allotments for cash of
equity securities otherwise than to the holders of
the company’s equity shares in proportion to their
holding and which has not been specifically
authorised by the company’s shareholders
(including information for any unlisted major
subsidiary undertaking of the company).
n/a
(f) Where the company is a subsidiary undertaking,
details of a parent undertaking’s participation in
any placing made during the period under review.
n/a
(g) Details of any contract of significance of the
company or a subsidiary in which a director is/was
materially interested or to which a controlling
shareholder was a party.
n/a
(h) Subject to certain exceptions, details of any
contract for the provision of services to the
company or subsidiaries by a controlling
shareholder.
n/a
(i) Details of any arrangement where a shareholder
has waived or agreed to waive any current or future
dividends (subject to an exception for waivers of
less than 1% of total value of dividend).
n/a
80
GOVERNANCE REPORT CONTINUED
(j) Controlling Shareholder: A statement by the board
that the company continues to comply with the
requirements in UKLR 6.2.3R (that the company
can carry on its business independently from a
controlling shareholder) or if the company has
ceased to comply, a statement that the FCA has
been notified and a summary of the background
and reasons for non-compliance.
Where an independent director declines to
support a statement made by the company under
the Listing Rules about the controlling
shareholder, a statement recording this fact.
n/a
n/a
Accountability, audit and going concern
Ensuring that the Annual Report is fair, balanced
and understandable
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 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 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.
Directors’ responsibilities
A statement of Directors’ responsibilities in respect of the
preparation of accounts is given on page 120. A statement of
auditor’s responsibilities is given in the report of the auditor on
pages 121 to 127.
Going concern and viability
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 Code Provision 31 can be found on page 69.
Political donations
Greggs maintains a strict policy prohibiting political donations
or contributions, whether financial or in-kind, by the Company.
Accordingly, no political donations were made during the year.
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
Sarah Dickson
Company Secretary
3 March 2026
Greggs plc (CRN 502851)
Greggs House, Quorum Business Park,
Newcastle upon Tyne,
NE12 8BU
81Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
81Greggs plc Annual Report and Accounts 2025
OUR STAKEHOLDERS
The views of our stakeholders and our
Company purpose remain front of mind
whenever the Board has decisions to make.
Maintaining strong stakeholder relationships is a key
responsibility of the Executive Directors. The Chief Executive
regularly engages with customers, conducts ‘top-to-top’ meetings
with key suppliers, and dedicates significant time to visiting shops
and manufacturing and logistics sites to communicate directly
with colleagues. The Chief Financial Officer oversees interactions
with current and prospective investors – often accompanied by
the Chief Executive – and also manages partnerships with banking
institutions. Both the Chief Executive and Chief Financial Officer
provide the Board with updates on any noteworthy stakeholder
engagements, including those involving colleagues, customers,
shareholders and banks.
Working closely with the People Director, Mohamed Elsarky – who
has been our Non-Executive Director responsible for colleague
engagement – develops an annual programme of events to
encourage direct engagement between Board members and
Greggs colleagues. This programme includes listening sessions,
attendance at the annual management conference, as well as
both formal and informal visits to our shops and manufacturing
and logistics sites.
SECTION 172 SECTION 172
STATEMENTSTATEMENT
This section 172 statement describes how the
Directors individually and collectively have performed
their duties to promote the long-term success of the
Company for the benefit of its members as a whole
during the year.
82
CUSTOMERS COLLEAGUES SUPPLIERS SHAREHOLDERS LENDERS COMMUNITIES
How and why we engage
As our CRM systems continue to evolve, our capacity to
understand customer sentiment toward Greggs has significantly
improved, enhancing the value of customer insights at the
boardroom level. These insights are delivered through
comprehensive reports and presentations prepared by the
customer team, alongside regular updates from the Chief
Executive regarding brand health and market share performance.
By engaging with customers in our retail locations, via our
customer care and insight teams, and through digital platforms,
we’re constantly listening and learning so we can understand how
to best serve our customers.
How and why we engage
There are currently around 33,000 Greggs colleagues, many of
them on a part-time basis to fit around their family lives. Our
culture and values remain central to attracting people to come
and work with us, and we are proud to refer to our colleagues as
our ‘secret sauce’. The ‘Our people’ section of this Annual Report
(pages 34 to 41) outlines how we engage with our colleagues. It
also provides information about our engagement with various
colleague groups, such as diversity and inclusion networks,
recognised unions, talent development initiatives, and other
engagements conducted by the Board.
How and why we engage
As a manufacturer, distributor and retailer of food, we source an
extensive variety of products ranging from proteins and salad
ingredients to commercial vehicles, company uniforms, and
various services such as shop fit-out contractors, property
consultants, marketing support and factory construction.
Building and sustaining strong relationships with our suppliers is
essential; we facilitate this through regular meetings,
collaborative projects and site visits.
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 AGMs are well attended, and resolutions put to
the 2025 AGM were all approved by more than 95% of
shareholders voting.
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 RCF of £100 million was put in place.
That facility was refinanced during 2024. There was a
drawdown on the facility during 2025 during our peak level
of capital investment. 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 manufacturing 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 45 such Outlets. Other support
includes sharing a percentage of profits from the Outlets with
local community projects focused on improving social mobility
and tackling food poverty. We are proud to support The Greggs
Foundation, a grant-giving organisation aiming to improve the
health and wellbeing of people living in the communities in which
we operate. 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
With subdued consumer confidence and customers continuing
to manage their budgets carefully, understanding how customers
react to price rises has had a significant impact in ensuring our
exceptional value for money offering remains at the forefront of
decision making.
Impact on Board decisions
The recruitment and retention of talented individuals is integral
to our growth strategy. As we continue to expand our retail
presence, strong collaboration across our retail and people
teams remains essential for effective workforce planning and
recruitment initiatives. Our new supply chain facilities in Derby
and Kettering are resulting in the creation of additional
employment opportunities within these regions. The
Remuneration Committee has sight of the Greggs reward
framework, providing strategic support to the Operating Board
to ensure our continued ability to attract and retain
high-calibre colleagues.
Details of the review and improvement in some of our colleague
policies are given in the Directors’ Remuneration 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. We now use the Trace One system, which is
helping 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 RCF of £100 million, which was
partially utilised during the year. The Board agreed that the first
extension option under the facility be invoked during the year to
extend the termination date to 2028.
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 – the donation for 2025 alone was
£3.4 million. In November 2025, 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 and drink
2
Best customer experience
3
Competitive supply chain
4
First-class support teams
5
The Greggs Pledge
83Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
CUSTOMERS COLLEAGUES SUPPLIERS SHAREHOLDERS LENDERS COMMUNITIES
How and why we engage
As our CRM systems continue to evolve, our capacity to
understand customer sentiment toward Greggs has significantly
improved, enhancing the value of customer insights at the
boardroom level. These insights are delivered through
comprehensive reports and presentations prepared by the
customer team, alongside regular updates from the Chief
Executive regarding brand health and market share performance.
By engaging with customers in our retail locations, via our
customer care and insight teams, and through digital platforms,
we’re constantly listening and learning so we can understand how
to best serve our customers.
How and why we engage
There are currently around 33,000 Greggs colleagues, many of
them on a part-time basis to fit around their family lives. Our
culture and values remain central to attracting people to come
and work with us, and we are proud to refer to our colleagues as
our ‘secret sauce’. The ‘Our people’ section of this Annual Report
(pages 34 to 41) outlines how we engage with our colleagues. It
also provides information about our engagement with various
colleague groups, such as diversity and inclusion networks,
recognised unions, talent development initiatives, and other
engagements conducted by the Board.
How and why we engage
As a manufacturer, distributor and retailer of food, we source an
extensive variety of products ranging from proteins and salad
ingredients to commercial vehicles, company uniforms, and
various services such as shop fit-out contractors, property
consultants, marketing support and factory construction.
Building and sustaining strong relationships with our suppliers is
essential; we facilitate this through regular meetings,
collaborative projects and site visits.
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 AGMs are well attended, and resolutions put to
the 2025 AGM were all approved by more than 95% of
shareholders voting.
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 RCF of £100 million was put in place.
That facility was refinanced during 2024. There was a
drawdown on the facility during 2025 during our peak level
of capital investment. 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 manufacturing 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 45 such Outlets. Other support
includes sharing a percentage of profits from the Outlets with
local community projects focused on improving social mobility
and tackling food poverty. We are proud to support The Greggs
Foundation, a grant-giving organisation aiming to improve the
health and wellbeing of people living in the communities in which
we operate. 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
With subdued consumer confidence and customers continuing
to manage their budgets carefully, understanding how customers
react to price rises has had a significant impact in ensuring our
exceptional value for money offering remains at the forefront of
decision making.
Impact on Board decisions
The recruitment and retention of talented individuals is integral
to our growth strategy. As we continue to expand our retail
presence, strong collaboration across our retail and people
teams remains essential for effective workforce planning and
recruitment initiatives. Our new supply chain facilities in Derby
and Kettering are resulting in the creation of additional
employment opportunities within these regions. The
Remuneration Committee has sight of the Greggs reward
framework, providing strategic support to the Operating Board
to ensure our continued ability to attract and retain
high-calibre colleagues.
Details of the review and improvement in some of our colleague
policies are given in the Directors’ Remuneration 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. We now use the Trace One system, which is
helping 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 RCF of £100 million, which was
partially utilised during the year. The Board agreed that the first
extension option under the facility be invoked during the year to
extend the termination date to 2028.
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 – the donation for 2025 alone was
£3.4 million. In November 2025, 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
COLLEAGUES
Participation in Greggs Negotiating
Committee Meetings
Participation in listening sessions
with Retail Operations Managers and
manufacturing team members
Reviewing findings from the
‘Your Opinion Matters’ survey
(see more on page 35)
Conducting visits to shops and
manufacturing and logistic sites to
engage with colleagues
OUR STAKEHOLDERS CONTINUED
Below, by stakeholder, are some examples of the activities undertaken by the Board, or relevant information that was presented to them.
CUSTOMERS
Market insight presentations
Pricing strategy review and impact
of inflation
Attendance at a menu tasting session
with our category and food
development teams
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 2025
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 visits to shops and
manufacturing and logistic sites. You can read more about
the Board visit to Derby on the following pages.
Mohamed Elsarky has been the Non-Executive Director
responsible for colleague engagement, and in that role he has
worked with the People Director to plan engagement activities for
the Board. These have included visiting supply sites across the
country, and meeting with retail and supply colleagues.
Union recognition and engagement
Details of engagement with recognised unions are set out in the
‘Our people’ section of this Annual Report, on pages 34 to 41.
Rewarding the workforce
In 2026, 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 2026. For more information about how we
reward our colleagues, please read the ‘Our people’ section of this
Annual Report on pages 34 to 41.
Shareholders
The Chair takes responsibility for ensuring that key
shareholders are aware of, and supportive of, the Board’s
approach to governance.
Regular engagement with shareholders and the analyst
community is primarily managed by the Chief Executive and Chief
Financial Officer, especially during the release of preliminary and
interim results. Outside of these periods, the Chief Financial
Officer maintains ongoing communication with investors,
providing updates on Company performance and strategic
direction. After major announcements, anonymised shareholder
feedback is submitted to the Board by UBS and Investec, the
Company’s appointed brokers, while Hudson Sandler, acting as
financial communications consultant, supplies both press and
analyst responses. In the event of significant matters within
their areas of responsibility, Committee Chairs will liaise directly
with shareholders.
Post-employment shareholding
Provision 36 of the UK Corporate Governance Code 2024 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 pages 95 to 119.
Other stakeholder considerations
Greggs is committed to acting fairly towards all stakeholders of
the Company. Details regarding the environmental impact of the
Company’s operations are provided in The Greggs Pledge section
and in our TCFD Report (pages 42 to 56). The business conduct
policy is available on our website.
Roisin Currie
Chief Executive
3 March 2026
8686
OUR STAKEHOLDERS CONTINUED
A NEW HUB A NEW HUB
FOR GROWTHFOR GROWTH
In September 2025, the Board held its
meeting at our new Derby site. The visit gave
members their first chance to see the scale
and potential of this purpose-built facility,
which will play a central role in supporting
Greggs long-term growth.
The decision to invest in Derby forms part of our wider strategy to
expand our manufacturing and logistics network in line with our
ambition to serve up to 3,500 shops across the UK. The site will
provide significant extra capacity across our frozen sweet and
savoury products, strengthen the resilience of our network, and
create space for future innovation. It also supports our plan to build
a more efficient and sustainable supply chain for the years ahead.
BOARD VISIT TO THE NEW DERBY SITE
SEPTEMBER 2025
OUR AMBITION
3,500
shops served across the UK
14,000
pallet spaces at Derby site
87Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
On arrival, the Board was welcomed by Simon Long, Head of
Manufacturing and Martin Miller, Head of Engineering, who
introduced the site to them and outlined the development journey
from initial ground breaking in early 2024, through to handover.
The facility was still not due to be handed over to Greggs for
another ten weeks and Board members were particularly
impressed to see office areas already up and running, thanks to
colleagues who had worked at pace to prepare the site.
The tour highlighted the advanced automation that will support
Derby’s future operations. The facility includes a large frozen
goods storage system with around 14,000 pallet spaces, served
by automated cranes and shuttles that move products efficiently
through the building. Pallets are checked and transported
automatically from production lines or inbound docks before
being placed into storage.
Shop orders will also be fulfilled using automated technology.
Nine robotic picking cells work together to pick trays for individual
shops, which are then grouped and moved directly to outbound
loading docks. The system is designed to keep running even if one
area needs to pause, helping ensure reliability and continuity. This
investment will also reduce the amount of work we outsource and
supports the ongoing modernisation of our logistics fleet and
planning capability.
“The decision to invest in Derby
forms part of our wider strategy
to expand our manufacturing
and logistics network in line
with our ambition to serve up
to 3,500 shops across the UK.”
Sustainability has been built into the site from the start. Derby
includes a shared Energy Centre that recycles heat from
refrigeration, as well as rainwater harvesting, rooftop solar panels
and electric vehicle charging points. Automation brings further
environmental benefits by improving energy efficiency, reducing
waste and using less land than a traditional warehouse. It also
reduces the need for colleagues to work in very cold environments.
88
AUDIT COMMITTEE REPORT
AUDIT COMMITTEE REPORTAUDIT COMMITTEE REPORT
Dear Shareholder
I am pleased to present the Committee’s report for the 52 weeks
ended 27 December 2025.
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 2025, in addition to its regular oversight responsibilities,
the Committee has:
• Continued planning for the introduction of the new
requirement introduced in the UK Corporate Governance Code
2024 (the ‘Code’) for an annual report declaration on the
effectiveness of material controls from 2026. The Committee
has reviewed the risk and internal control framework and
established the elements that should be considered material
controls. An assurance framework over these controls has
been substantially developed and verified during the year.
