Financial Data and Key Metrics Changes - Revenue grew by 1.4% year over year, indicating resilience despite a softer consumer environment [4][21] - EBITDA increased by 22%, with the margin expanding by 362 basis points to 21.4% [4][21] - Free cash flow conversion remained strong at 77% of EBITDA, reflecting financial discipline [4] - Adjusted net income rose by 71% compared to Q3 2024, driven by higher operating profit and lower net interest expenses [22] - Free cash flow increased by 32.6% year over year, expected to reach an annual rate of 60% free cash flow to EBITDA by year-end [23] Business Line Data and Key Metrics Changes - Betterware Mexico's sales decreased by 5.3% year over year due to softer demand for discretionary items [7] - Jafra Mexico's revenue increased by 8% year over year, with EBITDA growing by 31% and a margin of 24% [10] - Jafra U.S. showed stability with a strong month in September, achieving 30% year over year growth in revenue [14] - New operations in Ecuador and Guatemala exceeded expectations, with sales growth of 32% year over year in Guatemala [16] Market Data and Key Metrics Changes - The Mexican market remains challenging, with consumption trends fluctuating and a sluggish consumer environment [46] - The Andean and Central American direct selling markets are estimated to be worth $4.5 billion, presenting significant growth opportunities [17] Company Strategy and Development Direction - The company has defined five strategic pillars to guide growth and transformation, focusing on market leadership, regional expansion, new brands and categories, digital selling, and financial discipline [6][19] - Plans to launch Betterware in Colombia in 2026 to strengthen presence in Latin America [17] - The company aims to replicate its successful business model across U.S. and Latin American markets [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging external environment but emphasizes the resilience and viability of the business model [26] - The company remains focused on maintaining strong profitability and cash flow while pursuing growth opportunities [47] - Management expresses confidence in the long-term growth potential despite current market volatility [46] Other Important Information - The company has reduced total debt from MXN 5,200 million in 2022 to MXN 2,000 million in 2025, with a net debt to EBITDA ratio decreasing from 3.1x to 1.8x [25] - A dividend of MXN 200 million was proposed, marking the 23rd consecutive quarter of dividend payments since going public [23][24] Q&A Session Summary Question: Inventory reduction and future targets - Management aims to reduce inventory to around MXN 2,100 million by year-end, down from MXN 2,500 million at the start of the year [34][35] Question: Impact of stronger peso on margins - The company benefits from a stronger peso and lower freight costs, allowing for more aggressive pricing strategies to drive demand [38] Question: Jafra's expansion strategy - Jafra is focusing on direct ownership for expansion, hiring experienced management for new regions [40][41] Question: Insights on the Mexican consumer - The Mexican consumer has shown volatility, with management maintaining a focus on profitability and market share during uncertain times [46][47] Question: Sustainability of EBITDA margins - Current high margins in Jafra Mexico are not expected to be sustained, with plans to reinvest in growth [50] Question: Technology transformation opportunities - The company is investing in technology advancements, particularly in generative AI and digital selling platforms [53]