Financial Data and Key Metrics Changes - Net revenues increased by 6.6% year-over-year and 7.4% over the first nine months of 2024 [3] - Adjusted EBITDA grew by 11.7%, reaching MXN 592 million, with an EBITDA margin expanding by 81 basis points to 17.8% [17] - Adjusted net income decreased by 8.4% year-over-year, totaling MXN 180.5 million, primarily due to increased tax provisions [17] Business Line Performance - Betterware Mexico's net revenue grew by 3.2% in Q3 and 5.7% year-to-date, marking its fourth consecutive quarter of growth [7] - Jafra Mexico's revenue increased by 9.2% in Q3 and 9.8% year-to-date, driven by successful product innovations [9] - Jafra U.S. showed promising results with net revenue up 11.7% in Q3 and 1.9% year-to-date, moving closer to breakeven [11] Market Data and Key Metrics Changes - The depreciation of the Mexican peso negatively impacted gross margins, which fell to 54.8% compared to 56.2% last year [19] - Freight costs increased significantly, affecting gross margins by approximately 150 basis points [19] Company Strategy and Industry Competition - The company is focused on expanding its product portfolio, increasing SKUs from approximately 370 to 420 to capitalize on new categories while maintaining core categories [8] - Strategic investments in international expansion are ongoing, with MXN 8.2 million invested in expanding Betterware into the U.S. and Peru [20] - The company aims to maintain a net debt-to-EBITDA ratio of 1.5 to 2.5 times, depending on acquisition prospects [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in finishing the year strongly, with a solid pipeline of new product launches and strategic initiatives [4][44] - The company remains committed to delivering shareholder value, announcing its 19th consecutive dividend payment [4][24] - Management acknowledged challenges from macroeconomic factors but emphasized operational resilience [3] Other Important Information - The sale of Jafra's former headquarters resulted in a non-cash accounting loss of MXN 435 million, which does not impact operational performance [18] - The company is evaluating the potential application of hedge accounting to better reflect the impact of foreign exchange hedges [21] Q&A Session Summary Question: Increase in SKUs and Pricing Strategy - Management explained that the increase in SKUs targets both new categories and core categories, with a focus on introducing lower-priced items to balance growth [26][28] Question: Inventory Levels - Management confirmed that inventory levels are prepared for the holiday season, addressing previous stock-outs and ensuring readiness for Q4 [29] Question: U.S. Expansion and Peru Rollout - Management indicated that Betterware U.S. is in the piloting phase, with operations already launched, and plans to launch in Peru by Q1 or Q2 of next year [30][31] Question: Cost Structure Changes - Management noted that the cost structure has shifted to be more variable, reflecting growth and optimization efforts in fixed expenses [35][36] Question: Future Inventory Investments - Management stated that additional inventory investments will depend on the stabilization of the supply chain and prices, indicating no need for further buildup if conditions remain stable [40][41]

BeFra Q3 2024 Earnings Results October 2024 Q3 2024 Highlights: Continued Growth Q3 2024 consolidated net revenue increased by 6.6% YoY, driven by growth across all three business units. Adjusted EBITDA continued its growth trajectory, achieving 11.7% YoY growth, despite challenging market conditions for Betterware. Free Cash Flow Generation remained in line with our targets, increasing by 23.4% YoY. Deleveraging efforts are progressing, achieving a Net Debt to EBITDA ratio of 1.76 times. Next Steps Executi ...

