Betterware de México(BWMX)2025-02-27 22:30Financial Data and Key Metrics Changes - The company reported a revenue growth of 11.1% in Q4 2024 compared to the same period last year, driven by strong performance in Jaffra Mexico [3][11] - For the full year 2024, consolidated revenue increased by 8.4% compared to 2023, with Jaffra Mexico achieving a 13% increase and Better World Mexico a 4.6% increase [4][14] - EBITDA increased by 2% to RUB 2.8 billion versus 2023, although it was slightly below the low end of the guidance range [4][18] - Adjusted earnings per share grew by 10.5% in Q4 and 17.3% for the full year, supported by lower interest expenses and gains on derivative instruments [20] Business Line Data and Key Metrics Changes - Jaffra Mexico experienced a remarkable 22.2% revenue growth in Q4, while Better World Mexico showed resilience with a 1.5% growth [3][12] - Jaffra U.S. saw a revenue decrease of 17.6% in U.S. dollars, primarily due to challenges with the implementation of Shopify Plus [13] - Better World Mexico's EBITDA surged by 31.8% in Q4, with a margin expansion of 508 basis points [18] Market Data and Key Metrics Changes - Better World Mexico holds an estimated 4% market share in the household product market, with plans to deepen market penetration [5] - Jaffra Mexico's gross margin improved significantly, rising to 76.3%, driven by a favorable product mix and pricing strategy [17] Company Strategy and Development Direction - The company aims to consolidate its operations in Mexico, focusing on expanding market share and enhancing operational efficiency [25][26] - Plans for international expansion include positioning brands in the U.S. market and entering Latin America, starting with Ecuador [29][30] - The company is committed to inorganic growth by exploring acquisitions that complement existing brands [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges, including supply chain disruptions and rising costs, but expressed confidence in the company's resilience and growth potential [19][21] - The target for 2025 includes mid to high single-digit growth for both net revenues and EBITDA [21] Other Important Information - The company plans to launch a new online training program for its sales force and enhance digital capabilities [28] - A dividend of Ps. $250,000,000 for Q4 has been proposed, marking the twentieth consecutive dividend since the 2020 IPO [20][21] Q&A Session Summary Question: Inventory levels and normalization - Management indicated that inventory levels rose due to previous shortages and rising costs, with expected normalized levels around MXN 2,000 million for 2024 [37][44]