BBB Foods (TBBB) Q3 2024 earnings summary

Executive summary

• Revenue grew 29.8% year-over-year in Q3 2024, reaching MXN 14.8 billion, driven by strong same-store sales and rapid store expansion.

• Opened 131 net new stores in Q3, totaling 2,634 stores as of September 30, 2024.

• EBITDA increased 54% year-over-year to MXN 688 million, with margin up 73 basis points to 4.6%.

• Net profit was MXN 258 million, reversing a net loss of MXN 339 million in Q3 2023.

• Same-store sales grew 11.6% year-over-year, outpacing the segment.

Financial highlights

• Gross profit rose 29.7% to MXN 2,344 million; gross margin stable at 15.8%.

• Net cash flows from operating activities for the first nine months reached MXN 2.3 billion, up 22.4% year-over-year.

• Ended Q3 with a net cash position of MXN 1.3 billion and MXN 2.9 billion in short-term US bank-denominated positions.

• SG&A as a percentage of revenue decreased by 51 basis points year-over-year to 13.4%.

• Adjusted negative working capital was 10.3% of total revenue as of September 30, 2024.

Outlook and guidance

• Confident in meeting 2024 guidance of 380-420 new store openings.

• Long-term market potential seen for up to 20,000 stores; focus remains on increasing store opening pace over time.

• Focus remains on value, disciplined execution, and rapid store expansion to drive sustainable growth.

• No current plans for dividends; future excess cash allocation to be determined as business matures.

• Confident in maintaining leadership in same-store sales growth within the Mexican hard discount segment.