Mexico: Tiendas 3B reports 36.7% in third-quarter revenue
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Mexico: Tiendas 3B reports 36.7% in third-quarter revenue

Discount Retail Chain BBB Foods Inc. (Tiendas 3B), the largest grocery hard discounter in Mexico, reported a 36.7% increase in its consolidated revenues for the third quarter of 2025, although it recorded a quarterly net loss due to a significant increase in administrative expenses derived mainly from stock-based compensation.


The company reported revenues of 20.279 billion pesos for the quarter ended September 30, driven mainly by the performance of stores with more than a year in operation and by the 528 openings made in the last 12 months. Same-store sales grew 17.9%.


3B stores opened 131 new stores in the quarter, reaching a total of 3,162 units. The chain also launched two new distribution centers, bringing its operating regions to 18.


CEO and President K. Anthony Hatoum noted that the quarter reflects the strength of the business model and its potential for expansion, reiterating that the company sees a "clear path" to operate at least 14,000 stores in Mexico.


Profitability

EBITDA was a loss of 404 million pesos, compared to a profit of 688 million in the same period of the previous year. The result was affected by an increase in non-cash expense for stock compensation, which amounted to 1,574 million pesos, compared to 126 million a year earlier.


Excluding this effect, adjusted EBITDA grew 43.6% year-on-year to 1,170 million pesos, with a margin of 5.8%.


Gross margin stood at 16.2%, with a gross profit of 3,277 million pesos, an increase of 39.8% year-on-year and an expansion of 36 basis points, driven by commercial margins that offset higher logistics costs due to new regions in operation.


Selling expenses grew 37.8% to 2,065 million pesos, while administrative expenses increased 326.5% to 2,109 million, reflecting higher regional personnel costs and the beginning of the recognition of the shareholder compensation plan associated with the liquidity event announced in 2024.


The company recorded other net income of 17 million pesos, and a net financial cost affected by higher interest on lease liabilities. Tiendas 3B also reported a foreign exchange loss of 86 million pesos, as a result of the depreciation of the dollar against the peso that impacted the remaining dollar cash from its initial public offering.


The quarter closed with a net loss of 1,424 million pesos, compared to a net profit of 258 million in 3Q24.


In liquidity, the company reported 1.113 billion pesos in cash in local currency and 151 million dollars in short-term bank deposits as of September 30.


In the first nine months of the year, Tiendas 3B generated 3,095 million pesos in operating cash flow, supported by its negative working capital cycle, while investments totaled 2,228 million pesos due to the expansion of stores and logistics.


The company reiterated that it continues to fund its growth internally and that its new store teams are maturing faster than previous generations.



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