GYG –13.94%: Hit hard today on a softer 1H result – while headline profit and revenue grew, the market focused on slowing sales momentum.
- Revenue $261.2 million, +23% y/y
- Net income $10.6 million, +45% y/y
- Network sales $681.8 million, +18% y/y
- Interim dividend per share $0.074
Australian comparable sales came in at +4.4%, a clear deceleration from the +9.4% a year ago, suggesting the pace of like-for-like growth is normalising as the franchise network scales.
The decision to continue returning capital this early in the growth cycle is also puzzling. We’d typically expect every spare dollar to be directed toward new stores, brand investment and offshore expansion rather than dividends and buybacks.
MM remains neutral towards GYG
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