BBB Foods (TBBB) Q3 2024 earnings summary

Executive summary

• Revenue grew 29.8% year-over-year in Q3 2024 to MXN 14.8 billion, driven by strong same-store sales and rapid store expansion, with 131 net new stores opened, totaling 2,634 as of September 30, 2024.

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

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

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

• Store expansion remains robust, with 346 net new stores in the first nine months, a 42% increase over the prior year.

Financial highlights

• Gross profit rose 29.7% to MXN 2,344 million; gross margin stable at 15.8% year-on-year for the quarter.

• Net cash flows from operating activities reached MXN 2.3 billion for the first nine months, up 22.4% year-on-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 to 13.4% year-on-year.

• 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, with a focus on value, disciplined execution, and rapid expansion.

• Management expects continued strong store expansion and sales growth, with a focus on self-funding growth.

• No current plans for dividends; future cash allocation will be evaluated as excess cash accumulates.

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