BeFra Q1 2025 Earnings Results April 2025 Q1 2025 Highlights: BeFra Group Net revenue decreased 2.9%, driven by a decline in sales on Betterware Mexico of 9.8% and softer than expected, yet positive growth in Jafra Mexico of 1.1%, tempered by weak consumer spending amid macroeconomic uncertainty. Gross Margin declined 353 basis points mainly due to margin pressures in Betterware Mexico and Jafra Mexico from FX pressures resulting in higher costs with the Mexican Peso depreciating around 20% on a yearly basi ...

Financial Data and Key Metrics Changes - Consolidated net revenues decreased by 2.9% year over year, primarily due to a challenging macroeconomic environment [16] - The Mexican peso depreciated approximately 20% year over year, impacting gross margins and profitability [16][22] - Consolidated EBITDA decreased by 29.1%, with Betterware Mexico EBITDA falling by 31.6% and Jafra Mexico EBITDA decreasing by 25.2% [19][20] - Consolidated EPS decreased by 48.7%, reflecting lower sales and overall profitability [22] - The net debt to EBITDA ratio increased to 2.08%, compared to 1.83% in Q1 2024, but remains in line with internal policy [23] Business Line Data and Key Metrics Changes - Betterware Mexico revenue declined by 9.8% year over year, while Jafra's growth slowed from double digits to single digits [17] - Consolidated gross margin contracted by 303 basis points, driven by peso depreciation and increased costs of imported goods [18] - Jafra Mexico experienced margin compression due to investments in volume-driving promotions [20] Market Data and Key Metrics Changes - Consumer trends in Mexico showed significant softening, particularly in discretionary categories like household goods [7] - Disruption in consumption was noted in both the US and China, affecting overall sales [8] Company Strategy and Development Direction - The company is focusing on strategic pricing, increased promotional activity, and deeper engagement with the sales force to drive growth [26][29] - Plans to monitor sourcing options due to tensions in China, with potential manufacturing alternatives being evaluated [29] - The company is halting expansion into the US market for Betterware, while continuing to invest in Jafra US [63][65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic challenges but expressed confidence in the long-term growth fundamentals of the business [35][72] - The company maintains its full-year guidance for 2025, expecting net revenue and EBITDA growth in the range of 6 to 9% [24][60] Other Important Information - The board of directors proposed a 200 million peso dividend for Q1 2025, reflecting a commitment to shareholder returns despite current economic uncertainties [23][24] - Free cash flow was negative for the quarter, attributed to increased working capital and higher tax payments [21] Q&A Session Summary Question: Inventory levels and future cash flow - Management noted that the increase in inventory was a one-time event related to product renovations and innovations, expecting a decrease in the future [40] Question: Opportunities from China - Management acknowledged a decrease in container prices as a potential advantage but could not confirm improved pricing from Chinese manufacturers yet [44] Question: FX impact and future comparisons - Management confirmed that Q1 was the hardest comparison due to significant peso depreciation, with expectations for more stable comparisons in the coming quarters [48] Question: Quarter performance and trends - Management observed a softening in consumption as Q1 progressed, with expectations for stabilization rather than a rebound in the near term [54][60] Question: Halting US expansion - Management clarified that the halt refers specifically to Betterware US, while Jafra US will continue to operate and invest in growth [63][65]

Betterware (BWMX) Q1 2025 Earnings Call April 24, 2025 05:30 PM ET Company Participants Andres Campos - President & CEORodrigo Muñoz - Corporate CFOLuis Campos - Chairman of the Board Conference Call Participants Eric Beder - CEO & Senior Research AnalystCristina Fernández - Managing Director & Senior Equity Research Analyst Operator Thank you, and welcome to Befre's First Quarter twenty twenty five Earnings Conference Call. Speaking on today's call are Befre's Chairman of the Board, Luis Campos President a ...

Message from the President and CEO Reflecting on the first quarter of 2025, I want to provide a comprehensive overview of our performance amid an increasingly complex macroeconomic environment, the short-term challenges that we are currently navigating, and the progress that we continued making toward our long- term goals. Exhibit 99.1 During the first quarter, we faced revenue pressure across our business, particularly in Mexico. The broader economic environment—characterized by deteriorating consumption t ...

