EX-99.1 2 ea024998001ex99-1_betterware.htm BEFRA SECOND QUARTER 2025 EARNINGS RELEASE

Exhibit 99.1

 

 

 

 

 

 

Message from the President and CEO

 

Following a challenging first quarter, we closed the first half of 2025 with a return to top-line and EBITDA growth, as well as strong profitability and Free Cash Flow, thanks to improved market conditions and to effectively navigating a volatile operating environment shaped by global economic uncertainty and shifting trade dynamics. We remain confident in our long-term growth strategy and BeFra’s strong underlying fundamentals.

 

Second quarter consolidated revenue grew 5.1% year-over-year, bringing first-half growth to 1.0%. The rebound in the quarter was primarily driven by the strong performance of our beauty business, Jafra Mexico, which grew 10.9%, along with a strong sequential recovery at Betterware Mexico vs Q1 2025. It is important to highlight that the Associate base and activity levels of both businesses grew quarter-over-quarter, another encouraging area of growth. In the same line, revenues at Jafra US experienced a strong sequential rebound vs Q1 2025, including a strong associate base growth QoQ, all despite a difficult consumer market in the US. Expanding to new geographic markets remains one of our growth pillars, so we are delighted to announce that, following a successful launch of Betterware Ecuador in May, we surpassed our initial projections to reach 2,500 Associates there in the first two months of operation in the country.

 

EBITDA increased 3.5% YoY, reflecting a strong recovery in Q2 following the temporary effects seen in Q1 2025. EBITDA margin reached 19.1%, in line with our normal profitability levels, highlighting the strength of the rebound and the efficiency of our commercial and operational strategies.

 

We continue to manage the company with financial discipline and long-term focus, positioning BeFra to effectively capitalize on opportunities if market conditions continue improving and to execute our long-term growth strategy. As expected, we generated positive free cash flow of $592M in the quarter, up 29.2% YoY and representing quarterly conversion of 87.2% of EBITDA and a year-to-date conversion of 44.2% of EBITDA, more than offsetting the temporary cashflow constraint in Q1 2025. Additionally, Net Debt-to-EBITDA improved sequentially and was a healthy 1.97x at quarter-end.

 

This quarter’s results and the momentum we have regained are encouraging, making us cautiously optimistic about the second half of the year, as we reinforce our near-term commercial strategies to further increase growth, profitability, and cash flow generation during this time. For perspective on the strength our business model, growth strategy and brands, we note that recent studies show that both brands in Mexico outpaced the Mexican home goods and beauty markets growth rate in 2024 by ~3-5 times. These figures demonstrate our ability to deepen BeFra’s penetration of Mexican households and expand our share of both market segments.

 

Thank you for your continued trust in BeFra—we look forward to updating you on our progress in the second half of the year.

 

Andrés Campos Chevallier

President and CEO BeFra Group

 

2

 

Q2 2025 Select Consolidated Financial Information

 

   Q2   H1 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $3,562,643   $3,389,393    +5.1%  $7,061,794   $6,991,896    +1.0%
Gross Margin   67.1%   67.8%   -68 bps    66.7%   68.8%   -213 bps 
EBITDA  $678,812   $656,136    +3.5%  $1,214,077   $1,411,525    -14.0%
EBITDA Margin   19.1%   19.4%   -30 bps    17.2%   20.2%   -300 bps 
Net Income  $327,306   $303,820    +7.7%  $478,700   $598,984    -20.1%
EPS  $8.77   $8.14    +7.7%  $12.83   $16.05    -20.1%
Free Cash Flow  $592,152   $458,437    +29.2%  $536,311   $818,092    -34.4%
Net Debt / EBITDA   1.97    1.80         1.97    1.80      
Interest Coverage   3.32    3.23         3.32    3.23      
Associates                              
Avg. Base   1,122,548    1,176,607    -4.6%   1,130,483    1,196,024    -5.5%
EOP Base   1,128,009    1,150,438    -1.9%   1,128,009    1,150,438    -1.9%
Distributors                              
Avg. Base   62,906    65,752    -4.3%   62,381    64,560    -3.4%
EOP Base   64,159    65,810    -2.5%   64,159    65,810    -2.5%

 

·Revenue Growth Resumed: BeFra returned to year-over-year growth in Q2, with consolidated net revenue increasing 5.1% YoY. This marks a solid recovery after a challenging Q1, and it reflects improving momentum across business units.

