Guzman y Gomez (GYG) H1 2025 earnings summary

Executive summary

• Achieved strong sales and operating performance in H1 FY25, with network sales up 22.8% year-over-year to $577.9M and revenue up 28.3% to $212.4M.

• Opened 16 new restaurants in Australia, with a robust pipeline of 103 sites and 32 board-approved for future openings.

• Australia segment delivered 9.4% comp sales growth and 23.2% network sales growth, with franchisee ROI at 50% and franchise AUV at $5.4M.

• Strong sales momentum driven by delivery channels, impactful marketing campaigns, and value menu items.

• Strong cash position with $274.5M in cash and term deposits, no debt, and robust cash conversion of 109%.

Financial highlights

• Network sales grew 22.8% to $577.9M and revenue increased 28.3% to $212.4M compared to the prior period.

• Net Profit After Tax rose 91% to $7.3M year-over-year, reversing a $4.0M loss in H1 FY24.

• Segment underlying EBITDA increased 34% to $26.8M; profit before tax grew 51%.

• Corporate restaurant sales up 29%, franchise and other revenue up 30%.

• Basic EPS of 7.2 cents, compared to a loss of 4.7 cents per share in H1 FY24.

Outlook and guidance

• Expects to exceed FY25 NPAT prospectus forecast, supported by 31 new Australia restaurant openings and margin expansion.

• Corporate restaurant margins expected at approximately 17.8% for the full year.

• Franchise royalty rate expected at 8.3%, G&A cost as a percentage of network sales at 6.7%.

• First seven weeks of H2 FY25 saw 12.2% comp sales growth in Australia, exceeding expectations.

• Strategic priorities include continued rollout in Australia and US, digital growth, and international expansion.