Betterware de México(US:BWMX)2025-10-23 21:30Financial Performance Highlights - BeFra's net revenue increased by 1.4% in 3Q25[4], and by 1.1% for the first 9 months of 2025[81] - Gross margin improved by 158 bps to 68.5% in 3Q25[4] - EBITDA increased by 22.1% in 3Q25, resulting in an EBITDA margin of 21.4%, a 362 bps increase[4] - Free Cash Flow (FCF) reached $553 million, with a 77% FCF-to-EBITDA conversion rate[4] - Net debt-to-EBITDA ratio decreased from 1.97x to 1.80x quarter-over-quarter[8] - Net income increased by 71.2% year-over-year in 3Q25[88], reaching 314 million Mxn[89] Regional Performance - Mexico's revenue decreased by 5.3% in 3Q25 to 1,388 million Mxn[21], and by 5.5% for the first 9 months of 2025 to 4,249 million Mxn[21], but EBITDA increased by 11.7% to 313 million Mxn[22] - Betterware Mexico's revenue increased by 7.9% in 3Q25 to 1,752 million Mxn[32], and by 6.4% for the first 9 months of 2025 to 5,476 million Mxn[32], with EBITDA increasing by 31.3% to 418 million Mxn[33] - Jafra US experienced a 4.7% decrease in revenue for the first 9 months of 2025, totaling $36.6 million[47], with an EBITDA loss of $1.3 million[48] - Betterware Ecuador is exceeding internal projections, with month-over-month growth of 21%[7, 59] Strategic Initiatives - The company is focused on strengthening its leadership in Mexico and expanding its brands to gain market share[11, 42] - Regional expansion continues in the USA with the Jafra brand and in Latin America with the Betterware brand[11, 44] - The company is exploring new categories in Mexico and beyond, and evolving its business model towards a digital P2P solution[12, 45] - Maintaining financial discipline and control to demonstrate resilience and pursue opportunistic strategies is a key focus[12, 45]