Tiendas 3B (TBBB) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue: MXN 26 billion, a 39% increase year-over-year.

Same-Store Sales Growth: 20% compared to Q2 2025.

Reported EBITDA: MXN 960 million; excluding non-cash share-based compensation, adjusted EBITDA increased 44% to MXN 1.6 billion.

Cash Flow from Operating Activities: MXN 4.3 billion, representing 119% growth year-over-year.

Store Count: 3,624 stores as of June 30, 2026, with 155 net new stores opened in Q2 and 593 over the past year.

Adjusted Negative Working Capital: MXN 10.2 billion, up from MXN 7.1 billion in 2025.

2Strategic Updates and Business Highlights

Expansion Strategy: Focus on both densifying existing regions and selective expansion into new areas. Opened one new distribution center, bringing the total to 21.

Operational Efficiency: Sales expenses as a percentage of revenue decreased by 56 basis points to 10%. Improved gross margins driven by better logistics and purchasing efficiencies.

Store Format: 100% of new stores are under an upgraded format, which has shown better performance than older stores.

Talent Investment: Continued investment in talent to support growth, particularly in purchasing, logistics, and systems.

3Forward Guidance and Outlook

Growth Potential: Confident in long-term growth opportunities, with expectations for continued strong performance in same-store sales driven by increased customer loyalty and improved product offerings.

Distribution Centers: Three additional distribution centers expected to open in Q3, which may temporarily pressure logistics expenses but are anticipated to enhance efficiency in the long run.

4Bad News, Challenges, or Points of Concern

Logistics Pressure: Potential pressure on logistics expenses due to the opening of new distribution centers, which may affect margins in the short term.

Competitive Landscape: Ongoing competitive pressures, particularly from FEMSA and other players in the discount retail space, although management believes the market can support multiple players.

G&A Expenses: Increasing pace of general and administrative investments could impact short-term profitability, though management views this as a necessary investment for long-term value.

5Notable Q&A Insights

Gross Margin Drivers: Management indicated that gross margin improvements stem from operational efficiencies and better input conditions, with a focus on MXN dollar margin rather than percentage margin.

Customer Growth: Approximately two-thirds of same-store sales growth attributed to increased volume, with one-third from price improvements. The company is focused on increasing items per transaction.

ERP System Progress: The new ERP system is on track, with AI tools accelerating programming capabilities, allowing for additional features to be integrated sooner than planned.

Real Estate Availability: No constraints on real estate for expansion; the company continues to find favorable conditions for new store openings. Overall, Tiendas 3B reported a robust quarter with significant revenue growth and operational efficiency, while also acknowledging potential challenges related to logistics and competitive pressures. The company remains optimistic about its growth trajectory and strategic initiatives.