EX-99.1 2 ea026222401ex99-1_betterware.htm BEFRA THIRD QUARTER 2025 EARNINGS RELEASE

Exhibit 99.1

 

 

 

 

 

 

 

Message from the President and CEO

 

BeFra delivered solid results for the third quarter of 2025. Revenue continued to increase, expanding by 1.4% YoY, despite still subdued consumption trends in Mexico. At the same time, we significantly strengthened third quarter profitability and operating cashflow, with EBITDA increasing by 22%, EPS by 71%, and Free Cash Flow by 32.6%, the latter representing 77% conversion of EBITDA. This also enabled us to further lower BeFra’s net debt-to-EBITDA QoQ from 1.97 to 1.8x, which underscores our continued focus on financial discipline while we pursue stronger growth.

 

As noted, BeFra faced soft consumption trends in our home market, resulting in a 5.3% decrease in Betterware Mexico’s revenue, although sales increased 7.9% at Jafra during the quarter. While it has been more difficult to grow in such an unexpectedly challenging market - particularly with Betterware’s focus on discretionary goods - both of our core businesses nevertheless continued to strengthen their profitability; Betterware Mexico achieved an 11.7% increase in EBITDA, despite expansion investments in Guatemala and Ecuador, while Jafra Mexico achieved an exceptional 31% increase.

 

On the international side, we continue to make promising progress. Jafra US delivered flat year-over-year performance in USD terms, after two quarters of decreases, as our revamped compensation plan, redesigned catalog, and the adoption of our Shopify+ platform all kicked in to accelerate growth. In September, the business achieved its best month in three years, posting 30% year-over-year growth.

 

Further south, although still not material to our consolidated results, Betterware Ecuador continued surpassing expectations, reaching more than 5,900 associates by the end of third quarter. In September, net revenue reflected a strong run rate, with sustained compounded growth of approximately 20% month over month. The Betterware brand has exceeded our expectations in Ecuador, validating the potential of our expansion model for Andean markets. Building on this success, we plan to launch Betterware Colombia in the first quarter of 2026. In Guatemala, we achieved a 32% YoY net revenue increase for the third quarter. These results have begun contributing to improved performance of Betterware and its subsidiaries overall.

 

In closing, despite weaker-than-anticipated consumer trends in Mexico - our primary market today - and overall macro instability, we remain committed to our long-term “Great Brands, One Essence” strategy, led by our popular Betterware and Jafra brands and person-to-person model. Our brands continue outperforming the home goods and beauty markets in Mexico and abroad, while we deliver strong profitability and cashflow, as well as maintain financial discipline. Although we have made meaningful progress in revenue and profitability relative to an even more challenging first quarter, we expect full-year growth in both metrics to remain in the low single-digit range.

 

As we enter the final quarter of 2025, our focus remains on closing the year positively and regaining momentum going into 2026.

 

Andrés Campos Chevallier

President and CEO BeFra Group

 

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Note on the financial statements: All 2024 figures include the adjustments disclosed in our Q3 and Q4 2024 earnings releases. These refer to (i) a non-cash effect related to the sale of non-operative asset, which led to the disclosure of Adjusted EBITDA, Net Income, and EPS for Q3 2024; and (ii) a correction in the classification of certain production-related costs within Jafra Mexico’s financial statements, with no impact on revenues, EBITDA, or net income. For further details, please refer to those earnings releases available on BeFra’s Investor Relations website.

 

Q3 2025 Select Consolidated Financial Information

 

   Q3   9M 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $3,377,299   $3,330,394    1.4%  $10,439,093   $10,322,290    1.1%
Gross Margin   68.5%   66.9%   158 bps    67.3%   68.2%   -92 bps 
EBITDA  $722,149   $156,546    361.3%  $1,936,226   $1,568,071    23.5%
EBITDA Margin   21.4%   4.7%   1,668 bps    18.5%   15.2%   336 bps 
Adj. EBITDA  $722,149   $591,576    22.1%  $1,936,226   $2,003,101    -3.3%
Adj. EBITDA Margin   21.4%   17.8%   362 bps    18.5%   19.4%   -86 bps 
Net Income   314,205   $-112,561    379.1%  $792,905   $486,423    63.0%
Adj. Net Income  $314,205   $183,584    71.2%  $792,905   $782,568    1.3%
EPS   8.42    -3.02    379.1%   21.24    13.03    63.0%
Adj. EPS   8.42    4.92    71.2%   21.24    20.97    1.3%
Free Cash Flow  $553,573   $417,379    32.6%  $1,089,884   $1,235,471    -11.8%
Net Debt / EBITDA   1.80    1.76         1.80    1.76      
Interest Coverage   3.71    3.52         3.71    3.52      
Associates                        
Avg. Base   1,113,669    1,127,767    -1.2%   1,124,878    1,173,222    -4.1%
EOP Base   1,099,550    1,151,069    -4.7%   1,099,550    1,151,069    -4.7%
Distributors                              
Avg. Base   63,774    65,236    -2.3%   62,845    64,785    -3.0%
EOP Base   63,021    64,433    -2.2%   63,021    64,435    -2.2%

