BWMX

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The successful incorporation of Tupperware's Latin American operations marks a defining milestone, immediately contributing to revenue and shifting the geographic mix toward Brazil. Organic growth momentum accelerated to 4.1% year-over-year, driven by commercial strategies in Betterware Mexico and a sharp rebound in Jafra Mexico following tactical corrections. Management attributed a temporary dip in organic EBITDA margin to deliberate gross margin investments in Jafra Mexico and non-recurring Tupperware transaction expenses. The Tupperware acquisition is viewed as highly accretive, adding approximately one-third of consolidated EBITDA while maintaining a pro forma leverage ratio of 1.6x. Operational health is reinforced by the organic stencil base returning to growth and the addition of over 300,000 independent sellers through the Tupperware network. Strategic inventory increases were implemented to strengthen supply chain resilience against potential disruptions stemming from the Middle East conflict. Management expects Tupperware to contribute nearly one-third of total revenue going forward as the brand is integrated into the BeFra platform. Gross margins are projected to normalize between Q3 and Q4 2026 as promotional investments in Jafra stabilize to historical levels of 73.5% to 74.5%. A significant one-time cash flow contribution is expected in coming quarters as Tupperware supplier payment terms are extended from near zero to the 120-day company standard. Digital transformation initiatives will continue with the scheduled launch of the Jafra Plus app in the second half of 2026 to enhance person-to-person sales efficiency. Future manufacturing strategy involves assessing the feasibility of producing Betterware products in underutilized Tupperware plants in Mexico and Brazil. The Tupperware acquisition was financed through a combination of $35 million in newly issued shares and $213 million in long-term debt. Management is intentionally abandoning Tupperware's non-direct selling revenue channels to focus exclusively on the core direct-to-consumer model. BeFra has notified third-party distributors in Argentina that their license will not be renewed in September 2026 as the company prioritizes the larger Mexico and Brazil markets. Reported net debt to EBITDA stands at 2.6x post-acquisition, though management emphasizes the 1.6x pro forma figure which includes a full year of Tupperware earnings. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the 36.6% accretion figure is based purely on historical trailing 12-month data and does not yet account for any future integration synergies. The company expects this accretion level to improve as operational efficiencies are realized. CEO Andres Campos stated the company will focus solely on the direct selling channel for Tupperware, abandoning previous retail or non-direct revenue streams. The impact of this exit is expected to be minimal as those sales were historically concentrated in the June-August period and were not significant to the annual total. Tupperware's Mexican plant is currently at 60% capacity, while the Brazilian plant is below 40%. While the primary goal is to fill capacity through Tupperware's organic growth, management is in the early stages of assessing if Betterware products can be manufactured in these facilities.

This article first appeared on GuruFocus. Organic Revenue Growth: Increased by 4.1% compared to Q2 last year and 5.7% compared to Q1 this year. Total Revenue Growth: Increased by 16.8% in the quarter, including Tupperware's first month of results. Organic EBITDA Margin: Would have been approximately 19.3% without gross margin investments and nonrecurring expenses. First Half EBITDA Margin: Expanded to 17.5% compared to 17.2% in the first half of last year. Organic Net Income Growth: Increased by 19.1% in the first half. Total EBITDA Growth: Increased by 15% in the quarter, including Tupperware. Total Net Income Growth: Increased by 20.6% in the quarter, including Tupperware. Free Cash Flow Conversion: Converted more than 70% of EBITDA into free cash flow during the quarter. Quarterly Dividend: Increased to MXN250 million. Net Debt to EBITDA Ratio: Stands at 2.6x post-Tupperware acquisition, with a pro forma ratio of 1.6x. Return on Total Assets (ROTA): Increased to 23.3%. Return on Invested Capital (ROIC): Reached 32.3%. Tupperware Revenue Contribution: Contributed 10.8% of the quarter's revenue. Tupperware Direct Selling Revenue Growth: Grew nearly 30% year-over-year in Mexico and Brazil. Warning! GuruFocus has detected 5 Warning Signs with BWMX. Is BWMX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Betterware de Mexico SAPI de CV (NYSE:BWMX) reported strong organic growth with a 4.1% increase in revenue compared to the second quarter of last year. The acquisition of Tupperware's Latin America operations contributed significantly to revenue, increasing total revenue by 16.8% in the quarter. The company maintained a strong financial position with a pro forma net debt to trailing 12 months EBITDA ratio of 1.6x, consistent with pre-acquisition levels. Cash generation remained robust, with over 70% of EBITDA converted into free cash flow during the quarter. The company increased its quarterly dividend to MXN250 million, marking the 26th consecutive quarter of dividend payments since its IPO. Organic EBITDA and net income decreased during the quarter due to gross margin investments in Jafra, Mexico, and nonrecurring expenses related to the Tupperware transaction. The gross margin was temporarily affected, with expectations to normalize between Q3 and Q4. The Tupperware acquisition increased net debt to trailing 12 months EBITDA to 2.6x, despite only consolidating one month of Tupperware's EBITDA. Inventory levels increased modestly due to strategic purchases to strengthen supply chain resilience, reflecting potential supply chain disruptions. The company is discontinuing Tupperware's non-direct selling channel sales, which may impact revenue in the short term. Q: The EPS accretion from the Tupperware acquisition was noted as 36.6% on a pro forma trailing 12-month basis. Does this include any integration benefits? A: Raul del Villar, CFO, confirmed that the EPS figure does not include any future synergies, as it is based solely on Tupperware's historical numbers over the last 12 months. Q: Will Tupperware focus solely on the direct selling channel moving forward? A: Andres Campos Chevallier, CEO, stated that BeFra will focus exclusively on the direct selling channel for Tupperware, abandoning other revenue channels that were previously part of Tupperware's strategy. Q: Can you explain the situation with Tupperware's operations in Argentina? A: Andres Campos Chevallier explained that a distribution license in Argentina will end in September 2026. BeFra is assessing the right time to enter the Argentine market, with current focus on growing in Mexico and Brazil. Q: What are the opportunities for utilizing Tupperware's manufacturing capacity in Mexico and Brazil? A: Andres Campos Chevallier noted that the focus is on growing Tupperware in these markets to increase plant utilization. They are also assessing the potential for manufacturing Betterware products in these plants, though it is still early to make definitive plans. Q: How do you see the changes in Jafra impacting future growth, and what is the outlook for Betterware's growth? A: Andres Campos Chevallier highlighted that Jafra is back on a growth track after correcting previous tactical moves. They are focusing on innovation and technology rollouts to reach its potential. Betterware is also experiencing a growth trend, driven by strategic innovations. Q: Can you provide more details on the Jafra gross margin pressure and its impact on sales? A: Andres Campos Chevallier explained that the margin pressure was due to successful promotional activities, not a price adjustment. They expect margins to return to typical levels in the coming quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

GUADALAJARA, Mexico, July 23, 2026--(BUSINESS WIRE)--Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) ("BeFra" or the "Company"), announced today its consolidated financial results for the second quarter 2026. The figures presented in this report are expressed in nominal Mexican Pesos (Ps.) unless otherwise noted, presented and approved by the Board of Directors, prepared in accordance with IFRS, and may include minor differences due to rounding. Message from the President and CEO The second quarter marked another period of solid commercial execution for BeFra, with revenue growth across all our brands, while also representing one of the most significant milestones in the Company's history through the successful incorporation of Tupperware’s operations in Latin America. Despite contributing only one month of results during the quarter, Tupperware made a strong contribution to BeFra's revenue and profitability, reinforcing our confidence in the strategic rationale of the acquisition. As the reference brand in its category, with a leading position in Mexico and an immediate platform in Brazil, Tupperware strengthens our portfolio, expands our regional footprint, and reinforces our confidence in BeFra’s strategic growth pillars. Beyond this milestone, we remained focused on executing our long-term strategy with discipline and consistency. Betterware continued building on its positive commercial momentum, with revenue increasing 3.6% during the quarter and 3.1% on a year-to-date basis, while continuing to expand its presence across Latin America. Jafra's turnaround also continued to gain traction, as the commercial initiatives announced last quarter—including a renewed focus on innovation and consultant base expansion—translated into a return to sequential growth, with revenue increasing 4.5% QoQ. Tupperware also made a strong contribution to BeFra, representing 10.8% of consolidated revenue and nearly 16% of EBITDA despite contributing only one month of results during the quarter. Together, these results reflect the resilience of our business model, the successful execution of our long-term strategy, and our disciplined approach to creating sustainable long-term value for our shareholders. Our balance sheet also remains in a strong position following the Tupperware acquisition. Net debt-to-EBITDA stood at 2.6x despite consolidating only one month of Tupperware's EBITDA while assuming the full acquisition debt. On a pro forma basis, including Tupperware's full-year EBITDA contribution, net debt-to-EBITDA is 1.6x, effectively maintaining the Company's pre-acquisition leverage profile, reinforcing the profitability of the acquired business and our confidence in continuing our disciplined deleveraging strategy. Andrés Campos Chevallier President and CEO BeFra Group Changes to ways of reporting Following the Tupperware acquisition, the Company is evolving the way it manages and operates its portfolio. By aligning our organization around our brands, we will streamline processes, unlock synergies, and accelerate the adoption of best practices across the Group. Reflecting this evolution, financial reporting will now be presented as BeFra, Betterware, Jafra, and Tupperware. This updated structure provides a clearer view of each brand's performance and better aligns external reporting with how management evaluates the business, enabling investors to more effectively assess the operating performance and strategic progress of each brand. References to organic growth throughout this document exclude Tupperware and reflect the combined performance of Betterware and Jafra only. This provides investors with a like-for-like comparison with prior periods, allowing for a clearer assessment of the Group’s underlying operating performance. The FCF-to-EBITDA ratio will now be presented at the consolidated BeFra level. This metric highlights the Group’s ability to consistently convert operating profitability into cash flow, providing investors with a clearer view of the business’s cash generation capabilities and overall financial quality. Associate and distributor metrics will now be presented as a combined "Stencil" metric, reported on both an average and end-of-period basis, at the consolidated level and by brand. This change streamlines operational disclosure by focusing on the most relevant commercial network indicator, providing a clearer and more consistent view of commercial performance across the Group and its brands. Revenue mix by brand and region has been added. This provides investors with a clearer view of each brand’s and region’s contribution to BeFra’s consolidated revenue, enhancing the understanding of the Group’s revenue composition and diversification. Beginning this quarter and through year-end, both the original 2026 guidance and the updated post-acquisition guidance will be presented. This approach preserves visibility into the Company's original growth expectations while clearly illustrating the incremental growth and financial contribution expected from the incorporation of Tupperware into BeFra's portfolio. A dedicated section has been added to present Tupperware’s pro forma financial information for FY25, 1Q26, and 2Q26. This provides investors with greater visibility into Tupperware’s standalone financial performance while also illustrating how BeFra’s financial performance would have looked had Tupperware been part of the Group throughout the presented periods. The historical