Tiendas 3B 3Q24 Earnings Release

BBB Foods Inc. (“Tiendas 3B” or the “Company”) (NYSE: TBBB), a leading grocery hard discounter in Mexico, announced today its consolidated results for the third quarter of 2024 (“3Q24”) and the nine months ended September 30, 2024 (“9M24”). The figures presented in this release are expressed in nominal Mexican Pesos (Ps.) and are prepared in accordance with International Financial Reporting Standards (“IFRS”), unless otherwise stated.

HIGHLIGHTS

THIRD QUARTER 2024

• Opened 131 net new stores during 3Q24, reaching 2,634 stores as of September 30, 2024.
• Ps. 14,834 million total revenue for 3Q24.
  • Revenue increased by 29.8% compared to the third quarter of 2023 (“3Q23”).
  • Same Store Sales grew 11.6% compared to 3Q23.
• EBITDA reached Ps. 688 million, an increase of 54.0% compared to 3Q23.

MESSAGE FROM THE CHAIRMAN AND CEO

Dear Investors,

Tiendas 3B has delivered another strong quarter. Our Same Store Sales grew by 11.6% in the third quarter of 2024 versus the same period last year, significantly outpacing the growth in the overall Mexican hard discount grocery retail segment as reported by ANTAD (Asociación Nacional de Tiendas de Autoservicio y Departamentales). This performance highlights our continued success in providing customers what they want – high quality products at low prices in convenient locations, During the third quarter of 2024, we opened 131 net new stores, for a total of 346 new stores year-to-date, bringing our total store count to 2,634. Our expansion strategy continues to yield strong results, with new stores performing well across the board.

Overall, our revenues grew nearly 30% compared to the same period last year. Our EBITDA increased by 54%, with the higher margin driven by the dilution of operational expenses over a larger sales base.

As we move forward, we remain focused on our core principles: delivering value through a compelling offering, disciplined execution, and rapid store expansion. We are confident that these pillars will continue to drive sustainable growth and create value for our stakeholders.

Thank you for your continued trust and support.

K. Anthony Hatoum, Chairman and Chief Executive Officer

FINANCIAL RESULTS 

3Q24 CONSOLIDATED RESULTS (In Ps. Millions, except percentages) 

 

3Q24

As % of

Revenue

3Q23

As % of

Revenue

Growth

(%)

Variation

(bps)

Total Revenue

Ps. 14,834

100.0

%

Ps. 11,425

100.0

%

29.8

%

n.m.

Gross Profit

Ps. 2,344

15.8

%

Ps. 1,806

15.8

%

29.7

%

-1 bps

Sales Expenses

(Ps. 1,499)

10.1

%

(Ps. 1,219)

10.7

%

23.0

%

-56 bps

Administrative Expenses

(Ps. 494)

3.3

%

(Ps. 374)

3.3

%

32.1

%

6 bps

Other Income (Expense) – Net

Ps. 2

0.0

%

(Ps. 3)

0.0

%

(161.8

%)

4 bps

EBITDA

Ps. 688

4.6

%

Ps. 447

3.9

%

54.0

%

73 bps

Please see the explanation at the end of this release on how EBITDA, a non-IFRS financial measure, is calculated, and for other relevant definitions. 

TOTAL REVENUE

Total revenue for 3Q24 was Ps. 14,834 million, an increase of 29.8% compared to 3Q23. This increase was driven by higher revenues from stores operating for more than one year and revenues from net new stores opened in the last twelve months.

GROSS PROFIT AND GROSS PROFIT MARGIN

Gross profit in 3Q24 reached Ps. 2,344 million, an increase of 29.7% compared to 3Q23. This increase was driven by higher sales growth. Gross margin was stable over the year, as we passed the benefits of our increased size on to our customers.

