Financial Data and Key Metrics Changes - Total revenues increased by 29.8% year-on-year to reach PS 14.8 billion in Q3 2024 [4][7] - EBITDA for Q3 reached PS 688 million, a 54% year-on-year increase [4][10] - Net cash flows from operating activities for the first nine months reached approximately PS 2.3 billion, a 22.4% increase year-on-year [5] - The company ended the quarter with a net cash position of approximately PS 1.3 billion [5] Business Line Data and Key Metrics Changes - Same-store sales grew by 11.6% year-on-year [4][7] - The company opened 131 net new stores in Q3 2024, bringing the total store count to 2,634 [4][6] - For the first nine months of 2024, the company opened 346 net new stores, a 42% increase compared to the same period last year [6] Market Data and Key Metrics Changes - The company reported flat gross profit margins at 15.8% compared to the same quarter last year [7] - Adjusted negative working capital was 10.3% of total revenue as of September 30, 2024, reflecting operational efficiency [11] Company Strategy and Development Direction - The company aims to meet its guidance of opening between 380 to 420 new stores in 2024 [6][25] - The management expressed confidence in the market's capacity to sustain up to 20,000 stores over time [25] - The company continues to focus on providing the best value for money to customers, which is a key driver of its success [7][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the company continues to perform strongly despite industry deceleration, with same-store sales trends remaining robust [62] - The management emphasized the importance of continuously optimizing pricing strategies to enhance value propositions [80] - The company remains self-funded and is focused on growth without immediate plans for dividends [34][78] Other Important Information - SG&A as a percentage of total revenue decreased by 51 basis points year-on-year from 13.9% to 13.4% [9] - The company has not seen significant impacts from weather conditions, such as rain, on shopping behavior [108] Q&A Session All Questions and Answers Question: Sequential gross margin decline and operating leverage - Management explained that gross margin fluctuations are a result of individual pricing decisions and emphasized that their strategy remains unchanged [20] Question: Store base and competition with Neto - The company has about 1,500 stores near Neto locations and continues to perform strongly against competition [21] Question: Long-term outlook for dividends - Management stated it is too early to discuss dividends but acknowledged significant cash generation potential in the future [34] Question: Productivity of newer stores - Management confirmed that all store vintages continue to perform solidly, with newer stores showing strong trends [36] Question: Breakdown of same-store sales between ticket and traffic - Management indicated that the increase in same-store sales is primarily driven by a notable increase in transactions and average ticket size [44] Question: Impact of rain on demand - Management noted that while rain can affect shopping behavior, they have not seen significant impacts on their sales [108] Question: Relationship with suppliers - Management highlighted that scaling improves supplier relationships, leading to better terms and product offerings [100][101]
BBB Foods(TBBB) - 2024 Q3 - Earnings Call Transcript