KOM and KFM section will no longer be presented. This change streamlines the presentation by placing greater emphasis on the most relevant operating and financial metrics, resulting in a clearer and more focused view of the Company’s current performance. Q2 2026 Select Consolidated Financial Information Revenue by Brand & Region Year-to-Date Highlights Revenue: Net revenue increased 16.8% during the quarter, primarily reflecting the incorporation of Tupperware's financial results following the acquisition, together with continued revenue growth across Betterware and Jafra. Betterware maintained its growth trajectory through its domestic market and supported by sustained international expansion, with Andino and Guatemala continuing to deliver double-digit growth. Jafra's performance continued to strengthen, delivering sequential revenue growth and confirming the effectiveness of the initiatives implemented earlier this year. Tupperware also meaningfully expands BeFra's direct-selling platform, adding more than 300,000 Stencil across Mexico and Brazil, further strengthening the scale and reach of the Group's commercial network. Profitability: EBITDA increased 15% YoY, with an EBITDA margin of 18.8%. Adjusting additionally for $16 M MXN regional expansion costs and $8 M MXN in Tupperware transaction-related expenses, EBITDA margin would have been approximately 19.3%, reflecting the strength of the underlying business and BeFra’s continued financial discipline. Organic net income decreased during the quarter, temporarily affected by these same regional expansion and Tupperware-related expenses. Excluding these effects, organic net income was broadly in line with the prior year. During the first half of the year, organic net income increased 19.1%, demonstrating the Company’s ability to consistently translate revenue growth into profitable growth. The integration of Tupperware is also expected to improve operating leverage, as corporate expenses are not expected to increase proportionally with the expansion of the business, providing an additional benefit over the medium to long term. Demonstrating the accretive nature of the acquisition, pro forma trailing twelve-month EPS is 36% higher than organic trailing twelve-month EPS. Cash generation: Excluding the Tupperware transaction FCF for the quarter was $578 M MXN representing 74% of EBITDA, highlighting the strength of the business model and disciplined financial management. Financial Performance Balance sheet at the end of Q2 2026. Note that presented ratios consider Pro forma TTM profitability from Tupperware. Return on Investment Following the Tupperware acquisition, BeFra continues to generate attractive returns. Improvements in ROIC, ROTA, and ROE demonstrate the Company's ability to profitably deploy its expanded capital base. Liquidity BeFra maintained a solid liquidity position during the quarter, with continued improvements in working capital efficiency supporting financial flexibility and future growth. Leverage Leverage ratios reflect Tupperware's results on a pro forma trailing twelve-month basis to provide a meaningful comparison following the acquisition. BeFra has a proven track record of disciplined deleveraging, having successfully reduced leverage following the Jafra acquisition. Excluding debt assumed as part of the Tupperware acquisition, the Company repaid $508 M MXN of debt during the quarter, reflecting its continued commitment to deleveraging. Supported by strong cash generation and interest coverage, BeFra remains well positioned to continue its disciplined deleveraging strategy. Asset Light Business – Low fixed cost structure BeFra’s asset-light operating model remains a fundamental source of resilience for the business. Additionally, the Company remains focused on identifying further opportunities to optimize SG&A. Capital Allocation Quarterly Dividends: Considering BeFra's results to date, the Board of Directors remains committed to enhancing shareholder value through quarterly dividends. Accordingly, it has proposed a $250 M MXN dividend to be paid in Q3 2026, which has been approved at the Ordinary Shareholders' Meeting. The increase reflects the additional shares issued in connection with the Tupperware acquisition and not only preserves value on a per-share basis, but also enhances the overall value returned to shareholders. This would represent the 26th consecutive quarter of dividend payments since BeFra's IPO. 2026 Guidance: 2026 guidance has been updated, taking into account Tupperware’s acquisition Previous Guidance Management expects an EBITDA margin of at least 19% in 2026. Post-acquisition Guidance Management expects an EBITDA margin of at least 19% in 2026. Q2 2026 Financial Results by Brand Betterware (Includes Betterware Mexico & International Subsidiaries) Key Financial and Operating Metrics Highlights Revenue: Betterware continued to deliver revenue growth during the quarter, supported by the sustained expansion of its stencil base through effective commercial strategies and promotional initiatives. Betterware Mexico grew 3% during the quarter, with double-digit revenue growth across most regions of the country, partially offset by weaker performance in the northern region due to exchange rate effects on consumption in Mexico. Betterware's international business continued to deliver exceptional growth, with net revenue increasing 500% in Andino and more than 50% in Guatemala QoQ. Betterware's end-of-period stencil was temporarily affected by timing differences during the quarter. Despite this, productivity remained strong, supporting continued confidence in the expansion of both the stencil base and revenue. Profitability: EBITDA increased 1.5% QoQ, with an EBITDA margin of 19.5%. Without considering expansion costs, EBITDA margin for the quarter would have been ~21%, demonstrating the strength of the business. Higher commercial investments and temporary logistics headwinds, as the Company proactively strengthened supply chain resilience in response to geopolitical tensions surrounding the Strait of Hormuz, temporarily offset profitability. Year-to-date, EBITDA and EBITDA margin remain broadly in line with the prior year. Jafra (Includes Jafra Mexico & US) Key Financial and Operating Metrics Beginning this quarter, Jafra's results are presented on a combined basis, with revenue and profitability reflecting the performance of both Jafra Mexico and Jafra U.S. as a single brand. Highlights Revenue: Jafra successfully returned to growth during the quarter, delivering QoQ revenue growth of 4.5%. The turnaround reflects the effectiveness of the corrective promotional actions, which contributed to renewed growth in the Associate and Distributor base, driving the expansion of the Stencil. Fragrance and