Financial Performance - Q3 net revenue increased by 6.6% year-over-year to $3,330,394, and year-to-date revenue grew by 7.4% to $10,322,290[9]. - Adjusted EBITDA rose by 11.7% in Q3 to $591,575, reflecting operational efficiencies despite challenges[10]. - Free Cash Flow surged by 41.9% in Q3 to $417,379, driven by improved working capital management[10]. - Net revenue for Q3 2024 increased by 6.6% to Ps. 3,330,394 compared to Ps. 3,123,507 in Q3 2023[39]. - Gross profit for Q3 2024 rose by 8.1% to Ps. 2,371,259, up from Ps. 2,192,871 in Q3 2023[39]. - Operating income decreased by 12.8% to Ps. 59,047 in Q3 2024 from Ps. 438,111 in Q3 2023[39]. - Net loss for Q3 2024 was Ps. 115,614, a decline of 265.7% compared to a net income of Ps. 196,991 in Q3 2023[39]. - EBITDA for Q3 2024 dropped by 70.4% to Ps. 156,545, down from Ps. 529,424 in Q3 2023[39]. - Net revenue for the nine months ended September 30, 2024, increased by 7.4% to Ps. 10,322,290 compared to Ps. 9,607,815 in the same period of 2023[41]. - Operating income for the nine months ended September 30, 2024, decreased by 21.4% to Ps. 1,276,957 from Ps. 1,623,800 in 2023[41]. - Net income for the nine months ended September 30, 2024, was Ps. 479,300, a decrease of 25.5% from Ps. 643,358 in 2023[41]. Revenue Growth by Segment - Jafra Mexico achieved a 9.2% year-over-year revenue increase in Q3, contributing to overall growth momentum[10]. - Betterware Mexico achieved its fourth consecutive quarter of year-over-year revenue growth, indicating a solid recovery[3]. - Betterware Mexico achieved a net revenue of $1,465,577 in Q3 2024, representing a year-over-year growth of 3.2% and a 5.7% increase for the first nine months[24]. - Jafra Mexico reported a net revenue of $1,623,697 in Q3 2024, reflecting a 9.2% year-over-year growth and a cumulative increase of 9.8% for the first nine months[28]. - Jafra US net revenue increased by 11.7% in Q3 2024, totaling $241,120, driven by higher productivity per Associate[32]. Margin and Cost Management - Betterware Mexico's EBITDA decreased by 14.7% in Q3 2024, totaling $279,889, with a year-to-date decline of 18.4% to $966,463[24]. - Jafra Mexico's adjusted EBITDA grew by 52.0% in Q3 2024, reaching $318,148, and increased by 38.4% year-to-date[28]. - Betterware Mexico's gross margin fell to 54.8% in Q3 2024, down 148 basis points year-over-year, primarily due to peso depreciation and increased international freight costs[27]. - Betterware is implementing a comprehensive pricing strategy to protect margins and enhance consumer loyalty amid external cost pressures[27]. Future Outlook - The company plans to propose a Ps. 250 million dividend for Q3 2024, marking the nineteenth consecutive quarterly dividend payment[20]. - 2024 net revenue guidance is set between $13,800 million and $14,400 million, reflecting a growth range of 6.1% to 10.7%[23]. - The company expects full-year EBITDA to be closer to the lower end of the guidance range due to temporary margin impacts[22]. Operational Metrics - Betterware Mexico's average monthly order rose by 11.6% in Q3 2024, reaching $2,034, while Jafra Mexico's average monthly order increased by 12.4% to $2,347[24][28]. - Total investments in Betterware's U.S. and Peru operations reached $80.2 million, with expected financial contributions by the end of 2025[27]. - Jafra US launched a Shopify e-commerce platform in September 2024, aimed at enhancing sales despite a temporary impact on activity levels[35]. Company Overview - Betterware de México, S.A.P.I. de C.V. is the leading direct-to-consumer company in Mexico, focusing on innovative household products and has expanded into the beauty market through the acquisition of JAFRA on April 7, 2022[63]. - The company operates with an asset-light business model, demonstrating strong profitability and double-digit revenue growth rates, alongside free cash flow generation[63]. - The company distributes its products in both Mexico and the United States, enhancing its market reach[63]. Investor Relations - The Q3 2024 conference call is scheduled for October 24, 2024, at 3:30 pm Mexico City Time, providing an opportunity for investors to engage with management[65].

