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 ($5.03 million) for the 12 months ended June 30, 71% ahead of its prospectus target and up 94% on the prior year, it said in a statement on Tuesday. Global network sales jumped 26% 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-CEO Steven Marks said in a statement.
The company’s stock has climbed more than 60% since its June 20 listing in Sydney. Shares were sold at A$22 apiece in an initial public offering and rocketed 36% on the first day of trading, posting the biggest gain for an Australian IPO debut larger than U$100 million ($130.41 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.
See also: Guzman y Gomez posts best big Australia IPO debut since 2021
Same-store sales growth in the first seven weeks of the current financial year topped expectations at 7.4%, partly on demand for healthy food options and value menu items, the company said.
Chart: Bloomberg