Body Care led broad-based category growth. Profitability: Profitability was impacted during the quarter by gross margin investments, partially offsetting the benefits of higher sales volumes. Year-to-date, however, EBITDA and EBITDA margin remain in line with the prior year. The Company continues to execute cost-efficiency initiatives aimed at aligning Jafra's expense structure with the rest of the Group. While Jafra Mexico continued to benefit from higher sales volumes, Jafra U.S. delivered another quarter of meaningful improvement, achieving a positive EBITDA margin of 3.9% and more than doubling its profitability quarter over quarter. Tupperware (Includes Tupperware Mexico & Brazil) Key Financial and Operating Metrics Highlights Revenue: Tupperware delivered a strong first contribution to BeFra's results, validating the strategic rationale of the acquisition. In Mexico, extraordinary B2B sales were recorded between June and September 2025, together with sales to Tupperware U.S., affecting year-over-year comparability. Excluding these effects, Tupperware Mexico's direct-selling business grew more than 30% versus June 2025, demonstrating the strength of the brand's underlying commercial operation. In Brazil, the pace of revenue decline improved significantly, decreasing to less than 7% in June 2026 after several quarters of double-digit declines and despite the discontinuation of sales to Argentina, which contributed to revenue in June 2025. As the reference brand in its category, with a leading position in Mexico and an immediate platform in Brazil, Tupperware further strengthens BeFra's portfolio and expands regional growth opportunities. Management has also begun implementing commercial and operational initiatives aimed at restoring the brand to its historical performance levels, reinforcing confidence in its long-term growth potential. Profitability: Tupperware made an immediate and meaningful contribution to BeFra's profitability, reflecting the attractive margin profile of the business. Despite contributing only one month of results, the brand represented a significant portion of consolidated EBITDA and Net Income. As integration progresses and the business continues to gain commercial momentum, Tupperware is well positioned to become an increasingly important driver of the Group's profitability. Consolidated – Pro Forma Appendix Financial Statements Use of Non-IFRS Financial Measures This announcement includes certain references to EBITDA, EBITDA Margin, Net Debt:EBITDA: defined as profit for the year adding back the depreciation of property, plant, and equipment and right of use assets, amortization of intangible assets, financing cost, net and total income taxes.EBITDA Margin: is calculated by dividing EBITDA by net revenue.EBITDA and EBITDA Margin are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company may differ materially from similarly titled measures reported by other companies.BeFra believes that these non-IFRS financial measures are useful to investors because (i) BeFra uses these measures to analyze its financial results internally and believes they represent a measure of operating profitability and (ii) these measures will serve investors to understand and evaluate BeFra’s EBITDA and provide more tools for their analysis as it makes BeFra’s results comparable to industry peers that also prepare these measures. Definitions: Operating Metrics Starting Q2 2026, the Company will report "Stencil" as the aggregate of Associates and Distributors for each brand. This presentation replaces the separate disclosure of these metrics and is intended to provide a unified measure of each brand's commercial field organization. Betterware Stencil: Combined Associates and Distributors.Avg. Base: Weekly average Stencil.EOP Base: End-of-period Stencil. Jafra Stencil: Combined Associates and Distributors.Avg. Base: Monthly average Stencil.EOP Base: End-of-period Stencil. Tupperware Stencil: Combined Associates, Distributors, Unit Managers and Leaders.Avg. Base: Weekly average Stencil.EOP Base: End-of-period Stencil. About BeFra BeFra (NYSE: BWMX) is one of the leading branded consumer products platforms in Mexico and Latin America, bringing together three iconic brands: Betterware, a leader in innovative home solutions; Jafra, a leading beauty and personal care company with operations in Mexico and the United States; and Tupperware, a leading brand in food storage and drinkware. Through these brands, BeFra operates across Mexico, Brazil, the United States, and an expanding footprint throughout Latin America, leveraging proprietary direct-selling platforms, world-class manufacturing capabilities, and a longstanding culture of operational excellence. Forward-Looking Statements Q2 2026 Conference Call Management will hold a conference call with investors on July 23rd, 2026, at 3:30 pm Mexico City Time / 5:30 pm Eastern Time (ET). The dial-in information is:Toll Free: 1-877-451-6152Toll/International: 1-201-389-0879Conference ID: 13761313Webcast Link: https://viavid.webcasts.com/starthere.jsp?ei=1768042&tp_key=e6da367bd5 If you wish to listen to the replay of the conference call, please see instructions below:Toll Free: 1-844-512-2921Toll/International: 1-412-317-6671Replay Pin Number: 13761313 View source version on businesswire.com: https://www.businesswire.com/news/home/20260723077464/en/ Contacts BeFra IR [email protected] +52 33 4274 5904 InspIR: Barbara Cano/Ivan [email protected] [email protected]

Interested in Betterware de Mexico SAPI de C? Here are five stocks we like better. Betterware posted stronger Q2 results as core brands returned to growth and the newly acquired Tupperware Latin America business contributed immediately. Organic revenue rose 4.1% year over year, while total revenue climbed 16.8% including Tupperware. Tupperware is becoming a major growth driver for the company, adding more than 300,000 independent sellers and expanding Betterware’s reach in Mexico and Brazil. Management expects the brand to eventually represent nearly one-third of revenue and to focus solely on direct selling. Profitability was temporarily pressured by investment and deal costs, mainly from Jafra Mexico margin investment and Tupperware transaction expenses. Even so, Betterware generated strong cash flow, kept leverage manageable on a pro forma basis, and raised its quarterly dividend to MXN 250 million. Tupperware Lives On: Why Betterware Is Up 8% on the News Betterware de Mexico SAPI de C (NYSE:BWMX) reported stronger second-quarter 2026 results as its core brands returned to growth and its newly acquired Tupperware Latin America operations made an immediate contribution after one month of consolidation. President and Chief Executive Officer Andres Campos said the quarter marked “a defining milestone” for the company, which now operates as a broader consumer products platform under the BeFra umbrella. Campos spoke from São Paulo, where he said Tupperware’s Brazil team was making progress on commercial and innovation initiatives aimed at reviving growth. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Campos said organic revenue, which excludes Tupperware and includes only Betterware and Jafra for comparability, rose 4.1% from the prior-year quarter and 5.7% from the first quarter. Including Tupperware’s first month of results, total revenue increased 16.8% in the quarter. The acquisition of Tupperware’s Latin America operations was a central focus of the call. Campos said Tupperware contributed 10.8% of second-quarter revenue despite being included for only one month, and he said the brand is expected to account for nearly one-third of revenue going forward. → 3 Photonics Companies Making Quantum Tech Possible The acquisition also expands Betterware’s presence in Latin America, including Brazil, which Campos described as the region’s largest direct selling market. He said Tupperware added more than 300,000 independent sellers to the company’s network, expanding its commercial reach. Campos said Tupperware’s direct selling revenue across Mexico and Brazil grew nearly 30% year over year when excluding extraordinary prior-year sales outside the direct selling channel in Mexico. In Brazil, Tupperware’s June revenue declined less than 7% from the prior year, compared with quarter-over-quarter declines of 10% to 15% over the previous two years, which Campos said signaled an improving trend. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off During the question-and-answer session, Campos said the company will focus Tupperware “solely” on the direct selling channel and is abandoning other revenue streams Tupperware previously had. He said those sales were concentrated mainly between June and August and were not highly relevant on a full-year basis. Chief Financial Officer Raúl del Villar said organic EBITDA and net income declined in the second quarter, mainly because of deliberate gross margin investment in Jafra Mexico and non-recurring costs tied to the Tupperware transaction. Excluding those items, he said organic EBITDA margin would have been approximately 19.3%, and organic net income would have been broadly in line with the prior year. Del Villar said the company expects gross margin to normalize between the third and fourth quarters. For the first half of 2026, organic EBITDA margin expanded to 17.5% from 17.2% in the prior-year period, while organic net income rose 19.1%. He also noted that Jafra U.S. continued to improve profitability and achieved a positive EBITDA margin for the quarter. Including Tupperware, total EBITDA rose 15% and net income increased 20.6% in the quarter, according to del Villar. Betterware converted more than 70% of EBITDA into free cash flow during the quarter and nearly 90% on a trailing 12-month basis, del Villar said. He attributed the performance to the company’s business model and disciplined financial management. The board approved an increase in the quarterly dividend to MXN 250 million, reflecting the additional shares issued as part of the Tupperware acquisition. Del Villar said the payment will represent the company’s 26th consecutive quarterly dividend since its IPO. Following the Tupperware transaction, net debt to trailing 12-month EBITDA stood at 2.6 times, reflecting only one month of Tupperware EBITDA while including the full acquisition debt. On a pro forma basis, including Tupperware’s trailing 12-month EBITDA, net debt to trailing 12-month EBITDA was 1.6 times, del Villar said. Del Villar said the acquisition was funded with $35 million of newly issued shares and $213 million of long-term debt. Before the acquisition, the company reduced debt by more than MXN 500 million during the quarter, bringing total debt to MXN 4 billion. He also said Betterware is working to expand payment terms with Tupperware suppliers from nearly zero days to Betterware’s standard 120 days, which he said is expected to provide a one-time cash flow benefit in coming quarters. Campos said all of the company’s brands in Mexico recorded revenue growth during the quarter. He said Jafra Mexico rebounded as anticipated after prior tactical moves affected performance in the fourth quarter of 2025 and first quarter of 2026. In response to an analyst question, Campos said Jafra is still being positioned for further growth through innovation, new technology and the planned launch of the Jafra Plus app in the second half of the year. He said Jafra was the No. 14 beauty brand in Mexico when Betterware acquired it four years ago and finished last year around No. 6 or No. 7, leaving room to move into the top five or top three. Campos also said Betterware Mexico has now shown three consecutive quarters of growth momentum after the brand sought a new phase of expansion following significant growth over the past decade. On Jafra’s gross margin, Campos said the pressure came from promotional activity rather than a broad price adjustment. He said the impact was about one percentage point from the typical margin range of roughly 73.5% to 74.5%, and he expects margins to return to that range in coming quarters. Analysts also asked about Tupperware’s manufacturing footprint and Argentina operations. Campos said Tupperware’s Mexican plant is operating at about 60% utilization, while the Brazilian plant is at about 40%. The first priority, he said, is to grow Tupperware in Mexico and Brazil to increase utilization. The company is also beginning to assess whether some Betterware products could be manufactured in those plants, though Campos said it is too early to provide specifics. Regarding Argentina, Campos said Tupperware’s previous owners had granted a third-party distribution license that ends in September 2026. Betterware has notified the party that the arrangement will not continue, and the company is assessing if and when to enter the market directly. Campos said the near-term focus remains on Mexico and Brazil. Campos closed the call by saying the quarter showed all brands “coming back to growth” while Tupperware adds what management views as another transformative platform for the company. Betterware de Mexico SAPI de C.V. is a Mexico City–based home solutions company that designs, sources and distributes a broad portfolio of organizational and household products. Through a direct-to-consumer model, Betterware offers storage and organization items, kitchenware, cleaning tools, personal care accessories and pet care products. The company leverages both digital channels and a catalog-driven distribution network to reach end customers, pairing an e-commerce platform with an independent sales advisor network. Founded in 1995, Betterware has built a multi-channel sales infrastructure that relies on regional distribution centers and a large community of independent representatives. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Betterware de Mexico SAPI de C Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