• Continued to oversee the development of the Company’s
approach to risk management, including a specific focus on
generative AI, cyber security and data governance.
• Overseen the upgrade of the Company’s accounting system as
part of the transition to an updated ERP system, SAP
S/4HANA. The finance and procurement module was
successfully implemented during 2025.
• Agreed and implemented a fraud risk assessment policy
and procedure.
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 2026 will be:
• Further work implementing and testing the assurance
framework over material controls that will enable the Board to
meet the reporting requirements of the Code as they come
into force from 2026.
• Continuing to oversee the transition to an updated ERP
system, SAP S/4HANA, following the successful
implementation of the initial phase during 2025.
• Continued governance with a strengthened focus on controls
over generative AI, cyber security and data governance as
their increased use and fast-changing nature continues to
present new risks for the Company.
• Monitoring management’s preparations for new climate
reporting frameworks/standards, including the anticipated
introduction of the two UK Sustainability Reporting Standards
and overseeing the quality and reliability of the underlying data
and reported metrics.
• Commissioning an external review of the effectiveness of the
internal audit function, to be carried out during the year. This
will give the Committee an independent view on the audit
provision delivered by the business assurance team, and
ensure it remains effective, credible and fit for the future.
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
over and operation of its key controls, and ultimately to draw the
conclusions set out in the following report.
As announced in December 2025, I step down from the Board and
as Chair of the Audit Committee on 6 March 2026. Serving in this
role has been a privilege, and I am proud of the Committee’s work
in overseeing financial reporting integrity, risk management and
internal controls. I would like to thank my fellow Committee
members, management and our external auditors for their
support and collaboration throughout my tenure. I hand over the
role of Audit Committee Chair to Richard Smothers who joined
the Board on 1 February 2026 and I am confident that the
Committee will continue to uphold the highest standards of
governance under his leadership.
Kate Ferry
Chair of the Audit Committee
3 March 2026
89Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Composition
In 2025, the Audit Committee has been comprised of
the following:
Kate Ferry (Chair)
Mohamed Elsarky
Lynne Weedall
Nigel Mills
Tamara Rogers
Richard Smothers (from 1 February 2026)
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 70 to 72 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 and
Richard Smothers have 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 whistleblowing arrangements;
• Monitoring compliance with the Listing Rules and the
recommendations of the 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. 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. They also have access to an audit partner
independent of the partner responsible for the audit.
Financial reporting
In 2025 the Audit Committee reviewed the 2024 preliminary
results announcement and Annual Report, the 2025 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 27 December 2025 are
as follows:
90
AUDIT COMMITTEE REPORT CONTINUED
Area of focus Action taken
Impairment of shop assets
Property, plant and equipment and right-of-use assets are reviewed for impairment if events or changes in
circumstances indicate that the carrying value may not be recoverable. When a review for impairment is conducted
the recoverable amount is estimated based on either value-in-use calculations or fair value less costs of disposal.
Value-in-use calculations are based on management’s estimate of future cash flows generated by the assets and an
appropriate discount rate. Consideration is also given to whether the impairment assessments made in prior years
remain appropriate based on the latest expectations in respect of recoverable amount. Where it is concluded that the
impairment has reduced, a reversal of the impairment is recorded to the carrying value that would have been
recognised if the original impairment had not occurred, net of depreciation that would have been charged.
Management do not consider that there is a global indicator of impairment across the Group’s asset base. Where
indicators of impairments exist for specific cash-generating units (CGUs), with each individual shop considered its
own CGU, then an impairment review was performed to calculate the recoverable value using the assumptions set
out in the basis of preparation on page 135.
As a result of this review, a net impairment charge of £6.9 million has been recognised in 2025 (2024:£5.0 million)
resulting in an impairment provision of £13.9 million being retained at 27 December 2025 in respect of shop fittings
and right-of-use assets for 167 shops, of which £7.0 million relates to fixtures and fittings and £6.9 million relates to
right-of-use assets.
The sensitivities of the assumptions on this amount are also set out on page 136.
The Committee reviewed and concurred with management’s assessment that there
is no global indicator of impairment and that the company-managed shops should be
assessed on an individual basis for impairment where there are indicators of
impairment for that CGU.
It has reviewed the assumptions made and the resulting impairment charges and has
concluded that the principles and judgements applied were appropriate.
91Greggs plc Annual Report and Accounts 2025
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 69
of the Strategic Report.
92
AUDIT COMMITTEE REPORT CONTINUED
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 recognise the obligation to
make lease payments under IFRS 16 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;
• 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; and
• Reports from the Company Secretary and Chief Financial Officer which assess the Company’s
compliance with the Listing Rules.
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 set out on
pages 46 to 56. 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
The Committee has followed the Audit Committees and External Audit: Minimum Standard.
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 2025 in respect of the review of turnover certificates as
required by certain shop landlords. Fees of £16,500 were billed during the year for turnover
certificate reviews, which represents 4.6% of the audit fee for the year.
During the year the Committee agreed an additional fee of £10,000 in respect of the 2024 audit
resulting from some non-recurring testing required for that audit.
93Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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 five 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 that 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.
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. When required, the Operating Board member responsible for the area being audited
will attend the Committee meeting to provide a summary of any actions taken or planned in
response. This gives Committee members assurance that any control weaknesses identified are
being addressed.
As required by the revision to the Code, the Audit Committee continues to work towards being able
to declare the effectiveness of all of our material controls, which is a requirement from 1 January
2026. We have defined all of our material controls and identified the relevant assurance sources,
confirming that these are suitably robust.
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.
Whistleblowing
The Company’s whistleblowing policy is available to all employees via 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.
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.
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 62 to 69.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.
94
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 all Audit Committee
meetings, with an update on activity from a risk management perspective.
This ensures a focus on cyber resilience and an awareness of any changes
in levels of risk.
Risk management The Audit Committee has received updates on the continued development
of the Company’s approach to risk management, including discussions on
risk appetite and engagement with the wider business.
Business conduct
policy
As a key control over governance, the Committee received assurance that
senior colleagues within Greggs complied with the requirements of our
business conduct policy throughout the year, mitigating risks associated
with bribery, fraud and inappropriate behaviour.
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 via
the Risk Committee Chair’s report.
Review of principal
risks and
uncertainties
The Risk Committee discussed and developed the content of the statement
of principal risks and uncertainties, based on our strategic risk register.
This was subsequently considered, challenged and approved by the Audit
Committee. The statement can be found on pages 65 to 68.
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.
Internal audit
The work of the internal audit function is set out in more detail within the Risk management section
on pages 62 to 69 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 focused within the retail
estate, including our franchise shops, providing the Audit Committee with assurance that the
required controls for safe operation are in place and operating effectively in all shops.
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 75, there was an externally facilitated evaluation
of the Board and its Committees during 2024. The evaluation for 2025 was therefore conducted
internally using an online tool which generated a report specifically relating to the Audit Committee.
The Committee has considered the results of this evaluation and is satisfied that it is
operating effectively.
Kate Ferry
Chair of the Audit Committee
3 March 2026
AUDIT COMMITTEE REPORT CONTINUED
95Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC 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 2025
(the ‘Report’).
The Committee has always had 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 us 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 new Directors’ remuneration policy, which will operate for
the three years commencing with the 2026 financial year. This
new policy will be tabled at our AGM on 13 May 2026 to be
formally agreed by shareholders by way of a binding vote.
• 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
27 December 2025;
C. How Directors’ remuneration will be implemented in 2026 in
line with our new proposed three-year policy; and
D. How our remuneration policy was implemented in 2025.
This is an audited section of the Report outlining the
remuneration of the Executive and Non-Executive
Directors during the 52 weeks ended 27 December 2025.
The Annual Remuneration Report, together with this Chair’s
letter, will be subject to an advisory shareholder vote at the
2026 AGM.
Remuneration policy
Our remuneration policy for Executive Directors 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.
New three-year remuneration policy
During 2025, the Committee undertook an extensive review of our
current policy, taking into account the remuneration for the wider
workforce, the views of our shareholders and the sensitivities
around Directors’ remuneration. The Committee also considered
our historical approach to pay in that we have always acted with
restraint on executive remuneration. Pay outcomes have been
strongly linked to overall business performance, aligned to the
broader employee experience and we have had a history of strong
shareholder support for our remuneration policy and practices.
Following this review and the feedback received from major
shareholders during a consultation exercise, outlined below are
the proposed changes to the remuneration policy, which we
believe continue to be restrained but are also appropriate for the
next three-year policy period. The policy is fully compliant with the
UK Corporate Governance Code 2024 (the ‘Code’) and the
Remuneration Principles published by the Investment Association.
We are introducing some additional flexibility as outlined in this
letter in terms of incentive opportunities to ensure they reflect the
size, scale and complexity of the business, the competitive market
we operate in and the policy is future proofed as we continue to
grow and evolve.
Proposed policy approach
As Greggs has scaled as a business, we have worked hard to
ensure that we are now in a position where we pay at a broadly
mid-market level across the entire business. However, we have
not moved our Executive Directors’ packages at the same pace as,
particularly over the last few years, we have been mindful of
supporting our workforce through cost-of-living challenges and
therefore focused more on front line colleague remuneration.
With the size of business that Greggs is now, and having
completed the work to ensure colleague remuneration is
competitive, we are increasingly uncomfortable with paying the
Executive Directors markedly below a mid-market level and feel
that now is the right time to address this in part.
For the Executive Directors, the gap to a mid-market position is
across all aspects of the remuneration package, including salary,
bonus and long-term incentive (PSP). The Committee is committed
to addressing the salary shortfall in due course but considers that
now is not the right time. In addition, with the exception of some
additional flexibility to cover exceptional circumstances, we do not
propose to make fundamental changes to the limits in the current
policy which were approved by shareholders in 2023. Instead, for
this new policy period, to provide the right level of incentive to
accelerate our business performance, to recognise the excellent
personal performance from our Executive Directors and to ensure
we are addressing the below-market positioning in the right way,
we are increasing the bonus and PSP award opportunities (as a
percentage of salary) for the Executive Directors for 2026 to the
maximum levels set out in the 2023 policy. This will bring both
percentages to a mid-market level (albeit still referenced off a
below-market salary) after many years during which incentives
have been set at levels well below the market norm. We will keep
the salary positioning under review over the policy period.
DIRECTORS’ REMUNERATION REPORT
96
The stated bonus maximum in the policy will remain at 150% of
base salary. The maximum bonus opportunity for 2026 will be at
this level which represents an increase from the 125% limit we
have applied in recent years under the 2023 policy. Separately, the
maximum amount of bonus payable for threshold performance
under the policy will remain at 25% of the bonus opportunity. For
2026, we will apply this 25% level in the bonus design. In previous
years, the threshold payout level has been set at 10% of maximum,
but this is below-market and further compounds the issues with
the lack of competitiveness of the overall package.
The maximum PSP award size as set out in the policy remains
unchanged at 200% of salary for the Chief Executive, and 175% of
salary for the Chief Financial Officer. We will grant PSP awards at
these levels in 2026, which represents a change in our past
practice of granting at 150% of salary. We remain committed to
setting suitably stretching performance targets for our incentive
plans and have a good track record of doing so. We will ensure we
remain mindful of the link between shareholder experience and
colleague alignment with incentive plan outcomes.
To ensure our policy is future proofed and includes the flexibility to
encompass the business growth strategy, market developments
and, in particular succession planning, we are adding headroom
into the new policy to allow the maximum bonus level to be
increased up to 200% of salary and the PSP award size to be up to
250% of salary. This additional headroom for the bonus and PSP
would only be used in exceptional circumstances, for example, to
provide flexibility for succession planning, as circumstances
dictate. This is viewed as a suitable approach for managing events
that may occur over the lifetime of the policy, and we will provide a
full explanation at the time of any circumstances which warrant
the use of these special provisions.
Market positioning before and after policy changes
CFOCEO
Sector Peer
Group
Market Cap
Group
Sector Peer
Group
Market Cap
Group
£3,000
£2,500
£2,000
£1,500
£1,000
Total target remuneration £’000
Upper quartile
Lower quartile
Proposed
Current
Median
As one of several reference points we have used relevant market
benchmark data to support the proposals. The chart above shows
the total target remuneration compared to companies of a similar
size. It also shows how the total target remuneration remains well
below the market median currently. The chart includes data from
two peer data sets: (1) a sector group of other listed food
producers and retailers of a similar size to Greggs, and (2) a wider
pan-sector group of other UK-listed companies of a similar size
to Greggs.
Shareholder consultation
We have a long history of consulting major shareholders on changes
to the Directors’ remuneration policy and its implementation, and
this year was no different. Before making the final decisions on the
new policy, we embarked on a significant consultation exercise,
seeking the views of shareholders representing approximately 45%
of the issued share capital. We also included the major investor
representative bodies and proxy advisers in our engagement. We
received some very helpful feedback and comments from those
consulted, with the majority sympathetic to our desire to ensure
that pay levels for the Executive Directors appropriately reflect their
experience, performance and responsibilities running a company of
the size and scale of Greggs. There was support for our proposals to
increase remuneration levels through the incentive schemes rather
than changes to fixed pay currently, with an understandable focus
on ensuring that we operate our plans with performance conditions
which are linked to the business strategy and which incorporate
appropriate stretch. Following the consultation exercise, the
Committee reflected on all comments received, made the
amendment of adding TSR as a PSP metric and decided to proceed
with taking forward the other proposed changes to the 2026 AGM.
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 the development of the
new remuneration policy and Executive Directors’ pay, the
Committee is provided with information detailing the pay and
benefits of the wider workforce which gives additional context for
its decision making. 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 2025 to continue to understand the colleague
experience at Greggs.
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
18.5%, and, in reaction to colleague feedback, we have increased
our matched pension contributions from 4% to 7% thereby
aligning the pension offering for all colleagues across Greggs,
significantly enhanced our family leave policies, increased the
level of colleague discount by 10% 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 with around 15%
of our eligible colleagues participating.
DIRECTORS’ REMUNERATION REPORT CONTINUED
97Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
For 2026, we continue to face significant headwinds as a
business as we address the impact of continued increases to the
National Living Wage as well as the cost implications of the
Employment Rights Bill. Through our collective bargaining
agreement with our unions, which covers 98% of our workforce,
we settled our pay award this year and agreed to change the
implementation date of the pay award to April. To support this
transition, in 2026, the agreed pay award for our teams will be
implemented in two stages – stage one in January 2026 and
stage two in April 2026. We have agreed a total increase of 50
pence per hour on all our hourly rates of pay with 15 pence per
hour being applied from 4 January 2026 and an additional 35
pence per hour being applied from 29 March 2026. This ensures
that we continue to protect the pay differentials between our
hourly paid roles. For our colleagues on lower rates of pay such as
retail team members and production and warehouse operatives
(over 21,000 colleagues) this was the equivalent of a 4% increase
on their base rate of pay and for our hourly paid retail shift
managers this was the equivalent of a 3.8% increase on their
base rate of pay. For all our salaried colleagues, including our
shop managers we agreed a 3.2% increase, again implemented in
two stages, with 1.2% applied from 1 January 2026 and an
additional 2% awarded from 1 April 2026.
