分组1 - Betterware de Mexico SAPI de C reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.3 per share, but down from $0.47 per share a year ago, representing an earnings surprise of +50.00% [1] - The company posted revenues of $182.79 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.36%, but down from $196.82 million year-over-year [2] - Betterware de Mexico SAPI de C shares have declined approximately 9.9% year-to-date, contrasting with the S&P 500's gain of 8.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $188.58 million, and for the current fiscal year, it is $1.68 on revenues of $772.02 million [7] - The Zacks Industry Rank for Consumer Products - Discretionary is in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - Consolidated revenue grew by 5.1% year over year and 1.8% quarter on quarter, indicating a recovery from previous challenges [3] - Consolidated EBITDA increased by 3.5% year over year to MXN 679 million, with a margin of 19.1% [18] - Free cash flow rose to MXN 592 million, achieving a year-to-date conversion of 44.2% of EBITDA [20] - Consolidated EPS grew by 7.7% year over year, supported by revenue and EBITDA increases [21] Business Line Data and Key Metrics Changes - BetterWare Mexico's revenue increased by 4% quarter on quarter, recovering from a 9.8% year over year decline in Q1 [4] - Jafra Mexico's revenue rose by 10.9% year on year, with an EBITDA margin expanding to 21.2% [7] - Jafra US experienced an 8.9% year over year revenue decrease but rebounded by 15.6% quarter on quarter [11] Market Data and Key Metrics Changes - The associate base for BetterWare Mexico grew from 649,000 to 670,000, a 3.3% quarter on quarter increase [5] - Jafra's associate base increased by 2.3%, with average monthly ticket rising over 9% [10] - The company successfully launched Better Work Ecuador, surpassing its Q2 goal with 2,500 active associates [14] Company Strategy and Development Direction - The company is focusing on internal strategies to drive growth, including pricing and merchandising techniques [25][26] - A new compensation plan and market-specific innovations are being implemented in Jafra US to foster growth [12][13] - Geographic expansion is a key growth pillar, with plans to assess the Colombian market for entry in 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management noted slight stabilization in consumption trends, attributing more growth to internal strategies rather than macroeconomic improvements [25][29] - There is still uncertainty in the macro environment, but a stable environment is expected to support growth [29] - Management expressed confidence in achieving a positive second half of the year based on strong fundamentals and strategic pillars [48] Other Important Information - The consolidated gross margin was 67.1%, reflecting commercial investments in pricing strategies [17] - The company proposed a MXN 200 million dividend for Q2 2025, marking the twenty-second consecutive dividend since its IPO [21][22] Q&A Session Summary Question: How much should you attribute to a better macro and consumer environment versus company-specific initiatives? - Management indicated that while there was slight stabilization in consumption, internal measures were more significant in driving results [25][26] Question: What are the key drivers to achieve the full year guidance of 6% to 9% revenue and EBITDA growth? - Management expects stability in consumption trends and highlighted the growth in the associate base as a positive sign for future quarters [27][28] Question: What areas are there more efficiencies to get back to the 23% to 24% EBITDA margin? - Management identified improvements in gross margin, lower freight costs, and internal strategies to enhance product accessibility as key areas for margin improvement [30][31][32] Question: What opportunities are seen in the Chinese market? - Management noted opportunities to work closely with suppliers to improve product design and efficiency, although no significant changes were anticipated [39] Question: How should we think about inventory productivity going forward? - Management reported a decrease in inventory levels and a strategy to push existing products while reducing purchases to normalize inventory [40][41] Question: How should we view the thirtieth anniversary celebration as a potential driver? - Management believes the anniversary reinforces trust and confidence among associates and distributors, contributing to growth strategies [44]

