BBB Foods(US:TBBB)2025-05-08 17:00Financial Data and Key Metrics Changes - Total revenues increased by 35% to COP 17 billion, with EBITDA rising over 12% to COP 705 million [5][7] - Cash flow from operating activities reached COP 1.1 billion, a 49% year-over-year increase [5] - Same store sales grew by 13.5%, indicating strong performance in existing locations [5][7] Business Line Data and Key Metrics Changes - The company opened 117 net new stores, bringing the total to 2,889 stores, compared to 94 stores opened in the same quarter last year [5][6] - The total number of stores opened in the last twelve months increased to 507 from 416, reflecting a significant acceleration in growth [6] Market Data and Key Metrics Changes - The company continues to be one of the fastest-growing retailers globally, with same store sales growth significantly outpacing competitors [7] - The gap between the company's same store sales and Antad's performance is notable and increasing [7] Company Strategy and Development Direction - The company emphasizes a robust business model that is resilient and focused on increasing market share through consistent execution and attractive value propositions [4][13] - Investments are being made in talent and technology to support future growth, with a focus on operational efficiency and logistics [9][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging consumer environment but believes the company's value proposition will continue to attract customers [78] - The company is well-prepared for potential impacts from changes in labor regulations and trade agreements, indicating resilience in its business model [60][79] Other Important Information - The company maintains a net cash position of approximately COP 1.6 billion, with additional cash in U.S. dollars [5] - Share-based compensation is viewed as a critical investment for attracting and retaining talent, despite concerns about potential dilution [95][96] Q&A Session Summary Question: How should the company think about investments in talent and distribution centers? - Management emphasizes that investments are made with a focus on return, and increasing talent density is seen as a competitive advantage [17][18] Question: Can you comment on the timing of sales expenses and growth investments? - The company is increasing the pace of store openings, which impacts sales expenses, but expects to see leverage on older stores [33][35] Question: What are the dynamics behind gross margin and customer environment? - Management states that gross margin dynamics remain stable, driven by scaling, and the company does not see pressure to drop prices [45][46] Question: How is the company managing supplier relationships amid current economic conditions? - The company maintains strong relationships with suppliers and plans for long-term efficiency, ensuring stability in supply and pricing [86][87] Question: What is the outlook on stock-based compensation and potential dilution? - Management views stock-based compensation as a high-return investment and has provided clarity on dilution expectations [95][97] Question: How does the company plan to address potential impacts from labor regulations? - The company is prepared to adapt to changes in labor regulations and believes that increased sales will help stabilize labor costs as a percentage of sales [60][78]