 

Revenue Growth Maintained: Consolidated net revenue increased 1.4% YoY. While the quarter experienced softer consumer demand for home goods in Mexico, overall group revenue maintained its growth trajectory, thanks to top-line growth at Jafra Mexico.

 

Profitability Remains Strong: Consolidated EBITDA increased 22% YoY, with the margin expanding both sequentially and YoY, reflecting an ongoing focus on strengthening profitability across all business units.

 

Strong Free Cash Flow Generation: BeFra continued generating strong positive Free Cash Flow during the quarter, with a 32.6% increase YoY and converting 77% of EBITDA, supported by disciplined working capital management and normalized payment cycles. The company remains on track to maintain its historical annual cash flow conversion rate of ~60%.

 

Net Income Growth: net income increased 71% YoY, mainly reflecting a combination of factors: higher operating income, lower income tax expense, lower financial costs, and the absence of non-recurring FX and deferred tax effects that had impacted last year’s results

 

For more details, please refer to Financial Results by Business, beginning on page 5.

 

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Financial Performance 

Balance sheet at the end of Q3 2025.

 

Liquidity ratios

 

BeFra’s cash flow is returning to the normal operating cash cycle of the business after the non-recurring events and economic volatility seen in Q1. It is expected that cash generation will continue to improve in the upcoming quarters.    

 

   Q3 2025   Q3 2024   ∆ 
Current Ratio   0.93x   1.07x   -13.1%
FCF / Adj. EBITDA   76.6%   70.6%   +322 bps 
CCC (days)   78    41    +37days 

 

*CCC: Cash Conversion Cycle

 

Return on Investment

 

Throughout its history, BeFra has consistently delivered solid returns on investment. Despite a challenging first quarter, there were clear signs of recovery in both Q2 and Q3, supported by stronger commercial and operational execution as well as improved profitability across key business units. While year-to-date profitability indicators still reflect the impact of Q1, this is seen as a short-term deviation, and the company remains confident in the long-term value-creation capacity of its business model.    

 

   Q3 2025   Q3 2024   ∆ 
Equity Turnover   11.00x   11.63x   -5.4%
ROE   78.8%   74.7%   +410 bps 
ROTA   10.1%   8.1%   +203 bps 
Dividend Yield   8.48%   11.91%   -343 bps 

 

*Equity Turnover = Net Revenues TTM / Equity
*ROE = Net income TTM / Stockholders Equity
*ROTA = Net Income TTM / (Cash + Accounts Receivable + Inventories + Fixed Assets)
*Calculation of Dividend Yield Using the Closing Price on September 30, 2025, which was $13.45

 

Asset Light Business – Low fixed cost structure

 

BeFra’s asset-light business model continues to be a key pillar of business resilience. The decrease in fixed assets was due to the strategic sale of Jafra Mexico’s real estate assets, consistent with the Company’s asset-light approach. With regard to other fixed costs, BeFra continues seeking ways to further reduce SG&A expenses.

 

   Q3 2025   Q3 2024   ∆ bps 
Fixed Assets / Total Assets   17.0%   19.5%   -252 bps 
Variable Cost Structure   74.7%   75.1%   -60 bps 
Fixed Cost Structure   25.3%   24.7%   60 bps 
SG&A / Net Revenues   45.2%   47.4%   -223 bps 

 

Debt Leverage

 

BeFra’s current level of debt primarily reflects two key strategic initiatives: the acquisition of the Jafra beauty products business in 2022 and the investment in the new Betterware Campus, which opened in 2021. The Company remains firmly committed to its debt reduction strategy During the third quarter, we settled a $500M bond (MXN), which will be fully covered with internal resources by the end of the year, further demonstrating BeFra’s strong cash generation and disciplined financial management.

