Guzman y Gomez (ASX:GYG) posts $13.7M FY24 statutory loss amid sales growth

Newly-listed Guzman y Gomez recorded a statutory loss after income tax expense of $13.7 million for FY24.

The Mexican-themed restaurant chain's pro forma net profit after tax reached $5.7 million, marking a 94.1% increase from the previous year and exceeding prospectus forecasts by 71.2%.

Guzman y Gomez's global network sales grew to $959.7 million, representing a 26.4% increase from FY23.

Company revenue also saw a rise of 32.1% year-over-year, totalling $342.2 million.

The number of operating restaurants grew to 220 worldwide, including expansions in Australia, Singapore, Japan, and the United States.

"GYG delivered network sales growth of 26% for the year, ahead of prospectus forecasts. This result was underpinned by strong comparable sales growth and the continued delivery of restaurant network expansion across Australia," said Steven Marks, GYG founder and co-CEO.

He added, "We could not have achieved these results without the relentless efforts of our franchisees and crew, who have continued to deliver clean, fresh, made-to-order, Mexican-inspired food to guests at high speeds."

The company ended the fiscal year with a robust balance sheet, including net cash and term deposits amounting to $294.5 million and no debt.

However, lease liabilities increased to $239.5 million due to network expansion.

The board has decided not to declare a dividend for FY24, concentrating instead on growth and long-term shareholder value.

Looking ahead, GYG remains focused on its expansion goals, promising the opening of 31 new restaurants in FY25 and maintaining strong market performance.

The company plans to release its sales performance and network growth on a quarterly basis, starting in early October with results from the September quarter.