Unlike many other similar companies, we also continue to pay
breaks to our front line colleagues in both retail and supply which,
as they tell us, supports their wellbeing.
Our graded management team’s pay review has also moved to
April 2026 and will be in April moving forward. As part of this
transition, they were awarded an increase of 3.2% implemented
in two stages with 1.2% applied from 1 January 2026 and an
additional 2% awarded from 1 April 2026
Finally, one of the unique aspects of Greggs remuneration approach
continues to be profit share – 10% of all our profits are shared with
eligible colleagues. We are delighted to say that the profit share
payment this year will see over 27,000 colleagues benefiting from
this additional payment that will be made in March 2026.
Business performance in 2025 and incentive outcomes
Greggs navigated a challenging market in 2025, increasing
market share and maintaining the competitiveness of its offer
despite the headwinds. The financial outcome reflected those
headwinds but has been well managed and has not distracted the
team from the significant opportunities that lie ahead. In 2025 we
delivered further sales growth through new shop openings and
the development of further partnerships to improve access to the
brand. Subdued consumer confidence impacted margins, but our
growth strategy remains intact, focusing on developing additional
income streams and accelerating cost efficiencies, building on
those made in 2025. Underlying operating profit was 4% lower
than in the previous year, the result of increased fixed costs in
respect of manufacturing, logistics and technology capacity and
the operating leverage impact of lower like-for-like volumes.
Bonus 2025
As disclosed last year, the annual bonus scheme for 2025 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 superior levels of performance. This
included profit targets designed to incentivise profitable growth,
sales targets to deliver like-for-like growth and separate
objectives linked to driving forward our strategic growth plans in
the areas of cost savings, evening sales, basket size, digital
transactions and the implementation of our SAP IT system
upgrade programme to the SAP S/4HANA platform.
As noted above, in what has been a challenging year for the
business, a number of these measures did not meet the trigger
level of payout and consequently the overall performance
resulted in a bonus payout of 18.3% of the maximum. The
Committee recognises that the targets were stretching in tough
market conditions and noted that market share gains were made.
The Committee carefully reviewed management’s performance
against these targets, taking the full business and market context
and stakeholder experience into account and determined that
this level of payout was appropriate with no need to apply
discretion. Please refer to pages 113 and 114 in the Report for a full
breakdown of the bonus.
PSP awards vesting for the performance period 2023-25
The three-year performance period for the PSP awards made in
May 2023 and due to vest in May 2026 ended on 27 December 2025.
45% of these awards was based on average annual growth in
earnings per share (EPS) in the three financial years commencing
FY2023, with a further 45% based on the average ROCE over the
three financial years commencing FY2023. A final 10% was based
on targets related to a significant reduction to our Scope 1 and 2
CO
2
emissions. In the event, there has been no payout under the
EPS element of the plan and a small payout at 17.1% under the
ROCE element of the plan. The ESG element paid out at 10%,
giving a total vesting performance of 27.1% 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. We will also apply dividend equivalent payments to
the vested PSP awards in line with standard market practice
(which our current policy and PSP rules permit but which have not
been applied to date).
The incentive schemes include malus and clawback provisions.
The Committee was not required to operate these provisions
during 2025.
Approach for 2026
As we move ahead with our growth plans, we continue to focus
on the strategic pillars of our business model and the four key
growth drivers 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
new policy and incentive plans that strike the right balance of
setting stretching but achievable targets. We ensure we set
98
targets that drive the right decisions for the business, support
the wider workforce and shareholders, and, at the same time,
motivate our management teams and therefore enable the
retention and recruitment of senior talent. We ensure that the
targets set for our Executive Directors (across both bonus and
long-term incentive schemes) flow through to our graded
management teams eligible for these schemes to ensure we
have total alignment across the organisation and all teams are
working towards the same goals.
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
64% of our workforce has received a pay increase in 2026 of 4%
with 86% receiving 3.7% or more. As outlined earlier, moving
forward our pay awards will now take place in April and to support
this transition for our wider workforce this pay increase has been
implemented in two stages for 2026.
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 increase awarded to our salaried
colleagues across the wider workforce of 3.2%. This (and future
pay awards) will be implemented from April and unlike our wider
workforce we will not be awarding an interim increase in January
2026 for our Executive Directors and Operating Board. Following
the full remuneration policy review, and only when the time is
right, we will consider increasing the base salary levels for the
Chief Executive and Chief Financial Officer closer to a mid-
market level. Considering the tight cost controls within the
business, we do not propose any salary increases for FY2026
above the workforce average increase and believe that the
increase to incentive opportunities will be a better way to
increase (potential) remuneration in the short term.
A consistent approach was taken in relation to the fees and
timing of implementation, for the Board Chair and other
Non-Executive Directors’ fees, which will also be increased by
3.2% as of April 2026.
Annual bonus
The maximum bonus opportunity for the Chief Executive and the
Chief Financial Officer will increase to 150% of salary. In addition,
as outlined above, the amount payable for threshold performance
under the bonus scheme will increase from 10% to 25%
of maximum.
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 monitored
by the market as indicators of the financial health of the business.
The strategic objectives consist of separate elements with 10%
based on business efficiency/cost savings, 10% based on a
customer satisfaction metric and 10% based on the next phase
of implementation of our SAP IT system upgrade programme.
The use of these measures reflects our desire to incentivise and
reward progress on achieving our strategic goals and meeting key
business objectives.
Targets for these measures have been set in line with the
business’s annual financial budget and the rolling strategic
business plan and are 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 FY2026 PSP award, the Chief Executive will receive an
award at a level of 200% of salary and the Chief Financial Officer
will receive an award of 175% of salary. We are comfortable that
these grant levels are appropriate given the current below-
market salary positioning, in light of the stretching targets that
have been set, and considering the year-on-year movement in
share price since last year’s grant, but we will review the award
level in light of the prevailing share price at the time of grant. In
any event, consistent with last year, we will review the share price
on vesting and the Committee may exercise discretion to scale
back if any increase in share price is caused by exceptional
macro-economic factors rather than Greggs’ own performance.
The Committee has considered carefully the performance
conditions to apply. We will keep both EPS and ROCE, each at
40% of the award. These measures have been used for several
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 look to incentivise a
strong return on our recent investments in the business. We will
also add a performance condition based on Greggs Total
Shareholder Return (TSR) for 20% of the award, requiring
outperfomance against the companies comprising the FTSE 250
Index (excluding Investment Trusts, Financial Services and Mining
sectors) which will ensure that an element of the award is directly
focused on the delivery of superior stock market returns. We
have removed the ESG element for this award, to focus on
financial and stock market performance, but it remains for the
two awards granted in 2024 and 2025, covering performance
periods to the end of 2027 and our ESG performance remains a
core part of our overall strategy and performance focus.
We have set stretching performance conditions for the award.
The target range for EPS is a significant increase to the range set
last year, aligned to our ambitious plan for profit growth. Similarly,
there has been significant Committee focus on the range for
ROCE, ensuring that this progressively improves over the three
years to 2028 as we come through an investment phase in the
business. Full details of the measures and target ranges are
outlined in the relevant section of this Remuneration Report.
Any awards which vest will be subject to the usual two-year
post-vesting holding period.
DIRECTORS’ REMUNERATION REPORT CONTINUED
99Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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 and would like to take the
opportunity to thank those shareholders with whom we
consulted through this year, on the development of our new
policy, for their feedback and guidance.
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.
I look forward to receiving your support at this year’s AGM with
regards to the new remuneration policy and the Annual Report on
Remuneration. There will also be a separate AGM resolution
amending the PSP rules to provide for the higher individual award
limits. 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
3 March 2026
100
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. It will be presented to shareholders for approval by way of a binding vote at the AGM on 13 May 2026. Subject to shareholder
approval, the policy will formally apply from the date of the AGM. Our current intention is that the policy will remain in place for three years. The policy replaces that approved at the AGM in May 2023.
The policy for the remuneration of the Executive and Non-Executive Directors is set out in the tables below, with notes explaining the changes from the policy approved in 2023.
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.
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.
Change to policy – No change to policy
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. We regularly review our benefits package across our
wider workforce to ensure this remain competitive and appropriate.
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.
Change to policy – No change to policy
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.
Change to policy – No change to policy
DIRECTORS’ REMUNERATION REPORT CONTINUED
101Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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 results, 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.
150% of base salary for all Executive
Directors (200% of base salary in
exceptional circumstances).
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.
Change to policy – We are proposing to increase the maximum bonus limit to 200% of base salary for the Chief Executive and other Executive Directors. This additional headroom under the bonus
would only be used in exceptional circumstances during the life of the policy, for example, to provide flexibility for succession planning, as circumstances dictate.
The current (2023) policy provides for the maximum bonus potential of 150% of base salary for Executive Directors – there are no proposed changes to this policy limit other than the exceptional
circumstances proviso as set out above. However, the Committee has agreed that moving forward it will operate the annual bonus for the CEO and CFO at this maximum limit of 150%. This compares
with our practice to date of limiting bonuses to 125% of base salary.
The current (2023) policy states that the threshold payment level is no more than 25% of the maximum. This remains unchanged in the new policy, but the Committee intends to change its approach
such that when implementing the policy, it will apply 25%, consistent with market practice. Previously, the threshold payment level was in practice set at 10% of maximum.
102
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 (250% of base salary in
exceptional circumstances).
Threshold vesting at 25% of the maximum.
Change to policy – We are proposing to increase the maximum PSP award level up to 250% of base salary for all Executive Directors. This additional headroom under the PSP would only be used in
exceptional circumstances during the life of the policy, for example, to provide flexibility for succession planning, as circumstances dictate.
The current (2023) policy provides for the maximum PSP potential of 200% of base salary for the Chief Executive and 175% for other Executive Directors – there are no proposed changes to this
policy limit, other than the exceptional circumstances proviso as set out above. However, the Committee has agreed that moving forward it will operate the annual PSP opportunity at these normal
levels, i.e. 200% of base salary for the Chief Executive and 175% for the Chief Financial Officer. Awards to date have typically been 150% for both Directors.
We will also apply dividend equivalent payments to the vested PSP awards in line with standard market practice (which our current policy and PSP rules permit but which have not been applied
to date).
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.
Change to policy – No change to policy
DIRECTORS’ REMUNERATION REPORT CONTINUED
103Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Element Purpose and strategy Operation Maximum opportunity
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
Change to policy – No change to policy
Non-Executive Directors
Element Purpose and strategy Operation Maximum opportunity
Chair and
Non-Executive
Directors’ fees
To attract and retain a 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 responsible 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.
Change to policy – No change to policy
104
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 107 and 108.
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 (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.
Malus and clawback
The rules of the annual bonus scheme and the PSP include malus and clawback provisions which
can operate in certain specific circumstances at the discretion of the Remuneration Committee.
The provisions may be invoked in the event of the following:
• A material misstatement of financial results.
• An error in the calculation of the achievement of a performance condition.
• Serious misconduct that would warrant summary dismissal.
• Action which results in serious reputational damage or corporate failure.
There is a three-year period following the payment of an annual bonus or vesting date of a PSP
award during which the clawback provisions can be operated by the Committee. This three-year
period is considered to provide an appropriately long-term window for the identification of any
matters which would warrant clawback of awards to be considered.
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 107 and 108.
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 2025 in respect of the new proposed remuneration policy. The
Committee considered comments received from shareholders before finalising the terms of the
new proposed policy.
Legacy arrangements
In approving this policy, authority is given to the Company to honour any commitments entered into
with current or former Directors.
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.
DIRECTORS’ REMUNERATION REPORT CONTINUED
105Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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.
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 would have a notice period
of up to 12 months 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.
Expected value of the proposed annual remuneration package for Executive Directors
The following charts indicate the level of remuneration payable to Executive Directors in 2026 based
on policy at minimum remuneration, remuneration in line with ‘on target’ Company performance, and
the maximum remuneration available.
106
Chief Executive – Roisin Currie
£3,500,000
£4,000,000
£3,000,000
PSP
£2,000,000
£2,500,000
£1,500,000
£1,000,000
£500,000
£0
Bonus
Minimum
100%
£759,254
£1,968,680
£3,178,106
£3,869,207
39% 24% 20%
26%
33% 27%
35%
43%
53%
On target Stretch 50%
share price
appreciation
Fixed
remuneration
Minimum On target Stretch
50% share price
appreciation
Fixed remuneration:
– Salary £691,101 £691,101 £691,101 £691,101
– Pension £48,377 £48,377 £48,377 £48,377
– Benefits £19,776 £19,776 £19,776 £19,776
Bonus – £518,325 £1,036,651 £1,036,651
Performance Share Plan – £691,101 £1,382,201 £2,073,302
Total £759,254 £1,968,680 £3,178,106 £3,869,207
Assumptions used in the charts:
• Base salary levels as at 1 January 2026 and incorporating increase due to take effect on
1 April 2026.
• 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%
£497,067
£1,233,217
£1,969,368
£2,365,757
40% 25% 21%
28%
35%
29%
32%
40%
50%
On target Stretch 50%
share price
appreciation
Fixed
remuneration
Minimum On target Stretch
50% share price
appreciation
Fixed remuneration:
– Salary £453,016 £453,016 £453,016 £453,016
– Pension £31,711 £31,711 £31,711 £31,711
– Benefits £12,340 £12,340 £12,340 £12,340
Bonus – £339,762 £679,524 £679,524
Performance Share Plan – £396,388 £792,777 £1,189,166
Total £497,067 £1,233,217 £1,969,368 £2,365,757
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.
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.
DIRECTORS’ REMUNERATION REPORT CONTINUED
107Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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
Richard Smothers 1 February 2026
All 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 and drink’, ‘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, business
efficiency/cost savings, customer
satisfaction 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.
108
DIRECTORS’ REMUNERATION REPORT CONTINUED
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 the same
structure in place for both bonus and PSP for senior management colleagues and a bonus
scheme for graded management. Both the PSP 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 SIP (where colleagues can
purchase shares from pre-tax salary subject to HMRC limits). These schemes are
generally offered annually.
All colleagues, irrelevant of level have the same matched pension contribution rate which is set
at 7% of salary.
Compliance with the UK Corporate Governance Code
The Directors’ remuneration policy is fully compliant with the relevant factors set out in
the 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
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.
109Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
B. Remuneration Committee activity for the 52 weeks ended 27 December 2025
Meetings during the year
The Remuneration Committee met four 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 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 2025
Details of some of the activities the Committee has undertaken have been summarised below:
• Developed the new proposed three-year remuneration policy;
• Consulted with shareholders on the new remuneration policy;
• Reviewed all colleague remuneration and the 2026 pay award for colleagues;
• Discussed and agreed Directors’ and Operating Board salaries for 2026;
• Agreed the targets for the 2026 bonus;
• Agreed the targets for the 2026 PSP award;
• Discussed the 2025 bonus outturn and 2023 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;
• Considered a one-off impact of the accounting for FY2025 of £4.5million that relates to previous
years’ sales tax costs and concluded that any adjustment to remuneration was not necessary;
• Discussed and approved the move from the Executive Share Option Scheme to PSP for our senior
management team’s long-term incentive scheme;
• Approved grants under the PSP to Executive Directors, the Operating Board and senior managers
below Executive Director and Operating Board level including the use of TSR as a metric for the
next three year policy period;
• 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; 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 FCA’s
UK 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 Companies Act 2006 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 Sarah Dickson (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 £64,778
plus VAT.
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 66,594,022 98.75%
Against 842,295 1.25%
Total votes cast (excluding votes withheld) 67,436,317 100.00%
Votes withheld 4,091,777
Total votes cast (including votes withheld) 71,528,094
110
DIRECTORS’ REMUNERATION REPORT CONTINUED
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 2026 – Executive Directors
The section below summarises the implementation of our remuneration policy for 2026.
Base salary 2026
The annual base salaries for the Executive Directors were reviewed to take effect from 1 April 2026;
increases and current salaries are outlined below:
Director
Salary
1 January 2025 and
1 January 2026
Salary
1 April 2026 % increase
Roisin Currie (Chief Executive) £674,903 £696,500 3.2%
Richard Hutton (Chief Financial Officer) £442,398 £456,555 3.2%
The Committee is comfortable the increase for the Executive Directors is appropriate, in that it is
proportionally lower than the wider workforce. The Executive Directors’ salaries are below the
mid-market position and the Committee plans to address this in due course, having proposed
improvements to the annual bonus and long-term PSP opportunities for 2026.
Pension contribution 2026
The pension contributions for the Executive Directors are aligned with the rate for the majority of
the workforce which is 7% of salary. The contributions for 2026 are paid as a cash supplement in lieu
of pension.
Annual bonus 2026
The annual bonus opportunity for 2026 is outlined below:
Chief Executive Maximum opportunity of 150% 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 150% 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 business 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 25% 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 operating
profit of the Group
(excluding exceptional
items) before tax. This will
be informed by the budget
and will be suitably
stretching.
Based on company-
managed shop like-for-
like sales excluding any
additional shops opened
during the bonus year.
Outlined below.
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.
111Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
For the 2026 bonus there will be three strategic objectives. They are:
• 10% based on business efficiency/cost savings;
• 10% based on customer satisfaction metric; and
• 10% based on the next phase of implementation of our SAP IT system upgrade programme
to the S/4HANA platform.
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 2026
For the FY2026 PSP award, the Chief Executive will receive an award at a level of 200% of salary
and the Chief Financial Officer will receive an award of 175% of salary. We will also apply dividend
equivalent payments to the vested PSP awards in line with standard market practice (which our
current policy and PSP rules permit but which have not been applied to date).
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 200% of base salary
Chief Financial Officer 175% 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 FY2026 we will have three performance measures. We will keep both EPS and
ROCE, each at 40% of the award, with 20% based on relative Total Shareholder Return (TSR).
In looking at 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
return on capital continues to be key as we seek to secure the benefits of the investments being
made across our supply chain and make progress towards a longer-term ROCE target of 20%. In
2026 we expect our ROCE ratio to reduce further as the new distribution facility in Derby is brought
into use. Thereafter we expect ROCE to stabilise in 2027 before starting to recover from 2028
onward. Given this profile, and the importance of incentivising an improvement at the end of the
period, the ROCE element of the 2026 PSP award will be measured on the 2028 ROCE outcome.
In the context of this investment phase, for the 2026 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 3% and 8%;
• The ROCE condition will require ROCE for the final year of the performance period (i.e. for 2028) to
be between 15.5% and 17.5%; and
• Relative TSR requiring outperformance against the companies comprising the FTSE 250 Index
(excluding Investment Trusts, Financial Services and Mining sectors).
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 2026 to 2028.
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.
112
DIRECTORS’ REMUNERATION REPORT CONTINUED
How our remuneration policy will be implemented in 2026 – 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 resposible for colleague engagement.
These fees are usually reviewed and set annually. The fees will be increased by 3.2% on 1 April 2026
in line with the base salary increase agreed for Executive Directors and similarly the fee for the Chair
will be increased by 3.2% on 1 April 2026.
Details of the fees being paid to Non-Executive Directors in 2026 are set out below:
Name Position
Base fee from
1 January 2026
to 31 March
2026
Annual
additional fee
from 1 January
2026 to
31 March 2026
Base fee from
1 April 2026
Annual
additional fee
from 1 April
2026
Total fee
payable
2026
Matt Davies Board Chair £270,394 – £279,046 – £276,883
Kate Ferry * Chair of the Audit
Committee
£59,200 £13,498 £61,094 £13,930 £12,946
Mohamed
Elsarky**
Non-Executive
Director responsible
for colleague
engagement
£59,200 £5,408 £61,094 £5,581 £24,007
Lynne Weedall Chair of the
Remuneration
Committee
£59,200 £13,498 £61,094 £13,930 £74,443
Nigel Mills Non-Executive
Director and SID
£59,200 £13,498 £61,094 £13,930 £74,443
Tamara Rogers Non-Executive
Director
£59,200 – £61,094 – £60,621
Richard
Smothers *
Non-Executive
Director
£59,200 £13,498 £61,094 £13,930 £66,762
* Richard Smothers joined the Board on 1 February 2026. Kate Ferry will retire from the Board on 6 March 2026 at which point Richard
Smothers will assume the role of Chair of the Audit Committee.
** Mohamed Elsarky will retire from the Board on 13 May 2026.
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 2025
Total Executive Director remuneration payable for 2025 (audited)
The following table presents the remuneration payable for 2025 (showing the equivalent figures
for 2024) 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
2025 674,903 45,962 19,776 740,641 154,384 147,827 302,211 1,042,852
2024 652,080 37,912 18,703 708,695 432,003 490,037
2
913,040 1,621,735
Richard Hutton
2025 442,398 29,686 12,340 484,424 101,199 96,900 198,099 682,523
2024 427,438 24,434 12,314 464,186 283,178 279,758
2
562,936 1,027,122
1 The values of the PSP award granted in 2023, due to vest on 18 May 2026 are based on the level of vesting (27.1%) and the average share
price over the final three months of the 2025 financial year (£16.20). The amount attributable to share price depreciation is (£104,186)
for Roisin Currie and (£68,294) for Richard Hutton. Figures will be trued up in the 2026 Remuneration Report to reflect the share price
at the vesting date.
2 The value shown in the 2024 Report for PSP (which related to the 2022 PSP award that vested in 2025), was based on the average
share price over the three months prior to the 2024 year end (£27.88). The value has now been updated for the actual price on vesting
on 18 May 2025 of £20.38 for Roisin Currie and on 28 March 2025 of £17.75 for Richard Hutton; total remuneration figures have also
been updated. The values were decreased by £180,338 for Roisin Currie and £159,659 for Richard Hutton.
3 Taxable benefits relate to cash-in-lieu of a company car, private medical health care and travel expenses paid.
113Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Fees for Non-Executive Directors (audited)
The fees for Non-Executive Directors were as follows:
2025 2024
Matt Davies £270,394 £261,250
Kate Ferry £72,698 £70,240
Mohamed Elsarky £64,608 £62,423
Lynne Weedall £72,698 £70,240
Nigel Mills £72,698 £70,240
Tamara Rogers
1
£59,200 £33,366
1 Tamara Rogers joined the Board on 1 June 2024.
Annual bonus 2025 (audited)
The table below outlines the bonus performance conditions in respect of the 2025 bonus scheme.
Measure Strategic objective Weighting Entry Target Stretch Actual %
Profit (£) To deliver target
operating profit
before tax (excluding
exceptional items
and property profits)
50% £191.3m £201.3m £211.3m £187.2m
1
0.0%
Sales (%) Like-for-like sales
performance
20% 2.8% 4.8% 6.8% 2.4% 0.0%
Strategic (£) Cost savings 10% £5.0m £7.0m £9.0m £13.0m 10.0%
Strategic (£m) Evening sales 5% £175.2m £178.8m £182.3m £177.1m 1.6%
Strategic (£m) Growth in average
basket size
2
5% £5.0m £16.0m £21.0m £2.6m 0.0%
Strategic Increase in digital
transactions
2
5% 1.0% 4.0% 7.0% 6.5% 4.7%
Strategic SAP S/4HANA
upgrade milestones
2
5% 1 3 5 2 2.0%
Total weighting based
on balanced scorecard
100% 18.3%
1 The actual result is calculated as operating profit before exceptional items of £187.5 million (see page 128) less property profits
of £0.3 million.
2 Further details on these strategic targets are set out below.
Basket size (5%)
Metric Entry Target Maximum
Improve basket size
versus the 2025
expected level
Drive an additional
£5 million of sales
above the 2025
expected level
Drive an additional
£16 million of sales
above the 2025
expected level
Drive an additional
£21 million of sales
above the 2025
expected level
10% 50% 100%
114
DIRECTORS’ REMUNERATION REPORT CONTINUED
Increase in digital transactions (5%)
Metric Entry Maximum
Percentage increase of
average transactions
involving Greggs App
scan across the full
year 2025 against 2024
average transactions
figure of 19.5%
+1% increase of
average transactions
across the year
(increase to 20.5%)
sliding scale to… +7% increase of
average transactions
across the year
(increase to 26.5%)
SAP S/4HANA upgrade milestones (5%)
The metrics were structured as five independent activities each earning 1% of this element of the bonus.
If one element is achieved 1% will be earned up to a maximum of 5% if all five elements are achieved.
Metric Milestone Milestone Milestone Milestone Milestone
Successful
delivery of
milestones by
31 December
2025
Finance running
successfully on
new SAP solution
Procurement
running
successfully
on new SAP
solution
Retail
Forecasting and
Replenishment
Pilot complete
and over 50%
of shops
running new
SAP solution
Supply
Integrated
Planning
live and
operational
Manufacturing
solution
delivered,
tested and
ready to go live
in at least one
supply site in
January 2026
20% 20% 20% 20% 20%
Bonus achieved for 2025
As % of maximum
Roisin Currie 18.3%
Richard Hutton 18.3%
The remuneration policy provides that the proportion of the bonus in excess of 50% of the maximum
(pro rata) will be payable in shares, deferred for two years. Since the bonus for 2025 is less than 50%
of the maximum, in this instance this does not apply.
Details of the shares awarded in 2025 for the 2024 bonus year are outlined below. These were
awarded on 25 March 2025 and will be released on 25 March 2027.
Number of shares awarded
Roisin Currie 721
Richard Hutton 472
Performance Share Plan award for performance in 2023 to 2025 (audited)
The PSP award granted in 2023 measured three performance targets to be achieved by the end of
2025. 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 (45%) Average annual growth
in EPS over the
performance period
4.0%
(11.25% vesting)
9.0%
(45% vesting)
1.4% 0.0%
ROCE (45%) Average ROCE over the
performance period
18.7%
(11.25% vesting)
21.2%
(45% vesting)
19.1% 17.1%
ESG (10%) Reduction in Scope 1
and 2 carbon
emissions*over the
performance period
46,922 tonnes
CO
2
e
(2.5% vesting)
36,867 tonnes
CO
2
e
(10% vesting)
34,087
tonnes
CO
2
e
10.0%
Total vesting 27.1%
* measured using the UK Environmental Reporting Guidelines
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.
115Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
The table below sets out the number of shares which will vest for each Executive Director under the
2023 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 vesting
1
Roisin Currie 18 May 2023 18 May 2026 33,669 27.1% 9,124 £147,827
Richard Hutton 18 May 2023 18 May 2026 22,070 27.1% 5,981 £96,900
1 Calculated using average share price over the final three months of the 2025 financial year (£16.20).
Performance Share Plan awards granted in 2025 (audited)
PSP awards granted during 2025 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
£18.14
(24 March
2025)
55,807 £1,012,339
25%
Financial
year 2027
Richard Hutton 150% of
salary
£18.14
(24 March
2025)
36,582 £663,597
For the 2025 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 2025
being between 2% and 5%.
• 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 2025 to be in the
range 16.1% to 18.5%.
• 10% of the award is subject to 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 this element 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; rising on a sliding scale to:
– 100% of this element is awarded if absolute Scope 1 and 2 CO
2
e emissions are reduced in line
with the 2035 net zero target (30,164 tCO
2
e).
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 29 December 2024
number
Granted number
Exercised number
Lapsed number
At 27 December 2025
number
Exercise price
Date of grant
Market price of each
share at date of grant
Date from which
exercisable
Expiry date
Scheme
Roisin
Currie
36,014 – – 11,969 24,045 £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
– 55,807 – – 55,807 £nil Mar 25 £18.14 Mar 28 Mar 35 PSP
91 – – 91 – £19.68 Apr 22 Jun 25 Nov 25 SAYE
94 – – – 94 £21.06 May 23 Jun 26 Nov 26 SAYE
98 – – – 98 £22.50 May 24 Jun 27 Nov 27 SAYE
– 154 – – 154 £14.30 May 25 Jun 28 Nov 28 SAYE
105,226 55,961 – 12,060 149,127
Richard
Hutton
23,607 – 15,769¹ 7,838 – £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
– 36,582 – – 36,582 £nil Mar 25 £18.14 Mar 28 Mar 35 PSP
91 – – 91 – £19.68 Apr 22 Jun 25 Nov 25 SAYE
94 – – – 94 £21.06 May 23 Jun 26 Nov 26 SAYE
98 – – – 98 £22.50 May 24 Jun 27 Nov 27 SAYE
– 154 – – 154 £14.30 May 25 Jun 28 Nov 28 SAYE
69,073 36,736 15,769 7,929 82,111
1 The market value on the date of exercise was £15.71 and the resultant gain on exercise was £247,731.
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 27 December 2025 was £16.83. The
highest and lowest mid-market prices of ordinary shares during the financial year were £28.32 and
£14.18 respectively.
