Guzman Y Gomez posts sales jump as losses increase
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The news: IPO hopeful Guzman Y Gomez reported a jump in sales during the half to December 2023, but more than tripled its net loss compared to a year earlier.
The numbers: Group network sales reached $471 million in the six months to December, up 31% year on year. Australian sales rose 31% which contributed $439 million to the total. Underlying group EBITDA increased 64% to $21.2 million.
However, the fast food chain extended its statutory net loss after tax from $1.1 million to $3.9 million compared to the prior corresponding period. One-off income and expenses totalled $4.6 million, up from $1.1 million.
GYG said it opened 13 new restaurants in Australia during the period, and closed one. It has plans to open between 30 and 40 restaurants per year in Australia over the long term.
The context: The Mexican fast-food business, that operates restaurants in Japan, Singapore and the US as well as Australia, said its net cash position decreased after a settlement was paid following a lawsuit sought by former US executives. The settlement included a share buyback of $15.9 million and a $1.9 million pay out to six complainants.
The company said it plans to grow earnings in FY24 through continued restaurant openings in Australia, increased app sales, targeted marketing and improved corporate restaurant margins.
The earnings reports did not provide an update on GYG's planned IPO.
The source: GYG media release