Q2 2025 Performance Highlights - BeFra Group's net revenue increased by 5.1% in Q2 2025, driven by Jafra Mexico and rebounds in Betterware Mexico and Jafra US[3] - The Group's EBITDA increased by 3.5% in Q2 2025, reaching a margin of 19.1%, primarily due to higher margins in Jafra Mexico[3] - Positive Free Cash Flow (FCF) generation achieved an EBITDA conversion of 87.2% in Q2 2025, with expectations to maintain historical levels of approximately 60% by year-end[4] - Net income grew by 7.7% in Q2 2025, attributed to lower interest rates in Mexico and reduced taxes[4] Segment Performance - Betterware Mexico's revenues decreased by 1.2%, but experienced a sequential rebound of 4.0% in Q2 2025, driven by pricing strategies, innovation, and renewed incentives[7] - Jafra Mexico's net revenues increased by 10.9% in Q2 2025, driven by strong performance in Fragrance, Color, and Skin Care categories[11] - Jafra Mexico's EBITDA grew by 14.2% year-over-year (YoY), with the margin expanding to 21.2%, driven by sales volume growth, improved sales mix, and cost management[12] - Jafra US net revenues decreased by 8.9% in USD, but rebounded by 15.6% QoQ, driven by commercial strategies[14] Financial Guidance and Capital Allocation - The company reaffirms its full-year guidance, projecting net revenue between $14.9 billion and $15.3 billion (6.0%-9.0% increase YoY) and EBITDA between $2.9 billion and $3.0 billion (6.0%-9.0% increase YoY)[36] - A dividend of Ps 200 million has been proposed for Q2 2025, marking the 22nd consecutive quarterly dividend payment since the IPO in March 2020[37]

[Message from the President and CEO](index=2&type=section&id=Message%20from%20the%20President%20and%20CEO) BeFra achieved top-line and EBITDA growth in Q2 2025, demonstrating strong profitability and free cash flow amidst a volatile market, with cautious optimism for H2 2025 [Summary of Q2 2025 Performance](index=2&type=section&id=Summary%20of%20Q2%202025%20Performance) This section summarizes BeFra's Q2 2025 performance, highlighting its return to growth, strong profitability, and positive free cash flow, driven by improved market conditions and strategic execution - Consolidated revenue grew **5.1% year-over-year** in Q2, bringing first-half growth to **1.0%**[5](index=5&type=chunk) - EBITDA increased **3.5% YoY**, reflecting a strong recovery in Q2, with EBITDA margin reaching **19.1%**[6](index=6&type=chunk) - Generated positive free cash flow of **MXN 592 million** in Q2, up **29.2% YoY**, representing quarterly conversion of **87.2% of EBITDA**[7](index=7&type=chunk) - Net Debt-to-EBITDA improved sequentially and was a healthy **1.97x** at quarter-end[7](index=7&type=chunk) - Jafra Mexico grew **10.9%**, and Betterware Mexico showed a strong sequential recovery versus Q1 2025[5](index=5&type=chunk) - Successfully launched Betterware Ecuador in May, surpassing initial projections to reach **2,500 Associates** in the first two months[5](index=5&type=chunk) [Q2 2025 Select Consolidated Financial Information](index=3&type=section&id=Q2%202025%20Select%20Consolidated%20Financial%20Information) This section presents key consolidated financial metrics for Q2 and H1 2025, highlighting the company's return to revenue growth, strong profitability rebound, and positive free cash flow [Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) This section provides a snapshot of key consolidated financial metrics for Q2 and H1 2025, highlighting the return to revenue growth, strong profitability rebound, and positive free cash flow Q2 2025 Select Consolidated Financial Information (MXN thousands) | Metric | 2025 | 2024 | Change | H1 2025 | H1 2024 | Change | | :---------------- | :---------- | :---------- | :----- | :---------- | :---------- | :----- | | Net Revenue | $3,562,643 | $3,389,393 | +5.1% | $7,061,794 | $6,991,896 | +1.0% | | Gross Margin | 67.1% | 67.8% | -68 bps | 66.7% | 68.8% | -213 bps | | EBITDA | $678,812 | $656,136 | +3.5% | $1,214,077 | $1,411,525 | -14.0% | | EBITDA Margin | 19.1% | 19.4% | -30 bps | 17.2% | 20.2% | -300 bps | | Net Income | $327,306 | $303,820 | +7.7% | $478,700 | $598,984 | -20.1% | | EPS | $8.77 | $8.14 | +7.7% | $12.83 | $16.05 | -20.1% | | Free Cash Flow | $592,152 | $458,437 | +29.2% | $536,311 | $818,092 | -34.4% | | Net Debt / EBITDA | 1.97 | 1.80 | +9.4% | 1.97 | 1.80 | +9.4% | | Interest Coverage | 3.32 | 3.23 | +2.8% | 3.32 | 3.23 | +2.8% | - Net Income grew **7.7%** in Q2, mainly due to lower interest rates in Mexico and a **MXN 45 million** decrease in income tax[15](index=15&type=chunk) [Business Unit Performance Overview](index=3&type=section&id=Business%20Unit%20Performance%20Overview) Individual business units contributed to consolidated performance, with Jafra Mexico showing strong growth, Betterware Mexico recovering sequentially, and Jafra US achieving sequential sales growth after a new compensation plan - Jafra Mexico continues strong growth with **10.9% YoY**, driven by a higher Associate base and stronger productivity[15](index=15&type=chunk) - Betterware Mexico grew strongly on a sequential basis, narrowing a **9.8% decline in Q1** to a **1.2% decline in Q2**, and achieved net Associate growth for the first time since Q1 2021[15](index=15&type=chunk) - Jafra US achieved **15.6% sequential sales growth**, following a complete revamp of its compensation plan[15](index=15&type=chunk) - Betterware Latam is recovering growth in Central America and generating new revenue from Ecuador, with plans to assess entry into Colombia in 2026[15](index=15&type=chunk) [Financial Performance](index=4&type=section&id=Financial%20Performance) This section analyzes BeFra's financial performance, covering liquidity, asset structure, return on investment, debt leverage, and capital allocation strategies [Liquidity Ratios](index=4&type=section&id=Liquidity%20Ratios) BeFra's cash flow is returning to its natural