Financial Data and Key Metrics Changes - In Q2 2024, the company achieved a 5.3% year-over-year revenue growth, with an 8% growth in net revenue for the first half of the year and a 3% increase in EBITDA [2][6][19] - The consolidated gross margin contracted by 103 basis points due to a less favorable product mix, higher freight costs, new import taxes, and peso depreciation [15][19] - Free cash flow decreased by 39% during the quarter, attributed to a 30% year-over-year reduction in operating cash flow [16][19] Business Line Data and Key Metrics Changes - Betterware Mexico experienced a 2.2% year-over-year revenue increase in Q2, achieving 7% growth for the first half of 2024 [29] - Jafra Mexico posted a 10.1% year-over-year revenue increase, indicating effective product strategies and market positioning [31] - Jafra US recorded its first year-over-year revenue growth since its acquisition, with a 1.2% increase in Mexican pesos and a 4.4% increase in US dollars [32] Market Data and Key Metrics Changes - The peso depreciated by 7.5% in June, contributing to market volatility [27] - Container prices surged by 11.6% on average during Q2 due to increased demand for shipping from China to Mexico [7] Company Strategy and Development Direction - The company is focused on product innovation and enhancing demand forecasting to prevent future sellouts, with plans to implement improved pricing structures [10][12] - A redesigned catalog and a more effective merchandising plan are set to launch in October to boost market position [11] - The strategic acquisition of Jafra is seen as instrumental in diversifying the product portfolio and enhancing market resilience [12][13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2024 revenue and EBITDA targets, highlighting the company's resilience in navigating challenges [3][19] - The company anticipates sustaining double-digit growth at Jafra over the medium and long term [31] - Management is optimistic about the second half of the year, expecting to leverage strategic initiatives for sustained growth and profitability [34] Other Important Information - The company plans to sell a property in Mexico City valued between MXN40 million and MXN50 million to service outstanding debt [17] - The board approved a quarterly dividend payment of MXN250 million, marking the 18th consecutive quarterly dividend since the IPO [37] Q&A Session Summary Question: Product availability and inventory management - Management acknowledged temporary sellouts in Q2 but expressed confidence in meeting demand for the rest of the year [20] Question: Impact of import tariffs and freight costs on profitability - Management indicated that they have negotiated better costs with suppliers and implemented price increases to offset higher import taxes and freight costs [21][47] Question: Innovation pipeline for Jafra - Management confirmed a strong innovation pipeline for the second half, particularly highlighting the launch of the Jafra Biolab skincare line [23][49]

Core Viewpoint - Betterware de México is transferring its stock listing from Nasdaq to the New York Stock Exchange (NYSE), effective June 7, 2024, under the ticker symbol "BWMX" [1][2]. Group 1: Company Overview - Betterware de México, founded in 1995, is the leading direct-to-consumer company in Mexico, focusing on innovative household products [3]. - The company expanded its portfolio by acquiring JAFRA on April 7, 2022, enhancing its presence in the beauty market in Mexico and the United States [3]. - Betterware operates with an asset-light business model, characterized by low capital expenditure requirements and a strong track record of profitability, double-digit revenue growth, and free cash flow generation [3]. Group 2: Strategic Move to NYSE - The transfer to the NYSE is seen as a strategic move to enhance the company's market visibility and leverage the NYSE's hybrid trading model, which is designed to mitigate trading volatility [2]. - The leadership of Betterware expressed confidence in the NYSE's market infrastructure and the potential for long-term value creation for shareholders [2]. - The NYSE welcomes Betterware as part of a global community of 2,400 companies, emphasizing the visibility and market quality that the exchange provides [2].

Investment Thesis Since coming public via SPAC in March 2020, the business experienced pandemic-induced volatility, which is reflected in its share price over the period. Despite this, the company has managed to pay a dividend consecutively for seventeen quarters, reflecting the resilience of the business and management's commitment to return capital to its shareholders. The company is led by a long-standing management team comprising of its Chairman Luis Campos and CEO Andres Campos. Shares currently have ...