 

Net Debt to EBITDA improved from 1.97x in Q2 2025 to 1.80x in Q3 2025

 

   Q3 2025   Q3 2024   ∆% 
Debt to EBITDA   1.93x   1.87x   +3.2% 
Net Debt to EBITDA   1.80x   1.76x   +2.3% 
Interest Coverage   3.71x   3.52x   +5.4% 

 

Capital Allocation

 

Quarterly Dividends: Considering BeFra’s results to date, the company remains committed to enhancing shareholder value through quarterly dividends. The board of directors had proposed maintaining a Ps. 200M dividend for Q3 2025, which was approved by the Ordinary General Shareholders’ Meeting held on October 21st, 2025

 

2025 Guidance and Long-Term Growth Prospects: Despite a challenging start to the year during the first quarter, which has impacted BeFra’s YTD performance, the Company has been gaining momentum quarter after quarter across all business units and expects a solid close to the year in the fourth quarter. Accordingly, management anticipates closing 2025 with revenue and EBITDA growth of between 1% and 5% and remains confident in sustaining this positive momentum going forward.

 

   2025   2024   Var % 
Net Revenue  $14,900 - $ 15,300   $14,101   ≈6.0% - 9.0% 
EBITDA  $2,900 - $ 3,000   $2,775   ≈6.0% - 9.0% 

 

*Figures in millions Pesos.

 

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Q3 2025 Financial Results by Business 

Betterware Mexico  

Key Financial and Operating Metrics

 

   Q3   9M 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $1,387,586   $1,465,577    -5.3%  $4,249,244   $4,496,979    -5.51%
Gross Margin   57.1%   54.8%   238 bps    55.8%   57.1%   -127 bps 
EBITDA  $312,669   $279,889    11.7%  $864,907   $966,463    -10.5%
EBITDA Margin   22.5%   19.1%   344 bps    20.4%   21.5%   -114 bps 
Associates                    
Avg. Base   675,696    694,277    -2.7%   659,457    708,022    -6.9%
EOP Base   667,501    700,893    -4.8%   667,501    700,893    -4.8%
Monthly Activity Rate   63.3%   66.3%   -295 bps    64.8%   66.8%   -198 bps 
Avg. Monthly Order  $2,043   $2,034    0.4%  $2,116   $2,038    3.8%
Distributors                              
Avg. Base   43,220    44,639    -3.2%   42,161    44,159    -4.5%
EOP Base   42,673    43,939    -2.9%   42,673    43,939    -2.9%
Monthly Activity Rate   97.9%   98.0%   -6 bps    98.2%   98.2%   3 bps 
Avg. Monthly Order  $20,752   $21,531    -3.6%  $21,878   $22,261    -1.7%

 

Highlights

 

●Revenue Declines on Lower Consumer Demand: Betterware Mexico reported a 5.3% YoY revenue decline. Although Q2 and Q3 showed improvement after a weak start to the year, market softness persisted, particularly in Q3, as vacation spending and the back-to-school season limited demand for discretionary products, contributing to overall consumption weakness.

 

●Profitability Improvement: Despite lower revenues, gross margin rose from 54.8% to 57.1% YoY, reflecting the success of a profitability-focused growth strategy. EBITDA growth was 11.7% YoY, after investments in geographic expansion, which totaled $16.7M pesos in the quarter and $61.9M pesos year to date.

 

●Sales Force Dynamics Stable: The independent sales force showed a year-over-year decline of 3.2% in Distributors and 2.7% in Associates. However, results throughout 2025 indicate stability from year-end 2024 to Q3 2025, thanks to net growth achieved in Q2 and stability in Q3.

 

●Operational Discipline and Continued Inventory Reduction: Inventories were reduced by 17%, or approximately $240M YoY, and decreased 5% QoQ, reflecting strong execution in inventory optimization and working capital efficiency, which contributed to healthy cash generation during the quarter.

 

Q4 2025 Priorities

 

●Product Mix and Pricing: While consumer demand in Mexico remains soft, Betterware Mexico has lined up a stronger holiday season portfolio than last year, which is expected to help strengthen growth in the fourth quarter. At the same time, the Company intends to strike the right balance between revenue growth and profitability by reducing the mix of promotional items, to strengthen gross margin and revenues.

 

●Catalog Design Improvements: Refresh key visuals and better highlight the innovative benefits of Betterware’s products, emphasizing key differentiators versus competing household products.

 

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Jafra Mexico

Key Financial and Operating Metrics

 

