AUSTRALIA’S Guzman y Gomez reported a surge in full-year profit, outperforming its prospectus forecast after the Mexican-themed fast-food chain’s bumper June debut.
The Sydney-based company reported pro forma net profit after tax of A$5.7 million (S$5 million) for the 12 months ended Jun 30, 71 per cent ahead of its prospectus target and up 94 per cent on the prior year, it said on Tuesday (Aug 27). Global network sales jumped 26 per cent to A$959.7 million, driven by comparable restaurant sales and network expansion.
“Strong sales growth and ongoing margin expansion resulted in significant growth in earnings, exceeding prospectus forecasts,” co-chief executive officer Steven Marks said.
The company’s stock has climbed more than 60 per cent since its Jun 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 since 2021, according to data compiled by Bloomberg.
On a statutory basis, the company widened its net loss to A$13.7 million from A$2.3 million a year ago.
Same-store sales growth in the first seven weeks of the current financial year topped expectations at 7.4 per cent, partly on demand for healthy food options and value menu items, the company said. BLOOMBERG