116
DIRECTORS’ REMUNERATION REPORT CONTINUED
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
28 December
2024
1
£
Accrued
annual
pension
entitlement
as at
27 December
2025
£
Increase in
accrued
pension
entitlement
for the year
£
Increase in
accrued
pension
entitlement
for the year
net of
inflation of
1.598%
2
£
Transfer
value of
increase in
accrued
pension
entitlement
for the year
£
Richard Hutton 3 Jun 68 1 Jan 98 29,099 29,599 – – –
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 1.598% 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
28 December 2024
£
Cash equivalent
transfer value as at
27 December 2025
£
Increase in the
cash equivalent
transfer value
since 29 December
2024
£
Richard Hutton 440,415 392,540 –
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
27 Dec
2025
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
200
300
100
FTSE 250 Index (excluding Investment Trusts)
117Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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.
2016 2017 2018 2019 2020 2021
2022
Roger Whiteside
2022
Roisin Currie
1
2023 2024 2025
Total remuneration £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 £1,621,735 £1,042,852
Bonus (% of max potential) 86.7% 64.3% 59.2% 97.7% 0.0% 99.7% 75.4% 75.4% 84.8% 53.0% 18.3%
PSP/options (% max potential) 100% 100% 80.2% 100% 0.0% 50% 75% 75% 100% 66.8% 27.1%
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
27 December 2025 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
27 December
2025
Beneficially
owned at
28 December
2024
Outstanding
PSP awards
(nil cost
options)
Vested PSP
awards not
exercised
Outstanding
SAYE awards
%
shareholding
achieved at
28 December
2025
2
Roisin Currie 30,198 29,424 124,736 24,045 346 107.1
Richard Hutton 70,908 62,105 81,765 – 346 269.8
Kate Ferry 562 562 – – – n/a
Mohamed Elsarky – – – – – n/a
Lynne Weedall 1,000 1,000 – – – n/a
Matt Davies 3,249 2,000 – – – n/a
Nigel Mills 925 – – – – 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 27 December 2025 in the Directors’ interests noted above.
Further details of outstanding share awards are given on page 115.
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 is a Non-Executive Director of Howden Joinery Group Plc.
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.
2025
£m
2024
£m
% increase/
(decrease)
All colleague costs 755.9 686.6 10.1%
Dividends paid
1
70.3 106.8 (34.2%)
1 2024 dividends include a special dividend of 40.0p.
118
DIRECTORS’ REMUNERATION REPORT CONTINUED
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.
2025 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
% change
Benefits
% change
Bonus
% change
Salary
1
% change
Benefits
% change
Bonus
% change
Roisin Currie 3.5% 5.7% (37.0%) 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 3.5% 0.2% (37.0%) 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 3.5% n/a n/a 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 3.5% n/a n/a 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 3.5% n/a n/a 4.5% 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 3.5% n/a n/a 7.9% n/a n/a 9.9%
5
n/a n/a 3.5% n/a n/a n/a
2
n/a n/a n/a n/a n/a
Nigel Mills 3.5% n/a n/a 4.9% n/a n/a n/a
2
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Tamara Rogers 3.5% n/a n/a n/a
2
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 10.1%
3
(2.8%) (34.7%)
4
15.8%
3
(5.7%) (31.8 %)
4
9.4%
3
(6.8%) 9.4%
4
5.8%
3
(15.8%) (24.3%)
4
1.9%
3
(1.2%) 100%
4
4.1%
3
3.2% (100%)
4
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 In order to provide a meaningful comparison, no annual change is shown for the year in which a Director was appointed and the
percentage change figures for the following year have been calculated on a full-year equivalent value.
3 For the purpose of salary the wider workforce is defined as all colleagues.
4 For the purpose of bonus the wider workforce is defined as management colleagues who are entitled to receive a bonus.
5 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.
Chief Executive pay ratio reporting
The adjacent tables outline the ratio of the Chief Executive’s single figure of total remuneration for
2025 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
2025 Option B 37:1 36:1 32:1
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 2026. Full-year pay data
for the 2025 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 £27,399 £28,810 £32,553
Base salary £26,910 £27,689 £31,250
119Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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 (negotiated through a collective bargaining agreement with unions that
covers 98% of our workforce) 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, over 64% of our workforce has received a pay increase in 2026 of 4% with
86% receiving 3.7% or more. As outlined earlier, our pay award will now be implemented in April and
to support this transition in 2026, this pay increase was implemented in two stages across January
and April.
As in previous years, the Committee reviewed the pay award of both the Executive Directors and
Operating Board and agreed that the awards should be aligned to that of our salaried colleagues
across the wider workforce of 3.2%. However the Committee did not award an interim increase in
January 2026 for our Executive Directors and Operating Board.
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 3 March 2026.
Signed on behalf of the Board.
Lynne Weedall
Chair of the Remuneration Committee
3 March 2026
120
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.
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
3 March 2026 3 March 2026
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
121Greggs plc Annual Report and Accounts 2025
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 27 December 2025 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 27 December 2025 and of the Group’s profit for the 52 week period
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 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 matter Group & Parent Company
• Recoverability of shop-based assets
Materiality Group
• Overall materiality: £8.01 million (2024: £9.25 million)
• Performance materiality: £5.60 million (2024: £6.94 million)
Parent Company
• Overall materiality: £8.00 million (2024: £9 million)
• Performance materiality: £5.60 million (2024: £6.75 million)
Scope Our audit procedures covered 100% of revenue, 100% of total assets,
and 100% of profit before tax.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance 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
Recoverability of shop-based assets
Key audit matter
description
Refer to pages 135 and 136 – Basis of preparation (Key estimates and judgements)
Refer to page 140 – Accounting policies (m)
Refer to Note 11 – Leases
Refer to Note 12 – Property, plant and equipment
As at 27 December 2025 Greggs operated over 2,700 shops, of which around 2,100 were company-managed shops (the ‘shops’) and the remainder were franchised units.
The Group therefore has a significant portfolio of assets, comprising right-of-use assets and property, plant & equipment for these shops as well as supply facilities and other
central assets. As at 27 December 2025 the Group held right-of-use assets of £413.0 million (2024: £387.2 million) and property, plant and equipment of £832.1 million (2024:
£664.7 million).
While the Group as a whole continues to trade profitably there is a risk that the carrying value of certain shop-based assets may not be supported by the performance of the
associated cash-generating-unit (‘CGU’). In the year ending 27 December 2025, the Group’s asset base has grown due to a significant capital programme, while the Group has
faced more challenging trading conditions.
Under IAS 36 Impairment of Assets management must perform an assessment at each reporting date as to whether any indicators of impairment exist. Both internal and
external factors are considered. This is considered at the individual CGU level and additionally a collective assessment is performed for all CGUs within the Group. The Group
determines each shop to be a CGU.
An impairment review has been performed for every CGU, with the recoverable amount of the assets determined with reference to the value-in-use of the associated shop.
An additional review is then performed for all CGUs on a group basis. The impairment review resulted in the recognition of an impairment charge of £3.0 million (2024: £2.1
million) against right-of-use assets and £3.9 million (2024: £2.9 million) against property, plant and equipment
A significant amount of management judgement and estimation is involved in determining the value-in-use of a shop, with the key assumptions including:
• The risk-adjusted forecast cashflows of each CGU;
• The period over which future cashflows have been forecast;
• The discount rate; and
• The allocation of central costs and assets to individual and grouped CGUs.
The asset impairment model is complex and is prepared using spreadsheets which increases the scope for error. The exercise involves a high level of management
judgement and is therefore deemed to be a significant risk with a high degree of estimation uncertainty.
Due to the factors explained above, we have identified the assessment of recoverability of shop-based assets and the related financial statement disclosures as a key
audit matter.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GREGGS PLC CONTINUED
123Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
How the matter was
addressed in the audit
Our audit work relating to the recoverability of shop-based assets included, but was not limited to:
1. Assessing the appropriateness of underlying assumptions applied in the value-in-use calculation in the context of current and future performance of the underlying
assets in line with IAS 36, including considering discount rates, growth rates, lease terms and the impact of cost inflation on future cashflows;
2. Critically challenging whether the assumptions in management’s forecasts appear realistic, achievable and consistent with other internal and external evidence, including
market and industry data;
3. Performing sensitivity analysis to assess the level of headroom in the impairment calculations in order to identify the most sensitive assumptions on which we should
focus our work;
4. Challenging key inputs such as the discount rate and long-term growth rates, utilising our valuation experts as appropriate;
5. Making enquiries of key management personnel outside of the finance function to seek corroborative or contradictory evidence around the assumptions used in the model;
6. Assessing the accuracy of historical forecasts and taking account of previous deviation rates as a basis for our sensitivity analysis;
7. Checking for consistency of the forecast information used and sensitivities applied in respect of the impairment of assets to other areas considered as part of the audit
which rely on similar information and assumptions, including the assessment of going concern;
8. Challenging management’s allocation of central costs within their forecast models;
9. Assessing the integrity of the complex financial model used in the impairment assessment, utilising our internal modelling specialists;
10. Critically assessing management’s forecast cashflows in light of post year end performance of the portfolio; and
11. Critically evaluating the adequacy of disclosures made in respect of key estimates and judgements used in impairment reviews.
Key observations As a result of the audit work performed, as described above, we consider management’s conclusions in relation to recoverability of shop-based assets and the associated
disclosure in the financial statements to be appropriate.
The Audit Committee have also identified this as a key accounting judgement within their report on page 90.
124
An overview of the scope of our audit
The Group consists of the Parent Company and nine subsidiaries all of which are located in the UK
and 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 46 to 56 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 they operate, 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, and
useful economic lives of tangible and intangible assets to changing regulation, weather patterns
or business activities, we have not assessed climate-related risk to be significant to our audit. The
impact on our key audit matter was not deemed to be significant.
In accordance with our obligations with regards to other information, we have read the Group’s
climate-related risk disclosures on pages 46 to 56 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 46 to 56 in the Annual Report.
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 £8.01 million (2024: £9.25 million) £8.00 million (2024: £9.00 million)
Basis for determining overall materiality 4.8% (2024: 4.9%) of profit before tax 4.8% (2024: 4.7%) of profit before tax
Rationale for benchmark applied Profit before tax is the primary measure used by the shareholders in assessing
the performance of the Group
Profit before tax is the primary measure used by the shareholders in assessing
the performance of the Company
Performance materiality £5.60 million (2024: £6.94 million) £5.60 million (2024: £6.75 million)
Basis for determining
performance materiality
70% (2024: 75%) of overall materiality 70% (2024: 75%) of overall materiality
Reporting of misstatements
to the Audit Committee
Misstatements in excess of £400,000 and misstatements below that threshold
that, in our view, warranted reporting on qualitative grounds.
Misstatements in excess of £400,000 and misstatements below that threshold
that, in our view, warranted reporting on qualitative grounds.
Performance materiality is the application of materiality at the individual account or balance level and is set at an amount to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds materiality. We determine performance materiality based on our risk assessments and applying our professional judgement.
125Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC 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. Assessing the forward-looking assumptions used by management in their assessment
of going concern;
2. Corroborating the key assumptions and inputs to supporting evidence, including terms of the
financing arrangements in place;
3. Challenging management’s assumptions including performing downside sensitivities in respect
of key assumptions;
4. Considering the adequacy of management’s scenario analysis and contingency plans;
5. Checking the integrity and mechanism of the forecast model provided by management, utilising
our internal modelling specialists;
6. Obtaining evidence that the forecasts have been authorised by the board;
7. Assessing the historical accuracy of forecasting and using previous deviation rates as a basis for
our sensitivity analysis;
8. Recalculating management’s covenant calculations for the current year and forecast period to
assess if there is a risk of non-compliance; and
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 entity 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.
126
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 page 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 69;
• 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 69;
• Directors’ statement on fair, balanced and understandable set out on page 80;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal
risks set out on page 64;
• Section of the Annual Report that describes the review of effectiveness of risk management and
internal control systems set out on pages 93 and 94; 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 page 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 operate 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;
• 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,
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 2025
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;
• Inspection of correspondence with local tax authorities; and
• Input from a tax specialist was obtained regarding complex and
significant matters, with particular focus on indirect taxes.
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 recognised in the period
immediately pre and post-year-end for each significant revenue
stream, ensuring that revenue was 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; and
• 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 Financial Reporting Council’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 five years, covering the periods
ending 1 January 2022 to 27 December 2025.
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
3 March 2026
128
| 2025 | 2025 | 2024 | 2024 | ||||
| Excluding | Exceptional items | 2025 | Excluding | Exceptional items | 2024 | ||
| 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 | ( | ||||||
Basic earnings per share | 9 | ( | |||||
Diluted earnings per share | 9 | ( |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 27 DECEMBER 2025 (2024: 52 WEEKS ENDED 28 DECEMBER 2024)
| 2025 | 2024 | ||
| Note | £m | £m | |
Profit for the financial year | |||
| Other comprehensive income | |||
| Items that will not be reclassified to profit or loss: | |||
Remeasurements on defined benefit pension plans | 22 | ( | |
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 |
CONSOLIDATED INCOME STATEMENT
FOR THE 52 WEEKS ENDED 27 DECEMBER 2025 (2024: 52 WEEKS ENDED 28 DECEMBER 2024)
129Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Group | Parent Company | ||||
| 2025 | 2024 | 2025 | 2024 | ||
| Note | £m | £m | £m | £m | |
| ASSETS | |||||
| Non-current assets | |||||
Intangible assets | 10 | 43.0 | 24.9 | ||
Property, plant and equipment | 12 | 832.7 | 665.3 | ||
Right-of-use assets | 11 | 413.0 | 387.2 | ||
Investments | 13 | 5.0 | 5.0 | ||
| Current assets | 1,293.7 | 1,082.4 | |||
Inventories | 15 | 55.7 | 55.2 | ||
Trade and other receivables | 16 | 69.4 | 62.4 | ||
Cash and cash equivalents | 17 | 70.8 | 125.3 | ||
195.9 | 242.9 | ||||
Total assets | 1,489.6 | 1,325.3 | |||
| LIABILITIES | |||||
| Current liabilities | |||||
Trade and other payables | 18 | ( | ( | (280.5) | (251.6) |
Current tax liabilities | 19 | ( | ( | (2.1) | (9.1) |
Lease liabilities | 11 | ( | ( | (62.5) | (53.8) |
Short-term provisions | 24 | ( | ( | (10.3) | (3.4) |
| Non-current liabilities | ( | ( | (355.4) | (317.9) | |
Borrowings | 20 | ( | (25.0) | – | |
Other payables | 21 | ( | ( | (1.4) | (1.8) |
Lease liabilities | 11 | ( | ( | (387.3) | (361.3) |
Deferred tax liability | 14 | ( | ( | (93.1) | (72.0) |
Long-term provisions | 24 | ( | ( | (3.4) | (2.9) |
Defined benefit pension liability | 22 | ( | ( | (0.3) | (0.4) |
( | ( | (510.5) | (438.4) | ||
Total liabilities | ( | ( | (865.9) | (756.3) | |
Net assets | 623.7 | 569.0 | |||
| EQUITY | |||||
| Capital and reserves | |||||
Issued capital | 25 | 2.0 | 2.0 | ||
Share premium account | 25 | 25.1 | 25.1 | ||
Capital redemption reserve | 25 | 0.4 | 0.4 | ||
Retained earnings | 596.2 | 541.5 | |||
Total equity attributable to equity holders of the Parent | 623.7 | 569.0 |
Of the Group profit for the year, £122.2 million (2024: £153.4 million) is dealt with in the accounts of the Parent Company.