   Q3   9M 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $1,752,179   $1,623,697    7.9%  $5,475,829   $5,144,830    6.4%
Gross Margin   76.3%   76.8%   -54 bps    75.0%   77.1%   -211 bps 
EBITDA  $417,760   $-116,882    -457.4%  $1,097,826   $610,716    79.8%
EBITDA Margin   23.8%   -7.2%   3,104 bps    20.0%   11.9%   818 bps 
Adj. EBITDA  $417,760   $318,148    31.3%  $1,097,826   $1,045,746    5.0%
Adj. EBITDA Margin   23.8%   19.6%   425 bps    20.0%   20.3%   -28 bps 
Associates                    
Avg. Base   411,670    403,340    2.1%   439,356    435,027    1.0%
EOP Base   405,599    421,073    -3.7%   405,599    421,073    -3.7%
Monthly Activity Rate   49.4%   51.6%   -216 bps    49.9%   52.0%   -205 bps 
Avg. Monthly Order  $2,552   $2,347    8.7%  $2,489   $2,290    8.7%
Distributors                              
Avg. Base   18,950    18,823    0.7%   19,045    18,883    0.8%
EOP Base   18,964    18,722    1.3%   18,964    18,722    1.3%
Monthly Activity Rate   93.7%   93.2%   46 bps    94.3%   94.2%   11 bps 
Avg. Monthly Order  $3,023   $2,694    12.2%  $2,874   $2,594    10.8%

 

Highlights

 

●Continued Strong Revenue Growth: Jafra Mexico delivered 7.9% YoY revenue growth, supported by strong commercial execution and targeted initiatives that kept the sales force active despite the typically slow summer season. Revenue growth was led by the renewal of Jafra’s Royal Body care line, the launch of a new men’s fragrance, Magnetique, and the continued strong performance of the rebranded Royal Jelly skincare line.

 

●Sales Force and Productivity Increases: The Associates base grew 2.1% and Distributors increased 0.7%, while average order value rose 11% year over year, reflecting stronger engagement and higher-quality sales.

 

●Increasing Profitability. EBITDA increased 31.3% YoY, driven by a strong gross margin in the quarter, supported by a more favorable product mix, a tailored pricing strategy, and strict expense control.

 

Q4 2025 Priorities

 

●Seasonal Promotions: Launch of holiday season promotions featuring key products, enabling the creation of attractive consumer bundles and competitive price offers.

 

●Product Renovations & Innovation: Continue advancing rebranding strategy for key products, seasonal sets and packages in the Fragrance, Skin Care and Body Care categories. By the end of the year, Jafra Mexico will have renovated more than 80% of its product lines, and by the end of 1H’26 it will have finished 100% of product line renovations under the brand renewal strategy.

 

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Jafra US

Key Financial and Operating Metrics

 

   Q3   9M 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $237,534   $241,120    -1.5%  $714,020   $680,481    4.9%
Gross Margin   77.0%   73.3%   370 bps    75.7%   73.6%   202 bps 
EBITDA  $-8,280   $-6,462    28.1%  $-26,507   $-9,108    191.0%
EBITDA Margin   -3.5%   -2.7%   81 bps    -3.7%   -1.3%   237 bps 

 

   Q3   9M 
Results in ‘000 USD  2025   2024   2025   2024 
Net Revenue  $12,745   $12,748    0.0%  $36,627   $38,425    -4.68%
Gross Margin   77.0%   73.6%   334 bps    75.7%   73.6%   202 bps 
EBITDA  $-442   $-342    29.4%  $-1,346   $-503    167.9%
EBITDA Margin   -3.5%   -2.7%   79 bps    -3.7%   -1.3%   237 bps 
Associates                    
Avg. Base   26,303    30,150    -12.8%   26,066    30,173    -13.6%
EOP Base   26,450    29,103    -9.1%   26,450    29,103    -9.1%
Monthly Activity Rate   51.3%   41.6%   973 bps    48.8%   43.6%   521 bps 
Avg. Monthly Order  $228   $233    -2.1%  $232   $229    1.3%
Distributors                              
Avg. Base   1,604    1,774    -9.6%   1,639    1,743    -5.9%
EOP Base   1,384    1,772    -22.0%   1,384    1,772    -22.0%
Monthly Activity Rate   92.6%   87.5%   512 bps    90.6%   88.5%   208 bps 
Avg. Monthly Order  $201   $233    -13.7%  $211   $226    -6.6%

 

Highlights

 

●Revenue Recovery and Strong Execution: While net sales were practically unchanged YoY, the sales trend has begun to improve. It is important to note that September marked Jafra U.S.’s best monthly performance in three years, reaching $5.5 million USD and reflecting a 30% increase in net revenue compared to September 2024. This growth reflects the success of the redesigned catalog, the continued ramp-up of the Shopify+ platform, and a new incentive plan that has been well received by consultants since its May launch, strengthening engagement and visibility.

 

●Profitability Improvement: Gross margin increased 334 bps YoY to 77%. Although the business still posted an EBITDA loss, the improvement in both sales and margins confirms that Jafra U.S. is progressing toward sustainable profitability. Accumulated EBITDA through third quarter 2025 included approximately $27 million pesos in one-time extraordinary legal settlement fees related to labor claims made prior to Jafra’s 2022 acquisition. When excluding these fees, operating EBITDA was positive during this period, demonstrating that the underlying performance of the business is on the right track toward profitability.

