Tiendas 3B 2Q26 Earnings Release

MEXICO CITY--(BUSINESS WIRE)--BBB Foods Inc. (“Tiendas 3B” or the “Company”) (NYSE: TBBB), a leading grocery hard discounter in Mexico, announced today its consolidated results for the second quarter of 2026 (“2Q26”) ended June 30, 2026. 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 Second qUARTER 2026 Opened 155 net new stores during the quarter, reaching 3,624 stores as of June 30, 2026. Opened one distribution center in 2Q26, reaching 21 as of June 30, 2026. Ps. 26,037 million total revenue for 2Q26. 38.7% revenue growth compared to 2Q25. Same Store Sales grew 20.0% compared to 2Q25. EBITDA was Ps. 960 million in 2Q26, compared to Ps. 844 million in 2Q25. Excluding non-cash share-based payment expense of Ps. 615 million, EBITDA reached Ps. 1,575 million, an increase of 43.8% compared to 2Q25. 2Q26 EBITDA includes a non-recurring cash expense of Ps. 37 million related to the equity follow-on offering in May 2026. MESSAGE FROM THE CHAIRMAN AND CEO Dear Investors, We delivered strong results in the second quarter of 2026. Despite a soft consumer environment in Mexico, same-store sales (SSS) grew 20.0%, driven by our compelling value proposition, strong brand recognition, and growing customer loyalty. We opened 155 net new stores in the quarter, bringing our total store base to 3,624 units, and added a new distribution center, expanding our logistics footprint to 21 regions. Our growth remains among the fastest in retail. Total revenue increased 38.7% year over year to Ps. 26,037 million, supported by strong SSS performance and the continued expansion of our store base. EBITDA, excluding non-cash share-based compensation, increased 43.8% year over year to Ps. 1,575 million. Reported EBITDA was Ps. 960 million, reflecting the impact of non-cash share-based compensation as well as expenses related to our May equity follow-on offering. We are pleased with our EBITDA growth excluding non-cash share-based compensation. While we do not manage the business to specific EBITDA margin targets, we believe disciplined execution - opening successful stores, strengthening our customer value proposition, and continuously improving operating efficiency – will drive margin expansion over time. This approach is the foundation of durable competitive advantages and long-term shareholder value creation. Cash flow generation was strong in the quarter, supported by robust revenue growth, healthy operating profitability, and our structurally negative working capital model. As a result, our organic expansion continues to be fully self-funded. We enter the second half of 2026 with strong momentum. Our results continue to demonstrate the resilience, scalability, and strength of our business model, and we remain confident in our ability to deliver sustained long-term value for our customers, employees, and shareholders. Thank you for your continued trust and support. K. Anthony Hatoum, Chairman and Chief Executive Officer FINANCIAL RESULTS 2Q26 CONSOLIDATED RESULTS (In Ps. Million, except percentages) 2Q26 As % of Revenue 2Q25 As % of Revenue Growth (%) Margin Variation (bps) Total Revenue Ps. 26,037 100.0 % Ps. 18,770 100.0 % 38.7 % n.m. Gross Profit Ps. 4,362 16.8 % Ps. 3,043 16.2 % 43.4 % 54 bps Sales Expenses (Ps. 2,598) 10.0 % (Ps. 1,978) 10.5 % 31.4 % (56 bps) Administrative Expenses (Ps. 1,428) 5.5 % (Ps. 731) 3.9 % 95.3 % 159 bps Other Income – Net Ps. 16 0.1 % Ps. 59 0.3 % (72.4 %) (25 bps) EBITDA Ps. 960 3.7 % Ps. 844 4.5 % 13.8 % (81 bps) Share-based payment expense Ps. 615 2.4 % Ps. 252 1.3 % 143.8 % 102 bps EBITDA ex. SBP Ps. 1,575 6.1 % Ps. 1,096 5.8 % 43.8 % 21 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 2Q26 was Ps. 26,037 million, up 38.7% year-over-year. 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 593 net new stores opened in the past twelve months. GROSS PROFIT AND GROSS PROFIT MARGIN Gross profit increased 43.4% year-over-year to Ps. 4,362 million in 2Q26, driven by strong sales growth and a 54-bps expansion in gross margin. The margin improvement reflected a stronger commercial margin and lower transportation costs as a percentage of revenue. EXPENSES Sales expenses primarily reflect the cost of operating our stores, including wages and energy. In 2Q26, sales expenses reached Ps. 2,598 million, a 31.4% increase compared to 2Q25. This growth was mainly driven by an increase in the number of stores. As a percentage of total revenue, sales expenses stood at 10.0% in 2Q26, a decline of 56 bps year-over-year, as a result of improved operational leverage across most components of our sales expenses, including labor. Administrative expenses refer to expenses not directly related to operating our stores, such as headquarters, regional office expenses, and share-based compensation. For 2Q26, administrative expenses totaled Ps. 1,428 million, a 95.3% increase compared to 2Q25. This increase reflected (i) higher non-cash share-based payment expense, including the recognition of the Liquidity Event Plan (LEP) disclosed in February 2024 and granted by the Board of Directors in June 2025, subject to a quarterly vesting schedule (see Appendix 2 of this Earnings Release for additional