Tortilla Mexican Grill (MEX) Trading Update summary

Financial performance and outlook

• H1 2024 revenue was £31.5m, down £1.2m year-on-year, with like-for-like revenue down 5.9% due to a strategic shift to a dual delivery platform.

• Adjusted EBITDA (pre-IFRS) held steady at £1.8m, matching H1 last year despite lower revenue.

• Net debt (pre-IFRS 16) stood at £3.3m at period end, reflecting acquisition costs for Fresh Burritos.

• Full-year Adjusted EBITDA (excluding Fresh Burritos) now expected at £5.0m; revised combined outlook is £4.5m with year-end net debt expected to rise to around £7.5m.

Strategic initiatives and progress

• Opened a new company-owned site in Manchester, bringing the UK portfolio to 81 sites including franchises.

• Improved delivery sales profitability and stronger profit conversion due to supplier contract negotiations.

• Food improvements trialed and rolled out, with brand awareness rising to 23% in Q1 2024 from 19% a year earlier.

• Six kiosk store conversions completed; new Food Director joined in June 2024.

Franchise and international expansion

• UK franchise stores achieved multiple sales records; new SSP and Compass sites opened in Leeds and Leicester.

• Entered Continental Europe via acquisition of Fresh Burritos, adding 13 company-owned sites in France and franchise rights.

• Acquisition provides a platform for further European franchise growth.