Tortilla reports H1 trading decline

Tortilla has reported half year revenue at £31.5m (down £1.2m on last year), with like-for-like revenue down 5.9%.

This is due to the strategic decision in Q1 to condense to a dual delivery platform to improve profit conversion and increase focus on in store revenue.

The adjusted EBITDA for the period stood at £1.8m, in line with last years H1, despite the revenue drop.

New strategic vision

The sales drop show the early signs of progress in the groups newly outlined strategic vision - the Vital 5 - set out in April. These 5 strategies include:

• Improve UK profitability
  - The UK portfolio now covers 81 sites including franchise sites.
• Invest in brand to drive growth
  -  Tortilla brand awareness has increased to 23% Q1 2024 3 up from 19% at Q1 last year following strong focus on targeted marketing initiatives.
• Invest in team and tech
  - New food director James Garland joined in June 2024.
• Double down on franchise
  - UK franchise stores continue to excel with multiple sales records achieved this year across the Group’s partnerships.
• Develop the brand internationally 
  - Successful entry into Continental Europe through strategic acquisition of Fresh Burritos announced on 25 June 2024 and completed on 1 July 2024.

The early results are encouraging, however, the benefits of these initiatives will be slower than originally anticipated, and this combined with an ongoing challenging trading environment, means the Board now expects adjusted EBITDA (excluding the recent Fresh Burritos acquisition) to be £5.0m for 2024.

Andy Naylor, CEO at Tortilla commented: “We are now seeing the positive implementation of our strategy across all five pillars as we continue to strengthen Tortilla'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."

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