details); (ii) increased staffing expenses for the new regional operations; (iii) continued investments in human capital and (iv) non-recurring expenses of Ps 37 million related to the equity follow-on offering in May 2026. As a percentage of revenue, administrative expenses increased from 3.9% in 2Q25 to 5.5% in 2Q26. The non-cash share-based compensation is already reflected in our fully diluted share count. Excluding non-cash share-based payment expense, administrative expenses for 2Q26 amounted to Ps. 813 million, an increase of 69.8% compared to 2Q25. As a percentage of revenue, administrative expenses excluding non-cash share-based payment expense stood at 3.1% in 2Q26, an increase of 57 bps year-over-year. Please refer to Appendix 2 of this Earnings Release for an updated table summarizing the share-based payment expense plans and related expenses. Other income – net, which includes, among other items, revenues from non-operative activities such as asset disposals, cost reimbursements, and insurance proceeds, amounted to other income – net of Ps. 16 million in 2Q26, compared to other income – net of Ps. 59 million in 2Q25. Note that in 2Q25 this line reflected a Ps. 40 million non-recurring insurance recovery related to Hurricane Otis. As a percentage of revenue, other income – net decreased by 25 bps year-over-year. EBITDA AND EBITDA MARGIN For 2Q26, EBITDA was Ps. 960 million, compared to Ps. 844 million in 2Q25. As previously described, our EBITDA was impacted by the increase in non-cash share-based payment expense. Excluding non-cash share-based payment expense, EBITDA was Ps. 1,575 million, an increase of 43.8% compared to 2Q25. The EBITDA margin for 2Q26, adjusted to exclude the non-cash share-based compensation, increased by 21 bps to 6.1%. 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 follow-on offering expenses: The Company incurred Ps. 37 million in follow-on related expenses during 2Q26, reflected as administrative expenses. Share-based payment expense (non-cash): Non-cash share-based payment expense totaled Ps. 615 million in 2Q26, compared to Ps. 252 million recorded in 2Q25. For additional details, please refer to Appendix 2 of this Earnings Release. Building lease payments: The Company leases all except one of its stores and all of its distribution centers. In accordance with IFRS 16, the Company’s lease expenses are capitalized, and are not considered operating expenses. Tiendas 3B’s capitalized lease payments for buildings were Ps. 593 million in 2Q26, versus Ps. 439 million in 2Q25. FINANCIAL COSTS AND NET LOSS/INCOME Financial income totaled Ps. 37 million in 2Q26, down from Ps. 52 million in 2Q25. The decrease was primarily driven by lower interest rates and the negative impact from a stronger Mexican peso compared to the U.S. dollar given our net U.S. dollar denominated cash position. Financial costs were Ps. 483 million for 2Q26, a 27.1% increase compared to 2Q25. This increase was primarily driven by higher interest expense on lease liabilities, reflecting the continued expansion of our stores, distribution center network, and equipment. The Company recorded a foreign exchange loss of Ps. 85 million in 2Q26, driven by the depreciation of the U.S. dollar against the Mexican peso, which negatively impacted, in Mexican peso terms, the Company’s U.S. dollar-denominated cash position. Income tax expense reached Ps. 208 million in 2Q26 compared to Ps. 117 million in 2Q25. As a result, our net loss for 2Q26 was Ps. 386 million, compared to a net loss of Ps. 286 million for 2Q25. BALANCE SHEET AND LIQUIDITY As of June 30, 2026, the Company reported local currency cash and cash equivalents of Ps. 1,981 million. In addition, as of June 30, 2026, the Company held $236 million in U.S. dollar-denominated short-term bank deposits. The Company applied an exchange rate of Ps. 17.47 to one U.S. dollar as of June 30, 2026. CASH FLOW STATEMENT (In Ps. Million, except percentages) 1H26 1H25 Growth (%) Net cash flows provided by operating activities Ps.4,285 Ps. 1,955 119.2 % Net cash flows used in investing activities Ps. (3,080) (Ps. 1,338) 130.2 % Net cash flows used in financing activities Ps. (655) Ps. (923) (29.0 %) Net increase (decrease) in cash and cash equivalents Ps. 550 Ps. (306) n.m. Our business model continues to generate strong operating cash flow through its structurally negative working capital cycle, supported by growing sales and high inventory turnover relative to supplier payment terms. This cash flow fully funds our expansion, including new stores and distribution centers. The information provided below summarizes cash flow changes in the first half of 2026: Net cash flows provided by operating activities increased to Ps. 4,285 million in the first six months of 2026 (“1H26”) from Ps. 1,955 million for the first half of 2025 (“1H25”). Our net working capital continues to be driven by a favorable ratio of Inventory Days to Payable Days. Net cash flows used in investing activities totaled Ps. 3,080 million for 1H26, compared to Ps. 1,338 million in 1H25. This increase was primarily attributed to the Ps. 1,483 million allocation of the primary proceeds from the equity follow-on into