Company Registered Number 502851
BALANCE SHEETS
AT 27 DECEMBER 2025
130
Group
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 | 25 | ( | ( | |||
Sale of own shares | 25 | |||||
Share-based payment transactions | 23 | |||||
Dividends to equity holders | 25 | ( | ( | |||
Tax items taken directly to equity | 8 | ( | ( | |||
Total transactions with owners | ( | ( | ||||
Balance at 28 December 2024 |
52 weeks ended 27 December 2025
| 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 | ||||||
| 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 | ||||||
Sale of own shares | 25 | |||||
Share-based payment transactions | 23 | |||||
Dividends to equity holders | 25 | ( | ( | |||
Tax items taken directly to equity | 8 | ( | ( | |||
Total transactions with owners | ( | ( | ||||
Balance at |
STATEMENTS OF CHANGES IN EQUITY
FOR THE 52 WEEKS ENDED 27 DECEMBER 2025 (2024: 52 WEEKS ENDED 28 DECEMBER 2024)
131Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Parent Company
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 25 – – – (5.0) (5.0)
Sale of own shares 25 – – – 4.7 4.7
Share-based payment transactions 23 – – – 4.5 4.5
Dividends to equity holders 25 – – – (106.8) (106.8)
Tax items taken directly to equity 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
52 weeks ended 27 December 2025
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 29 December 2024 2.0 25.1 0.4 541.5 569.0
Total comprehensive income for the year
Profit for the financial year 7 – – – 122.2 122.2
Other comprehensive income – – – 0.1 0.1
Total comprehensive income for the year – – – 122.3 122.3
Transactions with owners, recorded directly in equity
Sale of own shares 25 – – – 1.6 1.6
Share-based payment transactions 23 – – – 1.5 1.5
Dividends to equity holders 25 – – – (70.3) (70.3)
Tax items taken directly to equity 8 – – – (0.4) (0.4)
Total transactions with owners – – – (67.6) (67.6)
Balance at 27 December 2025 2.0 25.1 0.4 596.2 623.7
132
| Group and Parent Company | |||
| 2024 | |||
| 2025 | Restated | ||
| Note | £m | £m | |
| Operating activities | |||
Cash generated from operations | |||
Income tax paid | ( | ( | |
Interest received | |||
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 | |||
Net cash outflow from investing activities | ( | ( | |
| Financing activities | |||
Proceeds from borrowing | 20 | ||
Repayment of borrowing | 20 | ( | |
Sale of own shares | |||
Purchase of own shares | ( | ||
Dividends paid | ( | ( | |
Repayment of principal on lease liabilities | ( | ( | |
Net cash outflow from financing activities | ( | ( | |
Net decrease 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 |
There has been a voluntary change in accounting policy whereby interest received has been included as an operating activity instead of an investing activity, which the Group considers better reflects the
nature of the cash inflows. The prior year total for net cash inflow from operating activities has been increased by £7.7 million with a corresponding decrease in net cash outflow from investing activities.
There is no change to the net decrease in cash and cash equivalents in 2024.
STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED 27 DECEMBER 2025 (2024: 52 WEEKS ENDED 28 DECEMBER 2024)
133Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Statements of cash flows – cash generated from operations
| Group and Parent Company | |||
| 2025 | 2024 | ||
| 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 | ||
Loss/(profit) on sale of property, plant and equipment | 3 | ( | |
Release of government grants | 3 | ( | ( |
Share-based payment expenses | 23 | ||
Finance income | 6 | ( | ( |
Finance expense | 6 | ||
Income tax expense | 8 | ||
Increase in inventories | ( | ( | |
Increase in receivables | ( | ( | |
Increase in payables | |||
Increase in provisions | |||
Defined benefit pension scheme special contribution | 22 | ( | |
Cash generated from operations |
134
NOTES TO THE ACCOUNTS
135Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
136
Significant accounting policies continued
(b) Basis of preparation continued
NOTES TO THE ACCOUNTS CONTINUED
137Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
138
Significant accounting policies continued
NOTES TO THE ACCOUNTS CONTINUED
139Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
140
Significant accounting policies continued
NOTES TO THE ACCOUNTS CONTINUED
141Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
142
Significant accounting policies continued
(r) Provisions continued
NOTES TO THE ACCOUNTS CONTINUED
143Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
144
Significant accounting policies continued
(w) Income tax continued
NOTES TO THE ACCOUNTS CONTINUED
145Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 2025 | 2025 | 2024 | 2024 | |||
| Retail company- | Business-to- | 2025 | Retail company- | Business-to- | 2024 | |
| managed shops | business | Total | managed shops | business | Total | |
| £m | £m | £m | £m | £m | £m | |
Revenue | 1,897.2 | 254.0 | 2,151.2 | 1,781.7 | 232.7 | 2,014.4 |
Cost of sales | (581.6) | (135.0) | (716.6) | (533.0) | (127.0) | (660.0) |
Gross profit | 1,315.6 | 119.0 | 1,434.6 | 1,248.7 | 105.7 | 1,354.4 |
Supply costs | (203.1) | (50.3) | (253.4) | (191.4) | (48.5) | (239.9) |
Retail costs | (861.1) | (2.2) | (863.3) | (780.0) | (1.7) | (781.7) |
Trading profit | 251.4 | 66.5 | 317.9 | 277.3 | 55.5 | 332.8 |
Overheads including profit share | (146.8) | (150.4) | ||||
Add back lease interest | 16.4 | 12.9 | ||||
Operating profit before exceptional items | 187.5 | 195.3 | ||||
Finance income | 1.8 | 8.1 | ||||
Finance expense (excluding exceptional items) | (17.4) | (13.6) | ||||
Profit before tax (excluding exceptional items) | 171.9 | 189.8 | ||||
Exceptional items (see Note 4) | (4.5) | 14.1 | ||||
Profit before tax | 167.4 | 203.9 |
146
NOTES TO THE ACCOUNTS CONTINUED
147Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
148
| 2024 | 2024 | |||
| 2025 | Excluding | Exceptional items | 2024 | |
| Total | exceptional items | (see Note 4) | Total | |
| £m | £m | £m | £m | |
Amortisation of intangible assets | 4.7 | 4.2 | – | 4.2 |
Depreciation of owned property, plant and equipment | 90.7 | 76.6 | – | 76.6 |
Depreciation of right-of-use assets | 65.2 | 59.2 | – | 59.2 |
Net impairment of owned property, plant and equipment | 3.9 | 2.9 | – | 2.9 |
Net impairment of right-of-use assets | 3.0 | 2.1 | – | 2.1 |
Loss/(profit) on disposal of property, plant and equipment | 1.7 | 2.0 | (13.8) | (11.8) |
Release of government grants | (0.5) | (0.5) | – | (0.5) |
4. Exceptional items
| 2025 | 2024 | |
| £m | £m | |
Redundancy/dilapidations provisions no longer required | – | 0.3 |
Profit on disposal of Twickenham bakery site (net of fees) | – | 13.8 |
Prior year VAT underpayment | (4.5) | – |
(4.5) | 14.1 |
In 2025 the exceptional item relates to a VAT error which has resulted in an underpayment of VAT for the current and prior years. The amount that relates to prior years is £4.5 million and this includes
£0.7 million in respect of interest on the underpaid amount. There has been no cash settlement of this item to date – the full amount is included as a provision (see Note 24).
In 2024, the disposal of the Twickenham bakery site resulted in sales proceeds (net of associated fees) of £14.9 million being received during the year whilst the release of provisions no longer required was
a non-cash movement.
| 2025 | 2024 | |
| Number | Number | |
Management | 853 | 789 |
Administration | 515 | 512 |
Production | 3,889 | 3,747 |
Shop | 28,026 | 27,210 |
32,258 |
NOTES TO THE ACCOUNTS CONTINUED
149Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 2025 | 2024 | ||
| Note | £m | £m | |
Wages and salaries | 650.0 | 599.5 | |
Compulsory social security contributions | 64.5 | 46.9 | |
Pension costs – defined contribution plans | 22 | 40.8 | 35.5 |
Equity-settled transactions (including compulsory social security contributions) | 23 | 1.1 | 4.9 |
756.4 | 686.8 |
| 2025 | 2024 | |
| £m | £m | |
Cost of sales | 5.3 | 5.3 |
Distribution and selling costs | 12.4 | 12.7 |
Administrative expenses | 2.5 | 2.5 |
Amount shared with employees | 20.2 | 20.5 |
Compulsory social security contributions | 2.0 | 2.3 |
22.2 | 22.8 |
| 2025 | 2024 | |
| £m | £m | |
Salaries and fees | 3.7 | 3.5 |
Taxable benefits | 0.1 | 0.1 |
Annual bonus (including profit share) paid during the year in respect of the prior year | 1.3 | 2.2 |
Post-retirement benefits | 0.2 | 0.2 |
Equity-settled transactions | (0.6) | 2.2 |
4.7 | 8.2 |
| 2025 | 2024 | |
| £m | £m | |
Aggregate Directors’ remuneration | 2.1 | 2.8 |
Aggregate amount of gains on exercise of share options | 0.3 | 1.9 |
2.4 | 4.7 |
150
| 2025 | 2025 | ||||
| Excluding | Exceptional items | 2025 | |||
| exceptional items | (see Note 4) | Total | 2024 | ||
| Note | £m | £m | £m | £m | |
| Finance income | |||||
Interest income on cash balances | 1.8 | – | 1.8 | 8.1 | |
Total finance income | 1.8 | – | 1.8 | 8.1 | |
| Finance expense | |||||
Interest expense on borrowings and other related charges | 20 | (0.6) | (0.7) | (1.3) | (0.9) |
Foreign exchange loss | (0.1) | – | (0.1) | (0.1) | |
Interest on lease liabilities | 11 | (16.7) | – | (16.7) | (13.0) |
Net interest on defined benefit pension liability | 22 | – | – | – | 0.4 |
Total finance expense | (17.4) | (0.7) | (18.1) | (13.6) | |
Net finance expense | (15.6) | (0.7) | (16.3) | (5.5) |
7. Profit attributable to Greggs plc
Of the Group profit for the year, £122.2 million (2024: £153.4 million) 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
| 2025 | 2025 | 2024 | 2024 | |||
| Excluding | Exceptional items | 2025 | Excluding | Exceptional items | 2024 | |
| exceptional items | (see Note 4) | Total | exceptional items | (see Note 4) | Total | |
| £m | £m | £m | £m | £m | £m | |
| Current tax | ||||||
Current year | 27.3 | (0.9) | 26.4 | 26.3 | – | 26.3 |
Adjustment for prior years | (1.6) | – | (1.6) | 7.1 | – | 7.1 |
25.7 | (0.9) | 24.8 | 33.4 | – | 33.4 | |
| Deferred tax | ||||||
Origination and reversal of temporary differences | 18.9 | – | 18.9 | 22.3 | 1.7 | 24.0 |
Adjustment for prior years | 1.5 | – | 1.5 | (6.9) | – | (6.9) |
20.4 | – | 20.4 | 15.4 | 1.7 | 17.1 | |
Total income tax expense in income statement | 46.1 | (0.9) | 45.2 | 48.8 | 1.7 | 50.5 |
NOTES TO THE ACCOUNTS CONTINUED
151Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Reconciliation of effective tax rate
The tables below explain the differences between the expected tax expense calculated at the UK statutory rate of 25% (2024: 25%) 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.
| 2025 | 2024 | |||||||
| 2025 | Excluding | 2025 | 2024 | Excluding | 2024 | |||
| Excluding | exceptional items | 2025 | Total | Excluding | exceptional items | 2024 | Total | |
| exceptional items | £m | Total | £m | exceptional items | £m | Total | £m | |
Profit before tax | 171.9 | 167.4 | 189.8 | 203.9 | ||||
Income tax using the domestic corporation tax rate | 25.0% | 43.0 | 25.0% | 41.9 | 25.0% | 47.5 | 25.0% | 51.0 |
Items not taxable for tax purposes | 1.2% | 2.1 | 1.4% | 2.3 | – | – | (0.9%) | (1.8) |
Non-tax-deductible depreciation | 0.7% | 1.1 | 0.7% | 1.1 | 0.6% | 1.1 | 0.6% | 1.1 |
Adjustment for prior years | (0.1%) | (0.1) | (0.1%) | (0.1) | 0.1% | 0.2 | 0.1% | 0.2 |
Total income tax expense in income statement | 26.8% | 46.1 | 27.0% | 45.2 | 25.7% | 48.8 | 24.8% | 50.5 |
Tax recognised in other comprehensive income or directly in equity
| 2025 | 2025 | 2025 | 2024 | |
| Current tax | Deferred tax | Total | Total | |
| £m | £m | £m | £m | |
| Debit/(credit): | ||||
Relating to equity-settled transactions | – | 0.4 | 0.4 | 0.2 |
Relating to defined benefit pension plans – remeasurement losses | (0.3) | 0.3 | – | (0.9) |
(0.3) | 0.7 | 0.4 | (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 Base Erosion and Profit Shifting Pillar Two income inclusion rule in the UK, which applies
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
there is no ‘top-up’ tax requirement arising from this new regime in respect of 2025.
152
9. Earnings per share
Basic earnings per share
Basic earnings per share for the 52 weeks ended 27 December 2025 is calculated by dividing profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during
the 52 weeks ended 27 December 2025 as calculated below.
Diluted earnings per share
Diluted earnings per share for the 52 weeks ended 27 December 2025 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 27 December 2025 as calculated below.
