Tiendas 3B 1Q25 Earnings Release
MEXICO CITY--(BUSINESS WIRE)--May 07, 2025--
BBB Foods Inc. ("Tiendas 3B" or the "Company") (NYSE: TBBB), a leading grocery hard discounter in Mexico, announced today its consolidated results for the first quarter of 2025 ("1Q25"). The figures presented in this release are expressed in nominal Mexican Pesos (Ps.) and are prepared in accordance with International Financial Reporting Standards ("IFRS"), unless otherwise stated.
HIGHLIGHTS
First QUARTER 2025
-- Opened 117 net new stores during the quarter, reaching 2,889 stores as of
March 31, 2025.
-- Ps. 17,132 million total revenue for 1Q25.
-- 35.1% revenue growth compared to 1Q24.
-- Same Store Sales grew 13.5%.
-- EBITDA reached Ps. 705 million, an increase of 12.7% compared to 1Q24.
MESSAGE FROM THE CHAIRMAN AND CEO
Dear Investors,
We began 2025 with strong momentum. In the first quarter, we opened 117 new stores, bringing our total to 2,889 locations. Despite a challenging consumer environment, Same Store Sales grew by 13.5% compared to the first quarter of 2024, underscoring continued customer loyalty and the strength of our value proposition.
We remain one of the fastest-growing retailers in the country. Total revenue reached Ps. 17,132 million, representing a 35.1% increase versus 1Q24. This performance was driven by robust Same Store Sales growth and the continued expansion of our store network.
To support both current operations and accelerating growth, we continue to invest strategically. We have always believed that a solid foundation is essential to build something greater. Accordingly, we are investing in talent density, advancing our technology, and preparing for the launch of new distribution centers/regions scheduled to open later this year.
Our business model remains robust, resilient, and highly scalable. As we grow, we stay committed to getting the fundamentals right: delivering outstanding value to our customers, maintaining disciplined execution, and driving operational efficiencies.
We are pleased with our momentum as we go into the rest of the year and remain confident in our ability to continue delivering long-term value for our customers, employees, and investors.
Thank you for your continued support.
K. Anthony Hatoum, Chairman and Chief Executive Officer
FINANCIAL RESULTS
1Q25 CONSOLIDATED RESULTS
(In Ps. Million, except percentages)
As % of As % of Growth Variation
1Q25 Revenue 1Q24 Revenue (%) (Bps)
--------------- --------- -------- -------- -------- --------- ---------
Ps. Ps.
Total Revenue 17,132 100.0% 12,684 100.0% 35.1% n.m.
--------------- --------- -------- -------- -------- --------- ---------
Ps.
Gross Profit Ps. 2,744 16.0% 2,062 16.3% 33.0% -24 bps
--------------- --------- -------- -------- -------- --------- ---------
(Ps. (Ps.
Sales Expenses 1,763) 10.3% 1,296) 10.2% 36.1% 8 bps
--------------- --------- -------- -------- -------- --------- ---------
Administrative (Ps.
Expenses (Ps. 706) 4.1% 446) 3.5% 58.2% 60 bps
--------------- --------- -------- -------- -------- --------- ---------
Other Income --
Net Ps. 23 0.1% Ps. 3 0.0% 757.5% 11 bps
--------------- --------- -------- -------- -------- --------- ---------
EBITDA Ps. 705 4.1% Ps. 626 4.9% 12.7% -82 bps
--------------- --------- -------- -------- -------- --------- ---------
Please see the explanation at the end of this release on how EBITDA, a
non-IFRS financial measure, is calculated, and for other relevant
definitions.
TOTAL REVENUE
Total revenue for 1Q25 was Ps. 17,132 million, an increase of 35.1% compared to 1Q24. Most of this growth was driven by sales from stores that have been operating for more than one year, and, to a lesser extent, the incremental sales from 507 net new stores opened in the last twelve months.
GROSS PROFIT AND GROSS PROFIT MARGIN
Gross profit for 1Q25 was Ps. 2,744 million, an increase of 33.0% compared to 1Q24. This increase was driven by sales growth, as the gross margin decreased by 24 bps to 16.0%.
EXPENSES
Sales expenses primarily reflect the cost of operating our stores, including wages and energy. In 1Q25, sales expenses reached Ps. 1,763 million, a 36.1% increase compared to 1Q24. This growth was mainly driven by an expanded store base that required additional headcount, and wage inflation. As a percentage of total revenue, sales expenses increased from 10.2% in 1Q24 to 10.3% in 1Q25, an expansion of 8 bps.