EXPENSES

Sales expenses refer mainly to the expenses of operating our stores, such as the wages of store employees and energy. In 3Q24, sales expenses reached Ps. 1,499 million, a 23.0% increase compared to 3Q23. This rise in sales expenses was driven by the additional new stores opened in the last twelve months, the headcount to operate them, and wage inflation affecting labor costs accumulated during the last twelve months. Despite higher expenses, the Company was able to reduce sales expenses as a percentage of total revenue as a result of operational leverage and increased efficiencies. Sales expenses decreased from 10.7% of total revenue in 3Q23 to 10.1% in 3Q24, a decline of 56 bps.

Administrative expenses refer to expenses not related to operating our stores, such as headquarters and regional office expenses. In 3Q24, administrative expenses were Ps. 494 million, a 32.1% increase compared to 3Q23. This was primarily due to: (i) higher personnel expenses driven by our expansion into three new regions (ii) the strengthening of our central HQ teams in IT, purchasing, real estate, human resources, and finance (iii) public company-related expenses, and (iv) recognition of share-based payment expenses. As a percentage of revenue, administrative expenses remained flat in 3Q24 compared to 3Q23.

Other income (expense) - net, which includes revenues from asset disposals, reimbursement of costs, and insurance proceeds, among others, amounted to income of Ps. 2 million in 3Q24, as compared to an expense of Ps. 3 million in 3Q23. As a percentage of total revenue, other income (expense) – net decreased by 4 bps.

EBITDA AND EBITDA MARGIN

In 3Q24, EBITDA reached Ps. 688 million, an increase of 54.0% compared to 3Q23. This increase can be attributed to higher sales and lower sales expenses as a percentage of sales. EBITDA margin for 3Q24 increased by 73 bps to 4.6%.

Please see the last section of this release on how we calculate EBITDA and EBITDA Margin, which are non-IFRS financial measures.

To allow our investors to better assess our performance, we are providing the following information:

• Non-cash share-based payment expense reached Ps. 126 million compared to Ps. 112 million recorded in 3Q23.
• Building lease payments: The Company leases its stores and distribution centers. In accordance with IFRS 16, the Company’s leasing expenses are capitalized, and not considered operating expenses. Tiendas 3B’s capitalized lease costs payments for buildings were Ps. 357 million in 3Q24, compared to Ps. 272 million in 3Q23.

FINANCIAL COSTS AND NET PROFIT

Financial income reached Ps. 48 million, representing an increase of over 100% compared to 3Q23. This growth was primarily driven by the interest generated from the investment of proceeds derived from our IPO, net of cash used to pay off promissory and convertible notes, and the Company’s other cash positions.

Financial costs decreased by 3.9% to Ps. 287 million, primarily due to the absence of interest expenses on promissory and convertible notes, which the Company fully paid in the first quarter of 2024 (“1Q24”). However, the decrease was partially offset by higher interest expenses related to lease liabilities, mainly due to the expansion of our store network.

Exchange rate fluctuation resulted in a gain of Ps. 210 million in 3Q24, primarily due to the depreciation of the Mexican peso against the U.S. dollar, which positively impacted the value in Mexican pesos of our U.S. dollar cash position from the IPO proceeds.

Income tax expense reached Ps. 66 million in 3Q24 compared to Ps. 113 million in 3Q23.

As a result, our net profit for 3Q24 was Ps. 258 million, compared to a net loss of Ps. 339 million for 3Q23.

BALANCE SHEET AND LIQUIDITY

As of September 30, 2024, the Company reported cash and cash equivalents of Ps. 1,269 million, an increase from Ps. 1,220 million as of December 31, 2023, deployed mainly for working capital purposes. In addition, as of September 30, 2024, the Company held Ps. 2,964 million in U.S. dollar-denominated short-term bank deposits.

9M24 CASH FLOW STATEMENT (In Ps. Millions, except percentages) 

 

9M24

9M23

Growth (%)

Net cash flows provided by operating activities

Ps. 2,378

Ps. 1,943

22.4%

Net cash flows used in investing activities

(Ps. 4,172)

(Ps. 901)

n.m.

Net cash flows provided by (used in) financing activities

Ps. 1,748

(Ps. 1,027)

n.m.

Net increase (decrease) in cash and cash equivalents

(Ps. 46)

Ps. 14

n.m.

