Tortilla H1 revenues jump 12% to £35.4m amid ongoing expansion
The company revealed that like-for-like sales in the UK rose by 5%, with growth of 5.9% in the first quarter and 4.2% in the second
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Tortilla has reported a 12% rise in revenues to £35.4m for the first half of the year ended 29 June, as the Mexican restaurant chain continues its expansion in the UK, United Arab Emirates (UAE) and France.
The company revealed that like-for-like sales in the UK rose by 5%, with growth of 5.9% in the first quarter and 4.2% in the second. This is despite industry tracker CGA Coffer reporting declines of 2.5% and 3.4% over the same period.
Meanwhile, Tortilla’s franchise operations saw sales rise 12.8% in the UK and 16.8% in the UAE. The group said weekly sales records were achieved in 13 locations across both markets.
The group’s adjusted EBITDA reached £1.2m. This was driven by a strong performance in the UK, which saw a 33% increase to £2.4m. Conversely, the French business recorded a £1.2m loss due to ongoing investment in site conversions and brand development.
Tortilla said contractors are on site at its French restaurants and most will be converted by the end of the year. The company also plans to open its first Abu Dhabi outlet in early August.
Andy Naylor, chief executive of Tortilla, said: “I’m pleased to report that Tortilla has delivered a strong first half, continuing the positive momentum across the business. Our UK operations are outperforming the wider sector and our like-for-like sales remained resilient through the spring and early summer, despite the impact of unusually hot weather.
“Our strategic initiatives to enhance the food offer and sharpen brand identity are clearly resonating with customers. The recent launch of our summer menu, featuring salads and protein pots, has been particularly well received and has supported UK like-for-like growth of around 10% in July.”
Naylor added that the French conversion programme was “the first step in our pan-European growth strategy”.
The group ended the period with net debt of £9.8m and said it expects year-end net debt to be in line with market forecasts, following the refinancing of facilities with Santander.
