Latest news with #JafraMexico
Yahoo
6 days ago
- Business
- Yahoo
Betterware de Mexico SAPI de CV (BWMX) Q2 2025 Earnings Call Highlights: Strong Revenue Growth ...
Consolidated Revenue Growth: 5.1% year over year, 1.8% quarter on quarter. Betterware Mexico Revenue Growth: 4% quarter over quarter. Associate Base Growth: Increased from 1.12 million to 1.13 million, a 0.5% QoQ growth. Betterware Mexico EBITDA Margin: 19.9%. Jafra Mexico Revenue Growth: 10.9% year on year. Jafra Mexico EBITDA Margin: 21.2%. Jafra US Revenue Change: Decreased 8.9% year on year, 15.6% rebound quarter over quarter. Consolidated Gross Margin: 67.1%. Betterware Mexico Gross Margin: 55.2%, down 127 basis points year over year. Jafra Mexico Gross Margin: 75.3%, down 167 basis points year over year. Jafra US Gross Margin: Improved to 76%. Consolidated EBITDA: Increased 3.5% year over year to MXN679 million, margin of 19.1%. Free Cash Flow: Rose to MXN592 million, 87% conversion for the second quarter. Consolidated EPS Growth: 7.7% year over year. Net Debt-to-EBITDA Ratio: 1.97 times, down from 2.08 times in Q1 2025. Proposed Dividend: MXN200 million for Q2 2025. Warning! GuruFocus has detected 6 Warning Signs with BWMX. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Betterware de Mexico SAPI de CV (NYSE: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. Negative Points Betterware de Mexico SAPI de CV (NYSE: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. Q & A Highlights Q: How much of the sequential improvement in Q2 can be attributed to a better macro environment versus company-specific initiatives? A: Andres Campos, CEO, explained that while there was a slight stabilization or rebound in consumption, the improvement was primarily due to internal measures. The company focused on merchandising, pricing, and product strategies to make their portfolio more accessible, which significantly contributed to the strong Q2 results. Q: What are the key drivers to achieve the full-year guidance of 6% to 9% revenue and EBITDA growth? A: Andres Campos stated that they expect stability in the macroeconomic environment and consumption trends. The growth in associates for Betterware Mexico and Jafra Mexico, as well as Jafra US, is a positive sign. The company believes that with a stable macro environment, they can achieve the projected growth. Q: What efficiencies are being targeted to return Betterware to a 23% to 24% EBITDA margin? A: Andres Campos highlighted three factors: a strong peso against the dollar, lower freight costs, and an internal strategy to rely less on promotional activities that cut into margins. Additionally, continuous expense reduction and efficiency improvements are expected to drive EBITDA margin up. Q: What opportunities are there in the Chinese market given shifts in US production? A: Andres Campos noted opportunities to work more closely with suppliers and factories to improve product design and cost efficiency. While there isn't a significant change opening up new opportunities, these efforts are helping improve product costs and innovation capabilities. Q: How should inventory management be viewed for the rest of the year and into 2026? A: Rodrigo Munoz, CFO, stated that inventory levels are decreasing and are expected to continue declining. The strategy involves pushing existing inventory and reducing new purchases to return to normal inventory positions, improving productivity and efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Betterware de Mexico SAPI de CV (BWMX) Q2 2025 Earnings Call Highlights: Strong Revenue Growth ...
Consolidated Revenue Growth: 5.1% year over year, 1.8% quarter on quarter. Betterware Mexico Revenue Growth: 4% quarter over quarter. Associate Base Growth: Increased from 1.12 million to 1.13 million, a 0.5% QoQ growth. Betterware Mexico EBITDA Margin: 19.9%. Jafra Mexico Revenue Growth: 10.9% year on year. Jafra Mexico EBITDA Margin: 21.2%. Jafra US Revenue Change: Decreased 8.9% year on year, 15.6% rebound quarter over quarter. Consolidated Gross Margin: 67.1%. Betterware Mexico Gross Margin: 55.2%, down 127 basis points year over year. Jafra Mexico Gross Margin: 75.3%, down 167 basis points year over year. Jafra US Gross Margin: Improved to 76%. Consolidated EBITDA: Increased 3.5% year over year to MXN679 million, margin of 19.1%. Free Cash Flow: Rose to MXN592 million, 87% conversion for the second quarter. Consolidated EPS Growth: 7.7% year over year. Net Debt-to-EBITDA Ratio: 1.97 times, down from 2.08 times in Q1 2025. Proposed Dividend: MXN200 million for Q2 2025. Warning! GuruFocus has detected 6 Warning Signs with BWMX. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Betterware de Mexico SAPI de CV (NYSE: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. Negative Points Betterware de Mexico SAPI de CV (NYSE: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. Q & A Highlights Q: How much of the sequential improvement in Q2 can be attributed to a better macro environment versus company-specific initiatives? A: Andres Campos, CEO, explained that while there was a slight stabilization or rebound in consumption, the improvement was primarily due to internal measures. The company focused on merchandising, pricing, and product strategies to make their portfolio more accessible, which significantly contributed to the strong Q2 results. Q: What are the key drivers to achieve the full-year guidance of 6% to 9% revenue and EBITDA growth? A: Andres Campos stated that they expect stability in the macroeconomic environment and consumption trends. The growth in associates for Betterware Mexico and Jafra Mexico, as well as Jafra US, is a positive sign. The company believes that with a stable macro environment, they can achieve the projected growth. Q: What efficiencies are being targeted to return Betterware to a 23% to 24% EBITDA margin? A: Andres Campos highlighted three factors: a strong peso against the dollar, lower freight costs, and an internal strategy to rely less on promotional activities that cut into margins. Additionally, continuous expense reduction and efficiency improvements are expected to drive EBITDA margin up. Q: What opportunities are there in the Chinese market given shifts in US production? A: Andres Campos noted opportunities to work more closely with suppliers and factories to improve product design and cost efficiency. While there isn't a significant change opening up new opportunities, these efforts are helping improve product costs and innovation capabilities. Q: How should inventory management be viewed for the rest of the year and into 2026? A: Rodrigo Munoz, CFO, stated that inventory levels are decreasing and are expected to continue declining. The strategy involves pushing existing inventory and reducing new purchases to return to normal inventory positions, improving productivity and efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
28-02-2025
- Business
- Yahoo
Betterware de Mexico SAPI de CV (BWMX) Q4 2024 Earnings Call Highlights: Strong Revenue Growth ...