Our business model continues to generate a significant amount of cash from our negative working capital cycle due to our increasing sales and high inventory turnover. This robust cash flow has enabled us to fund internally our growth initiatives, including the expansion of new stores and distribution centers.

The information provided below offers a view of our financial activities in the first nine months of 2024:

Net cash flows provided by operating activities increased to Ps. 2,378 million in the first nine months of 2024 (“9M24”) from Ps. 1,943 million in the first nine months of 2023 (“9M23”), an increase of 22.4%. Our net working capital continues to be driven by a favorable ratio of Inventory Days to Payable Days.

Net cash flows used in investing activities were Ps. 4,172 million for 9M24, compared to Ps. 901 million in 9M23. This increase was primarily due to the allocation IPO proceeds in short-term U.S. dollar-denominated short-term bank deposits, which is reflected as an investment activity. In addition, spending on the purchasing of property, plant, and equipment (PP&E) reached Ps. 1,642 million, reflecting additional store openings compared to 9M23.

Net cash flows provided by financing activities were Ps. 1,748 million in 9M24, compared to Ps. 1,027 million used in 9M23. This decrease is mainly attributed to higher lease payments due to the opening of new stores in the last twelve months, as well as, to a lesser extent, payment of other financial debts.

KEY OPERATING METRICS 

 

3Q24

3Q23

Variation (%)

Number of Stores Opened

131

92

42.4%

Number Distribution Centers Opened

0

1

n.m.

Same Store Sales Growth (%) (1)

11.6%

15.4%

n.m.

(1)

We measure “Same Store Sales” using revenue from sales of merchandise from stores that were operational for at least the full preceding 12 months for the periods under consideration. When calculating this measure, we exclude stores that were temporarily closed (for one month or more) or permanently closed during the periods in consideration. We measure Same Store Sales growth by comparing the Same Store Sales of stores that were open during the measurement period.

In 3Q24, we opened 131 net new stores, reaching a total of 2,634 stores. This represents a significant increase compared to the 92 net new stores opened in 3Q23, which brought the total number of stores to 2,135 stores by the end of that period. During 3Q24, the Company did not open any distribution centers.

Same Store Sales grew by 11.6% for 3Q24, compared to 15.4% for 3Q23. We maintain our leadership in Same Store Sales growth in the Mexican hard discount grocery retail market.

Non-IFRS Measures and Other Calculations

For the convenience of investors, this release presents certain non-IFRS financial measures, which are not calculated in accordance with IFRS (“non-IFRS financial measures”). A non-IFRS financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so excluded or included in the most comparable IFRS financial measure. Non-IFRS financial measures do not have standardized meanings and may not be directly comparable to similarly titled measures reported by other companies. These non-IFRS financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. The non-IFRS financial measures presented herein have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations presented in accordance with IFRS. Additionally, our calculations of non-IFRS financial measures may be different from the calculations used by other companies, including our competitors, and therefore, our non-IFRS financial measures may not be comparable to those of other companies.

We calculate “EBITDA,” a non-IFRS measure, as net profit (loss) for the period, plus income tax expense, financial costs, net, and total depreciation and amortization.

We calculate “EBITDA Margin,” a non-IFRS measure, for a period by dividing EBITDA for the corresponding period by total revenue for such period.

Same Store Sales: We measure “Same Store Sales” using revenue from sales of merchandise at stores that were operational for at least the full preceding 12 months for the periods under consideration. Stores that were temporarily closed (for one month or more) or permanently closed during the relevant measurement periods are excluded from this metric. Same Store Sales growth is calculated by comparing the Same Store Sales of stores that were opened and remained open throughout the relevant measurement period.

Lease Costs: Consistent with lease accounting required under IFRS 16, total depreciation and amortization includes the depreciation expense of right-of-use-asset corresponding to long-term leases, which is a non-cash expense. Such amounts, together with the interest expense on lease liabilities, is a proxy for but not equal to the Company’s actual cash expenditure incurred in connection with its leased properties.