Core Viewpoint - Betterware de México has appointed Mr. Diego Gaxiola as an Independent Director to its Board, enhancing the company's leadership with his extensive experience in financial and administrative roles within the consumer sector [1][3]. Company Overview - Betterware de México is a leading direct-to-consumer company in Mexico, established in 1995, focusing on innovative household products that address organization, practicality, space-saving, and hygiene needs [5]. - The company expanded its portfolio by acquiring JAFRA on April 7, 2022, which allows it to offer a prominent brand in the Beauty market across Mexico and the United States, including products in Fragrances, Color & Cosmetics, Skin Care, and Toiletries [5]. - Betterware operates with an asset-light business model characterized by low capital expenditure requirements, strong profitability, double-digit revenue growth, and free cash flow generation [5]. Board Composition - Following Mr. Gaxiola's appointment, the Board of Betterware consists of eleven members, with eight being Independent Directors, bringing diverse expertise in strategy, finance, digital business, and marketing [2]. Leadership Experience - Mr. Gaxiola has over 20 years of experience in financial roles, including his current position as Global CFO for Grupo Bimbo since 2017, and previous roles at Alsea and Grupo Televisa [3][4]. - His educational background includes a master's degree in finance from Universidad Anáhuac and a bachelor's degree in business administration from the University of Newport and Universidad Iberoamericana [4].

Mexico-based Consumer Products Company Poised for Major Sales Growth in New Sales DALLAS, May 6, 2024 /PRNewswire/ -- Betterware de Mexico S.A.P.I. de C.V. (NASDAQ: BWMX), ("Betterware" or the 'Company"), has expanded to the U.S. market as Betterware U.S. The brand recognized for its dedication to creating high-quality, innovative consumer products that enhance everyday living will have its new office headquarters located in Dallas, Texas. International expansion is one of the cornerstones of Betterware's ...

GUADALAJARA, Mexico, April 30, 2024 /PRNewswire/ -- Betterware de México, S.A.P.I. de C.V. (Nasdaq: BWMX) ("BeFra" or the "Company"), announced that, subject to formal approval by means of the shareholders meeting to be held on May 13, 2024, it intends to pay an aggregate dividend of MX $250,000,000; which represents approximately US $0.3515 per share after applicable tax withholdings. The dividend is payable on May 23, 2024 to shareholders of record as of May 15, 2024. About Betterware Founded in 1995, Bet ...