Q4 2024 Revenue Growth: 11.1% increase compared to Q4 2023. Jafra Mexico Revenue Growth: 22.2% increase in Q4 2024. Betterware Mexico Revenue Growth: 1.5% increase in Q4 2024. Full Year 2024 Revenue Growth: 8.4% increase compared to 2023. EBITDA: 2% increase to MXN 2.8 billion, slightly below guidance. Jafra Mexico EBITDA Growth: 15.4% increase. Gross Margin Q4 2024: Improved by 116 basis points to 67.3%. Full Year 2024 Gross Margin: Expanded by 70 basis points to 67.9%. Adjusted EBITDA Decline: 5.8% with a 367-basis points margin contraction. Cash Flow Decline: 21.6% decrease for the year. Adjusted Earnings Per Share Growth: 10.5% in Q4 and 17.3% for the full year. Net Debt to EBITDA Ratio: 1.76 times, with a target of 1.5 times for 2025. Proposed Dividend for Q4: MXN 250 million pesos. Warning! GuruFocus has detected 5 Warning Signs with BWMX. Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Betterware de Mexico SAPI de CV (NYSE:BWMX) achieved double-digit revenue growth of 11.1% in Q4 2024, driven by a 22.2% increase in Jafra Mexico's performance. The company demonstrated resilience with Betterware Mexico growing for the fifth consecutive quarter, exceeding last year's results by 1.5%. Jafra Mexico's EBITDA increased by 15.4%, contributing to the overall financial strength of the company. Betterware de Mexico SAPI de CV (NYSE:BWMX) has a strong historical CAGR of 18% in revenue and 19% in EBITDA over the past 23 years. The company is strategically positioned for future growth with plans for international expansion into Latin America and a focus on sustainability and innovation. Consolidated EBITDA was slightly below the low end of the guidance range due to unexpected challenges in Mexico's international supply chain. The company faced headwinds from sharp Mexican peso depreciation, increased trade prices, and growing product import duties. Jafra US experienced a 17.6% revenue decrease in US dollars, mainly due to adoption difficulties with Shopify Plus. Consolidated adjusted EBITDA declined by 5.8% with a 367-basis points margin contraction, primarily due to Japan Mexico's EBITDA decline. Cash flow declined by 21.6% for the year, driven by an extraordinary cash inflow in 2023 that was not repeated in 2024. Q: Inventories year over year rose. How much of that was the desire to have more product, and what should be the normalized inventory levels going forward? A: Hi Eric. This is Andres. In the first half of the year, we experienced inventory shortages due to growth and anticipated supply chain disruptions. We built up inventory in the second semester. Alejandro will provide the expected normalized inventory levels. A: We would expect instead of the MXN 2,500 million pesos that we have by the end of 2024, it should have been around MXN 2000 million pesos in 2024. Q: Can you elaborate on the strategic focus for Betterware Mexico and Jafra Mexico in 2025? A: For Betterware Mexico, we aim to expand our reach and increase market share by refining our business model, enhancing operational efficiency, and exploring new sales channels. For Jafra Mexico, we plan to capture more of the beauty market by refreshing our brand, innovating products, and implementing a refined pricing strategy. Q: What are the plans for international expansion, particularly in the US and Latin America? A: We are positioning our brands in the US market, with Betterware US showing promising growth signs. In Latin America, we are transitioning from Peru to Ecuador as our first market, with plans to launch operations in Ecuador by June 2025 and expand to Peru and Colombia in the future. Q: How does the company plan to manage potential political disruptions in the US? A: We are aware of potential disruptions, such as increased product import duties and effects on Hispanic market consumption. We are taking necessary countermeasures to mitigate these effects and continue our expansion in the US. Q: What is the focus of the company's inorganic growth strategy? A: Leveraging our success with Jafra, we are exploring companies that offer opportunities to develop new product lines, present new business categories, or accelerate our entrance into international markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