Sales per Store: We define our “Sales per Store” as the average of the revenue from sales of merchandise achieved by our stores that were open for the full year in consideration. When calculating this measure, we exclude stores that were temporarily closed (for one month or more) or permanently closed during the period in consideration. This measure assists our management’s understanding of how store performance has evolved across different vintages. Sales per Store also serves as a benchmark to measure the performance of new stores and is useful to set growth and expansion targets.

Inventory Days: We calculate “Inventory Days” to be the average of beginning and end of period inventory balance, divided by cost of sales for the period and multiplied by the number of days during the period. Inventory Days measures the average number of days we keep inventory on hand before selling the product. This operating metric allows us to track our inventory management policies and observe how quickly we are able to rotate inventory, which is key to our cash conversion cycle.

Payable Days: We calculate “Payable Days” to be the sum of the average of beginning and end of period balance of suppliers and of accounts payable and accrued expenses, divided by cost of sales for the period and multiplied by the number of days during the period. Payable Days measures the average number of days that it takes us to pay suppliers after receiving goods or services. This metric allows us to track the terms of payment policies with suppliers and our ability to finance our operations through agreements with our suppliers.

CONFERENCE CALL DETAILS

Tiendas 3B will host a call to discuss the third quarter of 2024 results on November 26, 2024, at 11:00 a.m. Eastern Time. A webinar of the call will be accessible at: https://us06web.zoom.us/webinar/register/WN_GqDGFh_BRHmrS0LuPiQzpA.

To join via telephone, please dial one of the domestic or international numbers listed below:

Mexico

United States

[phone]

[phone] (Chicago)

[phone]

[phone] (Houston)

[phone]

[phone] (New York)

Other international numbers available: https://us02web.zoom.us/u/knEOJCJkC

The webinar ID is 869 0678 1035

An audio replay from the conference call will be available on the Tiendas 3B website https://www.investorstiendas3b.com after the call.

FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. We base these forward-looking statements on our current beliefs, expectations and projections about future events and trends affecting our business and our market. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or to revise any forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The words “believe,” “may,” “should,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “will,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, capital expenditures, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Please refer to our annual report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities Exchange Commission (the “SEC”), as well as any subsequent filings made by us with the SEC, each of which is available on the SEC’s website (www.sec.gov), for a more extensive discussion of the risks and other factors that may impact any forward-looking statements in this release. Considering these limitations, you should not make any investment decision in reliance on forward-looking statements contained in this release.

ABOUT TIENDAS 3B

BBB Foods Inc. (“Tiendas 3B”), a proudly Mexican company, is a pioneer and leader of the grocery hard discount model in Mexico and one of the fastest growing retailers in the country as measured by its sales and store growth rates. The 3B name, which references "Bueno, Bonito y Barato" - a Mexican saying which translates to "Good, Nice and Affordable" - summarizes Tiendas 3B’s mission of offering irresistible value to budget savvy consumers through great quality products at bargain prices. By delivering value to the Mexican consumer, we believe we contribute to the economic well-being of Mexican families. In a landmark achievement, Tiendas 3B was listed on the New York Stock Exchange in February 2024 under the ticker symbol “TBBB.”

For more information, please visit: https://www.investorstiendas3b.com/.

FINANCIAL STATEMENTS 

Consolidated Income Statement (Unaudited) 

For the three months ended September 30, 2024 and September 30, 2023 (In thousands of Mexican pesos) 

For the Three Months Ended September 30,

2024

2023

% Change

 

 

 

 

Revenue From Sales of Merchandise

Ps. 14,807,698

Ps. 11,399,566

29.9%

Sales of Recyclables

26,108

25,609

1.9%

Total Revenue

14,833,806

11,425,175

29.8%

Cost of Sales

(12,490,108)

(9,618,847)

29.9%

Gross Profit

Ps. 2,343,698

Ps. 1,806,328

29.7%

Gross Profit Margin

15.8%

15.8%

 

Sales Expenses

(1,498,500)

(1,218,570)

23.0%

Administrative Expenses

(494,399)

(374,347)

32.1%

Other Income (Expense) - Net

1,770

(2,865)

n.m.