GUADALAJARA, Mexico, July 09, 2026--(BUSINESS WIRE)--Betterware de México, S.A.P.I. de C.V. (NYSE: BWMX) ("BeFra" or the "Company"), will report its second quarter 2026 results after the U.S. market close on Thursday, July 23, 2026. The Company will hold a conference call on the same day at 5:30 p.m. (Eastern Time) to discuss the results. The conference call can be accessed as follows: By dialing +1-877-451-6152 (U.S. domestic) or +1-201-389-0879 (international) passcode: 13761313. Live webcast accessed through BeFra’s investor relations website at www.befra.com. An audio replay of the conference call will be available approximately three hours after the conclusion of the call on July 23, 2026, through August 6, 2026. This can be accessed toll free in the U.S. by dialing +1-844-512-2921 or internationally (toll) by dialing +1-412-317-6671 and providing the passcode 13761313. The audio replay can also be accessed via BeFra’s Investor Relations website. About BeFra BeFra (NYSE: BWMX) is one of the leading branded consumer products platforms in Mexico and Latin America, bringing together three iconic brands: Betterware, a leader in innovative home solutions; Jafra, a leading beauty and personal care company with operations in Mexico and the United States; and Tupperware, a leading brand in food storage and drinkware. Through these brands, BeFra operates across Mexico, Brazil, the United States, and an expanding footprint throughout Latin America, leveraging proprietary direct-selling platforms, world-class manufacturing capabilities, and a longstanding culture of operational excellence. Cautionary Statement Regarding Forward-Looking Statements Matters discussed in this press release may constitute forward-looking statements. Forward- looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words "believe," "anticipate," "intends," "estimate," "potential," "may," "should," "expect" "pending" and similar expressions identify forward- looking statements. The forward-looking statements in this press release are based upon various assumptions. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260708227773/en/ Contacts BeFra IR [email protected] +52 33 4274 5904 InspIR: Barbara Cano/Ivan [email protected] [email protected]

Q1 performance: Revenue rose only 0.3% year-over-year, but EBITDA grew 14% with margin expansion of 211 basis points to 17.4%, net income nearly doubled, and free cash flow converted 58% of EBITDA. Tupperware transaction: Regulatory approval is expected in Q2; management says the deal is immediately EPS-accretive (≈40% of EPS), provides entry into Brazil, and will raise leverage from 1.5x to about 1.9x net debt/EBITDA. Business outlook and capital allocation: Betterware shows an inflection in its associate base and regional expansion (Ecuador, Guatemala, Colombia) while Jafra U.S. grows and Jafra Mexico is resetting; the board proposed a MXN 200m dividend (25th consecutive quarterly) and reiterated full-year revenue guidance of 4–8%. Interested in Betterware de Mexico SAPI de C? Here are five stocks we like better. Tupperware Lives On: Why Betterware Is Up 8% on the News BeFra reported modest top-line growth but a sharp improvement in profitability in the first quarter of 2026, as management pointed to strengthening execution across most business units and continued progress on its strategic plan. On the call, President and CEO Andrés Campos also introduced Raúl del Villar as the company’s new chief financial officer, citing his “more than 30 years of experience in senior finance roles within multinational consumer companies.” Campos said the company delivered “slight revenue growth of 0.3% year-over-year” alongside “EBITDA growth of 14% year-over-year,” with EBITDA margin expanding to 17.4% from 15.3% a year ago. He described net income and free cash flow as remaining strong, reflecting “a more normalized quarter without the extraordinary effects seen last year.” → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Del Villar said the 0.3% year-over-year revenue increase was driven primarily by Betterware de Mexico SAPI de C (NYSE:BWMX), which grew 2.6% despite having “one less week in the quarter” and benefited from geographic expansion. He added that “improving trends at Jafra US also contributed” to results, while “lower sales at Jafra Mexico” partially offset those gains. Management highlighted early contributions from regional expansion. Campos noted Betterware’s expansion in Ecuador and improving performance in Guatemala, with those markets’ revenue contribution increasing “from 0.1% to 0.7% of total revenue over the past year.” He said the company expects the share to keep rising as operations scale. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand On profitability, del Villar said EBITDA margin expanded 211 basis points to 17.4%, reflecting “a clear improvement in profitability across our business units.” He noted that extraordinary expenses tied to the pending Tupperware transaction affected the quarter; excluding those expenses, margin “would have been approximately 18.4%.” He also said net income “nearly doubl[ed] year-over-year,” attributing the change to a return to “more normalized profitability levels” after prior-year extraordinary expenses, along with lower interest expense. → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? Free cash flow “normalized during the quarter,” converting 58% of EBITDA into cash, supported by profitability and working capital discipline, “particularly with respect to inventory,” according to del Villar. Del Villar said the quarter’s cash generation supports what would be BeFra’s “25th consecutive quarterly dividend since going public,” with the board proposing a MXN 200 million dividend, subject to shareholder approval. He said the dividend aligns with the company’s capital allocation approach, including maintaining “a 33% trailing 12-month dividend to EBITDA ratio,” reducing leverage, and funding geographic expansion. BeFra’s balance sheet improved during the quarter, with total debt falling and net debt to EBITDA improving to 1.5x, del Villar said. However, following completion of the Tupperware transaction, management expects leverage to rise to “approximately 1.9x,” while aiming to keep leverage at healthy levels. Del Villar also highlighted returns metrics, stating that return on total assets improved to 22.7% and return on invested capital