operating cycle, with strong improvement in Free Cash Flow to Adjusted EBITDA ratio, despite an increase in the Cash Conversion Cycle Liquidity Ratios (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | ∆ | | :---------------- | :------ | :------ | :------- | | Current Ratio | 0.93 | 1.03 | -9.5% | | FCF / Adj. EBITDA | 87.2% | 69.9% | +1,736 bps | | CCC (days) | 65 | 42 | +23 days | - Cash generation is expected to continue improving in the coming quarters after non-recurring events in Q1 2025[16](index=16&type=chunk) [Asset Light Business](index=4&type=section&id=Asset%20Light%20Business) The company maintains its asset-light business model, evidenced by a significant decrease in fixed assets relative to total assets, primarily due to the strategic sale of Jafra Mexico's real estate assets Asset Structure (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | ∆ bps | | :-------------------- | :------ | :------ | :------- | | Fixed Assets / Total Assets | 16.8% | 26.5% | -972 bps | | Variable Cost Structure | 75.1% | 76.7% | -166 bps | | Fixed Cost Structure | 24.9% | 23.3% | 166 bps | | SG&A / Net Revenues | 45.6% | 46.5% | -89 bps | - The YoY decrease in fixed assets was due to the strategic sale of Jafra Mexico's real estate assets last year, aligning with the asset-light strategy[18](index=18&type=chunk) [Return on Investment](index=4&type=section&id=Return%20on%20Investment) Despite a challenging Q1 impacting first-half profitability, BeFra delivered solid returns on investment in Q2, with management confident in the long-term value creation capacity of its business model Return on Investment (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | ∆ | | :-------------- | :------ | :------ | :------- | | Equity Turnover | 12.07 | 8.73 | +38.3% | | ROE | 50.4% | 76.9% | -2,656 bps | | ROTA | 10.5% | 18.4% | -784 bps | | Dividend Yield | 12.66% | 10.69% | +196 bps | - First-half profitability was impacted by a challenging operating environment and weak performance in Q1, but management views these as short-term[20](index=20&type=chunk) [Debt Leverage](index=4&type=section&id=Debt%20Leverage) BeFra's debt levels reflect strategic initiatives like the Jafra acquisition and Betterware Campus investment, with management committed to debt reduction and expecting leverage to decrease in H2 2025 Debt Leverage (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | ∆% | | :---------------- | :------ | :------ | :----- | | Debt to EBITDA | 2.12 | 1.95 | +8.4% | | Net Debt to EBITDA | 1.97 | 1.80 | +9.2% | | Interest Coverage | 3.32 | 3.23 | +3.0% | - Current debt levels primarily reflect the acquisition of Jafra in 2022 and investment in the Betterware Campus[22](index=22&type=chunk) - Management is firmly committed to debt reduction strategy and expects to reduce leverage during H2 2025[22](index=22&type=chunk) [Capital Allocation](index=4&type=section&id=Capital%20Allocation) The Board of Directors has proposed maintaining a MXN 200 million dividend for Q2 2025, demonstrating commitment to enhancing shareholder value - The Board of Directors has proposed maintaining a **MXN 200 million** dividend for Q2 2025, pending approval at the Ordinary General Shareholders' Meeting on July 31, 2025[24](index=24&type=chunk) [2025 Guidance](index=5&type=section&id=2025%20Guidance) This section outlines the company's full-year 2025 guidance, projecting continued growth in both Net Revenue and EBITDA, while emphasizing ongoing monitoring of business progress [Full-Year 2025 Guidance](index=5&type=section&id=Full-Year%202025%20Guidance) The Company remains committed to its full-year guidance for 2025, projecting continued growth in both Net Revenue and EBITDA 2025 Full-Year Guidance (MXN millions) | Metric | 2025 Guidance | 2024 | Var % | | :---------- | :------------------ | :---------- | :------------ | | Net Revenue | $14,900 - $15,300 | $14,101 | ≈ 6.0% - 9.0% | | EBITDA | $2,900 - $3,000 | $2,775 | ≈ 6.0% - 9.0% | - The Company will continue to monitor business progress closely to ensure alignment with guidance[26](index=26&type=chunk) [Q2 2025 Financial Results by Business](index=6&type=section&id=Q2%202025%20Financial%20Results%20by%20Business) This section details the Q2 2025 financial results for each business unit, including Betterware Mexico, Jafra Mexico, and Jafra US, highlighting their individual performance and strategic priorities [Betterware Mexico](index=6&type=section&id=Betterware%20Mexico) Betterware Mexico showed a strong sequential revenue rebound in Q2, driven by pricing strategies, product innovation, and enhanced incentive programs leading to Associate base growth Betterware Mexico Key Financial and Operating Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (MXN thousands) | Q2 2024 (MXN thousands) | Change | H1 2025 (MXN thousands) | H1 2024 (MXN thousands) | Change | | :-------------------- | :------------------ | :------------------ | :----- | :------------------ | :------------------ | :----- | | Net Revenue | $1,458,593 | $1,476,375 | -1.2% | $2,861,658 | $3,031,402 | -5.6% | | Gross Margin | 55.2% | 56.4% | -127 bps | 55.2% | 58.3% | -304 bps | | EBITDA | $290,745 | $304,467 | -4.5% | $552,238 | $686,574 | -19.6% | | EBITDA Margin | 19.9% | 20.6% | -69 bps | 19.3% | 22.6% | -335 bps | | Associates Avg. Base | 657,317 | 713,144 | -7.8% | 651,338 | 714,895 | -8.9% | | Associates EOP Base | 670,349 | 699,033 | -4.1% | 670,349 | 699,033 | -4.1% | | Monthly Activity Rate | 65.6% | 66.4% | -76 bps | 65.6% | 67.0% | -147 bps | | Avg. Monthly Order | $2,153 | $2,027 | +6.2% | $2,152 | $2,040 | +5.5% | - Revenue rebound of **4.0% QoQ growth** was driven by a lower 'line item' gross margin, exceptional product innovation, and a strengthened incentive program[30](index=30&type=chunk) - Achieved net Associate growth, with the base expanding sequentially from **649 thousand to 670 thousand**, marking the first net growth in a quarter since Q1 2021[15](index=15&type=chunk)[30](index=30&type=chunk) - Betterware Mexico outperformed the general home goods market in Mexico in 2024, growing **4.6%** while the market contracted by approximately **1.0%**[30](index=30&type=chunk) [Q3 2025 Priorities](index=6&type=section&id=Betterware%20Mexico%20Q3%202025%20Priorities) Betterware Mexico's Q3 2025 priorities include reducing inventory, maintaining pricing strategy, refining incentive programs, and launching a 'Personal Tagging' program to boost sales and retention - Continue efforts to reduce inventory levels, aiming to bring them back in line with historical levels[30](index=30&type=chunk) - Maintain Q2 pricing strategy to make line items more accessible and drive revenue growth[30](index=30&type=chunk) - Refine incentive programs to maintain momentum in sales force expansion[30](index=30&type=chunk) - Launch 'Personal Tagging' program for closer follow-up of Distributors and Associates to boost sales, recruitment, and retention[30](index=30&type=chunk) [Jafra Mexico](index=7&type=section&id=Jafra%20Mexico) Jafra Mexico delivered strong revenue and EBITDA growth in Q2, significantly outperforming the market, driven by strong category performance, brand refresh, and growth in Associate and Distributor bases Jafra Mexico Key Financial and Operating Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (MXN thousands) | Q2 2024 (MXN thousands) | Change | H1 2025 (MXN thousands) | H1 2024 (MXN thousands) | Change | | :-------------------- | :------------------ | :------------------ | :----- | :------------------ | :------------------ | :----- | | Net Revenue | $1,853,832 | $1,671,137 | +10.9% | $3,723,650 | $3,521,133 | +5.8% | | Gross Margin | 75.3% | 77.0% | -167 bps | 74.4% | 77.2% | -284 bps | | EBITDA | $393,360 | $344,478 | +14.2% | $680,066 | $727,598 | -6.5% | | EBITDA Margin | 21.2% | 20.6% | +61 bps | 18.3% | 20.7% | -240 bps | | Associates Avg. Base | 438,041 | 432,450 | +1.3% | 453,199 | 450,870 | +0.5% | | Associates EOP Base | 429,472 | 419,931 | +2.3% | 429,472 | 419,931 | +2.3% | | Avg. Monthly Order | $2,495 | $2,284 | +9.2% | $2,457 | $2,261 | +8.7% | - Accelerated revenue momentum due to strong performance in Fragrance, Color, and Skin Care categories, a brand refresh, and new productivity incentives[32](index=32&type=chunk) - Jafra Mexico delivered exceptional growth at **13.0% in 2024**, nearly three times the Mexican beauty market growth rate of approximately **5.0%**[32](index=32&type=chunk) - EBITDA for the quarter grew **14.2% YoY**, with the margin expanding to **21.2%**, driven by sales volume growth, improved sales mix, and disciplined cost management[32](index=32&type=chunk) [Q3 2025 Priorities](index=7&type=section&id=Jafra%20Mexico%20Q3%202025%20Priorities) Jafra Mexico's Q3 2025 priorities include expanding the Associate base, driving core category growth through innovation, maintaining margin discipline, and simplifying incentive plan communication - Expand Associate base through better incentives for productivity and growth[35](index=35&type=chunk) - Drive core category growth via product renewals and innovation, including rebranded key products and new Skin Care lines[35](index=35&type=chunk) - Maintain margin discipline by calibrating promotional intensity and improving forecast capacities to reduce excess inventories[35](index=35&type=chunk) - Introduce a new 'Purple Guide' to simplify Jafra's incentives plan communication[35](index=35&type=chunk) [Jafra US](index=8&type=section&id=Jafra%20US) Jafra US achieved a significant sequential revenue rebound in Q2, despite a YoY sales decrease in USD, driven by a new incentives plan and improved gross margin, aiming for annual breakeven Jafra US Key Financial and Operating Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (MXN thousands) | Q2 2024 (MXN thousands) | Change | H1 2025 (MXN thousands) | H1 2024 (MXN thousands) | Change | | :-------------------- | :------------------ | :------------------ | :------- | :------------------ | :------------------ | :------- | | Net Revenue (MXN) | $250,218 | $241,881 | +3.4% | $476,486 | $439,361 | +8.4% | | Net Revenue (USD) | $12,802 | $14,058 | -8.9% | $23,881 | $25,678 | -7.0% | | Gross Margin | 76.0% | 73.6% | +239 bps | 75.0% | 73.8% | +118 bps | | EBITDA | $-5,293 | $7,192 | -173.6% | $-18,227 | $-2,646 | -588.9% | | EBITDA Margin | -2.1% | 3.0% | -509 bps | -3.8% | -0.6% | -322 bps | | Associates Avg. Base | 27,191 | 31,013 | -12.3% | 25,947 | 30,260 | -14.3% | | Associates EOP Base | 28,188 | 31,474 | -10.4% | 28,188 | 31,474 | -10.4% | | Monthly Activity Rate | 49.2% | 45.9% | +330 bps | 47.6% | 44.2% | +340 bps | - Achieved **15.6% QoQ growth in USD**, despite an **8.9% YoY sales decrease**, driven by an **8.5% sequential increase** in the Associate base and recovery in activity levels due to a new incentives plan[38](index=38&type=chunk) - Q2 gross margin expanded to **76.0%**, the highest in recent quarters, due to a more favorable mix of higher-margin products from pricing adjustment initiatives[38](index=38&type=chunk) - While reporting an EBITDA loss for Q2 and H1, the gap has narrowed, positioning Jafra US for annual breakeven in the coming quarters[38](index=38&type=chunk) [Q3 2025 Priorities](index=8&type=section&id=Jafra%20US%20Q3%202025%20Priorities) Jafra US's Q3 2025 priorities include launching targeted incentives for new recruits and continuing product renovations and innovations, specifically for US consumer niches - Launch targeted incentives for new recruits with kits and promotion campaigns based on market segment (General and Hispanic)[38](index=38&type=chunk) - Continue product renovations and innovations, including new product lines specifically targeted to US consumer niches, such as the 'around the world' fragrance collection in Q3 2025[38](index=38&type=chunk) [Appendix](index=9&type=section&id=Appendix) This appendix provides detailed financial statements, key operating and financial metrics by business unit, definitions of non-IFRS measures, and company information [Financial Statements](index=9&type=section&id=Financial%20Statements) This section provides detailed consolidated financial statements, including the balance sheet, profit or loss statements for Q2 and H1, and cash flow statements for H1 2025 and 2024 [Consolidated Statements of Final Position (Balance Sheet)](index=9&type=section&id=Consolidated%20Statements%20of%20Final%20Position%20(Balance%20Sheet)) This section presents the consolidated balance sheet for June 2025 and June 2024, detailing assets, liabilities, and stockholders' equity Consolidated Statements of Final Position (June 2025 vs June 2024, MXN thousands) | Metric | Jun 2025 | Jun 2024 | | :-------------------------------- | :---------- | :---------- | | Total assets | 10,380,316 | 11,016,718 | | Total liabilities | 9,206,204 | 9,467,820 | | Total Stockholders' Equity | 1,174,112 | 1,548,898 | | Cash and cash equivalents | 391,784 | 423,246 | | Inventories | 2,364,160 | 2,062,733 | | Property, plant and equipment, net | 1,742,377 | 2,919,620 | | Short-term debt and borrowings | 1,759,317 | 589,478 | | Long term debt and borrowings | 3,401,437 | 4,455,638 | [Consolidated Statements of Profit or Loss and Other Comprehensive Income (Q2)](index=10&type=section&id=Consolidated%20Statements%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20(Q2)) This section presents the consolidated statements of profit or loss for Q2 2025 and Q2 2024, detailing net revenue, gross profit, operating income, and net income Consolidated Statements of Profit or Loss (Q2 2025 vs Q2 2024, MXN thousands) | Metric | Q2 2025 | Q2 2024 | ∆% | | :-------------------------------------------------- | :---------- | :---------- | :----- | | Net revenue | 3,562,643 | 3,389,393 | 5.1% | | Gross profit | 2,391,887 | 2,298,534 | 4.1% | | Operating income | 582,218 | 559,972 | 4.0% | | Income before income taxes | 433,359 | 458,052 | -5.4% | | Net income | 327,306 | 303,820 | 7.7% | | EBITDA | 678,812 | 656,136 | 3.5% | | EBITDA margin | 19.1% | 19.4% | -0.3% | [Consolidated Statements of Profit or Loss and Other Comprehensive Income (H1)](index=11&type=section&id=Consolidated%20Statements%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20(H1)) This section presents the consolidated statements of profit or loss for H1 2025 and H1 2024, detailing net revenue, gross profit, operating income, and net income Consolidated Statements of Profit or Loss (H1 2025 vs H1 2024, MXN thousands) | Metric | H1 2025 | H1 2024 | ∆% | | :-------------------------------------------------- | :---------- | :---------- | :------- | | Net revenue | 7,061,794 | 6,991,896 | 1.0% | | Gross profit | 4,707,714 | 4,810,043 | -2.1% | | Operating income | 1,016,123 | 1,220,704 | -16.8% | | Income before income taxes | 713,070 | 915,960 | -22.2% | | Net income | 478,700 | 598,984 | -20.1% | | EBITDA | 1,214,077 | 1,411,526 | -14.0% | | EBITDA margin | 17.2% | 20.2% | -3.0% | [Consolidated Statements of Cash Flows (H1)](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(H1)) This section presents the consolidated statements of cash flows for H1 2025 and H1 2024, detailing cash generated by operating, investing, and financing activities Consolidated Statements of Cash Flows (H1 2025 vs H1 2024, MXN thousands) | Metric | H1 2025 | H1 2024 | | :---------------------------------- | :---------- | :---------- | | Net cash generated by operating activities | 574,804 | 917,561 | | Net cash used in investing activities | -14,515 | -88,666 | | Net cash used in financing activities | -465,063 | -955,379 | | Net increase (decrease) in cash and cash