BBB Foods Inc. Q2 FY2025 earnings call

• Store Openings: Opened 142 net new stores in Q2 2025, total stores at 3,031; 259 stores opened in first 6 months of 2025 vs 215 in prior year. Accelerating store opening rate with 4 new regions to be opened in H2 2025.
• Financials: Total revenues up 38.3% to MXN 18.8B; EBITDA up 22.5% to MXN 844M. Excluding share-based payment expense, EBITDA up 32%. Operating cash flow MXN 1.9B, 56% increase y-o-y.
• Operational Focus: Driven by unrivaled value proposition, Same Store sales growth driven by more tickets and items per ticket. Continued investment in improving products and assortment, including private label penetration as a key driver.

In Q2 2025, Tiendas 3B delivered strong financial performance. Total revenues increased by 38.3% to reach MXN 18.8 billion. Same Store sales grew by 17.7% versus 10.7% in Q2 2024. EBITDA increased by 22.5% to reach MXN 844 million. If excluding noncash share-based payment expense, EBITDA would have increased by 32%. Cash flow generated by operating activities reached MXN 1.9 billion, a 56% increase versus 2024. The company opened 142 net new stores in Q2, with 259 stores opened in the first 6 months of 2025 compared to 215 in the prior year. Revenue contribution is primarily from retail operations driven by store openings and Same Store sales growth.

• No revision to store opening guidance mentioned. Confident in meeting previously stated guidance. Continues to accelerate store openings and invest in new regions, expecting growth to be sustained as store vintages mature and operating leverage becomes evident as store opening rate stabilizes.

• Sales expenses increased slightly due to accelerated store openings leading to higher store personnel and D&A expenses. Admin expenses increased due to non-cash share-based payment expenses.
• Risks in rolling out new regions including ensuring logistics, sourcing, and scaling are efficient before full-scale rollout. Potential challenges in linking marketing spend to sales increase as observed in past marketing tests.

Q: What attribute the acceleration in Same Store sales?

A: Amazing value proposition, continuous improvement in products (quality, price, assortment), increasing number of tickets and items per ticket. Private label penetration is a main driver.

Q: About the 4 new regional openings, any difference in intensity compared to existing stores?

A: Stretch, not leap; opening new regions next to existing ones to mitigate branding risks, inheriting some stores from existing regions to shorten ramp-up. Ramp-up similar to existing regions as done historically.

Q: Will there be a revision to store opening guidance given current run rate?

A: Not revising guidance; confident in meeting previously stated guidance as growth is smooth and planned well in advance.