Business
H1 2024 Trading Update
H1 2024 Trading Update.
About this update from Tortilla Mexican Grill Ltd.
[{"type":"text","content":"\n \nTortilla Mexican Grill plc\n \nH1 2024 Trading Update\nStrategic momentum builds as Vital 5 pillars drive initial progress\n24 July 2024\nTortilla Mexican Grill PLC, the largest and most successful fast-casual Mexican restaurant group in Europe, provides a Trading Update for the half year ended 30 June 2024 (\"H1 2024\", or \"the Period\")\nHighlights\n\n\n\n\n· \n\n\nRevenue for H1 2024 £31.5m (down £1.2m on last year), with like-for-like revenue down 5.9% 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.\n\n\n\n\n· \n\n\nAdjusted EBITDA (pre-IFRS)[1] £1.8m[2], in line with H1 last year despite revenue drop.\n\n\n\n\n· \n\n\nEarly signs of progress against the Group's newly outlined strategic vision - the Vital 5 - set out in April 2024:\n\n\n\n\n \n\n\n· \n\n\nImprove UK profitability\n\n\n\n\n \n\n\n \n\n\no\n\n\nNew, company-owned site in Manchester's Arndale centre opened in May 2024; UK portfolio now at 81 sites including franchise sites.\n\n\n\n\n \n\n\n \n\n\no\n\n\nImproved profitability on delivery sales following switch to dual platform.\n\n\n\n\n \n\n\n \n\n\no\n\n\nStronger year-on-year profit conversion underpinned by last year's supplier contract negotiations.\n\n\n\n\n \n\n\n· \n\n\nInvest in brand to drive growth\n\n\n\n\n \n\n\n \n\n\no\n\n\nSuccessfully trialled food improvements in Q2, now rolled out in stores and showing early encouraging results.\n\n\n\n\n \n\n\n \n\n\no\n\n\nTortilla brand awareness has increased to 23% Q1 2024 [3] up from 19% at Q1 last year following strong focus on targeted marketing initiatives.\n\n\n\n\n \n\n\n· \n\n\nInvest in team and tech\n\n\n\n\n \n\n\n \n\n\no\n\n\nNew Food Director James Garland joined in June 2024.\n\n\n\n\n \n\n\n \n\n\no\n\n\nSix kiosk store conversions completed so far this year following the success of the London Wall conversion in August last year.\n\n\n\n\n \n\n\n· \n\n\nDouble down on franchise\n\n\n\n\n \n\n\n \n\n\no\n\n\nUK franchise stores continue to excel with multiple sales records achieved this year across the Group'...