Daily Roundup

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Guzman Y Gomez Delivers Strong Q3 Performance, Announces Dividend Policy

Guzman Y Gomez Limited (GYG) reported impressive results for the third quarter of fiscal year 2025, with global network sales increasing and demonstrating strong guest demand for the company's fresh, high-quality food offerings. The fast-casual restaurant chain opened three new locations in Australia and two in the US during the period, further expanding its footprint.

Comparable sales growth in the Australia segment continued across all channels, dayparts, formats, and ownership types. The company also saw an acceleration of sales growth in breakfast and late-night trading. In the US, network sales increased, largely driven by the new restaurant openings.

Alongside the solid operational performance, GYG announced the implementation of a new dividend policy, supported by the company's strong balance sheet and cash flow generation. The Board of Directors intends to apply the policy following the finalization of the FY25 results, with the maiden dividend expected to be payable in September 2025.

Looking ahead, GYG reaffirmed its guidance for the Australia segment in FY25, including plans for 31 new restaurant openings and continued strong corporate margins and franchise royalty rates. The company expects to exceed its FY25 net profit after tax (NPAT) forecast.

Close the Loop Sees Tariff Tailwinds

Close the Loop Limited (CLG), a leader in the circular economy, has identified several favorable impacts from the new tariffs imposed by the US government and other countries. The company noted that its refurbished products and components from the USA used in its Mexico facility are exempt from tariffs under the T-MEC Trade Agreement.

Additionally, Close the Loop expects the increased demand for less expensive recycled products to strongly outweigh any negative impact of tariffs paid on imported materials used in its US-based refurbishment operations. The company is reviewing the total cost of goods brought into the USA but remains broadly positive about the outlook.

Cochlear Unaffected by US Tariffs

Cochlear Limited (COH) has confirmed that it can continue to rely on duty-free importation of its hearing implants into the US, despite the introduction of a 10% tariff on exports from Australia. The company will closely monitor the evolving global landscape but remains committed to ensuring access to its life-changing hearing solutions worldwide.

Zip Co Launches $50 Million Share Buyback

Zip Co Limited (ZIP) has announced an on-market share buyback program of up to $50 million, reflecting the strength of its balance sheet and outlook for future profitable growth. The buyback is expected to commence on or about 23 April 2025 and will run for up to 12 months.

Zip CEO Cynthia Scott stated that the buyback program is consistent with the company's capital management framework, designed to maximize shareholder returns while preserving balance sheet strength and maintaining flexibility to pursue strategic growth opportunities.

xReality Group Secures New $6 Million Debt Facility

xReality Group Ltd (XRG) has entered into a new $6 million debt facility with Causeway Asset Management. The facility includes an initial $5 million drawdown to repay an existing loan, with an additional $1 million available for working capital. The transaction will reduce the company's overall debt by 48% and establish a stable debt position with improved gearing.