BBB Foods (TBBB) Q1 2025 earnings summary

Executive summary

• Opened 117 net new stores, reaching 2,889 total locations as of March 31, 2025, with accelerated expansion compared to last year.

• Total revenue grew 35.1% year-over-year to MXN 17.1 billion, driven by robust same-store sales and network expansion.

• Same-store sales increased 13.5% year-over-year, reflecting strong customer loyalty.

• EBITDA rose 12.7% to MXN 705 million, with margin declining to 4.1%.

• Net loss narrowed to MXN 87 million from MXN 231 million in 1Q24.

Financial highlights

• Gross profit increased 33.0% year-over-year to MXN 2,744 million; gross margin decreased by 24 bps to 16.0%.

• Sales expenses as a percentage of revenue increased slightly from 10.2% to 10.3% due to faster store openings and wage inflation.

• Administrative expenses rose by 60 basis points to 4.1% of revenue, including MXN 84 million in non-cash share-based payments.

• Financial costs fell 11.7% to MXN 318 million, mainly due to repayment of promissory and convertible notes.

• EBITDA margin decreased from 4.9% to 4.1% due to increased investments in growth.

Outlook and guidance

• Continued acceleration in store openings and investments in talent, technology, and infrastructure to support future growth and scalability.

• Plans to open new distribution centers and regions later in 2025.

• Expect ongoing leverage at the unit level, with consolidated margins impacted by upfront costs of new stores and regions.

• Share-based compensation expected to remain at about 1.2% of sales for the rest of the year.

• Free cash flow generation expected to remain strong, with some quarter-to-quarter variability.