Administrative expenses refer to expenses not directly related to operating our stores, such as headquarters and regional office expenses. For 1Q25, administrative expenses totaled Ps. 706 million, a 58.2% increase compared to 1Q24. This increase reflects (i) an increase in non-cash expense from share grants and options (ii) the hiring of additional headquarter and regional headquarter personnel to support growth, and (iii) incremental public company expenses and reporting and compliance costs. As a percentage of revenue, administrative expenses increased from 3.5% in 1Q24 to 4.1% in 1Q25, an expansion of 60 bps.
Other income - net, which includes, among other items, revenues (expenses) from non-operative activities such as asset disposals, cost reimbursements, and insurance proceeds, amounted to Ps. 23 million in 1Q25, compared to a net income of Ps. 3 million in 1Q24. As a percentage of revenue, other (expense) income -- net increased from 0.0% in 1Q24 to 0.1% in 1Q25, an expansion of 11 bps.
EBITDA AND EBITDA MARGIN
For 1Q25, EBITDA reached Ps. 705 million, an increase of 12.7% compared to 1Q24. This increase was mainly driven by higher sales as a result of our net store openings and Same Store Sales growth, partially offset by higher administrative expenses. The EBITDA margin for 1Q25 decreased by 82 bps to 4.1%.
Please see the last section of this release on how we calculate EBITDA and EBITDA Margin, which are non-IFRS financial measures.
ADDITIONAL DISCLOSURES
To allow investors to better assess our performance, the Company is providing the following supplementary information:
-- Non-recurring non-capitalized follow-on secondary offering expenses: The
Company registered Ps. 54 million in follow-on related expenses during
1Q25, which were reflected as administrative expenses. This is compared
to 1Q24 IPO expenses of Ps. 70 million.
-- Non-cash share-based payment expense reached Ps. 213 million compared to
Ps. 129 million recorded in 1Q24.
-- Building lease payments: The Company leases its stores and distribution
centers. In accordance with IFRS 16, the Company's lease expenses are
capitalized, and not considered operating expenses. Tiendas 3B's
capitalized lease costs payments for buildings were Ps. 397 million in
1Q25, compared to Ps. 316 million in 1Q24.
FINANCIAL COSTS AND NET LOSS
Financial income totaled Ps. 38 million in 1Q25, up from Ps. 21 million in 1Q24. The increase was primarily driven by interest earned on the net cash proceeds from last year's Initial Public Offering ("IPO").
Financial costs were Ps. 318 million for 1Q25, a 11.7% decrease compared to 1Q24. This decline was primarily driven by the elimination of interest expenses following the full repayment of promissory and convertible notes from IPO proceeds. In contrast, 1Q24 included interest on these instruments until their settlement. The reduction was partially offset by higher interest on lease liabilities, reflecting continued expansion of our stores and distribution center network.
The Company recorded a foreign exchange gain of Ps. 9 million in 1Q25, driven by the Mexican peso depreciation against the U.S. dollar, which positively impacted our U.S. dollar-denominated cash position held from the IPO.
Income tax expenses reached Ps. 113 million in the 1Q25 compared to Ps. 85 million in 1Q24.
As a result, our net loss for the 1Q25 was Ps. 87 million, compared to a net loss of Ps. 231 million for the 1Q24.
BALANCE SHEET AND LIQUIDITY
As of March 31, 2025, the Company reported local currency cash and cash equivalents of Ps. 1,567 million. In addition, as of March 31, 2025, the Company held 150 million in U.S. dollar-denominated short-term bank deposits. The Company applied an exchange rate of Ps. 20.318 as of March 31, 2025.
CASH FLOW STATEMENT
(In Ps. Million, except percentages)
1Q25 1Q24 Growth (%)
------------------------------------------ ---------- ---------- ----------
Net cash flows provided by operating
activities Ps. 1,195 Ps. 802 49.1%
------------------------------------------ ---------- ---------- ----------
Net cash flows used in investing
activities (Ps. 510) (Ps. 365) 39.8%
------------------------------------------ ---------- ---------- ----------
Net cash flows (used in) obtained from
financing activities (Ps. 566) Ps. 2,714 n.m.
------------------------------------------ ---------- ---------- ----------
Net increase in cash and cash equivalents Ps. 119 Ps. 3,152 -96.2%
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