increased to 27%. He said trailing EPS reached 31.9 MXN. Campos said BeFra’s strategy remains organized around five pillars: Strengthen leadership in Mexico with Betterware and Jafra Continue regional expansion, including Jafra’s U.S. growth and selective LATAM expansion Develop or acquire new brands and/or product categories Advance digital transformation Maintain strict financial discipline Betterware: Management reported improving commercial momentum and an “inflection point in the associate base,” which has “returned to growth.” Campos said the missing week affected reported growth; on a comparable basis, Betterware revenue growth would have been “approximately 3.3%.” He added that Latin America represents 1.7% of Betterware revenue today but is expected to expand as regional operations scale. EBITDA margin for Betterware rose 190 basis points to 20.5%, with EBITDA up 12.9% year-over-year, driven by cost discipline and execution, while gross margin remained stable despite external pressures. On initiatives for 2026, Campos cited: Innovation, including “strong performance” from the Better Klin Tabs fast-consumption line A new catalog format expected to launch in the second half of 2026 A pilot of incentive-program segmentation, with broader rollout expected in Q3 New analytics capabilities and Betterware+ app features, plus a Salesforce CRM expected to launch in Q2 A payment system pilot, with full rollout targeted for the second half of the year Jafra Mexico: Campos described Q1 as a “temporary moderation in revenue growth,” driven mainly by a shift toward productivity initiatives that “undermin[ed] base expansion.” He said the company has implemented initiatives to rebalance toward associate growth, with results expected in Q2. Campos also said market reports for 2025 show Jafra reached the number two position in Mexico’s beauty market within the direct selling channel, up from number four at the time of its 2022 acquisition. He added that Jafra now ranks number seven in Mexico’s overall beauty market across all channels. EBITDA margin in Jafra Mexico increased 165 basis points to 17%, supported by cost management, restructuring benefits from last year, and lower extraordinary expenses. On priorities, management cited the launch of the “Stitch sunblock” through its Disney partnership, increased sensorial sampling, a subscription plan launched in March that is “already showing early traction,” and digital initiatives including a new CRM expected in Q2 and a Jafra Plus app planned for Q3. Jafra U.S.: Campos said the business showed “significant progress,” with net revenue in U.S. dollars up 8.6%, supported by an associate base that grew 3.4% year-over-year and improved productivity. He added that profitability improved on cost discipline, and that excluding extraordinary legal expenses, EBITDA would have been positive with an “approximately 2.6%” margin. Regional expansion: Campos announced the launch of Betterware Colombia, calling it a milestone that builds on Ecuador’s performance. He said the Andean region reached approximately 14,000 associates, while Guatemala reached about 2,200 associates. Despite that growth, the markets remain small, representing 0.7% of group revenue and 1.7% of Betterware revenue. Campos said BeFra is waiting for regulatory approval from Mexico’s antitrust authority for the previously announced Tupperware acquisition, which he said the company expects in Q2 2026. He described the transaction as diversifying the company’s revenue mix, providing entry into Brazil, and being “immediately earnings accretive,” contributing an estimated 40% to earnings per share. During the Q&A, Campos reiterated management’s enthusiasm after meeting with stakeholders at Tupperware. He said Tupperware is “a very well-positioned brand in customers’ minds in all of Latin America,” and he sees opportunities to apply BeFra’s model in areas such as merchandising and innovation. He emphasized Brazil as a key opportunity, describing Tupperware as “already an almost $100 million revenue company there,” providing a “strong foothold” to expand in the market. On guidance, Campos said the company maintained its full-year revenue growth outlook of 4% to 8%. In response to a question about the slower Q1 growth, he said management expects Betterware Mexico’s growth to strengthen, continued contribution from Betterware’s LATAM expansion, and ongoing momentum in Jafra U.S. He also said management expects an inflection at Jafra Mexico beginning in Q2. Campos also addressed external conditions, saying the company is seeing a “slight rebound” in Mexican consumption, with expectations rising from about 1.1% growth last year to 1.6% this year. He said BeFra has seen some temporary increases in freight costs from China linked to oil price volatility, while noting the company had not yet experienced significant supplier pressure on raw material costs and was preparing tactics to respond if pressures persist. Betterware de Mexico SAPI de C.V. is a Mexico City–based home solutions company that designs, sources and distributes a broad portfolio of organizational and household products. Through a direct-to-consumer model, Betterware offers storage and organization items, kitchenware, cleaning tools, personal care accessories and pet care products. The company leverages both digital channels and a catalog-driven distribution network to reach end customers, pairing an e-commerce platform with an independent sales advisor network. Founded in 1995, Betterware has built a multi-channel sales infrastructure that relies on regional distribution centers and a large community of independent representatives. The article "Betterware de Mexico SAPI de C Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Revenue Growth: 0.3% year-over-year increase. EBITDA Growth: 14% year-over-year, with margin expanding from 15.3% to 17.4%. Net Income: Nearly doubled year-over-year. Free Cash Flow Conversion: 58% of EBITDA converted into cash. Dividend Proposal: MXN200 million, maintaining a 33% dividend-to-EBITDA ratio. Net Debt-to-EBITDA: Improved to 1.5 times. Return on Total Assets (ROTA): Improved to 22.7%. Return on Invested Capital (ROIC): Increased to 27%. Earnings Per Share (EPS): MXN31.9 on a trading basis. Betterware Revenue Growth: 2.6% despite one less week in the quarter. EBITDA Margin for Betterware: Improved by 190 basis points to 20.5%. Jafra US Revenue Growth: 8.6% increase in net revenue in US Dollars. Associate Base in Andean Region: Approximately 14,000 associates. Associate Base in Guatemala: Approximately 2,200 associates. Warning! GuruFocus has detected 7 Warning Signs with BWMX. Is BWMX fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Betterware de Mexico SAPI de CV (NYSE:BWMX) reported a slight revenue