short-term deposits during 2Q26, along with continued investments to expand our store and logistics network. Net cash flows used in financing activities were Ps. 655 million for 1H26, compared to the cash flows used in 1H25 of Ps. 923 million. The amount for 1H26 reflects the inflows from the primary proceeds from the equity follow-on. KEY OPERATING METRIC 2Q26 2Q25 Variation (%) Number of Stores Opened 155 142 9.2% Number of Distribution Centers 21 16 31.3% Same Store Sales Growth (%) 20.0% 17.7% n.m. In 2Q26, we opened 155 net new stores compared to the 142 net new stores opened in 2Q25. In the last twelve months, the Company opened 593 net new stores, compared to 528 stores in the twelve months ending 2Q25. Same Store Sales grew by 20.0% for 2Q26, compared to 17.7% for 2Q25. OTHER RECENT DEVELOPMENTS Lock-up Expiration. As previously reported, the liquidity lock-up applicable to our Class C common shares expired on August 6, 2026, and, accordingly, all Class C common shares converted automatically into Class A common shares on a one-to-one basis on such date. Non-IFRS Measures and Other Calculations For the convenience of investors, this release presents certain non-IFRS financial measures, which are not calculated in accordance with IFRS (“non-IFRS financial measures”). A non-IFRS financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so excluded or included in the most comparable IFRS financial measure. Non-IFRS financial measures do not have standardized meanings and may not be directly comparable to similarly titled measures reported by other companies. These non-IFRS financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. The non-IFRS financial measures presented herein have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations presented in accordance with IFRS. Additionally, our calculations of non-IFRS financial measures may be different from the calculations used by other companies, including our competitors, and therefore, our non-IFRS financial measures may not be comparable to those of other companies. We calculate “EBITDA”, a non-IFRS measure, as net profit (loss) for the period, plus income tax expense, financial costs, net, and total depreciation and amortization. We calculate “EBITDA Margin”, a non-IFRS measure, for a period by dividing EBITDA for the corresponding period by total revenue for such period. Same Store Sales: We measure “Same Store Sales” using revenue from sales of merchandise at stores that were operational for at least the full preceding 12 months for the periods under consideration. Stores that were temporarily closed (for one month or more) or permanently closed during the relevant measurement periods are excluded from this metric. Same Store Sales growth is calculated by comparing the Same Store Sales of stores that were opened and remained open throughout the relevant measurement period. Lease Payments: Consistent with lease accounting required under IFRS 16, total depreciation and amortization includes the depreciation expense of right-of-use-asset corresponding to long-term leases, which is a non-cash expense. Such amounts, together with the interest expense on lease liabilities, is a proxy for but not equal to the Company’s actual cash expenditure incurred in connection with its leased properties. Inventory Days: We calculate “Inventory Days” to be the average of beginning and end of period inventory balance, divided by cost of sales for the period and multiplied by the number of days during the period. Inventory Days measures the average number of days we keep inventory on hand before selling the product. This operating metric allows us to track our inventory management policies and observe how quickly we are able to rotate inventory, which is key to our cash conversion cycle. Payable Days: We calculate “Payable Days” to be the sum of the average of beginning and end of period balance of suppliers and of accounts payable and accrued expenses, divided by cost of sales for the period and multiplied by the number of days during the period. Payable Days measures the average number of days that it takes us to pay suppliers after receiving goods or services. This metric allows us to track the terms of payment policies with suppliers and our ability to finance our operations through agreements with our suppliers. CONFERENCE CALL DETAILS Tiendas 3B will host a call to discuss the second quarter 2026 results on August 13th, 2026, at 12:00 p.m. Eastern Time (10:00 a.m. Mexico City time). A webinar of the call will be accessible at: https://zoom.us/webinar/register/WN_H7J00JR0SDSW2VhQ3n2KTA To join via telephone, please dial one of the domestic or international numbers listed below: Mexico United States +52 558 659 6002 +1 312 626 6799 (Chicago) +52 554 161 4288 +1 346 248 7799 (Houston) +52 554 169 6926 +1 646 558 8656 (New York) Other international numbers available: https://us02web.zoom.us/u/knEOJCJkC The webinar ID is 951 8752 5034 An audio replay from the conference call will be available on the Tiendas 3B website https://www.investorstiendas3b.com after the call. FORWARD-LOOKING STATEMENTSRead the full story here

Tiendas 3B 2Q26 Earnings Release

Інші новини компанії