equivalents | 95,226 | -126,484 | | Cash and cash equivalents at end of period | 391,784 | 423,246 | [Key Operating Metrics](index=13&type=section&id=Key%20Operating%20Metrics) This section provides detailed operating metrics for Betterware Mexico, Jafra Mexico, and Jafra US, showing trends in Associate and Distributor bases, activity rates, and average order values [Betterware Mexico Operating Metrics](index=13&type=section&id=Betterware%20Mexico%20Operating%20Metrics) This section details Betterware Mexico's operating metrics for Q2 2025 and Q1 2025, including Associate and Distributor bases, activity rates, and average order values Betterware Mexico Operating Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :-------------------- | :------ | :------ | | Associates Avg. Base | 657,317 | 645,359 | | Associates EOP Base | 670,349 | 649,076 | | Monthly Activity Rate | 65.6% | 65.5% | | Avg. Monthly Order | $2,153 | $2,152 | | Monthly Growth Rate | 16.6% | 18.7% | | Monthly Churn Rate | 15.6% | 19.5% | | Distributors EOP Base | 43,292 | 41,810 | | Distributors Monthly Activity Rate | 98.8% | 97.9% | [Jafra Mexico Operating Metrics](index=13&type=section&id=Jafra%20Mexico%20Operating%20Metrics) This section details Jafra Mexico's operating metrics for Q2 2025 and Q1 2025, including Associate and Distributor bases, activity rates, and average order values Jafra Mexico Operating Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :-------------------- | :------ | :------ | | Associates Avg. Base | 438,041 | 468,356 | | Associates EOP Base | 429,472 | 446,998 | | Monthly Activity Rate | 49.8% | 50.5% | | Avg. Monthly Order | $2,495 | $2,419 | | Monthly Growth Rate | 10.1% | 10.1% | | Monthly Churn Rate | 11.3% | 12.5% | | Distributors EOP Base | 18,966 | 19,202 | | Distributors Monthly Activity Rate | 94.1% | 95.1% | [Jafra US Operating Metrics](index=13&type=section&id=Jafra%20US%20Operating%20Metrics) This section details Jafra US's operating metrics for Q2 2025 and Q1 2025, including Associate and Distributor bases, activity rates, and average order values in USD Jafra US Operating Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :-------------------------- | :------ | :------ | | Associates Avg. Base | 27,191 | 24,703 | | Associates EOP Base | 28,188 | 25,973 | | Monthly Activity Rate | 49.2% | 45.9% | | Avg. Monthly Order (USD) | $225 | $243 | | Monthly Growth Rate | 13.2% | 12.8% | | Monthly Churn Rate | 9.7% | 11.8% | | Distributors EOP Base | 1,901 | 1,493 | | Distributors Monthly Activity Rate | 89.8% | 89.3% | [Key Financial Metrics](index=14&type=section&id=Key%20Financial%20Metrics) This section presents key financial metrics for the consolidated entity and its individual business units across recent quarters, highlighting trends in revenue, margins, and profitability [Consolidated Financial Metrics](index=14&type=section&id=Consolidated%20Financial%20Metrics) This section details consolidated financial metrics for Q2 2025 and Q1 2025, including net revenue, gross margin, EBITDA, and net income Consolidated Financial Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :---------- | :---------- | :---------- | | Net Revenue | $3,562,643 | $3,499,151 | | Gross Margin | 67.1% | 66.2% | | EBITDA | $678,812 | $535,265 | | EBITDA Margin | 19.1% | 15.3% | | Net Income | $327,306 | $150,728 | | Free Cash Flow | $536,311 | $-55,841 | [Betterware Mexico Financial Metrics](index=14&type=section&id=Betterware%20Mexico%20Financial%20Metrics) This section details Betterware Mexico's financial metrics for Q2 2025 and Q1 2025, including net revenue, gross margin, and EBITDA Betterware Mexico Financial Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :---------- | :---------- | :---------- | | Net Revenue | $1,458,593 | $1,403,065 | | Gross Margin | 55.2% | 55.3% | | EBITDA | $290,745 | $261,493 | | EBITDA Margin | 19.9% | 18.6% | [Jafra Mexico Financial Metrics](index=14&type=section&id=Jafra%20Mexico%20Financial%20Metrics) This section details Jafra Mexico's financial metrics for Q2 2025 and Q1 2025, including net revenue, gross margin, and EBITDA Jafra Mexico Financial Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :---------- | :---------- | :---------- | | Net Revenue | $1,853,832 | $1,869,818 | | Gross Margin | 75.3% | 73.5% | | EBITDA | $393,360 | $286,706 | | EBITDA Margin | 21.2% | 15.3% | [Jafra US Financial Metrics](index=14&type=section&id=Jafra%20US%20Financial%20Metrics) This section details Jafra US's financial metrics for Q2 2025 and Q1 2025, including net revenue, gross margin, and EBITDA Jafra US Financial Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | | :---------- | :---------- | :---------- | | Net Revenue | $250,218 | $226,268 | | Gross Margin | 76.0% | 73.9% | | EBITDA | $-5,293 | $-12,934 | | EBITDA Margin | -2.1% | -5.7% | [Use of Non-IFRS Financial Measures](index=15&type=section&id=Use%20of%20Non-IFRS%20Financial%20Measures) This section defines non-IFRS financial measures like EBITDA and EBITDA Margin, clarifying their utility for internal analysis and investor comparison with industry peers - EBITDA is defined as profit for the year adding back depreciation, amortization, financing cost (net), and total income taxes[56](index=56&type=chunk) - EBITDA Margin is calculated by dividing EBITDA by net revenue[57](index=57&type=chunk) - These non-IFRS measures are useful for internal financial analysis and for investors to understand and evaluate BeFra's operating profitability compared to industry peers[58](index=58&type=chunk) [Definitions: Operating Metrics](index=15&type=section&id=Definitions%3A%20Operating%20Metrics) This section provides standardized definitions for key operating metrics used across all business units, ensuring consistent reporting of Associate and Distributor bases, activity rates, and average order values - Salesforce terminology has been standardized: 'Distributors' (previously Leaders in Jafra) and 'Associates' (previously Consultants for Jafra)[59](index=59&type=chunk) - Definitions are provided for Avg. Base, EOP Base, Weekly/Monthly Churn Rate, Weekly/Monthly Activity Rate, and Avg. Weekly/Monthly Order for both Betterware and Jafra business units[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [About Betterware de México, S.A.P.I. de C.V.](index=15&type=section&id=About%20Betterware%20de%20M%C3%A9xico%2C%20S.A.P.I.%20de%20C.V.) Betterware de México is a leading direct-to-consumer company in Mexico, specializing in innovative household products, which expanded into the beauty market with the JAFRA acquisition, operating an asset-light model - Founded in 1995, Betterware de Mexico is the leading direct-to-consumer company in Mexico, focused on household organization, practicality, space-saving, and hygiene products[65](index=65&type=chunk) - Through the acquisition of JAFRA in April 2022, the Company expanded into the Beauty market in Mexico and the United States, offering Fragrances, Color & Cosmetics, Skin Care, and Toiletries[66](index=66&type=chunk) - The combined company operates an asset-light business model with low capital expenditure requirements, strong profitability, double-digit revenue growth, and free cash flow generation[66](index=66&type=chunk) [Forward-Looking Statements](index=17&type=section&id=Forward-Looking%20Statements) This section provides a cautionary statement regarding forward-looking statements, emphasizing inherent risks and uncertainties, and disclaiming any obligation to update such projections [Cautionary Statement](index=17&type=section&id=Cautionary%20Statement) This section serves as a cautionary statement regarding forward-looking statements in the press release, advising readers that actual results may differ due to various factors and that the company does not undertake to update these statements - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from projections[67](index=67&type=chunk) - The Company assumes no responsibility for indirect factors beyond its control that might affect the outcome of these projections[67](index=67&type=chunk) - The Company undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date hereof[67](index=67&type=chunk) [Q2 2025 Conference Call](index=17&type=section&id=Q2%202025%20Conference%20Call) This section provides details for the Q2 2025 conference call for investors, including the date, time, dial-in information, webcast link, and replay instructions [Conference Call Details](index=17&type=section&id=Conference%20Call%20Details) Details for the Q2 2025 conference call for investors, including date, time, dial-in information, webcast link, and replay instructions - Management will hold a conference call on July 24, 2025, at **3:30 pm Mexico City Time / 5:30 pm Eastern Time (EST)**[68](index=68&type=chunk) - Dial-in information and a webcast link are provided for live participation, along with instructions for listening to the replay[68](index=68&type=chunk) [Contacts](index=17&type=section&id=Contacts) This section provides contact information for BeFra's Investor Relations and InspIR for investor inquiries [Investor Relations Contacts](index=17&type=section&id=Investor%20Relations%20Contacts) Provides contact information for BeFra's Investor Relations and InspIR for investor inquiries - Contact information for BeFra IR (**ir@better.com.mx**, **+52 (33) 3836 0500 Ext. 2011**) and InspIR Investor Relations (**Ivan Peill, ivan@inspirgroup.com**) is provided[69](index=69&type=chunk)

Core Viewpoint - The article emphasizes the importance of value investing and highlights Betterware de Mexico SAPI de C (BWMX) as a strong value stock opportunity based on its financial metrics and Zacks Rank [1][5]. Company Summary - Betterware de Mexico SAPI de C (BWMX) holds a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating it is a high-quality value stock [3]. - The stock has a Forward P/E ratio of 4.89, significantly lower than the industry average of 11.90, suggesting it may be undervalued [3]. - Over the past 12 months, BWMX's Forward P/E has fluctuated between a high of 8.29 and a low of 4.45, with a median of 6.81 [3]. - BWMX's P/S ratio stands at 0.47, compared to the industry average of 0.58, further indicating potential undervaluation [4]. - The combination of these metrics suggests that BWMX is likely being undervalued and has a strong earnings outlook, making it an attractive value stock at present [5].