 

oJafra Mexico continues to grow strongly, with a 10.9% YoY growth, powered by a slightly higher Associate base and stronger productivity per Associate.

 

oBetterware Mexico grew strongly on a sequential basis, narrowing a 9.8% decline in Q1 to a 1.2% decline in Q2. The QoQ 4.0% rebound was stronger compared to an average QoQ contraction of 4.5% over the last three years, confirming that it more than offset any possible seasonal effects. It is also relevant to point out that the business achieved net Associate growth, with the base expanding sequentially from 649K to 670K at the end of the period. Of note, this marked the first net growth in a quarter since Q1 2021, which makes management cautiously optimistic that performance will continue to improve in the second half of the year.

 

oJafra US achieved 15.6% sequential sales growth. The Company has taken relevant steps to ignite growth in this promising market, including a complete revamp of the compensation plan, implemented in April and May.

 

oBetterware Latam, while still small, is yielding good results, with Central America recovering growth under new leadership, and new revenue coming from Ecuador, which Betterware entered in May. Currently, management is assessing entering Colombia in 2026, using the same strategy as Ecuador. It is important to remember that Central America and the Andean Region combined are equivalent in market value to Mexico.

 

·Strong Profitability Rebound QoQ, with an EBITDA increasing 3.5% YoY and Margin reaching 19.1% for the quarter, after the temporary effects observed in Q1 2025. EBITDA growth was driven by higher margins at Jafra Mexico and was slightly affected by a lower gross margin at Betterware Mexico, the result of implementing pricing strategies to drive revenue growth through greater “line items” accessibility.

 

·Strong Positive Free Cash Flow has returned, after non-recurrent events that affected Q1 2025 cash flow, reaching 87.2% of EBITDA for the second quarter. A stronger FCF is expected in the coming quarters and an annual level equivalent to historical cashflow conversion of ~60%.

 

·Net Income grew 7.7% in the quarter, mainly due to lower interest rates in Mexico and a $45M peso decrease in income tax.

 

For more details, please refer to the results of each business unit.

 

3

 

Financial Performance

Balance sheet at the end of Q2 2025.

 

Liquidity ratios

 

BeFra’s cash flow is returning to its natural operating cash cycle, after first quarter’s the non-recurring events. Cash generation is expected to continue improving in the coming quarters.  

 

   Q2 2025   Q2 2024   ∆ 
Current Ratio   0.93    1.03    -9.5%
FCF / Adj. EBITDA   87.2%   69.9%   +1,736 bps 
CCC (days)   65    42    +23 days 

 

*CCC: Cash Conversion Cycle

 

Asset Light Business – Low fixed cost structure

 

BeFra’s asset-light business model continues to be a key pillar of business resilience. The YoY decrease in fixed assets was due to the strategic sale of Jafra Mexico’s real estate assets last year, as part of the Company’s commitment to its asset-light strategy. Additionally, management continues to search for other ways to further optimize SG&A.

 

   Q2 2025   Q2 2024   ∆ bps 
Fixed Assets / Total Assets   16.8%   26.5%   -972 bps 
Variable Cost Structure   75.1%   76.7%   -166 bps 
Fixed Cost Structure   24.9%   23.3%   166 bps 
SG&A / Net Revenues   45.6%   46.5%   -89 bps 

  

Return on Investment

 

Over many years, BeFra has consistently delivered solid returns on investment. Although the results of Q2 were good, first-half profitability was impacted by a very challenging operating environment and weak performance in Q1. However, management views both as short-term in nature and is confident in the long-term value-creation capacity of the Company’s business model and growth strategy.