Operating Profit

Ps. 352,569

Ps. 210,546

67.5%

Operating Profit Margin

2.4%

1.8%

 

Financial Income

47,642

7,388

544.9%

Financial Costs

(286,930)

(298,527)

(3.9%)

Exchange Rate Fluctuation

210,191

(145,667)

n.m.

Financial Cost - Net

(29,097)

(436,806)

(93.3%)

Profit (Loss) Before Income Tax

323,472

(226,260)

n.m.

Income Tax Expense

(65,872)

(112,791)

(41.6%)

Net Profit (Loss) for the Period

Ps. 257,600

(Ps. 339,051)

n.m.

Net Profit Margin

1.7%

(3.0%)

 

 

 

 

 

Basic Earnings (Loss) per Share

2.30

(28.25)

 

Diluted Earnings (Loss) per Share

1.89

(28.25)

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

Basic

112,200,752

12,000,000

 

Diluted

136,283,972

12,000,000

 

 

 

 

 

EBITDA Reconciliation

 

 

 

Net Profit (Loss) for the Period

Ps. 257,600

(Ps. 339,051)

n.m.

Net Profit Margin

1.7%

(3.0%)

 

Income Tax Expense

65,872

112,791

(41.6%)

Financial Cost - Net

(29,097)

(436,806)

(93.3%)

D&A

335,385

236,225

42.0%

EBITDA

Ps. 687,954

Ps. 446,771

54.0%

EBITDA Margin

4.6%

3.9%

 

Consolidated Income Statement (Unaudited) 

For the nine months ended September 30, 2024 and September 30, 2023 (In thousands of Mexican pesos) 

For the Nine Months Ended September 30,

2024

2023

% Change

 

 

 

 

Revenue From Sales of Merchandise

Ps. 41,014,985

Ps. 31,694,573

29.4%

Sales of Recyclables

77,416

68,282

13.4%

Total Revenue

41,092,401

31,762,855

29.4%

Cost of Sales

(34,414,213)

(26,733,603)

28.7%

Gross Profit

Ps. 6,678,188

Ps. 5,029,252

32.8%

Gross Profit Margin

16.3%

15.8%

 

Sales Expenses

(4,208,458)

(3,431,030)

22.7%

Administrative Expenses

(1,426,551)

(1,033,144)

38.1%

Other Income (Expense) - Net

7,066

692

921.1%

Operating Profit

Ps. 1,050,245

Ps. 565,770

85.6%

Operating Profit Margin

2.6%

1.8%

 

Financial Income

109,501

20,510

433.9%

Financial Costs

(924,055)

(1,007,868)

(8.3%)

Exchange Rate Fluctuation

385,335

403,922

(4.6%)

Financial Cost - Net

(429,219)

(583,436)

(26.4%)

Profit (Loss) Before Income Tax

621,026

(17,666)

n.m.

Income Tax Expense

(263,033)

(191,503)

37.4%

Net Profit (Loss) for the Period

Ps. 357,993

(Ps. 209,169)

n.m.

Net Profit Margin

0.9%

(0.7%)

 

 

 

 

 

Basic Earnings (Loss) per Share

3.32

(17.43)

 

Diluted Earnings (Loss) per Share

2.72

(17.43)

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

Basic

107,798,668

12,000,000

 

Diluted

131,924,394

12,000,000

 

 

 

 

 

EBITDA Reconciliation

Net Profit (Loss) for the Period

Ps. 357,993

(Ps. 209,169)

n.m.

