Guzman y Gomez Profit Rises 30% on Strong Australian Sales
Synopsis
Guzman y Gomez posted a strong annual result, with underlying profit rising to A$53.4 million from A$41.2 million a year earlier. Network sales in Australia, Singapore and Japan also increased 17.9% to A$1.4 billion.
Key Highlights
- Guzman y Gomez’s underlying profit, excluding one-off items, grew by around 30% to A$53.4 million.
- Total network sales across Australia, Singapore and Japan increased 17.9% to A$1.4 billion.
- Comparable sales in the segment rose 5.3%.
- The company declared a final dividend of 40.6 Australian cents per share, including a 14.4-cent special dividend.
Profit Rises on Stronger Sales
Mexican fast food chain Guzman y Gomez reported a nearly 30% rise in annual underlying profit, supported by strong sales across its Australian business. For the year ending in June 30, the underlined profit after tax increased to AU$53.4 from AU$41.2 million a year earlier.
Australia Business Drives Growth
Network sales in the Australia segment, which also includes Singapore and Japan, rose 17.9% to A$1.4 billion. The segment has become GYG’s main growth driver since the company exited the US market in May following weak sales.
Comparable sales in the segment rose 5.3%, broadly in line with the 5.24% forecast from Visible Alpha. However, growth was slower than the 9.6% increase recorded a year earlier. Citi said the performance of GYG’s Australian business was encouraging, with sales growth driven by more customers and transactions rather than higher prices.
US Exit Leads to Overall Loss
Despite the stronger underlying result, GYG recorded a statutory loss after tax of A$26.7 million, compared with a profit of A$14.5 million a year earlier. The company said the loss was mainly caused by a A$67.3 million hit from its discontinued US operations.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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