Strong H1 performance with PBT marginally ahead of expectations Greggs reported H1 results this morning with Group revenues of £960m (+13.7% yoy) driven by LFL revenue growth of 7.4% (GBY +7%) and 51 net new store openings during the period. Underlying PBT came in at £74.1m (+16.3% yoy, GBY £73.3m) as the strong top-line momentum was supported by 60bps gross margin improvement as the Group better recovered cost inflation in the period. This is c.1% ahead of our estimate and c.2.5% ahead of consensus. Momentum set to continue; FY expectations unchanged Looking forward, the Group’s cost outlook is unchanged (+4-5% yoy) and its expectations for the FY are unchanged. In terms of estate rollout, it remains confident in delivering 140-160 net new stores in the period. With regards to supply chain development, it remains on track for the redevelopment of two new distributions to come on stream in H2’24 and has announced this morning that it has exchanged contracts for a new 25-acre plot in Kettering where it will build a new National Distribution to come onstream in H1’27. VA consensus is looking for FY24 Group revenues of £2,020m (+11.6% yoy), adj PBT of £187.9m (+12% yoy) and Group adj. EPS of £1.36 (+9.8% yoy). Our current FY24 estimates are for Group revenues of £2,030m, PBT of £190.9m and Group EPS of £1.38. Goodbody view Greggs shares are +15% leaving it trading on a cal.25 P/E of 19x and EV/EBITDA of 8.7x. While this is relatively full on a near-term basis, we continue to see significant growth potential over the mid-term with several key drivers, as evidenced by today’s update. This underpins our continued positive stance on the stock. Following today’s update, we are unlikely to move our estimates though would not be surprised to see consensus nudge higher.