 

Q4 2025 Priorities

 

●Continue leveraging the two strongest growth initiatives, the new incentive plan and Shopfiy+ platform.

 

●Strengthen merchandising techniques: Enhance merchandising initiatives to boost revenue, such as the new Leadership Retreat qualification — 400 consultants qualified versus 150 expected.

 

●Improve our ease of doing business: Deploy easier and more effective onboarding plans for new consultants and leaders.

 

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Appendix

Financial Statements

 

Betterware de México, S.A.P.I. de C.V.

Consolidated Statements of Final Position

As of September 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   Sep 2025   Sep 2024 
Assets        
Cash and cash equivalents   333,522    316,378 
Trade accounts receivable, net   1,191,536    1,200,117 
Accounts receivable from related parties   18    2,407 
Account receivable "San Angel"   115,760      
Inventories   2,300,381    2,504,370 
Prepaid expenses   174,063    100,303 
Income tax recoverable   120,461    67,701 
Derivative financial instruments   0    105,469 
Non-current assets held for sale   40,000    0 
Other assets   118,183    421,875 
Total current assets   4,393,924    4,718,620 
Account receivable "San Angel"   48,703    0 
Property, plant and equipment, net   1,713,003    2,121,418 
Right of use assets, net   291,221    291,960 
Deferred income tax   525,086    524,876 
Intangible assets, net   1,513,648    1,590,916 
Goodwill   1,599,718    1,599,718 
Other assets   14,257    14,387 
Total non-current assets   5,705,636    6,143,275 
Total assets   10,099,560    10,861,895 
           
Liabilities and Stockholders’ Equity          
Short-term debt and borrowings   1,661,924    618,279 
Accounts payable to suppliers   1,730,717    2,372,520 
Accrued expenses   368,196    410,253 
Provisions   668,882    778,992 
Value added tax payable   54,662    44,614 
Statutory employee profit sharing   97,875    86,885 
Lease liability   118,746    109,873 
Derivative financial instruments   33,563    0 
Total current liabilities   4,734,565    4,421,416 
Employee benefits   142,485    139,701 
Deferred income tax   495,118    572,301 
Lease liability   193,055    214,098 
Long term debt and borrowings   3,242,407    4,334,713 
Total non-current liabilities   4,073,065    5,260,813 
Total liabilities   8,807,630    9,682,229 
Stockholders’ Equity          
Capital stock   321,312    321,312 
Share premium account   -25,264    -25,264 
Retained earnings   1,036,602    916,606 
Other comprehensive income   -37,187    -31,508 
Non-controlling interest   -3,533    -1,480 
Total Stockholders’ Equity   1,291,930    1,179,666 
Total Liabilities and Stockholders’ Equity   10,099,560    10,861,895 

 

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Betterware de México, S.A.P.I. de C.V.

Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the three-months ended September 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   Q3 2025   Q3 2024   ∆% 
Net revenue   3,377,299    3,330,394    1.4%
Cost of sales   1,064,701    1,103,468    -3.5%
Gross profit   2,312,598    2,226,926    3.8%
                
Administrative expenses   564,547    649,765    -13.1%
Selling expenses   961,693    928,707    3.6%
Distribution expenses   159,282    152,281    4.6%
Total expenses   1,685,522    1,730,753    -2.6%
                
Other expenses - Sale of fixed assets   0    435,030    NA 
                
Operating income   627,076    61,143    925.6%
                
Interest expense   -131,907    -159,087    -17.1%
Interest income   5,473    2,751    98.9%
Unrealized loss in valuation of financial derivative instruments   0    82,876    -100.0%
Foreign exchange loss, net   1,038    -27,586    -103.8%
Financing cost, net   -125,396    -101,046    24.1%
                
Income before income taxes   501,680    -39,903    -1357.2%
                
Income taxes   188,055    72,634    158.9%
                
Net income including minority interest   313,625    -112,537    -378.7%
Non-controlling interest loss   580    -24    -2516.7%
Net income   314,205    -112,561    -379.1%
                
Concept  Q3 2025   Q3 2024   ∆% 
Net income   313,625    -112,537    -378.7%
(+) Income taxes   188,055    72,634    158.9%
(+) Financing cost, net   125,396    101,046    24.1%
(+) Depreciation and amortization   95,073    95,402    -0.3%
EBITDA   722,149    156,545    361.3%
EBITDA margin   21.38%   4.70%     
(+) Other expenses - Sale of fixed assets        435,030    -100.0%
(+) Impairment of fixed assets        0      
EBITDA adjusted   722,149    591,575    22.1%
EBITDA margin adjusted   21.38%   17.76%     

 

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Betterware de México, S.A.P.I. de C.V.

Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the nine-months ended September 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   9M 2025   9M 2024   ∆% 
Net revenue   10,439,093    10,322,290    1.1%
Cost of sales   3,418,781    3,285,321    4.1%
Gross profit   7,020,312    7,036,969    -0.2%
                
Administrative expenses   1,886,385    1,923,042    -1.9%
Selling expenses   2,976,073    2,907,457    2.4%
Distribution expenses   514,655    489,593    5.1%
Total expenses   5,377,113    5,320,092    1.1%
                
Other expenses - Sale of fixed assets   0    435,030    NA 
                
Operating income   1,643,199    1,281,847    28.2%
                
Interest expense   -422,219    -483,894    -12.7%
Interest income   29,451    13,554    117.3%
Unrealized loss in valuation of financial derivative instruments   -108,846    153,389    -171.0%
Foreign exchange loss, net   73,165    -88,839    -182.4%
Financing cost, net   -428,449    -405,790    5.6%
                
Income before income taxes   1,214,750    876,057    38.7%
                
Income taxes   423,728    389,586    8.8%
                
Net income including minority interest   791,022    486,471    62.6%
Non-controlling interest loss   1,883    -48    -4022.9%
Net income   792,905    486,423    63.0%
                
Concept            ∆% 
Net income   791,022    486,471    62.6%
(+) Income taxes   423,728    389,586    8.8%
(+) Financing cost, net   428,449    405,790    5.6%
(+) Depreciation and amortization   293,027    286,224    2.4%
EBITDA   1,936,226    1,568,071    23.5%
EBITDA margin   18.55%   15.19%     
(+) Other expenses - Sale of fixed assets   0    435,030    -100.0%
(+) Impairment of fixed assets   0    0      
EBITDA adjusted   1,936,226    2,003,101    -3.3%
EBITDA margin adjusted   18.55%   19.41%     

 

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Betterware de México, S.A.P.I. de C.V. 

Consolidated Statements of Cash Flows

For the nine-months ended September 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   Q3 2025   Q3 2024 
Cash flows from operating activities:        
Profit for the period   791,022    486,471 
           
Adjustments for:          
Income tax expense recognized in profit of the year   423,728    389,586 
Depreciation and amortization of non-current assets   293,027    286,224 
Interest income recognized in profit or loss   -29,451    -13,554 
Interest expense recognized in profit or loss   422,219    483,894 
Unrealized loss (gain) in valuation of financial derivative instruments   108,846    -153,389 
Share-based payment expense        -8,894 
Gain on disposal of equipment   -8,147    699,176 
Currency effect   20,420    -17,021 
Movements in not- controlling interest   72    103 
Movements in working capital:          
Trade accounts receivable   -58,443    -127,662 
Trade accounts receivable from related parties   232    -2303 
Trade account receivable "San Angel"   47,159      
Inventory, net   204,712    -470,236 
Prepaid expenses and other assets   -57,982    -170,656 
Accounts payable to suppliers and accrued expenses   -441,500    668,348 
Provisions   -80,036    -25,756 
Value added tax payable   -16,530    -73,747 
Statutory employee profit sharing   -41,380    -45,970 
Trade accounts payable to related parties   -1,237    20 
Income taxes paid   -445,478    -633,554 
Employee benefits   14,173    12,551 
Net cash generated by operating activities   1,145,426    1,283,631 
           
Cash flows from investing activities:          
Payments for property, plant and equipment, net   -61,767    -174,996 
Proceeds from disposal of property, plant and equipment, net   6,225    126,836 
Interest received   29,451    13,554 
Net cash used in investing activities   -26,091    -34,606 
           
Cash flows from financing activities:          
Repayment of borrowings   -3,914,700    -2,071,500 
Proceeds from borrowings   4,031,200    1,945,000 
Interest paid   -431,383    -497,796 
Lease payment   -118,787    -109,541 
Dividends paid   -648,701    -748,540 
Net cash used in financing activities   -1,082,371    -1,482,377 
Net increase (decrease) in cash and cash equivalents   36,964    -233,352 
Cash and cash equivalents at the beginning of the period   296,558    549,730 
Cash and cash equivalents at the end of the period   333,522    316,378 

 

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Key Operating Metrics

 

