Guzman y Gomez (GYG) H1 2025 earnings summary

Executive summary

• Network sales rose 22.8% year-over-year to $577.9 million for 1H25, surpassing AUD 1 billion in global network sales over the past 12 months, driven by strong demand and operational execution.

• EBITDA increased 28.3% to $31.6 million, with net profit after tax up 91.2% to $7.3 million, reversing a $4.0 million loss in H1 FY24.

• Opened 19 new restaurants globally (16 in Australia), expanding to 239 globally, with a robust pipeline of 103 sites and 32 board-approved for future openings.

• Australia led growth with $573 million in sales, 9.4% comp sales growth, and strong performance in breakfast and digital channels.

• Franchisees achieved a median ROI of 50%, with franchise AUV at $5.4 million and franchise restaurant margin at 20.2%.

Financial highlights

• Revenue increased 27.0% year-over-year to $212.4 million; corporate restaurant sales in Australia grew 29.3% to $179.3 million.

• Segment Underlying EBITDA in Australia up 37.3% to $31.8 million; corporate restaurant margin in Australia improved to 18.0%.

• Net Profit After Tax rose 91.2% to $7.3 million year-over-year; PBT rose 51.4% to $15.2 million.

• Operating cash flow of $19.2 million; adjusted cash conversion improved to 109%.

• Net assets/shareholders' equity increased to $367.6 million; net cash and term deposits at $274.5 million, no debt.

Outlook and guidance

• Expects to exceed FY25 NPAT prospectus forecast, driven by strong comp sales growth and margin expansion.

• Plans for 31 new restaurant openings in Australia in FY25 (18 franchise, 13 corporate), with corporate restaurant margins expected at ~17.8%.

• Australia segment comp sales growth above expectations at 12.2% in first 7 weeks of 2H25.

• Franchise royalty rate guided at 8.3%; G&A costs to network sales ratio at 6.7%.

• Strategic priorities include continued rollout, margin improvement, digital growth, and international expansion.