Tortilla HY revenues fall to £31.5m
The group also reported early signs of progress against its newly outlined strategic vision, the Vital 5, set out in April 2024.
Mexican restaurant group Tortilla has reported a 5.9% drop in revenues to £31.5m for the half year ended 30 June 2024.
The group attributed this decline to its strategic decision in Q1 to condense to a dual delivery platform to improve profit conversion and increase focus on in store revenue.
Despite the fall in revenues, the group’s adjusted EBITDA of £1.8m is in line with H1 last year.
The group also reported early signs of progress against its newly outlined strategic vision, the Vital 5, set out in April 2024.
Its Vital 5 vision includes improving UK profitability, investing in brand to drive growth, investing in team and tech, doubling down on franchise and developing the brand internationally.
Looking ahead, the board now expects Adjusted EBITDA (excluding the recent Fresh Burritos acquisition) to be £5.0m for 2024. A revised combined outlook, including Fresh Burritos, will now be Adjusted EBITDA of £4.5m and the year-end net debt position is expected to correspondingly increase to £7.5m.
Andy Naylor, CEO at Tortilla, said: “We are now seeing the positive implementation of our strategy across all five pillars as we con,nue to strengthen Tor,lla’s offering and position the business to capitalise on the long-term significant opportunities in our market as the dominant European market leader in fast-casual Mexican cuisine.
“In the first half of 2024, we have significantly improved the quality of our food and are driving exciting innovation with our new Food Director, James Garland now onboard. We have accelerated the deployment of kiosk-ordering technology and will be launching our new loyalty platform at the beginning of August. Whilst the timing of these initiatives has been slower than planned, the early signs are positive, and we look forward to updating shareholders on progress in September.”