 

   Q2 2025   Q2 2024   ∆ 
Equity Turnover   12.07    8.73    +38.3%
ROE   50.4%   76.9%   -2,656 bps 
ROTA   10.5%   18.4%   -784 bps 
Dividend Yield   12.66%   10.69%   +196 bps 

  

Debt Leverage

 

BeFra’s current level of debt primarily reflects two key strategic initiatives: the acquisition of Jafra in 2022 and the investment in the Betterware Campus. Management remains firmly committed to our debt reduction strategy and expects to reduce leverage during H2 25.

 

   Q2 2025   Q2 2024   ∆% 
Debt to EBITDA   2.12    1.95    +8.4%
Net Debt to EBITDA   1.97    1.80    +9.2%
Interest Coverage   3.32    3.23    +3.0%

 

*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 June 30, 2025, which was $8.65.

 

Capital Allocation

 

Quarterly Dividend: Considering BeFra’s results to date and, remaining committed to enhancing shareholder value through quarterly dividends, the Board of Directors has proposed maintaining a Ps. 200M dividend for Q2 2025, pending approval at the Ordinary General Shareholders’ Meeting on July 31, 2025.

 

2025 Guidance 

 

The Company remains committed to the full-year guidance issued earlier this year and will continue to monitor the business progress closely.

 

   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.

 

4

 

Q2 2025 Financial Results by Business

Betterware Mexico 

Key Financial and Operating Metrics

 

   Q2   H1 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $1,458,593   $1,476,375    -1.2%  $2,861,658   $3,031,402    -5.6%
Gross Margin   55.2%   56.4%   -127 bps    55.2%   58.3%   -304 bps 
EBITDA  $290,745   $304,467    -4.5%  $552,238   $686,574    -19.6%
EBITDA Margin   19.9%   20.6%   -69 bps    19.3%   22.6%   -335 bps 
Associates                              
Avg. Base   657,317    713,144    -7.8%   651,338    714,895    -8.9%
EOP Base   670,349    699,033    -4.1%   670,349    699,033    -4.1%
Monthly Activity Rate   65.6%   66.4%   -76 bps    65.6%   67.0%   -147 bps 
Avg. Monthly Order  $2,153   $2,027    +6.2%  $2,152   $2,040    +5.5%
Distributors                              
Avg. Base   42,062    44,953    -6.4%   41,632    43,920    -5.2%
EOP Base   43,292    45,009    -3.8%   43,292    45,009    -3.8%
Monthly Activity Rate   98.8%   98.0%   +74 bps    98.3%   98.3%   +7 bps 
Avg. Monthly Order  $22,347   $21,669    +3.1%  $22,440   $22,626    -0.8%

 

·Revenue Rebound of 4.0% QoQ growth, was driven mainly by three factors: 1) a lower “line item” gross margin, to make these items more competitive and to regain their level within total sales mix, which is expected to help the overall gross margin; 2) exceptional product innovation, especially in the Home Solutions and Kitchen categories, together with a strong seasonal portfolio performance and, 3) a strengthened incentive program that is beginning increase the acquisition rates and which has resulted in the first quarter of QoQ Associate growth since Q1 2021. It is important to highlight that the Distributor base also expanded in the quarter. Finally, we find important to communicate that according to Betterware’s proprietary market research, the general home goods market in Mexico contracted by ~1.0% in 2024, while Betterware Mexico outperformed with a 4.6% growth rate in the period—underscoring the strength and differentiation of the Company’s business model.

 

·EBITDA Margin remained strong, despite the gross margin shortfall. The Company continues to look for operational efficiencies that can raise EBITDA levels back to our 23.0%-25.0% expectations. As topline growth resumes, the EBITDA margin is expected to improve in the second half of the year.

 

·Inventory Reduction: Efforts to reduce inventory levels resulted in a $98M decrease in excess stock in the first half, improving working capital and supply chain efficiency. These efforts will continue through the rest of the year, with the objective of bringing inventory levels back in line with historical levels in the coming quarters.

 

Q3 2025 Priorities

 

·Optimize Sales Mix & Pricing: The Company will maintain its Q2 pricing strategy to continue making line items more accessible and expect this to drive revenue growth going forward.

