AUS
NZ
UK
CA
USA
IND
Highlights
- Strong Profit Growth: Net profit after tax (NPAT) surged by 91.2% in HY25.
- Expanding Global Presence: Total restaurant count reached 239 locations across four countries.
- US Market Challenges: Network sales in the US dropped 12.7%, impacting overall performance.
Guzman Y Gomez (ASX:GYG) has reported impressive financial growth in its first-half results for FY25, showcasing strong expansion in Australia and other international markets. However, while domestic success continues, the US market remains a challenge for the company.
HY25 Performance Overview
For the six months ending December 31, 2024, Guzman Y Gomez reported a 22.8% increase in network sales, reaching $577.9 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) climbed 28.3% to $31.6 million, while profit before tax jumped 51.4% to $15.2 million. Most notably, NPAT soared by 91.2% to $7.3 million, reflecting the company’s strong operational efficiencies and revenue growth.
At the end of the period, the company had 210 locations in Australia, 20 in Singapore, five in Japan, and four in the US.
In terms of regional performance, Australian network sales grew 22.7% to $538.2 million, Singapore saw a 35.7% increase to $30.2 million, and Japan’s revenue improved by 8.6% to $4.6 million. Comparable sales growth across these markets was reported at 9.4%.
Key Growth Strategies
Several factors contributed to this robust growth. The company has expanded 24/7 trading hours to 11 restaurants, enhanced its menu offerings, and leveraged strong marketing campaigns. Additionally, a growing focus on digital sales and delivery has helped boost revenue.
In the Australian franchise network, the median return on investment (ROI) for franchisees reached 50%, further demonstrating the brand's strong performance in its primary market.
Challenges in the US Market
While international markets, particularly Australia and Singapore, continue to perform well, the US operations faced difficulties. Network sales in the US declined 12.7% to $4.9 million, while the corporate restaurant margin worsened from 9% to -40.8%. This led to a 62% increase in the US segment’s underlying EBITDA loss, reaching $5 million.
Despite these challenges, the company remains focused on building brand awareness and improving guest experiences in the US market.
Future Outlook
Looking ahead, Guzman Y Gomez expects to exceed its FY25 net profit forecast, supported by a corporate restaurant margin of around 17.8% and a franchise royalty rate of 8.3%.
In the first seven weeks of the second half of FY25, non-US comparable sales growth was 12.2%, exceeding expectations. The company plans to continue its expansion across Australia and the US, grow digital sales, and drive international growth in Singapore and Japan.
With a strong foundation in place, Guzman Y Gomez (GYG) is positioning itself for long-term success, balancing rapid expansion with the challenges of entering new markets.
