Mexican fast-food chain Guzman Y Gomez smashes annual profit forecast
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The company reported pro forma net profit after tax of A$5.7 million, 71 per cent ahead of its prospectus target.
PHOTO: REUTERS
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Sydney - Mexican fast-food chain Guzman Y Gomez smashed annual underlying profit expectations on Aug 27, bolstered by strong restaurant sales and network expansion across Australia, but kept its forecast unchanged for fiscal 2025.
In its first earnings report since going public in June, the company reported pro forma net profit after tax of A$5.7 million (S$5 million) for the year ended June 30, 71 per cent ahead of its prospectus target and up 94 per cent on the prior year.
“Strong sales growth and ongoing margin expansion resulted in significant growth in earnings, exceeding prospectus forecasts,” co-chief executive officer Steven Marks said in a statement.
The restaurant chain maintained its prospectus forecast of A$6 million underlying profit for fiscal 2025, marginally above the prior fiscal and below a Visible Alpha consensus of A$8.4 million.
The company’s stock has climbed more than 60 per cent since its June 20 listing in Sydney. Shares were sold at A$22 apiece in an initial public offering (IPO) and rocketed 36 per cent on the first day of trading, posting the biggest gain for an Australian IPO debut larger than US$100 million (S$130 million) since 2021, according to data compiled by Bloomberg.
Guzman Y Gomez has 220 outlets in total and most of them are in Australia. It recorded global network sales of A$959.7 million in fiscal 2024, a more than 26 per cent growth from the prior year.
In the first seven weeks of the current fiscal year, like-for-like sales in Australia were above its expectations at 7.4 per cent on strong home deliveries and demand for cheaper food options. BLOOMBERG, REUTERS