 

·Enhanced incentive plan: With a new compensation plan successfully implemented in the first half, the Company has continued to refine some programs to maintain the momentum in sales force expansion.

 

·Personal Tagging: Launch of a program that enables a closer follow up of the Distributors and Associates journey, with targeted approaches to boost sales, recruitment and retention.

 

·Continue Optimizing Inventory: Use real-time sell-through data to better manage purchasing cycles and further reduce excess inventory.

 

5

 

Jafra Mexico

Key Financial and Operating Metrics

 

   Q2   H1 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $1,853,832   $1,671,137    +10.9%  $3,723,650   $3,521,133    +5.8%
Gross Margin   75.3%   77.0%   -167 bps    74.4%   77.2%   -284 bps 
EBITDA  $393,360   $344,478    +14.2%  $680,066   $727,598    -6.5%
EBITDA Margin   21.2%   20.6%   +61 bps    18.3%   20.7%   -240 bps 
Associates                              
Avg. Base   438,041    432,450    +1.3%   453,199    450,870    +0.5%
EOP Base   429,472    419,931    +2.3%   429,472    419,931    +2.3%
Monthly Activity Rate   49.8%   50.5%   -74 bps    50.1%   52.2%   -204 bps 
Avg. Monthly Order  $2,495   $2,284    +9.2%  $2,457   $2,261    +8.7%
Distributors                              
Avg. Base   19,036    19,073    -0.2%   19,093    18,913    +1.0%
EOP Base   18,966    19,035    -0.4%   18,966    19,035    -0.4%
Monthly Activity Rate   94.1%   93.1%   +99 bps    94.6%   94.6%   -3 bps 
Avg. Monthly Order  $2,855   $2,693    +6.0%  $2,800   $2,545    +10.0%

 

·Accelerated Revenue Momentum, mainly due to: 1) strong performance across the Fragrance, Color and Skin Care categories; 2) a brand refresh that continues to positively impact Jafra’s product offering as well as salesforce activity and retention, with key brands like Navigo and Royal Jelly outperforming expectations; and 3) new productivity incentives. It is important to stand out that growth comes together with Associates and Distributors base growth, similar to Betterware, which continues to set a strong prospect for the future. The Company also finds important to stand out, that according to data from Euromonitor and Kantar, the beauty market in Mexico grew by ~5.0% in 2024. In contrast, Jafra Mexico delivered exceptional growth at a rate of 13.0%—nearly three times the market—further validating the strength of Jafra’s commercial strategy and execution.

 

·EBITDA for the quarter grew 14.2% YoY, with the margin expanding to 21.2%, a strong result driven by sales volume growth, an improved sales mix, as previously noted, and disciplined cost management.

 

Q3 2025 Priorities

 

·Accelerate Recruitment & Activation: Expand Associate base via better incentives for productivity and growth.

 

·Drive Core Category Growth Through Product Renewals & Innovation: Launch of rebranded key products and seasonal sets in Fragrance, Skin Care and Body Care categories, as well as the launch of new products on Jafra’s Skin Care line, such as BioLab with a new spot remover.

 

·Maintain Margin Discipline: Calibrate promotional intensity, while recalibrating and improving forecast capacities to reduce excess inventories.

 

·New “Purple Guide”: simplified Jafra’s incentives plan communication, and new printed version available to all Distributors and Associates for the first time.

 

·Inventory Management: Improve the Sales and Operational Planning process and introduce more suitable Minimum Order Quantities.

 

6

 

Jafra US

Key Financial and Operating Metrics

 

   Q2   H1 
Results in ‘000 MXN  2025   2024   2025   2024 
Net Revenue  $250,218   $241,881    +3.4%  $476,486   $439,361    +8.4%
Gross Margin   76.0%   73.6%   +239 bps    75.0%   73.8%   +118 bps 
EBITDA  $-5,293   $7,192    -173.6%  $-18,227   $-2,646    -588.9%
EBITDA Margin   -2.1%   3.0%   -509 bps    -3.8%   -0.6%   -322 bps 

 

