BBB Foods Inc.

Good morning, everyone. My name is Daniela and I will be your conference operator. Welcome to Tiendas 3B third quarter 2025 conference call. All lines have been placed on mute to prevent any background noise. There will be a question and answer session after the speaker's remarks and instructions will be given at that time. Please ensure that your full name is displayed correctly on Zoom. If not, please take a moment to edit and enter your display name. Also, please 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 3B's chairman and chief executive officer, Anthony Hatoum, and chief financial officer, Eduardo Pizzuto. I will now turn the call over to Anthony. Please go ahead.

Good morning, everyone, and thank you for joining Tiendas 3B's third quarter earnings call. I will begin with a review of our operating results for the quarter, and it will be followed by our CFO, Eduardo Pizzuto, who will provide an overview of our financial performance. We will conclude with a Q&A session. We've delivered another quarter of exceptional growth, outperforming other listed players. We opened 131 net new stores in the quarter for a total of 3,162 stores. We opened two distribution centers in the quarter for now a total of 18. Our LTM store openings are 528 stores. Same store sales grew by 17.9%. Total revenues increased by 36.7% to reach 20.3 billion pesos. EBITDA reported a loss of 404 million pesos. If we exclude our non-cash share-based payments, then EBITDA increased by 43.6%, and reached a positive 1.2 billion pesos. For the nine months of 2025, cash flow generated by operating activities reached 3 billion pesos, or a 30% increase year on year. We ended with a net cash position of approximately 1.1 billion pesos. In addition to this, we have $151 million in short term deposits. Let's turn to operational performance. We are increasing the number of store openings. In the first nine months of 2025, we opened 390 stores. This compares to 346 stores opened in the first nine months of last year. Revenue growth remains rapid. We continue to be one of the fastest growing retailers globally. Total revenues reached 20.3 billion pesos or an increase of 36.7% year over year. This with a very strong same store sales growth of 17.9%. Same store sales is being driven by the continuous improvement of our value proposition to customers and more consumers realizing that. When comparing to Antad, our gap continues to increase. Our gap versus Antad is almost 17 percentage points today. I will now pass the microphone to Eduard.

Thank you, Anthony. Good morning, everyone. Sales expenses as a percentage of revenue increased from 10.1 to 10.2%. On one hand, we see real operational leverage as our store mature. On the other, we see this quarter an increase in DNA expenses as a percentage of revenue. I expect that next quarter, the comparison will be more favorable. Admin expenses, excluding share-based payments, increased by 16 basis points due to investments in new regions and hiring more talent. With respect to share-based payment expense, these are non-cash and already reflected in our fully diluted share count. Please see the appendix of this earnings release. You can also see the projection of this non-cash expense in the appendix. EBITDA increased 43.6% to reach 5.8% driven by sales and margin growth and operational efficiency. I want to touch on operational leverage and margins. Close to half of our stores were open in the last three years. When we look at our older vintages, their EBITDA margins are close to those you would see at other hard disk hunters. As you know, we don't drive to an EBITDA. It will naturally increase over time as a consequence of all the good things we are doing. Ours is a business model that generates significant negative working capital. And in turn, we generate significant cash flow from the changes in negative working capital. We can see, for example, that in September 25, we had 7.8 billion compared to a negative working capital of 5.4 billion pesos in the third quarter of 24, excluding IPO proceeds. We are roughly at 10.8% of total revenue, excluding IPO proceeds. I will now turn the call back over to Anthony for some final remarks.