Tortilla Mexican Plummets 26.71% After Inflationary Pressures

  • Revenue increased 30% to £26.9 million.
  • Profit before tax fell to £0.3 million.
  • Tortilla shares tumbled 26.71%.

Tortilla Mexican Grill reported its interim results on Monday, which were impacted by inflationary pressures and challenging factors over the summer period.

The company reported that revenue increased 30% to £26.9 million, compared to £20.8 million in the prior year. In addition, the group saw profit before tax of £0.3 million, down from £2.6 million in the previous year.

Furthermore, according to Tortilla, sales over the summer period were challenging due to train strikes, the heatwave and overseas travel. The company estimated a loss of £0.25m in sales.

“Against a backdrop of challenging macroeconomic conditions, I am really proud to report that we have continued to make great progress against our ambitious growth plans laid out at our IPO last year,” stated Richard Morris, CEO of Tortilla.

However, inflationary cost pressures have remained for the group and the industry. This has caused Tortilla to deduct three percentage points in its gross margin (approximately £1.8 million) for the year.

The company was encouraged by the underlying sales performance of the business, with like-for-like sales in September already close to pre-summer levels.

Tortilla shares plummeted 26.71% following its results.

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