Financial Data and Key Metrics Changes - In Q1 2024, revenues reached Ps. 12.7 billion, representing a 30.9% growth compared to the same quarter last year [7] - Same-store sales grew by 14.8% and operating cash flow increased by 36.4% [4] - EBITDA grew by 57.9% from Ps. 396 million to Ps. 626 million, with EBITDA margin increasing from 4.1% to 4.9% [9] - The company ended the quarter with a net cash position of Ps. 4.3 billion due to IPO proceeds and organic cash flow generation [4] Business Line Data and Key Metrics Changes - The company opened 94 new stores in Q1 2024, bringing the total to 2,382, a 27% increase in store openings compared to Q1 2023 [5] - The compound annual growth rate of store openings from 2019 to 2023 was maintained at over 15% [5] Market Data and Key Metrics Changes - The company maintains a view that Mexico has the potential for at least 12,000 successful 3B stores [6] - The minimum wage increases have positively impacted the target customer segments [11] Company Strategy and Development Direction - The company aims to continue its growth trajectory by opening between 380 and 420 stores in 2024 and increasing sales by 28% to 32% [11] - The business model focuses on a cycle of opening new stores, enhancing value for customers, and generating cash flow [13] - The company emphasizes maintaining operational efficiency and cost reduction as it scales [12] Management's Comments on Operating Environment and Future Outlook - Management noted a positive halo effect post-IPO, with increased motivation from suppliers and better terms being negotiated [17] - The management believes that the growth in older store vintages will continue due to improved value offerings [27] - The company is committed to organic growth, although it does not rule out potential M&A opportunities in the future [36] Other Important Information - The gross margin increased by 80 basis points, attributed to better supplier terms and scale [7] - The company is continuously testing new SKUs, with around 50 to 60 in pilot mode at any time [60] Q&A Session Summary Question: Are there any tangible benefits post-IPO? - Management noted a significant positive halo effect from suppliers and increased motivation [17] Question: Are there any concerns about the quality of new store openings? - Management stated that all new store openings are performing well and maintaining discipline in their approach [20] Question: Will gross margins trend upwards? - Management indicated that the increase in gross margin is a normal fluctuation and should not be over-interpreted [23] Question: What is the outlook for mature store performance? - Management confirmed that older vintages continue to perform well, driven by improved customer value [27] Question: Is there any change in the competitive landscape? - Management reported no notable changes from competitors adopting their discount model [35] Question: What is the strategy regarding new categories and fresh products? - Management stated that only fully tested products will be introduced, maintaining a disciplined approach [43] Question: How is the company addressing higher labor costs? - Management confirmed ongoing efficiency projects to offset costs, with no new initiatives specifically tied to the IPO [48]
BBB Foods(TBBB) - 2024 Q1 - Earnings Call Transcript