Daniela Bretthauer • HSBC

Question 1

Daniela Bretthauer's questions to Bbb Foods Inc (TBBB) leadership • Q4 2024

Apr 10, 2025

Question

Daniela Bretthauer of HSBC Holdings plc asked about the optimal level of expenses as a percentage of sales, noting that operating leverage is not being maximized due to growth investments. She also sought clarification on the amounts of one-off expenses in selling and G&A. In a follow-up, she asked for guidance on the effective tax rate for modeling purposes and the nature of the foreign exchange impact.

Answer

CFO Eduardo Pizzuto clarified the one-off expense figures and explained that expenses are viewed in two buckets. Selling expenses are expected to continue decreasing as a percentage of sales due to scale and efficiency. Admin expenses, however, will continue to see investment in talent to support growth in 2025, though they are expected to trend down as a percentage of sales over the long term. For the tax rate, he advised stripping out non-Mexican level expenses (like ESOPs and FX) and applying a 30% rate to Mexican operating profits. The positive FX impact was due to U.S. dollar holdings from the IPO.

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Question 2

Daniela Bretthauer's questions to Bbb Foods Inc (TBBB) leadership • Q3 2024

Oct 25, 2024

Question

Daniela Bretthauer from HSBC sought clarification on the company's U.S. dollar-denominated cash position and the associated FX gain calculation. She also pressed for more detail on the gross margin decline from its recent high, asking if it was driven by increased price reinvestments, lower supplier bonuses, or other factors, and what level should be used for forecasting.

Answer

CFO Eduardo Pizzuto clarified the U.S. dollar cash position, stating that approximately $150 million from IPO proceeds remains in short-term deposits and has not been transferred to the Mexican operation, with changes primarily due to interest accrual. Executive Kamal Hatoum reiterated that the gross margin level is a dynamic outcome of their pricing strategy to drive volume and peso profit, not a fixed target. He advised that any modeled margin assumption must be linked to a corresponding sales curve assumption.