Tiendas 3B Accelerates Growth Amid Market Volatility with Record-Quality Quarter
Tiendas 3B has delivered a standout quarter, defying market headwinds and showcasing the resilience of its business model. The Mexican retailer's Chairman and Chief Executive Officer, Anthony Hatoum, recently reported on Q1 2025 earnings that surpassed expectations.
Key highlights from the quarter include a net increase of 117 new stores to reach a total of 2,889 stores, same-store sales growth of 13.5%, and total revenues increasing by 35% to MXN 17 billion. The company also reported an EBITDA growth of over 12% to reach MXN 705 million.
The significant increase in store openings has led to a notable acceleration in the retailer's growth trajectory, with store additions totaling 507 for the last 12 months compared to 416 during the same period in the previous year. This surge in expansion is expected to continue, with the company aiming to further capitalize on its value proposition and competitive advantages.
Tiendas 3B's financial performance was also bolstered by a cash flow generated from operating activities reaching MXN 1.1 billion, representing a 49% increase year-over-year. This strong cash position has enabled the retailer to maintain a net cash balance of approximately MXN 1.6 billion.
Chief Financial Officer Eduardo Pizzuto emphasized that the company's investments in new markets and talent acquisition have contributed to its financial growth. He noted that operating leverage, while not immediately apparent at the consolidated level, continues to show a decreasing trend at the unit level as store openings accelerate.
Mr. Pizzuto also highlighted the company's ability to generate significant negative working capital, which in turn produces substantial cash flows from changes in this negative working capital. This strategy has allowed Tiendas 3B to maintain its self-funded growth approach.
The company's business model is built on a robust foundation that enables it to navigate market fluctuations effectively. Anthony Hatoum expressed confidence in the future, stating that Tiendas 3B will continue to invest in its growth and expand its competitive advantages, ultimately driving increased growth rates and shareholder value.