   Q2   H1 
Results in ‘000 USD  2025   2024   2025   2024 
Net Revenue  $12,802   $14,058    -8.9%  $23,881   $25,678    -7.0%
Gross Margin   76.0%   73.6%   +239 bps    75.0%   73.8%   +120 bps 
EBITDA  $-271   $418    -164.8%  $-904   $-161    -461.4%
EBITDA Margin   -2.1%   3.0%   -509 bps    -3.8%   -0.6%   -316 bps 
Associates                              
Avg. Base   27,191    31,013    -12.3%   25,947    30,260    -14.3%
EOP Base   28,188    31,474    -10.4%   28,188    31,474    -10.4%
Monthly Activity Rate   49.2%   45.9%   +330 bps    47.6%   44.2%   +340 bps 
Avg. Monthly Order  $225   $232    -3.0%  $234   $228    +2.8% 
Distributors                              
Avg. Base   1,808    1,726    +4.7%   1,656    1,727    -4.1%
EOP Base   1,901    1,766    +7.6%   1,901    1,766    +7.6%
Monthly Activity Rate   89.8%   89.8%   -    89.6%   89.0%   +53 bps 
Avg. Monthly Order  $206   $229    -10.2%  $217   $223    -2.8%

 

·Sequential Revenue Rebound: Despite challenges in Q1, Jafra US achieved a 15.6% QoQ growth in USD, despite a YoY sales decrease of 8.9%, derived from a difficult start of the year. Revenues in Mexican pesos increased 3.4% YoY, due to the depreciation of the Mexican peso during the quarter. The rebound in revenue accompanied an 8.5% sequential increase in the Associate base, as well as a recovery in activity levels, driven by Jafra’s new incentives plan that was implemented in April and May, which showed a positive impact on engagement levels.

 

·Gross Margin Improvement: Q2 gross margin expanded to 76.0%, the highest in recent quarters, driven by a more favorable mix of higher-margin products that resulted from pricing adjustment initiatives in key SKUs.

 

·EBITDA: While the business reported an EBITDA loss for both Q2 and H1, the gap has narrowed significantly. Improving revenue scale, gross margin expansion, and continued cost optimization are positioning Jafra US for annual breakeven in the coming quarters.

 

Q3 2025 Priorities

 

·Strengthen Recruitment & Onboarding: Launch targeted incentives for new recruits with kits and promotion campaigns based on market segment (General and Hispanic), aiming to simplify sales tools and training to drive earlier Associate conversion and retention.
·Brand Refresh and Innovation: Following Jafra Mexico’s success, Jafra US will continue to lay out all product renovations and innovations going forward. It is important to stand out that Jafra US will begin to launch new product lines specifically targeted to US consumer niches, such as the new “around the world” fragrance collection which will be introduced in Q3 2025.

 

7

 

Appendix

Financial Statements

 

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

Consolidated Statements of Final Position

As of June 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   Jun 2025   Jun 2024 
Assets        
Cash and cash equivalents   391,784    423,246 
Trade accounts receivable, net   1,120,971    1,082,224 
Accounts receivable from related parties   -    542 
Account receivable "San Angel"   113,006    - 
Inventories   2,364,160    2,062,733 
Prepaid expenses   191,257    137,214 
Income tax recoverable   276,361    137,936 
Derivative financial instruments   -    22,593 
Non-current assets held for sale   40,000    - 
Other assets   147,098    121,204 
Total current assets   4,644,637    3,987,692 
Account receivable "San Angel"   47,544    - 
Property, plant and equipment, net   1,742,377    2,919,620 
Right of use assets, net   276,076    315,701 
Deferred income tax   525,086    526,184 
Intangible assets, net   1,530,431    1,610,915 
Goodwill   1,599,718    1,599,718 
Other assets   14,447    56,888 
Total non-current assets   5,735,679    7,029,026 
Total assets   10,380,316    11,016,718 
           
