BBB Foods Inc. Q3 FY2025 earnings call

• Opened 131 net new stores in the quarter, totaling 3,162 stores, with 2 distribution centers opened making 18 total. LTM store openings are 528. • Same-store sales grew by 17.9%. Total revenues increased by 36.7%. • Cash flow from operating activities for 9 months 2025 was MXN 3 billion, a 30% increase YOY. • Increasing store openings, with 390 opened in first 9 months of 2025 vs 346 in same period last year. • Brand equity strengthening, older store vintages showing EBITDA margins in line with other hard discounters. • Continued investment in talent, with share-based compensation attracting entrepreneurial talent and aligning with shareholders.

Total revenues for the third quarter increased by 36.7% to reach MXN 20.3 billion. Same-store sales grew by 17.9%. EBITDA reported a loss of MXN 404 million, but excluding noncash share-based payments, EBITDA increased by 43.6% to reach a positive MXN 1.2 billion. For the 9 months of 2025, cash flow generated by operating activities reached MXN 3 billion, a 30% increase year-on-year. The company ended with a net cash position of approximately MXN 1.1 billion and had $151 million in short-term deposits. In the first 9 months of 2025, 390 stores were opened compared to 346 in the same period last year.

• Same-store sales expected to remain strong in the immediate future, driven by ongoing product improvements. • Significant runway for store growth in Mexico with room for no less than 14,000 3B stores. • Continued innovation in product categories, with ongoing tests on perishables and other categories with positive results.

• Competitive landscape in Mexico is dynamic and competitive, though management sees no significant changes in competition affecting Tiendas 3B.

Q: Congratulations on the quarter. Can you comment on current value propositions, market share in oldest cohorts, and unsolicited suppliers?

A: Margins improve with scaling, increasing scale and purchasing terms. Oldest vintages still have room to penetrate wallet, and are seeing increased tickets and basket size. Receiving unsolicited requests from national suppliers, and existing suppliers are able to keep up with scale due to long-term supply chain planning.

Q: You mentioned new store vintages maturing faster. How are new cohorts behaving in terms of returns?

A: New vintages mature faster with improved return on invested capital. Returns are as good or better than older vintages, with cannibalization being few and far between and combined store performance better.

Q: How confident are you in maintaining same-store sales growth next year, and how is the decision process for passing on savings to consumers?

A: Confident in maintaining strong same-store sales for the immediate future due to ongoing product improvements. Savings from scale and supplier negotiations are driven by product-by-product elasticity testing, with margin and sales curve adjustments based on testing.

Q: Update on perishables category pilot test and new categories in stores?

A: Constantly innovating, with a successful ice cream bar launch. Perishables have high potential but are being tested for quality and efficiency before launch, with positive tests and optimism for future inclusion.

Q: Thoughts on customer journey and operating leverage for next year?

A: Customer journey is driven by word of mouth, starting with basic goods and migrating to more products. Operating leverage is real, but faster growth currently drags short-term leverage, though it increases shareholder value drastically.