British bakery giant Greggs revealed this morning that it surged back into the black last year as Covid-19 restrictions eased.
Profitability in 2021 was even better than the level achieved in 2019 before the pandemic struck.
Greggs' results for last year show pre-tax profits hit £145.6million, compared to losses of £13.7million in 2020 and profits of £108.3million in 2019.
Chief executive Roger Whiteside said: "We began 2021 with the country in lockdown, but with safe operating practices in place we were able to continue trading, albeit with restricted customer footfall in many areas.
"We faced the first of many unpredictable disruptions when new regulations in Scotland left us with no option but to close our shops there as we developed new solutions to protect our colleagues, who were required to serve from our doorways.
"Our Scottish teams worked tirelessly to redesign our operating procedures so that we could open again.
"Thankfully, conditions eased in the spring as first non-essential retail, and subsequently the seated hospitality sector, were allowed to open their doors again."
The CEO said Greggs' results and achievements in 2021 showed that it had emerged from the pandemic both stronger and better as a business.
He added: "We have started 2022 well, helped by the easing of restrictions. Cost pressures are currently more significant than our initial expectations and, as ever, we will work to mitigate the impact of this on customers.
"However, given this dynamic, we do not currently expect material profit progression in the year ahead.
"Despite these near-term pressures, we continue to believe that the opportunities for Greggs have never been more exciting.
"Our investment over recent years has left the business well-placed to move quickly as the economy recovers and we drive our ambitious plans to become a larger, multi-channel business."
Greggs had 2,181 shops trading at the beginning of this year.
It is targeting 150 net new shop openings annually, with the potential for at least 3,000 shops in the UK over time.
The firm also plans to extend late opening to 500 shops in the year ahead.
FTSE 100
Meanwhile, the UK's top share index, the FTSE 100, endured another roller coaster ride yesterday, plunging by 200 points to 6,787 before recovering most of its losses to end the session down just 27 points at 6,959.
The index was down 55 points at 6,903 first thing today.
Companies reporting today
- Full-year results: Capricorn Energy, Direct Line, Domino's Pizza Group, Fresnillo, Greggs, IWG, M&G
- Q3 results: Ashtead Group