BBB Foods Inc.

Good morning, everyone. My name is Sophia, and I will be a conference operator. Welcome to Tiendas 3D first quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. There will be instructions given at that time. Please ensure that your full name is displayed correctly on Zoom. If not, please take a moment to edit 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 Tienda 3B Chairman and Chief Executive Officer, Anthony Hatoum, 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 a Q&A session to answer the questions you may have. We delivered another quarter of excellent performance and started the year with a strong momentum. Let me briefly highlight a few key results from the quarter. We opened 123 net use stores in this quarter for a total of 3,469 stores, bringing the LTM net store openings to 580. As of the end of this quarter, we had 20 distribution centers up and running. Our same store sales growth grew 16% versus the first quarter, of 2025. Revenues in the first quarter of 2016 increased by 33% year over year to 23 billion pesos. And again, in this first quarter reported EBITDA was 554 million pesos. If we exclude non-cash share based compensation, EBITDA increased by 39% to reach 1.3 billion pesos. Finally, for the first three months of 2026, cash flow generated from operating activity reached 2 billion pesos, or a 64% increase year over year. Let's take a look at operational performance. When we look at store openings, as we mentioned before, we opened 123 net-use stores in the first quarter. For the last 12 months, we opened 580 net new stores. That's a 20% growth compared to the number of stores that we reported in March of 2025. Our expansion strategy remains consistent. We continue to densify existing regions while gradually expanding into new ones. Revenue growth remains strong. We continue to be one of the fastest growing retailers globally. Total revenue in the first quarter reached $23 billion, an increase of 33% year-over-year. We've seen very strong same-store sales growth of 16%. And this same-store sales growth is driven in large part by the ongoing improvement in our value proposition to customers and also stronger brand recognition of the brand 3B that we see every day getting stronger and stronger. When we compare our same-store sales performance with ANTAD, the gap remains notable. What we're seeing is a gap of more than 14 percentage points, and that despite operating with very low internal inflation. I will now pass the microphone to Abraham.

Thank you, Anthony. Good morning, everyone. Sales expenses as a percentage of revenue increased by five basis points to 10.3% year-over-year in the first quarter of 2026. Most of the expense lines showed operating leverage, with a slight increase mainly driven by utilities, permitting, and a higher V&A. Admin expenses excluding share-based payment remain unchanged. In the first quarter of 2026, we continue our investment in new regions and additional talent to support our growth. Separately, first quarter of 2025 included a one-time expense of 54 million pesos related to the secondary follow-up. With respect to share-based payment expense, these charges are non-cash and already reflected in our fully diluted share gap. Additional details are available in the appendix of this earning projections for this non-cash expense. EBITDA for the first quarter of 2026, excluding non-cash share-based payment expense, increased 39% to $1.3 billion, primarily driven by strong sales growth. The adjusted EBITDA margin increased by 22 basis points year-over-year. As you know, we don't drive to an EBITDA. It will continue to increase over time, driven by the work we continue to do. Our business model generates significant negative working capital, which in turn supports strong operating cash flow. In the first quarter of 2026, adjusted negative working capital reached 9.4 billion pesos, compared to 6.5 billion pesos in 2025, excluding IPO proceeds. This represents approximately 11.3% of total LTN revenue, also excluding IPO proceeds. Our accelerated growth continues to be self-funded. I will now turn the call back over to Anthony for some final remarks.