Net Profit Margin

0.9%

(0.7%)

 

Income Tax Expense

263,033

191,503

37.4%

Financial Cost - Net

(429,219)

(583,436)

(26.4%)

D&A

952,086

758,046

25.6%

EBITDA

Ps. 2,002,331

Ps. 1,323,816

51.3%

EBITDA Margin

4.9%

4.2%

Consolidated Balance Sheet (Unaudited) 

As of September 30, 2024 and December 31, 2023 (In thousands of Mexican pesos) 

As of September 30,

As of December 31,

2024

2023

Current assets:

 

 

Cash and cash equivalents

Ps. 1,268,902

Ps. 1,220,471

Short-term bank deposits

2,963,511

-

Creditors

3,669

-

Derivative financial instruments

7,287

-

Sundry debtors

47,523

11,020

VAT receivable

1,061,873

731,186

Advanced payments

134,846

72,998

Inventories

2,524,631

2,357,485

Total Current Assets

Ps. 8,012,242

Ps. 4,393,160

Non-Current Assets:

 

 

Guarantee deposits

37,949

33,174

Property, furniture, equipment, and lease-hold improvements - Net

5,849,141

4,606,300

Right-of-use assets – Net

6,487,974

5,520,596

Intangible assets – Net

6,794

6,771

Deferred income tax

494,588

403,801

Total Non-Current Assets

Ps. 12,876,446

Ps. 10,570,642

Total Assets

Ps. 20,888,688

Ps. 14,963,802

Current liabilities:

 

 

Suppliers

Ps. 7,855,059

Ps. 7,126,089

Accounts payable and accrued expenses

552,826

322,959

Income tax payable

43,350

2,326

Bonus payable to related parties

-

78,430

Short-term debt

915,377

744,137

Lease liabilities

620,019

537,515

Employees’ statutory profit sharing payable

164,062

140,485

Total Current Liabilities

Ps. 10,150,693

Ps. 8,951,941

Non-Current Liabilities:

Debt with related parties

-

4,340,452

Long-term debt

88,273

577,318

Lease liabilities

6,690,227

5,706,707

Employee benefits

28,231

22,232

Total Non-Current Liabilities

Ps. 6,806,731

Ps. 10,646,709

Total Liabilities

Ps. 16,957,424

Ps. 19,598,650

Stockholders’ equity:

 

 

Capital stock

8,283,347

471,282

Reserve for share-based payments

1,247,755

851,701

Cumulative losses

(5,599,838)

(5,957,831)

Total Stockholders’ Equity

Ps. 3,931,264

Ps. (4,634,848)

Total Liabilities and Stockholders’ Equity

Ps. 20,888,688

Ps. 14,963,802

Cash Flow Statement (Unaudited) 

For the three months ended September 30, 2024 and September 30, 2023 (In thousands of Mexican pesos) 

For the Three Months Ended September 30,

2024

2023

Profit (loss) before income tax

Ps. 323,472

(Ps. 226,260)

Adjustments for:

Depreciation of property, furniture, equipment, and lease-hold improvements

174,009

109,209

Depreciation of right-of-use assets

160,766

126,344

Amortization of intangible assets

610

672

Employee benefits

2,000

(1,936)

Interest payable on Promissory Notes and Convertible Notes

-

148,916

Interest expense on lease liabilities

263,415

146,859

Interest on debt and bonus payable and amortization of issuance costs

7,108

9,541

Other financial income

(44,223)

(7,388)

Gain on fair value of derivative financial instrument

(3,419)

-

Interests and commissions from credit lines

16,407

-

Gain on termination of lease agreements

(387)

-

Exchange fluctuation

(210,191)

80,559

Share-based payment expense

126,468

112,268

 

 

 

Increase in inventories

(150,579)

(165,326)

Increase in other current assets and guarantee deposits

(154,747)

(83,485)

Increase in suppliers (including supplier finance arrangements)

572,652

774,672

Increase (decrease) in other current liabilities

113,145

(55,779)

Increase (decrease) on bonus payable to related parties

-

55,246

Income taxes paid

(97,536)

(86,113)

Net cash flows provided by operating activities

Ps. 1,098,970

Ps. 937,999

Purchase of property, furniture, equipment, and lease-hold improvements

(651,199)

(229,143)

Sale of property and equipment

(509)

1,467

Additions to intangible assets

(563)

-

Short-term bank deposits

152,970

-

Interest earned on short-term investments

40,683

28,923

Net cash flows used in investing activities

(Ps. 458,618)

(Ps. 198,753)

