Since its initial public offering (IPO) in June, Guzman Y Gomez Ltd (ASX: GYG), the Mexican fast-food chain, has attracted significant attention from investors. With the fiscal year 2024 (FY24) earnings report on the horizon, potential investors are assessing whether to engage with the company's shares before the financial results are released. Here’s a look at what is expected from Guzman Y Gomez and the factors that could influence its share price.
Guzman Y Gomez, a consumer sector stock, has set expectations for its FY24 performance, providing insight into its anticipated financial results. The company forecasts revenue to reach approximately $339.7 million, marking a 31% increase compared to the previous year. However, while revenue is expected to grow, other key financial metrics are anticipated to show a decline.
The company projects a 14% decrease in statutory earnings before interest, tax, depreciation, and amortisation (EBITDA), with a forecast of $25.4 million. Statutory earnings before interest and tax (EBIT) are expected to fall from $9.7 million to a $5.6 million loss, and the statutory net loss is projected to decrease to $16.2 million, down $13.9 million from the previous year.
In addition to the statutory numbers, Guzman Y Gomez has provided pro forma figures, which adjust for one-off costs such as IPO expenses. According to these figures, pro forma EBITDA is anticipated to reach $43 million, representing a 46.75% increase. Pro forma EBIT is expected to grow significantly by 224% to $12 million, while net profit after tax (NPAT) is projected to rise by 13.3% to $3.4 million.
Growth in Restaurant Network and International Sales
The company also expects growth in its restaurant network and international operations. By the end of FY24, Guzman Y Gomez aims to operate 195 restaurants in Australia, a 14% increase year-over-year.
In terms of international markets, Singapore’s network sales are projected to grow by 9.3% to $47 million, while Japan’s network sales are expected to rise by 14.3% to $8 million. These international markets are managed by master franchisees, contributing to the company’s global expansion.
Market Reaction and Investment Considerations
The market’s reaction to Guzman Y Gomez’s upcoming financial results will likely be influenced by whether the reported numbers align with or surpass the anticipated figures. Stronger-than-expected results could drive an increase in the share price, whereas results below expectations might lead to declines, even if the company is showing growth.
As the company prepares to release its earnings report, investors will be keenly observing these key financial metrics and growth projections. Understanding these elements can provide insight into the company’s performance and potential market movements.