Profit attributable to ordinary shareholders
| 2025 | 2025 | 2024 | 2024 | |||
| Excluding | Exceptional items | 2025 | Excluding | Exceptional items | 2024 | |
| 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 | 125.8 | (3.6) | 122.2 | 141.0 | 12.4 | 153.4 |
Basic earnings per share | 123.5p | (3.5p) | 120.0p | 138.5p | 12.2p | 150.7p |
Diluted earnings per share | 122.8p | (3.5p) | 119.3p | 137.5p | 12.1p | 149.6p |
Weighted average number of ordinary shares
| 2025 | 2024 | |
| Number | Number | |
Issued ordinary shares at start of year | 102,255,675 | 102,255,675 |
Effect of own shares held | (366,219) | (480,247) |
Weighted average number of ordinary shares during the year | 101,889,456 | 101,775,428 |
Effect of share options in issue | 593,439 | 782,816 |
Weighted average number of ordinary shares (diluted) during the year | 102,482,895 | 102,558,244 |
NOTES TO THE ACCOUNTS CONTINUED
153Greggs plc Annual Report and Accounts 2025
| Assets under | |||
| Software | development | Total | |
| £m | £m | £m | |
| Cost | |||
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 |
Balance at 29 December 2024 | 46.0 | 12.1 | 58.1 |
Additions | 3.4 | 19.4 | 22.8 |
Transfers | 6.6 | (6.6) | – |
Balance at 27 December 2025 | 56.0 | 24.9 | 80.9 |
| Amortisation | |||
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 |
Balance at 29 December 2024 | 33.2 | – | 33.2 |
Amortisation charge for the year | 4.7 | – | 4.7 |
Balance at 27 December 2025 | 37.9 | – | 37.9 |
| Carrying amounts | |||
At 31 December 2023 | 13.0 | 5.3 | 18.3 |
At 28 December 2024 | 12.8 | 12.1 | 24.9 |
At 29 December 2024 | 12.8 | 12.1 | 24.9 |
At 27 December 2025 | 18.1 | 24.9 | 43.0 |
154
| 2025 | 2024 | |
| £m | £m | |
| Right-of-use assets | ||
Land and buildings | 402.1 | 377.3 |
Plant and equipment | 10.9 | 9.9 |
413.0 | 387.2 |
| 2025 | 2024 | |
| £m | £m | |
| Lease liabilities | ||
Current | 62.5 | 53.8 |
Non-current | 387.3 | 361.3 |
449.8 | 415.1 |
| 2025 | 2024 | |
| £m | £m | |
Less than one year | 79.1 | 71.1 |
One to two years | 75.1 | 69.2 |
Two to three years | 66.9 | 61.7 |
Three to four years | 59.2 | 54.2 |
Four to five years | 51.8 | 46.5 |
Five to ten years | 171.0 | 149.6 |
Ten to twenty years | 65.0 | 62.5 |
More than twenty years | 14.2 | 18.2 |
Total undiscounted lease liability | 582.3 | 533.0 |
NOTES TO THE ACCOUNTS CONTINUED
155Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| 2025 | 2024 | |
| £m | £m | |
| Depreciation charge on right-of-use assets | ||
Land and buildings | 61.8 | 56.8 |
Plant and equipment | 3.4 | 2.4 |
65.2 | 59.2 | |
Impairment charge on right-of-use assets – land and buildings | 4.9 | 4.9 |
Impairment release on right-of-use assets – land and buildings | (1.9) | (2.8) |
Interest expense (included in finance expense) | 16.7 | 13.0 |
Expense included for short-term leases (included in cost of sales and administrative expenses) | 0.1 | 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) | 11.8 | 11.4 |
| 2025 | 2024 | |
| £m | £m | |
Opening total liability | 415.1 | 319.6 |
Additions in respect of new leases | 74.8 | 143.8 |
Lease modifications | 20.3 | 8.4 |
Interest on lease liabilities recognised in the income statement | 16.7 | 13.0 |
Interest on lease liabilities capitalised to property, plant and equipment | 2.9 | 0.4 |
Rental payments (including interest paid on lease liabilities within operating activities) | (80.0) | (70.1) |
Closing total liability | 449.8 | 415.1 |
156
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 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 |
Balance at 29 December 2024 | 256.2 | 248.5 | 555.2 | 82.2 | 1,142.1 |
Additions | 2.6 | 22.2 | 118.5 | 121.4 | 264.7 |
Disposals and adjustments | (0.5) | (2.2) | (12.9) | – | (15.6) |
Balance at 27 December 2025 | 258.3 | 268.5 | 660.8 | 203.6 | 1,391.2 |
| Depreciation | |||||
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 |
Balance at 29 December 2024 | 73.4 | 141.3 | 262.7 | – | 477.4 |
Depreciation charge for the year | 9.7 | 23.5 | 57.5 | – | 90.7 |
Impairment charge for the year | – | – | 5.5 | – | 5.5 |
Impairment release for the year | – | – | (1.6) | – | (1.6) |
Disposals and adjustments | (0.4) | (2.2) | (10.3) | – | (12.9) |
Balance at 27 December 2025 | 82.7 | 162.6 | 313.8 | – | 559.1 |
| Carrying amounts | |||||
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 |
At 29 December 2024 | 182.8 | 107.2 | 292.5 | 82.2 | 664.7 |
At 27 December 2025 | 175.6 | 105.9 | 347.0 | 203.6 | 832.1 |
Assets under construction at 27 December 2025 relate to the building of new logistics/manufacturing facilities in Derby and Kettering.
In 2025, disposals and adjustments include the removal of historic balances within both cost and accumulated depreciation for fixtures and fittings following review of the Group and Parent’s fixed asset
register. These adjustments reduce both the cost and accumulated depreciation on disposals by £31.2 million and consequently these adjustments do not impact the net carrying amount of any
asset category.
NOTES TO THE ACCOUNTS CONTINUED
157Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
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 and 136. Any
impairment charge/(reversal) is charged/(credited) to distribution and selling costs in the income statement.
Parent Company
| Plant and | Fixtures and | Assets under | |||
| Land and buildings | equipment | fittings | construction | Total | |
| £m | £m | £m | £m | £m | |
| Cost | |||||
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 |
Balance at 29 December 2024 | 256.7 | 249.0 | 555.7 | 82.2 | 1,143.6 |
Additions | 2.6 | 22.2 | 118.5 | 121.4 | 264.7 |
Disposals and adjustments | (0.5) | (2.2) | (12.9) | – | (15.6) |
Balance at 27 December 2025 | 258.8 | 269.0 | 661.3 | 203.6 | 1,392.7 |
| Depreciation | |||||
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 |
Balance at 29 December 2024 | 73.7 | 141.5 | 263.1 | – | 478.3 |
Depreciation charge for the year | 9.7 | 23.5 | 57.5 | – | 90.7 |
Impairment charge for the year | – | – | 5.5 | – | 5.5 |
Impairment release for the year | – | – | (1.6) | – | (1.6) |
Disposals and adjustments | (0.4) | (2.2) | (10.3) | – | (12.9) |
Balance at 27 December 2025 | 83.0 | 162.8 | 314.2 | – | 560.0 |
| Carrying amounts | |||||
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 |
At 29 December 2024 | 183.0 | 107.5 | 292.6 | 82.2 | 665.3 |
At 27 December 2025 | 175.8 | 106.2 | 347.1 | 203.6 | 832.7 |
158
12. Property, plant and equipment continued
Land and buildings
The carrying amount of land and buildings comprises:
Group | Parent Company | |||
| 2025 | 2024 | 2025 | 2024 | |
| £m | £m | £m | £m | |
Freehold land | 11.6 | 11.6 | 11.6 | 11.6 |
Freehold property | 162.9 | 169.7 | 163.1 | 169.9 |
Long leasehold property | 0.2 | 0.3 | 0.2 | 0.3 |
Short leasehold improvements | 0.9 | 1.2 | 0.9 | 1.2 |
175.6 | 182.8 | 175.8 | 183.0 |
| Shares in | |
| subsidiary | |
| undertakings | |
| £m | |
| Cost | |
Balance at 31 December 2023, 29 December 2024 and 27 December 2025 | 5.8 |
| Impairment | |
Balance at 31 December 2023, 29 December 2024 and 27 December 2025 | 0.8 |
| Carrying amount | |
Balance at 31 December 2023, 28 December 2024, 29 December 2024 and 27 December 2025 | 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 | Non-trading | 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% |
NOTES TO THE ACCOUNTS CONTINUED
159Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Assets | Liabilities | Net | ||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| £m | £m | £m | £m | £m | £m | |
Property, plant and equipment | – | – | (95.5) | (76.7) | (95.5) | (76.7) |
Employee benefits | 0.7 | 3.2 | – | – | 0.7 | 3.2 |
Short-term temporary differences | 1.1 | 0.9 | – | – | 1.1 | 0.9 |
Tax assets/(liabilities) | 1.8 | 4.1 | (95.5) | (76.7) | (93.7) | (72.6) |
| Balance at | Balance at | |||
| 31 December | Recognised in | Recognised in | 28 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) |
| Balance at | Balance at | |||
| 29 December | Recognised in | Recognised in | 27 December | |
| 2024 | income | equity 2025 | ||
| £m | £m | £m | £m | |
Property, plant and equipment | (76.7) | (18.8) | – | (95.5) |
Employee benefits | 3.2 | (1.8) | (0.7) | 0.7 |
Short-term temporary differences | 0.9 | 0.2 | – | 1.1 |
(72.6) | (20.4) | (0.7) | (93.7) |
160
14. Deferred tax assets and liabilities continued
Assets | Liabilities | Net | ||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| £m | £m | £m | £m | £m | £m | |
Property, plant and equipment | – | – | (94.9) | (76.1) | (94.9) | (76.1) |
Employee benefits | 0.7 | 3.2 | – | – | 0.7 | 3.2 |
Short-term temporary differences | 1.1 | 0.9 | – | – | 1.1 | 0.9 |
Tax assets/(liabilities) | 1.8 | 4.1 | (94.9) | (76.1) | (93.1) | (72.0) |
| 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) |
| Balance at | Balance at | |||
| 29 December | Recognised in | Recognised in | 27 December | |
| 2024 | income | equity 2025 | ||
| £m | £m | £m | £m | |
Property, plant and equipment | (76.1) | (18.8) | – | (94.9) |
Employee benefits | 3.2 | (1.8) | (0.7) | 0.7 |
Short-term temporary differences | 0.9 | 0.2 | – | 1.1 |
(72.0) | (20.4) | (0.7) | (93.1) |
NOTES TO THE ACCOUNTS CONTINUED
161Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
15. Inventories
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Raw materials and consumables | 37.3 | 38.6 |
Work in progress | 18.4 | 16.6 |
55.7 | 55.2 |
Inventory recognised as an expense during the year was £670.9 million (2024: £613.2 million). The write-down of inventories that was recognised as an expense in the period was £58.3 million
(2024: £49.3 million). There was no reversal of write-down of inventories in the current or prior year.
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Trade receivables | 42.3 | 35.0 |
Other receivables | 10.5 | 13.8 |
Prepayments | 16.6 | 13.6 |
69.4 | 62.4 |
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Not past due date | 38.7 | 30.6 |
Past due 1-30 days | 3.2 | 3.9 |
Past due 31-90 days | 0.2 | 0.2 |
Past due over 90 days | 0.2 | 0.3 |
42.3 | 35.0 |
162
17. Cash and cash equivalents
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Cash | 70.8 | 59.0 |
Call deposits with an original maturity of three months or less | – | 66.3 |
70.8 | 125.3 |
Group | Parent Company | |||
| 2025 | 2024 | 2025 | 2024 | |
| £m | £m | £m | £m | |
Trade payables – capital | 20.0 | 22.7 | 20.0 | 22.7 |
Trade payables – other | 123.4 | 97.8 | 123.4 | 97.8 |
Amounts owed to subsidiary undertakings | – | – | 7.7 | 7.7 |
Other taxes and social security | 12.5 | 10.3 | 12.5 | 10.3 |
Other payables | 55.0 | 63.0 | 55.0 | 63.0 |
Accruals | 40.0 | 33.5 | 40.0 | 33.5 |
Deferred income | 21.4 | 16.1 | 21.4 | 16.1 |
Deferred government grants | 0.5 | 0.5 | 0.5 | 0.5 |
272.8 | 243.9 | 280.5 | 251.6 |
19. Current tax
The current tax liability of £2.1 million in the Group and the Parent Company (2024: Group and Parent Company £9.1 million) represents the estimated amount of income taxes payable in respect of current
and prior years.
