Q2 2026 Bbb Foods Inc Earnings Call Transcript
Key Points
- Opened 155 net new stores in Q2 2026, bringing total store count to 3,624, with 593 net new stores over the last 12 months, reflecting a 20% growth in store base.
- Same-store sales grew 20% year-over-year, significantly outperforming the market by more than 20 percentage points versus ANTAD.
- Total revenue increased 39% year-over-year to MXN 26 billion, driven by strong volume growth (two-thirds of same-store sales growth) and improved mix.
- Adjusted EBITDA (excluding non-cash share-based compensation) increased 44% to MXN 1.6 billion, with adjusted EBITDA margin expanding by 21 basis points year-over-year.
- Operating cash flow for the first half of 2026 reached MXN 4.3 billion, a 119% growth year-over-year, fully funding organic expansion.
- Gross margin improved due to scale efficiencies, better buying conditions, and logistics optimization, with a positive long-term trend expected.
- New store format (100% of new openings) is performing well, with faster ramp-ups and consistent unit economics.
- Expansion into new distribution centers (three in Q3) is expected to drive long-term logistics efficiencies despite short-term pressure.
- Management remains confident in the significant long-term growth opportunity in Mexico, with no real estate constraints and a strong pipeline.
- New ERP system is on track, with AI tools accelerating development and enabling future optionality for additional services.
- Admin expenses, excluding share-based payment, increased by 57 basis points year-over-year due to continued investment in talent and expansion into new regions.
- Q2 2026 included a one-time cash expense of MXN 37 million related to the equity follow-on offering in May 2026, impacting EBITDA and admin expenses.
- Potential pressure on logistics expenses in Q3 2026 due to the opening of three new distribution centers, which may temporarily impact margins.
- Same-store sales growth is partly driven by price (one-third), though internal inflation remains low, indicating some reliance on pricing.
- The company faces intense competition in the hard discount space, though management sees room for multiple players in the Mexican market.
- G&A expenses are expected to remain elevated (around 3% of revenue) as the company continues to invest in talent, which may limit operating leverage in the short term.
- The cardless payment test had a non-material impact, indicating limited near-term benefits from such initiatives.
- Management does not guide on EBITDA, and margin expansion is expected to be gradual, with potential volatility in gross margin quarter-to-quarter.
- The company's aggressive expansion (593 net new stores in 12 months) may strain operational resources and execution capabilities.
- The equity follow-on offering in May 2026 resulted in one-time costs and potential dilution, though management has mechanisms for orderly option sales.
Good morning, everyone. My name is Daniela and I will be your conference operator.
Welcome to Tiendas Tres Bes second quarter 2026 conference call. (Operator Instructions) Also note that this call is for investors and analysts only. Questions from the media will not be taken, nor should the call be reported on. Any forward-looking statements made during this conference call are based on information that is currently available to us. Today, we are joined by Tiendas Tresbe's Chairman and Chief Executive Officer Anthony Hatumo and Chief Financial Officer Eduardo Pizuto. I will now turn the call over to Anthony. Please go ahead.
Good morning, and thank you for joining us today. I will begin with a review of our operating results for the quarter, and will be followed by our CFO, Eduardo Pizzuto, who will provide an overview of our financial performance. We will conclude with our Q&A session. We delivered another strong quarter, sustaining and even building on the momentum we achieved in the first quarter.
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