Revenue Performance - The Group's total net revenue for the year 2023 was Ps. 13,009,507, an increase of 13.1% compared to Ps. 11,507,549 in 2022[433]. - JAFRA's net revenue increased by 41.0%, reaching Ps. 7,282,899 in 2023, compared to Ps. 5,164,205 in 2022, driven by brand refresh and product innovation[440]. - BWM's net revenue decreased by 9.7%, totaling Ps. 5,726,608 in 2023, down from Ps. 6,343,344 in 2022, attributed to stabilization of the distributor network post-pandemic[440]. - The average price per unit sold increased by 13.1% in 2023, despite a 20.8% decrease in the volume of units sold, which dropped from 100.3 million in 2022 to 79.4 million in 2023[440]. Profitability and Gross Margin - Gross profit for the Group increased by 44.8%, amounting to Ps. 6,024,873 in 2023, compared to Ps. 4,161,291 in 2022[437]. - The cost of sales as a percentage of net revenue for the Group decreased to 17.3% in 2023 from 19.4% in 2022, attributed to supplier negotiations and favorable exchange rates[437]. - EBITDA for BWM decreased by 5.3%, or Ps.79,726, to Ps.1,434,501 in 2023, mainly due to a 9.7% drop in net revenue[459]. - JAFRA's EBITDA increased by 60.4%, or Ps.484,518, to Ps.1,286,399 in 2023, driven by a 41.0% increase in net revenue and cost reductions[459]. Expenses and Cost Management - Administrative expenses for BWM decreased by 10.1%, or Ps.110,445, to Ps.987,981 in 2023 compared to Ps.1,098,426 in 2022, attributed to a streamlined operational structure and effective cost control[444]. - JAFRA's administrative expenses increased by 28.2%, or Ps.422,748, to Ps.1,920,964 in 2023 compared to Ps.1,498,216 in 2022, primarily due to a full year of expenses consolidation and increased operational costs[445]. - Total selling expenses for the Group rose by 23.2%, or Ps.652,337, to Ps.3,460,367 in 2023 from Ps.2,808,030 in 2022, driven by JAFRA's full-year consolidation and increased promotional activities[447]. - BWM's selling expenses decreased by 24.6%, or Ps.251,273, to Ps.770,008 in 2023, representing 13.4% of net revenue compared to 16.1% in 2022, due to efficient management[449]. Taxation and Interest Expenses - Interest expense for the GROUP rose by 51.0%, or Ps.276,941, to Ps.820,262 in 2023, primarily due to loans for the JAFRA acquisition and increased bond issuance costs[453]. - BWM's income taxes decreased by 61.7%, or Ps.226,404, to Ps.140,762 in 2023, attributed to lower pre-tax profits and a 9.7% decline in net revenue[456]. - JAFRA's income taxes increased by 62.7%, or Ps.93,868, to Ps.243,622 in 2023, reflecting a 41.0% rise in net revenue and full-year consolidation[456]. Cash Flow and Financing Activities - Cash flows from operating activities increased by 40.4% or Ps.957,077 to Ps.2,366,779 for the year ended December 31, 2023, compared to Ps.1,409,702 for 2022[483]. - Cash flows used in investing activities decreased by 98.6% or Ps.4,759,894 to Ps.(65,328) for the year ended December 31, 2023, mainly due to cash paid for the JAFRA Acquisition in 2022[484]. - Cash flows generated from financing activities decreased by 184.0% or Ps.(5,623,331) to Ps.(2,567,365) for the year 2023 compared to Ps.3,055,966 for 2022[486]. Acquisition and Integration - Betterware acquired 100% of JAFRA for a total cash amount of Ps.5,044,371, with an addition to goodwill of Ps.1,250,132[523]. - JAFRA contributed revenues of Ps.5,164,205 and net income of Ps.493,062 from the acquisition date to December 31, 2022[551]. - The total identifiable assets acquired from the JAFRA acquisition amounted to Ps.5,044,371, with goodwill of Ps.1,250,132 attributed to the profitability of the acquired business[550]. Financial Position and Assets - As of December 31, 2023, Betterware's total assets increased to Ps. 548,098 from Ps. 381,824 as of December 31, 2022, reflecting a growth of approximately 43.6%[531]. - The total liabilities were adjusted to Ps. 3,985,026 as of December 31, 2021, showing a decrease of Ps. 12,516 from previously reported amounts[428]. - The total debt as of December 31, 2023, is Ps.5,131,422, a decrease from Ps.6,148,675 in 2022[517]. Employee and Operational Metrics - Betterware's total number of employees increased to 2,294 as of December 31, 2023, compared to 2,177 in 2022 and 1,272 in 2021[503]. - The average number of employees was 938 in 2023, with a future salary growth rate of 7.0% and a discount rate of 9.7%[610]. Risk Management and Compliance - The company utilized derivative financial instruments to hedge against exchange rate fluctuations, covering 100% of product needs until December 2024[482]. - The Group employs a sensitivity analysis for foreign exchange risk, assessing a 10% increase or decrease in the Mexican Peso against the US Dollar, which is used for internal reporting to management[616]. - The company is not expected to be classified as a Passive Foreign Investment Company (PFIC) for the foreseeable future, based on projected income and asset composition[498].