Tortilla Mexican Grill (MEX) H1 2025 earnings summary

Executive summary

• Achieved record UK profitability in H1 FY25, with profit up 33% year-on-year and UK like-for-like sales up 5%, outperforming the market by 8%.

• Group revenue rose 14.3% to £36 million, driven by UK growth and French acquisition.

• France expansion underway, with six site conversions completed or imminent and acquisition of Fresh Burritos adding 24 stores and a central kitchen in Lille.

• Strategic focus on five pillars: UK profitability, brand and food investment, top-line growth, team and technology, and international expansion.

• Central kitchen in Lille operational, supporting pan-European growth.

Financial highlights

• UK adjusted EBITDA rose 33% to £2.4 million, with group adjusted EBITDA down due to £1.2 million loss in France.

• System sales reached £50 million across 116 stores, including franchise sales.

• Gross profit margin in the UK increased to 78.3% year-on-year.

• Loss before tax increased to £2.3 million, mainly due to French investment and site conversion costs.

• Free cash outflow of £4 million reflects investment in France and UK technology.

Outlook and guidance

• UK trading remains strong, with Q3 like-for-like sales up 7% and further growth expected in Q4.

• FY25 adjusted EBITDA expected to be 10% below prior guidance due to France conversion delays.

• Continued focus on UK profitability, site conversions, and kiosk rollouts.

• European expansion to accelerate, leveraging the Lille kitchen and franchise model.

• Year-end net debt expected to improve as capex is phased into FY26.