TIDMMEX
RNS Number : 1457G
Tortilla Mexican Grill PLC
17 July 2023
17 July 2023
Tortilla Mexican Grill plc
("Tortilla" or the "Group")
H1 2023 Trading Update
Resilient trading supports FY 2023 expectations(1)
Tortilla Mexican Grill plc ("Tortilla"), the largest and most
successful fast-casual Mexican restaurant group in the UK, provides
a Trading Update for the half year ended 2 July 2023 ("H1 2023",
the "Period").
Highlights
-- Group revenue increased by 22.0% to GBP32.7m (H1 2022:
GBP26.9m), illustrating growing demand for the Group's
high-quality, value-for-money customer proposition.
-- Continued industry outperformance with Group LFL revenue
increasing by 8.4% (adjusting for FY 2022 VAT benefit), ahead of
the industry Peach Coffer Tracker benchmark(2) .
-- Franchise sites performed very well with record sales being
achieved in all SSP locations. Further franchise sites in the
pipeline to expand on the success.
-- Continued delivery against strategic expansion of the Group's
estate with new site openings during the Period in Derby and
Greenwich alongside an additional SSP franchise site at Manchester
Piccadilly, all performing well since opening. In total, there were
85 sites at end of the Period operating under the Tortilla and
Chilango brands (82 at end of FY22).
-- First Tortilla in Northern Ireland set to open this week in
Belfast, with another in Bracknell in coming weeks.
-- Net debt (pre-IFRS 16) of GBP1.6m as at 2 July 2023, in line with expectations.
Outlook
The Group continues to deliver strong strategic progress and
achieve good levels of revenue growth. While the widely publicised
economic pressures impacting the sector remain, management has
successfully implemented several efficiency and cost-saving
initiatives including utilities hedging that are supporting Group
profitability and these will continue in the second half. The Board
is also pleased to report some easing of cost inflation in relation
to certain key food ingredients.
In addition, the Group has delivered a number of new strategic
initiatives to continue to grow demand including driving evening
trade through the new 'Tortilla Sunsets' menu and 'Happy Hour'
offers.
The Board remains confident in the Group's ability to deliver FY
2023 results in line with market expectations(1) .
Richard Morris, CEO of Tortilla, commented:
"We are pleased to have delivered good revenue growth and
further strategic progress in the first half. Our strong LFL sales
growth has been ahead of industry comparatives reflecting the
appeal of our high quality, healthy and customisable great value
propositions.
We continue to deliver on our disciplined but ambitious approach
to new site openings and strategic expansion, with all of our new
openings performing well and meeting our expectations. Our
franchise sites also continue to perform well with our SSP sites
achieving record results and we remain hugely excited by the
significant franchise growth opportunities in the UK and
overseas."
The Group intends to announce its Interim Results for the six
months ended 2 July 2023 in mid-September 2023.
ENDS
(1) Company-compiled consensus: FY23: revenue GBP69.8m, Adjusted
EBITDA GBP5.0m (Adjusted EBITDA defined as statutory operating
profit before interest, tax, depreciation and amortisation (before
application of IFRS 16 and excluding exceptional costs) and
reflects the underlying trading performance of the Group)
(2) Average of the 26-week period ended June 2023 reported by
CGA Peach was 4.6% (restaurants-only) compared to 5.0% for Tortilla
(both sets of numbers reported without Q1 2022 VAT adjusted)
ENQUIRIES
Tortilla Mexican Grill PLC Via Hudson Sandler
Emma Woods, Non-Executive Chair
Richard Morris, CEO
Andy Naylor, CFO
Liberum Capital Limited (Nominated Tel: 020 3100 2222
Adviser, Sole Broker)
Andrew Godber
Edward Thomas
Nikhil Varghese
Hudson Sandler (Public Relations) Tel: 020 7796 4133
Alex Brennan tortilla@hudsonsandler.com
W endy Baker
Charlotte Cobb
NOTES TO EDITORS
Tortilla is the largest and most successful fast-casual Mexican
restaurant group in the UK specialising in the sale of freshly made
Californian-inspired Mexican cuisine. As at 1 January 2023, the
Group had 82 sites worldwide, comprising 65 sites in the UK
operated by the Group, 4 sites franchised to SSP Group in the UK, 5
sites franchised to Compass Group UK & Ireland and 8 franchised
sites in the Middle East.
The Group was founded in 2007 by Brandon Stephens, originally
from California who arrived in London in 2003 to find a gap in the
market for quality burritos and tacos. As a result, Brandon
established Tortilla with a mission of offering customers freshly
prepared, customisable, and authentic Californian-inspired Mexican
food.
The Tortilla and Chilango brands are synonymous with an
energetic, vibrant culture, and with providing a great
value-for-money proposition. They embrace fast-growing sector
trends (including eating out, healthy eating, provenance, ethnic
cuisine, delivery) across a variety of locations, through a
differentiated product offering which is popular with a broad
customer base, and a clearly defined multi-channel marketing
strategy. It benefits from flexible site locations and formats, and
a scalable central infrastructure.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTNKABPPBKDBOD
(END) Dow Jones Newswires
July 17, 2023 02:00 ET (06:00 GMT)
Tortilla Mexican Grill (LSE:MEX)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Tortilla Mexican Grill (LSE:MEX)
Gráfica de Acción Histórica
De May 2023 a May 2024