Liabilities and Stockholders’ Equity          
Short-term debt and borrowings   1,759,317    589,478 
Accounts payable to suppliers   1,824,909    1,949,182 
Accrued expenses   363,831    358,363 
Provisions   765,142    709,902 
Value added tax payable   60,710    92,532 
Statutory employee profit sharing   67,118    47,412 
Lease liability   98,234    117,797 
Derivative financial instruments   33,400    - 
Total current liabilities   4,972,661    3,864,666 
Employee benefits   137,124    133,626 
Deferred income tax   495,118    783,169 
Lease liability   199,864    230,721 
Long term debt and borrowings   3,401,437    4,455,638 
Total non-current liabilities   4,233,543    5,603,154 
Total liabilities   9,206,204    9,467,820 
Stockholders’ Equity          
Capital stock   321,312    321,312 
Share premium account   -25,264    -25,264 
Retained earnings   921,973    1,278,680 
Other comprehensive income   -40,922    -24,275 
Non-controlling interest   -2,987    -1,555 
Total Stockholders’ Equity   1,174,112    1,548,898 
Total Liabilities and Stockholders’ Equity   10,380,316    11,016,718 

 

8

 

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 June 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   Q2 2025   Q2 2024   ∆% 
Net revenue   3,562,643    3,389,393    5.1%
Cost of sales   1,170,756    1,090,859    7.3%
Gross profit   2,391,887    2,298,534    4.1%
                
Administrative expenses   630,013    624,356    0.9%
Selling expenses   993,382    950,176    4.5%
Distribution expenses   186,274    164,030    13.6%
Total expenses   1,809,669    1,738,562    4.1%
                
Operating income   582,218    559,972    4.0%
                
Interest expense   -144,276    -161,137    -10.5%
Interest income   7,907    4,134    91.3%
Unrealized (loss) gain in valuation of financial derivative instruments   -42,436    95,295    -144.5%
Foreign exchange gain (loss), net   29,946    -40,212    -174.5%
Financing cost, net   -148,859    -101,920    46.1%
                
Income before income taxes   433,359    458,052    -5.4%
                
Income taxes   106,690    154,307    -30.9%
                
Net income including minority interest   326,669    303,745    7.5%
Non-controlling interest loss   637    75    749.3%
Net income   327,306    303,820    7.7%

 

Concept  Q2 2025   Q2 2024   ∆% 
Net income   326,669    303,745    7.5%
(+) Income taxes   106,690    154,307    -30.9%
(+) Financing cost, net   148,859    101,920    46.1%
(+) Depreciation and amortization   96,594    96,164    0.4%
EBITDA   678,812    656,136    3.5%
EBITDA margin   19.1%   19.4%     

 

9

 

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

Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the six-months ended June 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   H1 2025   H1 2024   ∆% 
Net revenue   7,061,794    6,991,896    1.0%
Cost of sales   2,354,080    2,181,853    7.9%
Gross profit   4,707,714    4,810,043    -2.1%
                
Administrative expenses   1,321,838    1,273,277    3.8%
Selling expenses   2,014,380    1,978,750    1.8%
Distribution expenses   355,373    337,312    5.4%
Total expenses   3,691,591    3,589,339    2.8%
                
Operating income   1,016,123    1,220,704    -16.8%
                
Interest expense   -290,312    -324,807    -10.6%
Interest income   23,978    10,803    122.0%
Unrealized (loss) gain in valuation of financial derivative instruments   -108,846    70,513    -254.4%
Foreign exchange gain (loss), net   72,127    -61,253    -217.8%
Financing cost, net   -303,053    -304,744    -0.6%
                
Income before income taxes   713,070    915,960    -22.2%
                
Income taxes   235,673    316,952    -25.6%
                
Net income including minority interest   477,397    599,008    -20.3%
Non-controlling interest loss   1,303    -24    -5529.2%
Net income   478,700    598,984    -20.1%

 

Concept  H1 2025   H1 2024   ∆% 
Net income   477,397    599,008    -20.3%
(+) Income taxes   235,673    316,952    -25.6%
(+) Financing cost, net   303,053    304,744    -0.6%
(+) Depreciation and amortization   197,954    190,822    3.7%
EBITDA   1,214,077    1,411,526    -14.0%
EBITDA margin   17.2%   20.2%     

 

10

 