Betterware Mexico

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025   Q3 2025 
Associates                        
Avg. Base   713,144    694,277    693,666    645,359    657,317    675,696 
EOP Base   699,033    700,893    674,654    649,076    670,349    667,501 
Monthly Activity Rate   66.4%   66.3%   64.8%   65.5%   65.6%   63.3%
Avg. Monthly Order  $2,027   $2,034   $2,158   $2,152   $2,153   $2,043 
Monthly Growth Rate   13.8%   15.7%   14.3%   18.7%   16.6%   16.1%
Monthly Churn Rate   15.0%   15.6%   15.6%   19.5%   15.6%   16.3%
Distributors                              
Avg. Base   44,953    44,639    43,585    41,202    42,062    43,220 
EOP Base   45,009    43,939    42,608    41,810    43,292    42,673 
Monthly Activity Rate   98.0%   98.0%   96.7%   97.9%   98.8%   97.9%
Avg. Monthly Order  $21,669   $21,531   $22,945   $22,534   $22,347   $20,752 
Monthly Growth Rate   11.4%   10.4%   8.7%   9.8%   10.7%   9.6%
Monthly Churn Rate   11.0%   11.2%   10.3%   11.2%   9.4%   10.1%

 

Jafra Mexico

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025   Q3 2025 
Associates                        
Avg. Base   432,450    403,340    476,211    468,356    438,041    411,670 
EOP Base   419,931    421,073    480,532    446,998    429,472    405,599 
Monthly Activity Rate   50.50%   51.6%   49.9%   50.5%   49.8%   49.4%
Avg. Monthly Order  $2,284   $2,347   $2,439   $2,419   $2,495   $2,552 
Monthly Growth Rate   8.4%   12.0%   13.2%   10.1%   10.1%   10.0%
Monthly Churn Rate   10.8%   11.9%   8.6%   12.5%   11.3%   12.0%
Distributors                              
Avg. Base   19,073    18,823    18,889    19,150    19,036    18,950 
EOP Base   19,035    18,722    19,093    19,202    18,966    18,964 
Monthly Activity Rate   93.10%   93.2%   94.6%   95.1%   94.1%   93.7%
Avg. Monthly Order  $2,693   $2,694   $2,758   $2,744   $2,855   $3,023 
Monthly Growth Rate   0.7%   0.9%   1.8%   1.2%   0.6%   1.2%
Monthly Churn Rate   0.8%   1.5%   1.1%   1.0%   1.0%   1.3%

 

Jafra US

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025   Q3 2025 
Associates                        
Avg. Base   31,013    30,150    26,540    24,703    27,191    26,303 
EOP Base   31,474    29,103    25,272    25,973    28,188    26,450 
Monthly Activity Rate   45.9%   41.6%   44.5%   45.9%   49.2%   51.3%
Avg. Monthly Order (USD)  $232   $233   $248   $243   $225   $228 
Monthly Growth Rate   14.4%   11.2%   10.0%   12.8%   13.2%   11.4%
Monthly Churn Rate   11.9%   13.7%   14.7%   11.8%   9.7%   14.0%
Distributors                              
Avg. Base   1,726    1,774    1,786    1,504    1,808    1,604 
EOP Base   1,766    1,772    1,638    1,493    1,901    1,384 
Monthly Activity Rate   89.8%   87.5%   85.5%   89.3%   89.8%   92.6%
Avg. Monthly Order (USD)  $229   $233   $219   $228   $206   $201 
Monthly Growth Rate   8.5%   5.8%   2.7%   4.0%   8.5%   3.8%
Monthly Churn Rate   6.7%   5.7%   5.0%   6.9%   0.0%   12.8%

 

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Key Financial Metrics

 

Consolidated

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025   Q3 2025 
Net Revenue  $3,389,393   $3,330,394   $3,778,468   $3,499,151   $3,562,643   $3,377,299 
Gross Margin   67.8%   66.9%   67.3%   66.2%   67.1%   68.5%
EBITDA  $656,136   $591,575   $771,596   $535,265   $678,812   $722,149 
EBITDA Margin   19.4%   17.8%   20.4%   15.3%   19.1%   21.4%
Net Income  $303,745   $183,608   $270,083   $150,728   $327,306   $313,625 
Free Cash Flow  $458,437   $417,379   $548,430   $-55,841   $592,152   $553,573 

 

Betterware Mexico

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025   Q3 2025 
Net Revenue  $1,476,375   $1,465,577   $1,494,855   $1,403,065   $1,458,593   $1,387,586 
Gross Margin   56.4%   54.8%   57.2%   55.3%   55.2%   57.1%
EBITDA  $304,467   $279,889   $330,075   $261,493   $290,745   $312,669 
EBITDA Margin   20.6%   19.1%   22.1%   18.6%   19.9%   22.5%

 

