Tortilla Mexican Grill interim losses narrow despite H1 revenue drop

25th Sep 2024 09:10

(Sharecast News) - Casual fast-food restaurant operator Tortilla Mexican Grill said on Wednesday that revenues had fallen in H1, leading to yet another interim loss.

Tortilla Mexican Grill said interim revenues had slipped 3.7% to £31.5m, principally due to a 10.3% like-for-like decline in delivery revenue, leading to a pre-tax loss of £200,000, up from its £600,000 pre-tax loss in H123. Adjusted underlying earnings of £1.8m were broadly flat.

Looking ahead, Tortilla Mexican Grill said current trading was in line with management expectations for the full year, with in-store sales continuing to improve on the back of its investment in food, brand awareness and technology.

Chief executive Andy Naylor said: "We are very proud of the positive momentum we have driven throughout the business over the last six months. The UK business had lost momentum at the start of the year, and we had to make some big decisions to overhaul the trend.

"We have driven the UK business forward by revitalising our food offering and investing in people, brand awareness and technology. It is encouraging to see the benefits of these investments, with our in-store like-for-like sales steadily improving, from -6% in March to +4% in September month to date."

As of 0910 BST, Tortilla shares were up 3.03% at 51.0p.

Reporting by Iain Gilbert at Sharecast.com