Q2 2025 Betterware de Mexico SAPI de CV Earnings Call Transcript
Key Points
- Betterware de Mexico SAPI de CV (BWMX) reported a 5.1% year-over-year revenue growth and a 1.8% quarter-on-quarter increase, indicating a strong rebound from the previous quarter.
- The company achieved a 3.3% growth in its associate base, marking the first net associate growth since Q1 2021, which is crucial for driving team activity and retention.
- Jafra Mexico returned to profitability with a 10.9% year-on-year revenue increase and an EBITDA margin expansion to 21.2%, driven by successful rebranding efforts.
- The company launched Betterware Ecuador, surpassing its second-quarter goal with 2,500 active associates, showcasing successful geographic expansion.
- Free cash flow rose to MXN592 million, with a year-to-date conversion of 44.2% of EBITDA, indicating strong cash generation capabilities.
- Betterware de Mexico SAPI de CV (BWMX) experienced a 9.8% year-over-year revenue decline in Q1, highlighting previous challenges in the market.
- Jafra US saw an 8.9% year-on-year revenue decrease in US dollars, despite a 15.6% quarter-over-quarter rebound, indicating ongoing challenges in the US market.
- The company's gross margins were impacted by proactive pricing strategies, with Betterware Mexico's gross margin down 127 basis points year over year.
- Debt leverage remains higher than the previous year, with a net debt-to-EBITDA ratio of 1.97 times, up from 1.8 times in Q2 2024, due to incremental short-term debt.
- The macroeconomic environment remains uncertain, with potential challenges if the macro environment worsens, which could impact future growth projections.
Thank you. Welcome to BeFra's second-quarter 2025 earnings conference call. Speaking on today's call are BeFra's President and Chief Executive Officer, Andres Campos; and Chief Financial Officer, Rodrigo Munoz.
Before we begin, the company would like to remind participants that this call may contain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially than expectations. Please consider these statements alongside the cautionary language and Safe Harbor statement in today's earnings release as well as the risk factors outlined at BeFra's SEC filings.
BeFra undertakes no obligation to update any forward-looking statement. A reconciliation of and other information regarding non-GAAP financial measures discussed on the call can also be found in the earnings release as well as in the Investor Relations section of the company's website.
I would now turn the call over to BeFra's President and CEO, Andres Campos. Please proceed, Mr. Campos.
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