Jafra Mexico

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025   Q3 2025 
Net Revenue  $1,671,137   $1,623,697   $2,038,993   $1,869,818   $1,853,832   $1,752,179 
Gross Margin   77.0%   76.8%   74.1%   73.5%   75.3%   76.3%
EBITDA  $344,478   $318,146   $440,630   $286,706   $393,360   $417,760 
EBITDA Margin   20.6%   19.6%   21.6%   15.3%   21.2%   23.8%

 

Jafra US

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025   Q3 2025 
Net Revenue  $241,881   $241,120   $244,620   $226,268   $250,218   $237,534 
Gross Margin   73.6%   73.3%   73.1%   73.9%   76.0%   77%
EBITDA  $7,192   $-6,463   $891   $-12,934   $-5,293   $-8,280 
EBITDA Margin   3.0%   -2.7%   0.4%   -5.7%   -2.1%   -3.5%

 

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.

 

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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 2024, the Company will report salesforce under the same name for all business units, Distributors (previously stated as Leaders in Jafra) and Associates (previously stated as Consultants for Jafra). It is important to note that the metrics are calculated with the same method as previous quarters and the reference name change has no adverse effect on the results of the operating metrics reported by the Company.

 

Betterware (Associates and Distributors)

 

Avg. Base: Weekly average Associate/Distributor base

 

EOP Base: Associate/Distributor base at the end of the period

 

Weekly Churn Rate: Average weekly data. Total Associates/Distributors lost during the period divided by the beginning of the period Associate/Distributor base.

 

Weekly Activity Rate: Average weekly data. Active Associates/Distributors divided by ending Associate/Distributor base.

 

Avg. Weekly Order: Average weekly data. Total Revenue divided by number of active Associates/Distributors

 

Jafra (Associates and Distributors)

 

Avg. Base: Monthly average Associate/Distributor base

 

EOP Base: Associate/Distributor base at the end of the period

 

Monthly Churn Rate (Associates): Average monthly data. Total Associates lost during the period divided by the number of active Associates 4 months prior. An Associate is terminated only after 4 months of inactivity.

 

Monthly Churn Rate (Distributors): Average monthly data. Total Distributors lost during the period divided by end of period Distributors’ base.

 

Monthly Activity Rate: Average monthly data. Active Associate/Distributor divided by the end of period Associate/Distributor base.

 

Avg. Monthly Order (Associates): Average monthly data. Total Catalog Revenue divided by number of Associates orders.

 

Avg. Monthly Order (Distributors): Average monthly data. Total Distributors Revenue divided by number of Distributors orders.

 

About Betterware de México, S.A.P.I. de C.V.

 

Founded in 1995, Betterware de Mexico is the leading direct-to-consumer company in Mexico focused on offering innovative products that solve specific needs related to household organization, practicality, space-saving, and hygiene. Through the acquisition of JAFRA on April 7, 2022, the Company now offers a leading brand of direct-to-consumer in the Beauty market in Mexico and the United States where it offers Fragrances, Color & Cosmetics, Skin Care, and Toiletries. The combined company possesses an asset-light business model with low capital expenditure requirements and a track record of strong profitability, double digit rates of revenue growth and free cash flow generation. Today, the Company distributes its products in Mexico and in the United States of America.

 

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Forward-Looking Statements

 

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “plan”, “predict”, “potential”, “seem”, “seek,” “future,” “outlook”, and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The reader should understand that the results obtained may differ from the projections contained in this document and that many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward looking statements. For this reason, the Company assumes no responsibility for any indirect factors or elements beyond its control that might occur inside Mexico or abroad and which might affect the outcome of these projections and encourages you to review the ‘Cautionary Statement’ and the ‘Risk Factor’ sections of our annual report on Form 20-F for the year ended December 31, 2020 and any of the Company’s other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences

 

The Company undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date hereof. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Further information on risks and uncertainties that may affect the Company’s operations and financial performance, and the forward statements contained herein, is available in the Company’s filings with the SEC. All forward-looking statements are qualified in their entirety by this cautionary statement.

 

Q3 2025 Conference Call

 

Management will hold a conference call with investors on October 23rd, 2025, at 3:30 pm Mexico City Time / 5:30 pm Eastern Time (EST). For anyone who wishes to join live, the dial-in information is:

 

Toll Free: 1-877-451-6152

Toll/International: 1-201-389-0879

Conference ID: 13754386

Webcast Link: https://viavid.webcasts.com/starthere.jsp?ei=1724802&tp_key=1369fe2566

 

If you wish to listen to the replay of the conference call, please see instructions below:

 

Toll Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Pin Number: 13754386

 

Contacts.

 

Company:

 

BeFra IR

ir@better.com.mx

+52 (33) 3836 0500 Ext. 2011

 

InspIR:

 

Investor Relations

Ivan Peill

ivan@inspirgroup.com

 

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