Betterware de Mexico SAPI de C (BWMX) shares soared 12% in the last trading session to close at $9.63. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.6% gain over the past four weeks.BWMX’s flexible operating model, disciplined financial approach, and diversified business portfolio position the company well to navigate the dynamic market landscape. Recent efforts to enhance salesforce engagement further strengthen its ability ...

Betterware de Mexico SAPI de C (BWMX) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between ...

Company Overview - Betterware de Mexico SAPI de C (BWMX) is currently rated with a Zacks Rank 1 (Strong Buy) and has an A for Value, indicating strong potential for value investors [4][3] - The stock is trading at a P/E ratio of 4.52, significantly lower than the industry average P/E of 11.71, suggesting it may be undervalued [4] Valuation Metrics - BWMX has a P/B ratio of 5.92, which is attractive compared to the industry's average P/B of 5.93, indicating a favorable valuation relative to its book value [5] - The P/S ratio for BWMX is 0.44, lower than the industry's average P/S of 0.65, reinforcing the notion that the stock is undervalued based on revenue [6] Investment Outlook - The combination of low valuation metrics and a strong earnings outlook positions BWMX as one of the strongest value stocks in the market currently [7]

Core Viewpoint - Betterware de Mexico SAPI de C (BWMX) is highlighted as a strong investment opportunity with a Zacks Rank 1 (Strong Buy) and an increase in the Zacks Consensus Estimate for next year's earnings by 1.5% over the last 60 days [1]. Group 1: Company Overview - Betterware de Mexico SAPI de C operates in the direct-to-consumer selling sector, focusing primarily on home organization and solutions in Mexico [1]. - The company has a price-to-earnings ratio (P/E) of 5.06, significantly lower than the industry average of 10.30, indicating strong value characteristics [2]. - Betterware de Mexico possesses a Value Score of A, further emphasizing its attractiveness to investors [2].

Summary of Betterware (BWMX) Conference Call - June 11, 2025 Company Overview - Betterware operates as a direct-to-consumer house of brands with two main brands: Betterware (household products) and Jafra (beauty products) [2][3] - The company has approximately 1,240,000 sellers and distributors, primarily operating in Mexico, with expansion plans into Latin America and the U.S. [3][8] - In 2024, Betterware reported revenues of MXN 14,000 million, achieving a 22% compound annual growth rate (CAGR) over the past 23 years [3][19] Financial Performance - Net revenues grew by 8.4% in 2023, with a 22.4% CAGR over 23 years [19] - EBITDA margin was reported at 19.7% in the previous year, with a 2% growth from 2023 to 2024 [4][20] - The company has maintained a strong cash flow conversion rate of 52% on average, excluding outliers from 2023 and 2024 [20][21] - Consistent dividend payments have been made for 25 consecutive quarters, totaling USD 5.2 million with an average yield of 10.55% [22] Market Position and Growth Opportunities - Betterware holds a 4% market share in the fragmented household goods market in Mexico, with Walmart being the largest player at 20% [12][36] - The company has a dominant position in the direct selling space, owning 65% of the market for household goods in Mexico [12] - Jafra has seen a significant turnaround, achieving a net revenue CAGR of 12.1% and an EBITDA CAGR of 17.2% since its acquisition [24][47] - The direct selling model is growing in Mexico at a CAGR of 4.6%, with Betterware outpacing this growth [15] Strategic Initiatives - The company focuses on three main pillars for growth: business intelligence, product innovation, and technology [16][17] - Betterware aims to expand the Jafra brand and introduce new product categories in both beauty and household markets [25][26] - Geographic expansion plans include entering the U.S. market with Jafra and expanding Betterware into Guatemala and Ecuador [27][28] Competitive Landscape - Betterware differentiates itself through innovative products and strong marketing strategies, targeting middle and low-middle-income markets [10][11] - The company has successfully modernized its direct selling model, leveraging technology and business intelligence to enhance seller efficiency [6][17][46] - Jafra's growth strategy includes focusing on brand development and innovation, which had been lacking prior to its acquisition [44][45] Additional Insights - The company emphasizes its asset-light model and strong cash flow generation capabilities [30] - Betterware's management team consists of experienced professionals with a focus on replicating successful business practices across brands [31] - The company does not classify itself as a multilevel marketing firm, focusing instead on direct sales and customer satisfaction [58][59] This summary encapsulates the key points discussed during the conference call, highlighting Betterware's business model, financial performance, market position, growth strategies, and competitive advantages.