Tiendas 3B Shatters Records in Strong Q4 and Full-Year 2024 Performance
Leading retailer Tiendas 3B announced a remarkable performance in its fourth quarter and full-year 2024 conference call, exceeding expectations across key metrics. Chairman and Chief Executive Officer Anthony Hatoum led the discussion, highlighting the company's strategic initiatives that drove growth.
Notably, Tiendas 3B opened 138 net new stores during Q4, bringing the total to 484 new stores for the full year. This impressive expansion reflects the company's commitment to increasing store density in existing markets and expanding into new geographies. The successful opening of two new distribution centers further enhanced operational efficiency.
Total revenues surged by 32.7% to COP 16.3 billion in Q4, with a 13.4% increase in same-store sales growth for the full year, outperforming the industry average. This robust performance was driven by the company's strong value proposition, which resonated with customers amid economic uncertainty and rising costs of living.
A key factor contributing to Tiendas 3B's success is its continuous improvement in product offerings and quality control. The company's private label products now represent a significant share of sales, accounting for 54% of total revenue, up from 47% in the previous year. As a result, customers are purchasing more from Tiendas 3B, leading to increased transactions per store per month (up 4.6%) and average ticket size (increased by 3.6%).
Chief Financial Officer Eduardo Pizzuto noted that SG&A as a percentage of revenue increased by 96 basis points, reaching 15%. This strategic focus on operational efficiency has enabled Tiendas 3B to maintain profitability while investing in growth initiatives.
Anthony Hatoum expressed confidence in the company's prospects, saying, "Our strong value proposition is driving this momentum when the economy is slowing down and the cost of living is rising." He attributed the success to a continuous improvement in product offerings and quality control, resulting in better customer satisfaction and loyalty.
Tiendas 3B's financial performance was equally impressive, with net cash flows generated by operating activity reaching COP 3.79 million, a 19.4% increase year-over-year. The company ended the year with a net cash position of approximately MXN 1.4 billion and an additional USD 150 million in reserve since its IPO last year.