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
| Non-current | ||
Revolving credit facility | 25.0 | – |
Total non-current | 25.0 | – |
Total borrowings | 25.0 | – |
NOTES TO THE ACCOUNTS CONTINUED
163Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
At start of year | – | – |
RCF drawdown | 40.0 | – |
Interest expense | 0.6 | – |
RCF repayments including interest | (15.6) | – |
At end of year | 25.0 | – |
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Deferred government grants | 1.4 | 1.8 |
22. Employee benefits – Pensions
164
22. Employee benefits – Pensions continued
Scheme background continued
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Defined benefit obligation | (78.0) | (80.5) |
Fair value of plan assets | 77.7 | 80.1 |
Net defined benefit pension liability | (0.3) | (0.4) |
NOTES TO THE ACCOUNTS CONTINUED
165Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Opening defined benefit pension obligation | 80.5 | 82.8 |
Interest cost | 4.3 | 3.6 |
| Remeasurement losses/(gains): | ||
– changes in mortality assumptions | – | 1.4 |
– changes in financial assumptions | (1.8) | (8.6) |
– experience | 0.5 | 5.7 |
Benefits paid | (5.5) | (4.4) |
Closing defined benefit pension obligation | 78.0 | 80.5 |
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Opening fair value of plan assets | 80.1 | 95.4 |
Net interest on plan assets | 4.3 | 4.3 |
Remeasurement losses | (1.2) | (19.7) |
Company special contribution | – | 4.5 |
Benefits paid | (5.5) | (4.4) |
Closing fair value of plan assets | 77.7 | 80.1 |
| Group | ||
| 2025 | 2024 | |
| £m | £m | |
Interest income on net defined pension liability | – | 0.7 |
Associated movement in IFRIC 14 adjustment | – | (0.3) |
Net interest income | – | 0.4 |
| Group | ||
| 2025 | 2024 | |
| £m | £m | |
Remeasurement losses on defined benefit pension plans | 0.1 | (18.2) |
Associated movement in IFRIC 14 adjustment | – | 6.3 |
Net remeasurement losses on defined benefit pension plans | 0.1 | (11.9) |
166
22. Employee benefits – Pensions continued
Liability for defined benefit pension obligations continued
| Group and Parent Company | ||
| 2025 | 2024 | |
| £m | £m | |
Bulk annuity policy – UK | 77.3 | 79.3 |
Cash and cash equivalents/other | 0.4 | 0.8 |
77.7 | 80.1 |
| Group and Parent Company | ||
2025 | 2024 | |
Discount rate | 5.55% | 5.50% |
Future salary increases | n/a | n/a |
Future pension increases | 1.80%-2.50% | 1.90%-2.80% |
Rate of price inflation (RPI) | 2.90% | 3.15% |
Rate of price inflation (CPI) | 2.50% | 2.75% |
Change in assumption | Impact on scheme liabilities | |
Discount rate | 0.5% increase | Decrease of £4.0m |
Inflation | 0.5% decrease | Decrease of £2.6m |
Mortality rates | 1-year increase | Increase of £3.1m |
NOTES TO THE ACCOUNTS CONTINUED
167Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| Number of shares | ||||||
Date of grant | Employees entitled | Exercise price | granted | Vesting conditions | Contractual life | |
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 | 10 years |
| those 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 | 10 years |
| 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 | ||||||
Executive Share Option Scheme 23 | November 2020 Senior employees | £17.20 | 121,202 | Three years’ service, EPS performance in FY2022, ROCE performance in | 10 years | |
| FY2022 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 | 10 years |
| FY2023 | ||||||
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 | 10 years |
| FY2023 | ||||||
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 | 10 years |
| 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 | 10 years |
| years and average annual ROCE of 19.6%-22.6% over those three years | ||||||
168
| Number of shares | |||||||
Date of grant | Employees entitled | Exercise price | granted | Vesting conditions | Contractual life | ||
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 | 10 years | |
| years and average annual ROCE of 19.6%-22.6% over those three years | |||||||
Savings-Related Share Option Scheme 24 | May 2023 | All employees | £21.06 | 268,478 | Three years’ service | 3.5 years | |
Performance Share Plan 14 | May 2023 | 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 2023 | 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 2024 | 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 2024 | 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 2024 | All employees | £22.50 | 340,160 | Three years’ service | 3.5 years | |
Performance Share Plan 15a (retained) | December 2024 Senior executive | £nil | 2,000 | One year’s service | 1 year | ||
Performance Share Plan 15b (retained) | December 2024 Senior executive | £nil | 2,000 | Two years’ service | 2 years | ||
Performance Share Plan 16 | March 2025 | Senior executives | £nil | 184,511 | Three years’ service, EPS average annual growth of 2%-5% over those three | 10 years | |
| years, average annual ROCE of 16.1%-18.5% over those three years and a CO | |||||||
| 2 | |||||||
| emissions target | |||||||
Executive Share Option Scheme 28 | March 2025 | Senior employees | £18.12 | 183,130 | Three years’ service, EPS average annual growth of 2%-5% over those three | 10 years | |
| years, average annual ROCE of 16.1%-18.5% over those three years and a CO | |||||||
| 2 | |||||||
| emissions target | |||||||
Savings-Related Share Option Scheme 26 | May 2025 | All employees | £14.30 | 517,172 | Three years’ service | 3.5 years | |
Performance Share Plan 16a (retained) | January 2025 | Senior executive | £nil | 3,000 | Three year’s service | 3 years | |
Performance Share Plan 16b (retained) | February 2025 | Senior executive | £nil | 1,500 | One year’s service | 1 year | |
Performance Share Plan 16c (retained) | February 2025 | Senior executive | £nil | 1,500 | Two years’ service | 2 years | |
NOTES TO THE ACCOUNTS CONTINUED
23. Share-based payments – Group and Parent Company continued
169Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
2025 | 2024 | |||
| Weighted average | Weighted average | |||
exercise price | Number of options | exercise price | Number of options | |
Outstanding at the beginning of the year | £17.70 | 1,716,618 | £14.60 | 1,680,816 |
Forfeited during the year | £18.29 | (388,038) | £24.77 | (55,906) |
Exercised during the year | £12.08 | (135,887) | £9.04 | (516,902) |
Granted during the year | £12.03 | 890,813 | £19.56 | 608,610 |
Outstanding at the end of the year | £15.53 | 2,083,506 | £17.70 | 1,716,618 |
Exercisable at the end of the year | £17.05 | 271,067 | £17.53 | 206,449 |
2025 | 2024 | ||||||||||
| Savings-Related | Performance | Performance | Performance | Savings-Related | Performance | Performance | |||||
| Performance | Executive Share | Share Option | Share Plan 16a | Share Plan | Share Plan | Performance | Executive Share | Share Option | Share Plan | Share Plan | |
| Share Plan 16 | Option Scheme 28 | Scheme 26 | (retained) | 16b (retained) | 16c (retained) | Share Plan 15 | Option Scheme 27 | Scheme 25 | 15a (retained) | 15b (retained) | |
| March 2025 | March 2025 | May 2025 | January 2025 | February 2025 | February 2025 | March 2024 | March 2024 | May 2024 | December 2024 | December 2024 | |
Fair value at grant date | £16.18 | £3.48 | £5.28 | £25.87 | £20.42 | £19.76 | £26.49 | £6.12 | £8.65 | £27.19 | £26.59 |
Share price | £18.14 | £18.14 | £18.57 | £27.86 | £21.10 | £21.10 | £28.29 | £28.29 | £28.12 | £27.80 | £27.80 |
Exercise price | £nil | £18.14 | £14.30 | £nil | £nil | £nil | £nil | £28.29 | £22.50 | £nil | £nil |
Expected volatility | 30.94% | 30.94% | 30.85% | 28.69% | 30.96% | 30.96% | 30.52% | 30.52% | 29.99% | 28.66% | 28.66% |
Option life | 3 years | 3 years | 3 years | 3 years | 1 year | 2 years | 3 years | 3 years | 3 years | 1 year | 2 years |
Expected dividend yield | 3.80% | 3.80% | 3.72% | 2.48% | 3.27% | 3.27% | 2.19% | 2.19% | 2.20% | 2.23% | 2.23% |
Risk-free rate | 4.14% | 4.14% | 3.68% | 4.23% | 4.00% | 4.05% | 4.07% | 4.07% | 4.47% | 4.32% | 4.26% |
170
23. Share-based payments – Group and Parent Company continued
| 2025 | 2024 | |
| £m | £m | |
Share options granted in 2021 | – | 0.4 |
Share options granted in 2022 | 0.3 | 1.2 |
Share options granted in 2023 | (0.1) | 1.7 |
Share options granted in 2024 | 0.4 | 1.2 |
Share options granted in 2025 | 0.9 | – |
1.5 | 4.5 | |
Social security contributions | (0.4) | 0.4 |
Total expense recognised as employee costs | 1.1 | 4.9 |
| 2025 | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | 2024 | |
| Dilapidations | National Insurance | Other | Total | Dilapidations | National Insurance | Redundancy | Other | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Balance at start of the year | 5.1 | 0.9 | 0.3 | 6.3 | 4.1 | 1.3 | 0.1 | 0.7 | 6.2 |
| Additional provision in the year | |||||||||
– Ordinary provisions | 2.7 | 0.1 | 2.3 | 5.1 | 2.8 | 0.5 | – | 0.1 | 3.4 |
– Exceptional provisions | – | – | 4.5 | 4.5 | – | – | – | – | – |
Utilised in the year | (1.1) | (0.2) | (0.1) | (1.4) | (1.0) | (0.9) | – | (0.2) | (2.1) |
| Provisions reversed during the year | |||||||||
– Ordinary provisions | (0.3) | (0.5) | – | (0.8) | (0.6) | – | – | (0.3) | (0.9) |
– Exceptional provisions (Note 4) | – | – | – | – | (0.2) | – | (0.1) | – | (0.3) |
Balance at end of the year | 6.4 | 0.3 | 7.0 | 13.7 | 5.1 | 0.9 | – | 0.3 | 6.3 |
Included in current liabilities | 3.1 | 0.2 | 7.0 | 10.3 | 2.7 | 0.6 | – | 0.1 | 3.4 |
Included in non-current liabilities | 3.3 | 0.1 | – | 3.4 | 2.4 | 0.3 | – | 0.2 | 2.9 |
6.4 | 0.3 | 7.0 | 13.7 | 5.1 | 0.9 | – | 0.3 | 6.3 |
Ordinary | 6.4 | 0.3 | 2.5 | 9.2 | 5.1 | 0.9 | – | 0.3 | 6.3 |
Exceptional | – | – | 4.5 | 4.5 | – | – | – | – | – |
6.4 | 0.3 | 7.0 | 13.7 | 5.1 | 0.9 | – | 0.3 | 6.3 |
NOTES TO THE ACCOUNTS CONTINUED
171Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
| Ordinary shares | ||
| 2025 | 2024 | |
| Number | Number | |
In issue and fully paid at start of year – ordinary shares of 2p | 102,255,675 | 102,255,675 |
172
25. Capital and reserves continued
| 2025 | 2024 | |
| Per share | Per share | |
| pence | pence | |
2023 final dividend | – | 46.0p |
2023 special dividend | – | 40.0p |
2024 interim dividend | – | 19.0p |
2024 final dividend | 50.0p | – |
2025 interim dividend | 19.0p | – |
69.0p | 105.0p |
| 2025 | 2024 | |
| £m | £m | |
2023 final dividend | – | 46.8 |
2023 special dividend | – | 40.7 |
2024 interim dividend | – | 19.3 |
2024 final dividend | 50.9 | – |
2025 interim dividend | 19.4 | – |
70.3 | 106.8 |
NOTES TO THE ACCOUNTS CONTINUED
173Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Amounts owed to related parties | Amounts owed by related parties | |||
| 2025 | 2024 | 2025 | 2024 | |
| £m | £m | £m | £m | |
Dormant subsidiaries | 7.7 | 7.7 | – | – |
174
2016 2017 2018 2019
2,3
2020
1
2021
1
2022 2023 2024 2025
Turnover (£m) 894.2 960.0 1,029.3 1,167.9 811.3 1,229.7 1,512.8 1,809.6 2,014.4 2,151.2
Total sales growth/(decline) (%) 7.0% 7.4% 7.2% 13.5% (30.5%) 51.6% 23.0% 19.6% 11.3% 6.8%
Company-managed shop like-for-like sales growth/(decline) (%) 4.2% 3.7% 2.9% 9.2% (36.2%) 52.4% 17.8% 13.7% 5.5% 2.4%
Operating profit/(loss) excluding exceptional items (£m) 80.3 82.2 89.8 114.8 (7.0) 153.2 154.4 171.7 195.3 187.5
Profit/(loss) before tax excluding exceptional items (£m) 80.3 81.8 89.8 114.2 (12.9) 145.6 148.3 167.7 189.8 171.9
Profit/(loss) before tax margin excluding exceptional items (%) 9.0% 8.5% 8.7% 9.8% (1.59%) 11.8% 9.8% 9.3% 9.4% 8.0%
Pre-tax exceptional (charge)/gain (£m) (5.2) (9.9) (7.2) (5.9) (0.8) – – 20.6 14.1 (4.5)
Profit/(loss) on ordinary activities including exceptional items and before tax (£m) 75.1 71.9 82.6 108.3 (13.7) 145.6 148.3 188.3 203.9 167.4
Diluted earnings/(loss) per share excluding exceptional items (pence) 60.8 63.5 70.3 89.7 (12.9) 114.3 117.5 123.8 137.5 122.8
Ordinary dividend per share declared (pence) 31.0 32.3 35.7 11.9 – 57.0 59.0 62.0 69.0 69.0
Special dividend per share declared (pence) – – – 35.0 – 40.0 – 40.0 – –
Total shareholder return (%) (23.8%) 47.5% (7.4%) 84.7% (22.0%) 87.3% (26.8%) 13.5% 10.6% (36.8%)
Capital expenditure (£m) 80.4 70.4 73.0 86.0 58.7 57.4 110.8 199.8 249.0 287.5
Return on capital employed (excluding exceptional items) (%) 28.1% 26.9% 27.4% 20.0% (2.4%) 23.0% 21.0% 21.1% 20.3% 16.0%
Number of shops in operation at year end 1,764 1,854 1,953 2,050 2,078 2,181 2,328 2,473 2,618 2,739
1 2020 was a 53-week year, 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.
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 175 to 177.
TEN-YEAR HISTORY
175Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Calculation of alternative performance measures
In monitoring and assessing the Group’s performance, the Directors use a number of Alternative Performance Measures (APMs) which are not defined by IFRS. These measures provide additional insight
into the underlying performance of the business by excluding items that are material and / or unusual in nature or non-recurring, and which could otherwise distort period-on-period comparisons.
APMs should be considered alongside the IFRS measures and may not be directly comparable with those used by other companies.
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:
2025
£m
2024
£m
Current year like-for-like sales 1,679.0 1,564.0
Prior year like-for-like sales 1,639.7 1,483.1
Growth in like-for-like sales 39.3 80.9
Like-for-like sales growth percentage 2.4% 5.5%
Like-for-like sales can be reconciled to total revenue as follows:
2025
£m
2024
£m
Like-for-like sales in company-managed shops 1,679.0 1,564.0
Non-like-for-like sales in company-managed shops 218.2 217.7
Total revenue in retail company-managed shops 1,897.2 1,781.7
Business to business sales 254.0 232.7
Total revenue 2,151.2 2,014.4
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:
2025
£m
2024
£m
Current year franchise like-for-like sales 325.6 280.1
Prior year franchise like-for-like sales 312.2 260.8
Growth in franchise like-for-like sales 13.4 19.3
Franchise like-for-like sales growth percentage 4.3% 7.4%
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.
ALTERNATIVE PERFORMANCE MEASURES
176
ALTERNATIVE PERFORMANCE MEASURES CONTINUED
Calculation of alternative performance measures continued
Return on capital employed – calculated by dividing profit before tax by the average total assets less current liabilities for the year.
2025
Underlying
£m
2025
Including
exceptional items
(see Note 4)
£m
2024
Underlying
£m
2024
Including
exceptional items
(see Note 4)
£m
Profit before tax 171.9 167.4 189.8 203.9
Capital employed:
Opening 1,009.5 1,009.5 857.2 857.2
Closing 1,136.3 1,136.3 1,009.5 1,009.5
Average 1,072.9 1,072.9 933.4 933.4
Return on capital employed 16.0% 15.6% 20.3% 21.8%
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.
2025
£m
2024
Restated
£m
Net cash inflow from operating activities 337.0 318.6
Repayment of principal of lease liabilities (63.3) (56.7)
Net cash inflow from operating activities after lease payments 273.7 261.9
The 2024 net cash inflow from operating activities has been restated as explained on page 132.
Diluted operating cash inflow per share – calculated as net cash inflow from operating activities after lease payments (see above) divided by the diluted weighted average number of ordinary shares during
the year.
2025 2024
Net cash inflow from operating activities after lease payments £273.7m £261.9m
Weighted average number of ordinary shares (diluted) during the year 102,482,895 102,558,244
Diluted operating cash inflow per share 267.1p 255.4p
177Greggs plc Annual Report and Accounts 2025
ACCOUNTSDIRECTORS’ REPORTSTRATEGIC REPORT
Net cash and cash equivalents – calculated by deducting borrowings from cash and cash equivalents.
2025
£m
2024
£m
Cash and cash equivalents 70.8 125.3
Borrowings (25.0) –
Net cash and cash equivalents 45.8 125.3
Liquidity – calculated by adding cash and cash equivalents to the undrawn amount of the RCF facility.
2025
£m
2024
£m
Cash and cash equivalents 70.8 125.3
Undrawn RCF 75.0 100.0
Total liquidity 145.8 225.3
178
SECRETARY AND ADVISERS
Secretary
Sarah Dickson
Registered Office
Greggs House
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
CBP035313
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Greggs plc Annual Report and Accounts 2025