Group 1 - Betterware de Mexico (NYSE: BWMX) reported strong Q4 results with significant growth, although margins were affected by external factors [1] - Jafra Mexico experienced impressive growth, increasing by 22% year over year during the quarter [1] Group 2 - The performance in the Betterware segment contributed positively to the overall results, indicating a robust operational performance [1]

Financial Data and Key Metrics Changes - The company reported a double-digit revenue growth of 11.1% in Q4 2024 compared to the same period last year [4] - Consolidated net revenue for the full year increased by 8.4%, driven by Betterware Mexico's 4.6% growth and Jafra Mexico's 13% growth [19] - EBITDA increased by 2% to MXN 2.8 billion, slightly below the low end of the guidance range of MXN 2.9 billion [6][26] - Adjusted earnings per share grew by 10.5% in Q4 and 17.3% for the full year [26] Business Line Data and Key Metrics Changes - Jafra Mexico achieved a remarkable 22.2% revenue growth in Q4, contributing significantly to overall performance [5][17] - Betterware Mexico demonstrated resilience with a 1.5% net revenue growth in Q4, despite challenges [18] - Jafra U.S. experienced a revenue decrease of 17.6% in U.S. dollars, primarily due to implementation issues with Shopify Plus [18] Market Data and Key Metrics Changes - Betterware Mexico holds an estimated 4% market share in the household product market, with a goal to deepen market penetration [8] - Jafra Mexico aims to become the number one direct sales beauty brand in Mexico, currently holding a 4% market share [37] Company Strategy and Development Direction - The company plans to focus on five priority fronts: conquering Mexico, international expansion, inorganic growth, centralized services, and sustainability [33][39][45] - The strategy includes enhancing operational efficiency, expanding product offerings, and improving sales force engagement [35][38] - The company aims to lower its net debt to EBITDA ratio to 1.5 times or below by 2025 [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unexpected external headwinds affecting profitability, including supply chain disruptions and currency depreciation [6][7] - The outlook for 2025 includes expectations of mid to high single-digit growth for both net revenues and EBITDA [27] - Management expressed confidence in the company's growth trajectory and commitment to delivering long-term shareholder value [28][46] Other Important Information - The company has proposed a dividend of MXN 250 million for Q4, marking the 20th consecutive dividend since its IPO [27] - Adjusted EBITDA for the full year increased by 2%, despite a decline in Betterware Mexico's EBITDA [24] Q&A Session Summary Question: Inventory levels and future expectations - The company experienced inventory shortages in the first half of the year and built up inventory in the second half due to rising freight costs and supply chain disruptions [49] - Normalized inventory levels are expected to be around MXN 2,000 million instead of MXN 2,500 million by the end of 2024 [55]

Betterware (BWMX) Q4 2024 Earnings Call February 27, 2025 05:30 PM ET Company Participants Luis Campos - Non-Executive Chairman of the BoardAlejandro Ulloa - Chief Financial OfficerAndres Campos - President & CEO Conference Call Participants Eric Beder - CEO & Senior Research Analyst Operator Thank you, and welcome to the Beffrez Fourth Quarter twenty twenty four Earnings Conference Call. Speaking on today's call are Beffrez Executive Chairman, Luis Campos Chief Executive Officer, Andres Campos and Chief Fi ...

Group 1 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 50 companies on their watchlist and has been investing personal capital for over 7 years globally [1] - The investor holds a Master's degree in Electrical Engineering and works as an automotive battery R&D engineer in Sweden [1] Group 2 - The investor aims to identify asymmetric investment opportunities to achieve market-beating returns through diligent research of small to mid-cap companies [1]

Company Performance - Betterware de Mexico SAPI de C reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.29 per share, and down from $0.31 per share a year ago, representing an earnings surprise of -10.34% [1] - The company posted revenues of $176.15 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.72%, but down from $183.09 million year-over-year [1] - Over the last four quarters, Betterware de Mexico has surpassed consensus revenue estimates four times [1] Market Performance - Betterware de Mexico shares have lost about 11.8% since the beginning of the year, while the S&P 500 has gained 21.5% [2] - The current Zacks Rank for Betterware de Mexico is 5 (Strong Sell), indicating expected underperformance in the near future [4] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $181.91 million, and for the current fiscal year, it is $1.72 on revenues of $702.45 million [4] - The estimate revisions trend for Betterware de Mexico is currently unfavorable, which may impact future stock performance [4] Industry Context - The Consumer Products - Discretionary industry, to which Betterware de Mexico belongs, is currently in the bottom 40% of the Zacks industry rankings [5] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5] - Spectrum Brands, another company in the same industry, is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year change of -16.9% [5]

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]