growth of 0.3% year-over-year and a significant EBITDA growth of 14%, with an expansion in EBITDA margin from 15.3% to 17.4%. The company is diversifying its revenue mix and expects further acceleration with the anticipated approval of the Tupperware transaction, which is projected to contribute significantly to earnings per share. Betterware's expansion into Ecuador and improved performance in Guatemala have increased their contribution to total revenue from 0.1% to 0.7% over the past year. The company has successfully reduced its net debt-to-EBITDA ratio to 1.5 times, demonstrating improved financial strength and capital efficiency. Betterware de Mexico SAPI de CV (NYSE:BWMX) continues to advance its strategic pillars, including regional expansion, digital transformation, and maintaining strict financial discipline, which are expected to support sustainable long-term growth. Revenue growth at the group level remained modest due to a temporary slowdown in Jafra Mexico, which was affected by a focus on productivity rather than associate base expansion. Extraordinary expenses related to the Tupperware transaction impacted the EBITDA margin, which would have been higher without these costs. The associate base in Jafra Mexico declined, affecting overall growth, although initiatives are being implemented to address this issue. The company faces potential pressures from volatility in oil prices, which could impact freight and raw material costs, although strategies are in place to mitigate these effects. Despite the positive outlook, the approval of the Tupperware transaction is still pending, which could delay the expected benefits from this acquisition. Q: What is the current state of the Mexican consumer, and how is Betterware adapting to it? A: Andres Campos Chevallier, CEO, noted a slight rebound in Mexican consumer consumption in Q1 2026, with expectations of 1.6% growth compared to 1.1% last year. This rebound is seen as a positive trajectory change, and Betterware is adapting by aligning its strategies to meet evolving consumer demands. Q: How is Betterware managing its inventory levels, and what are the future expectations? A: Andres Campos Chevallier, CEO, stated that inventory levels have stabilized after significant reductions last year. The company expects a slight decrease of about MXN100 million throughout the year, aiming to maintain optimal levels moving forward. Q: What are the expectations and feelings about the Tupperware acquisition? A: Andres Campos Chevallier, CEO, expressed excitement about the Tupperware acquisition, pending regulatory approval. He highlighted Tupperware's strong brand presence in Latin America and the strategic opportunity to enter the Brazilian market, which is expected to significantly boost Betterware's growth. Q: What factors contributed to Jafra Mexico's recent performance, and what are the future expectations? A: Andres Campos Chevallier, CEO, attributed Jafra Mexico's slowdown to internal factors, such as a focus on line renovations over innovation and a shift in associate productivity strategies. The company is now refocusing on innovation and expects a rebound starting in Q2 2026, with growth strengthening throughout the year. Q: How is Betterware managing expenses amid potential cost pressures, such as oil price volatility? A: Andres Campos Chevallier, CEO, acknowledged slight increases in freight costs due to oil price volatility but noted no significant pressure from suppliers on raw material costs. The company is preparing strategies to counter potential long-term cost increases, focusing on negotiations and redesigns to maintain cost efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Achieved significant EBITDA margin expansion to 17.4% through disciplined cost management and operational efficiencies across all business units. Betterware Mexico reached a commercial inflection point with its associate base returning to growth, supporting a recovery in revenue momentum. Jafra Mexico experienced a temporary revenue moderation due to an internal shift toward consultant productivity that inadvertently hindered base expansion. Jafra U.S. demonstrated increasing independence and strength, delivering 8.6% dollar-denominated revenue growth and positive underlying EBITDA when excluding legal expenses. Geographic diversification accelerated with the launch of Betterware Colombia and continued scaling in the Andean region and Guatemala. The asset-light business model and working capital discipline, particularly in inventory management, drove a 22.7% Return on Total Assets (ROTA). Maintained full-year revenue growth guidance of 4% to 8%, assuming a growth acceleration in the second half of the year. Expects the Tupperware acquisition to close in Q2 2026, providing immediate entry into the Brazilian market and an estimated 40% accretion to EPS. Anticipates a rebound in Jafra Mexico starting in Q2 following the implementation of new associate attraction and retention initiatives. Projecting a leverage ratio increase to approximately 1.9x net debt-to-EBITDA post-Tupperware transaction, with a long-term goal of maintaining healthy leverage. Digital transformation initiatives, including a Salesforce CRM rollout and new app features, are scheduled for implementation throughout Q2 and Q3 2026. Reported margins were impacted by extraordinary expenses related to the Tupperware transaction; excluding these, EBITDA margin would have been 18.4%. Quarterly growth comparisons were affected by having one fewer week in the current period versus the prior year. Management is monitoring potential supply chain pressures and freight cost increases stemming from oil price volatility and geopolitical tensions in the Middle East. Inventory levels have reached near-optimal levels following a MXN 100 million planned decrease, with limited further reductions expected. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management observes a slight rebound in private consumption, with national expectations rising to 1.6% growth this year compared to 1.1% last year. The company views this as a positive trajectory shift that supports their domestic commercial model. Management expressed high confidence in the brand's value and the opportunity to apply BeFra's merchandising and innovation model to the iconic brand. The acquisition provides a critical $100 million revenue foothold in Brazil, the largest market in Latin America. The decline was attributed to a prior focus on product line renovations rather than true innovation, and an over-emphasis on productivity at the expense of associate recruitment. Corrective actions were implemented in March and April, with management expecting an inflection point in the second quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.