Betterware de Mexico SAPI de C Q4 Earnings Call Highlights
by Kim Johansen · The Markets DailyBeFra executives highlighted steady improvement through 2025 and a stronger cash and leverage profile during the company’s fourth-quarter earnings call, even as management characterized the year as “complex” amid macro volatility, sociopolitical uncertainty and softer consumption trends in its core markets.
Fourth-quarter results: modest sales growth, margin pressured by temporary factors
President and CEO Andres Campos said fourth-quarter revenue grew 1.2% year over year, while EBITDA margin was 19%, “although below last year due to temporary gross margin impacts.” Campos added that free cash flow more than doubled versus the prior year, driven by “consistent profitability” and actions to improve working capital—particularly inventory levels.
CFO Rodrigo Muñoz reiterated that quarterly EBITDA margin reached 19% despite temporary gross-margin impacts. He also noted that adjusted net income comparisons were affected by approximately MXN 200 million of positive mark-to-market derivative effects recorded in the prior year.
Full-year 2025: revenue up 1.2%, inventory actions drive cash generation and debt reduction
For the full year, management reported revenue growth of 1.2% and an EBITDA margin of 18.7%, which Campos said was “primarily impacted by the abnormal contraction in Q1.”
Cash generation was a central theme of the call. Campos said the company converted more than 83% of EBITDA into free cash flow, driven by inventory optimization that released MXN 459 million in cash. Muñoz added that free cash flow increased 106% year over year in the fourth quarter and rose 24.6% for the full year, “mainly driven by inventory reduction at Betterware Mexico.”
Management also emphasized balance-sheet progress. Campos said total debt was reduced by MXN 700 million during 2025, lowering the leverage multiple from 1.75x to 1.56x. Muñoz said net debt to EBITDA improved to 1.56x at year-end 2025, compared with 3.1x in 2022, and described liquidity as “robust.”
Muñoz noted the company has paid dividends for 24 consecutive quarters since the IPO, with dividend payments aligned to its capital allocation framework and a 32% trailing twelve-month dividend-to-EBITDA ratio, while also reducing leverage and funding geographic expansion.
Operating trends by business: Betterware stabilizes, Jafra Mexico hits record sales, Jafra U.S. returns to growth
Campos said performance improved across business units after a difficult first quarter. He highlighted that Jafra Mexico continued to grow, Betterware Mexico narrowed its sales decline progressively, and Jafra U.S. posted its “first back to growth quarter in Q4.”
Betterware Mexico. Campos said Betterware delivered its strongest quarterly sales performance of 2025 in the fourth quarter, and that 2025 was the first year since COVID in which Betterware’s associate base increased throughout the year. He said fourth-quarter EBITDA margin was affected by temporary foreign exchange-related impacts on gross margin; excluding these effects, fourth-quarter EBITDA margin would have been approximately 22%, similar to the prior-year quarter. Management outlined 2025 actions including revamping core categories such as home organization, expanding newer categories like home ovens, enhancing incentive programs with rewards such as online education, health and travel, and adding functionality to the Betterware+ app. For 2026, initiatives include expanding licensing beyond Disney and Mattel, strengthening fast-consumption products, launching a World Cup special-edition line, updating catalog design, further segmenting incentives (including direct-to-associate product delivery), deploying a new CRM with Salesforce, and launching a payment system in partnership with Broxel.
Jafra Mexico. Campos said the beauty market remained resilient and that Jafra Mexico achieved “record high sales” in the quarter. He attributed a slight decline in the sales force to “aggressive productivity-focused promotions” and said the company plans to rebalance its commercial strategy between growth and productivity. Management said adjusted EBITDA recovered significantly from the weak first quarter and returned to growth for the year, while margins remained healthy despite select gross margin investments. 2025 actions included redesigning key core lines (Royal Jelly, Nature and Navigo), improving field management operations, and benefiting throughout 2025 from a catalog redesign completed in September 2024. The company also launched a Shopify Plus platform enabling personalized social-selling links. For 2026, management discussed innovation efforts, expanded licensing, new skincare lines and entry into hair care in the second half of 2026, stronger sample trial initiatives, subscription initiatives aimed at retention, more segmented incentives, and the launch of a JAFRA+ platform and a Salesforce CRM.
Jafra U.S. Campos said revenue showed continued quarter-over-quarter improvement since the first quarter, with Q4 representing the first quarter of year-over-year growth, driven by stronger consultant productivity and a sharper commercial focus. EBITDA improved, though the full-year comparison still reflected a decline after a restructuring. Campos noted ongoing legal expenses affected reported profitability, and said that excluding those legal costs, full-year EBITDA would have been approximately $869,000, implying positive profitability. Plans for 2026 include a deal to launch Disneyland-licensed products in the U.S., stronger sample trials, enhanced merchandising techniques based on experience in Betterware and Jafra Mexico, and new payment terms so new associates do not need to invest in working capital at startup.
Expansion and M&A: Colombia launch planned, Tupperware Latin America acquisition announced
Management described regional expansion as a key pillar. Campos said Ecuador surpassed 11,500 associates and 730 distributors at year-end, more than seven times the base at launch, and that Guatemala sales increased 50% since the beginning of 2025 alongside associate growth. Using Ecuador as an Andean “beachhead,” Campos said the company planned to launch operations in Colombia on March 2.
The company also detailed an agreement to acquire 100% of Tupperware’s Latin American business for $250 million, consisting of $215 million in debt-funded cash and $35 million in BeFra shares. Management said the transaction includes operations in Mexico and Brazil, two production facilities, and a perpetual royalty-free license for the Tupperware brand across Latin America. Closing is expected in the second quarter of 2026, subject to customary regulatory approvals.
Campos said the deal is intended to unlock growth through innovation, technology, and BeFra’s commercial model, while providing entry into Brazil and creating opportunities for cross-market synergies. He also pointed to sourcing benefits from manufacturing capacity in Mexico and Brazil. Management described the purchase as attractive at an implied 3.1x enterprise value-to-EBITDA multiple and said it is expected to be accretive, with an estimated 40% EPS accretion based on purchase price assumptions.
Outlook themes: more stable consumption, inventory normalization, and mid-single-digit growth target
In the Q&A, Campos said the Mexican consumer experienced “a slight contraction or deceleration” in 2025, but he expects 2026 to be “more stable,” citing factors such as decreasing interest rates and more stable inflation. He also said the company was seeing “general better consumption trends” in January and early February.
On inventories, management said levels declined from roughly MXN 2.5 billion at the start of 2025 to about MXN 2.0 billion at year-end, and that the company is “very close to optimal inventory levels.” They said 2026 should not see another extraordinary inventory reduction, with perhaps MXN 100 million to MXN 200 million of additional opportunity.
Campos also addressed the company’s 2026 growth expectations discussed on the call, pointing to a more stable consumption backdrop, internal initiatives in Mexico across Betterware and Jafra, continued improvement at Jafra U.S., and incremental contributions from expansion efforts in Ecuador and Colombia. On profitability, management reiterated an EBITDA margin framework of 19% or above at the group level, noting potential investments and factors such as work related to the Tupperware transaction.
Campos concluded that 2025 underscored the resilience of BeFra’s platform, citing strengthened profitability after a difficult start to the year, strong cash flow generation, reduced leverage, progress in regional expansion and digital transformation, and preparations to add a new brand in 2026.
About Betterware de Mexico SAPI de C (NYSE:BWMX)
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.