Tortilla revenues rise 14% to £65.7m in FY23
During the period, the group opened six sites in the UK as well as one franchise site, taking the total to 87 locations
Tortilla has reported that revenues rose by 14% to £65.7m in the year to 31 December 2023, as it built on the momentum from the previous year’s record.
Like-for-like revenues also grew 3.6% during the period, equivalent to 4.9% when adjusted for the Q1 VAT benefit from 2022.
Meanwhile, adjusted EBITDA saw a 16% year-on-year rise to £4.6m and the group’s gross profit margin inched up from 76.4% to 77.3%. The group attributed the latter to “effective negotiations with the group’s main food suppliers”.
During the period, the group opened six sites in the UK as well as one franchise site, taking the total to 87 locations. This is said to still be in line with its IPO growth aspiration.
Tortilla also accelerated its growth during 2023 through franchising with partners SSP and Compass Group, as well as Eathos in the Middle East. Franchise sales rose 26% for 2023.
According to the group, trading so far in 2024 is in line with expectations, as its delivery strategy and cost savings initiatives are resulting in improved profit conversion.
In addition, like-for-like sales for Q1 are also in line with expectations, with outlook for demand expected to improve as consumer finances are projected to recover in the second half.
Minimum of three UK Tortilla operated sites planned for 2024, with Manchester Arndale to open in May
Andy Naylor, CEO of Tortilla, said: “I am pleased to present my first set of results as chief executive officer. Recent years have seen Tortilla expand strategically through a multi-channel approach, strengthening our operational model as a springboard for sustained, profitable growth. Throughout 2023, we dedicated ourselves to building resilience, especially enhancing profitability, as we recovered from macro events in 2022.
“The appetite for Mexican cuisine is surging, and Tortilla, as the dominant market leader in the UK, has an unparalleled set of advantages to capitalise on this burgeoning opportunity across the UK and Europe. Tortilla continues to have immense potential and I am excited to lead the business through the next chapter of the journey.”
