BBB Foods (TBBB) Q1 2025 earnings summary

Executive summary

• Opened 117 net new stores in Q1 2025, reaching 2,889 total locations as of March 31, 2025.

• Same-store sales grew by 13.5%, reflecting strong customer loyalty and network expansion.

• Total revenues increased by 35.1% year-over-year to MXN 17.1 billion (Ps. 17,132 million).

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

• Net loss narrowed to Ps. 87 million from Ps. 231 million in Q1 2024.

Financial highlights

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

• Sales expenses rose 36.1% to Ps. 1,763 million, mainly due to store expansion and wage inflation.

• Administrative expenses increased 58.2% to Ps. 706 million, reflecting higher share-based payments and public company costs.

• Net cash flows from operating activities increased to Ps. 1,195 million from Ps. 802 million in Q1 2024.

• Cash and cash equivalents at quarter-end were Ps. 1,567 million, plus US$150 million in short-term deposits.

Outlook and guidance

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

• Ongoing investments in talent, technology, and infrastructure to maintain scalability and operational efficiency.

• 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.