Tortilla net income loss widens to £2.054m

Full-year adjusted EBITDA is expected to be lower than initially predicted.

Mexican chain Tortilla reported a loss for the period and comprehensive income attributable to equity holders of the parent company of £2.054m for the 26 weeks ended 29 June 2025, a major jump from a £235.045k loss from a year before.

According to its unaudited financial statements, revenue for H1 2025 was at £36m, up from £31.5m last year. Gross profit grew to £27.7m from £24.5m a year before.

Administrative expenses increased by 21.3% to £28.9m in H1 FY2025. As a percentage of revenue, administrative expenses were 80.3%

In the UK, administrative expenses were 75.4%, a slight decrease of 0.1 percentage points compared to the prior period. The movement also incorporates a year-on-year change in share-based payments, with a charge (£0.1m) recognised in the current period compared to a credit of £0.3m in the prior year.

In France, administrative expenses were higher due to investment in establishing the Central Production Kitchen (CPK) and related infrastructure. This included pre-opening labour and project support from UK Head Office management during the mobilisation of the facility and the transition of sites to the new operating model. Tortilla said these costs have been separately disclosed as exceptional, as they are one-off in nature and not reflective of ongoing operations.

Tortilla said current trading in the UK is slightly ahead of management expectations for the full-year 2025, with sales benefitting from our improvements in food, brand awareness and technology.

In France, the conversion of stores to Tortilla is moving forward strategically. The extended planning processes in the first phase are front-loading complexity, which is expected to streamline future site rollouts. As a result, the board now expects adjusted EBITDA for H1 FY2025 to be below market expectations

Overall, Tortilla expects adjusted EBITDA for the 2025 financial year to be 10% below previous expectations.

The Board did not recommend an interim dividend for H1 FY2025. In line with the previously stated policy, the Group’s capital will be focused on growth over the coming years, with the dividend policy subject to re-assessment going forward.