Payments made on reverse factoring transactions-net of commissions received

(818,588)

(446,317)

Finance obtained through supplier finance arrangements

869,064

399,429

Proceeds (payment) from Santander and HSBC credit line

(85,086)

339,866

Payment of debt

(30,328)

(420,366)

Interest payment on debt and reverse factoring commissions

(23,515)

(8,455)

Lease payments

(396,839)

(301,386)

Payment of Principal amount of Promissory Notes

-

-

Payment of accrued Interests of Promissory Notes

-

-

Proceeds from initial public offering, net of underwriting fees

-

-

Initial public offering costs

-

-

Net cash flows provided by (used in) financing activities

(Ps. 485,292)

(Ps. 437,229)

Net increase (decrease) in cash and cash equivalents

155,060

302,017

Effect of foreign exchange movements on cash balances

(131,395)

34,626

Cash and cash equivalents at beginning of period

1,245,237

664,440

Cash and cash equivalent at end of period

Ps. 1,268,902

Ps. 1,001,083

Cash Flow Statement (Unaudited) 

For the nine months ended September 30, 2024 and September 30, 2023 (In thousands of Mexican pesos) 

For the Nine Months Ended September 30,

2024

2023

Profit (loss) before income tax

Ps. 621,026

(Ps.17,666)

Adjustments for:

Depreciation of property, furniture, equipment, and lease-hold improvements

468,985

334,184

Depreciation of right-of-use assets

481,244

421,872

Amortization of intangible assets

1,857

1,990

Employee benefits

5,999

-

Interest payable on Promissory Notes and Convertible Notes

82,588

459,621

Interest expense on lease liabilities

757,618

526,566

Interest on debt and bonus payable and amortization of issuance costs

29,471

21,676

Other financial income

(102,214)

(20,510)

Gain on fair value of derivative financial instrument

(7,287)

-

Interests and commissions from credit lines

54,378

-

Gain on termination of lease agreements

(387)

-

Exchange fluctuation

(385,335)

(469,030)

Share-based payment expense

396,054

302,438

 

 

 

Increase in inventories

(167,146)

(259,525)

Increase in other current assets and guarantee deposits

(446,657)

(150,082)

Increase in suppliers (including supplier finance arrangements)

728,969

1,013,497

Increase (decrease) in other current liabilities

248,169

68,147

Increase (decrease) on bonus payable to related parties

(79,351)

11,412

Income taxes paid

(309,773)

(301,751)

Net cash flows provided by operating activities

Ps. 2,378,208

Ps. 1,942,839

Purchase of property, furniture, equipment, and lease-hold improvements

(1,642,397)

(940,202)

Sale of property and equipment

1,856

2,454

Additions to intangible assets

(1,880)

(799)

Short-term bank deposits

(2,621,393)

-

Interest earned on short-term investments

91,966

37,354

Net cash flows used in investing activities

(Ps. 4,171,848)

(Ps. 901,193)

Payments made on reverse factoring transactions-net of commissions received

(2,266,340)

(1,320,996)

Finance obtained through supplier finance arrangements

2,385,967

1,334,506

Proceeds (payment) from Santander and HSBC credit line

58,806

300,314

Payment of debt

(107,557)

(463,437)

Interest payment on debt and reverse factoring commissions

(76,691)

(18,077)

Lease payments

(1,139,828)

(859,684)

Payment of Principal amount of Promissory Notes

(1,969,602)

-

Payment of accrued Interests of Promissory Notes

(2,955,495)

-

Proceeds from initial public offering, net of underwriting fees

7,841,837

-

Initial public offering costs

(23,269)

-

Net cash flows provided by (used in) financing activities

Ps. 1,747,828

(Ps. 1,027,374)

Net increase (decrease) in cash and cash equivalents

(45,812)

14,272

Effect of foreign exchange movements on cash balances

94,243

1,835

Cash and cash equivalents at beginning of period

1,220,471

984,976

Cash and cash equivalent at end of period

Ps. 1,268,902

Ps. 1,001,083

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241125235028/en/

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