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

Consolidated Statements of Cash Flows

For the six-months ended June 30, 2025 and 2024

(In Thousands of Mexican Pesos)

 

   Q2 2025   Q2 2024 
Cash flows from operating activities:        
Profit for the period   477,397    599,008 
           
Adjustments for:          
Income tax expense recognized in profit of the year   235,673    316,952 
Depreciation and amortization of non-current assets   197,954    190,822 
Interest income recognized in profit or loss   -23,978    -10,803 
Interest expense recognized in profit or loss   290,312    324,807 
Unrealized loss (gain) in valuation of financial derivative instruments   108,846    -70,513 
Share-based payment expense   -    -8,894 
Gain on disposal of equipment   -6,981    -2,653 
Currency effect   16,554    -7,754 
Movements in not- controlling interest   38    52 
Movements in working capital:          
Trade accounts receivable   12,122    -9,769 
Trade accounts receivable from related parties   250    -438 
Trade account receivable "San Angel"   51,072      
Inventory, net   140,933    -28,599 
Prepaid expenses and other assets   -101,707    50,602 
Accounts payable to suppliers and accrued expenses   -360,840    196,116 
Provisions   16,224    -94,846 
Value added tax payable   -10,482    -25,829 
Statutory employee profit sharing   -72,137    -85,443 
Trade accounts payable to related parties   -1,237    - 
Income taxes paid   -404,021    -421,733 
Employee benefits   8,812    6,476 
Net cash generated by operating activities   574,804    917,561 
           
Cash flows from investing activities:          
Payments for property, plant and equipment, net   -42,908    -106,532 
Proceeds from disposal of property, plant and equipment, net   4,415    7,063 
Interest received   23,978    10,803 
Net cash used in investing activities   -14,515    -88,666 
           
Cash flows from financing activities:          
Repayment of borrowings   -2,115,436    -1,175,000 
Proceeds from borrowings   2,450,436    1,090,000 
Interest paid   -272,121    -299,621 
Lease payment   -78,817    -71,731 
Dividends paid   -449,125    -499,027 
Net cash used in financing activities   -465,063    -955,379 
Net increase (decrease) in cash and cash equivalents   95,226    -126,484 
Cash and cash equivalents at the beginning of the period   296,558    549,730 
Cash and cash equivalents at the end of the period   391,784    423,246 

 

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Key Operating Metrics

 

Betterware Mexico

 

   Q1 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Associates                        
Avg. Base   716,645    713,144    694,277    693,666    645,359    657,317 
EOP Base   724,707    699,033    700,893    674,654    649,076    670,349 
Monthly Activity Rate   67.7%   66.4%   66.3%   64.8%   65.5%   65.6%
Avg. Monthly Order  $2,052   $2,027   $2,034   $2,158   $2,152   $2,153 
Monthly Growth Rate   15.1%   13.8%   15.7%   14.3%   18.7%   16.6%
Monthly Churn Rate   15.8%   15.0%   15.6%   15.6%   19.5%   15.6%
Distributors                              
Avg. Base   42,886    44,953    44,639    43,585    41,202    42,062 
EOP Base   44,482    45,009    43,939    42,608    41,810    43,292 
Monthly Activity Rate   98.5%   98.0%   98.0%   96.7%   97.9%   98.8%
Avg. Monthly Order  $23,582   $21,669   $21,531   $22,945   $22,534   $22,347 
Monthly Growth Rate   11.8%   11.4%   10.4%   8.7%   9.8%   10.7%
Monthly Churn Rate   9.7%   11.0%   11.2%   10.3%   11.2%   9.4%

 

Jafra Mexico

 

   Q1 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Associates                        
Avg. Base   469,290    432,450    403,340    476,211    468,356    438,041 
EOP Base   451,692    419,931    421,073    480,532    446,998    429,472 
Monthly Activity Rate   53.7%   50.50%   51.6%   49.9%   50.5%   49.8%
Avg. Monthly Order  $2,238   $2,284   $2,347   $2,439   $2,419   $2,495 
Monthly Growth Rate   9.5%   8.4%   12.0%   13.2%   10.1%   10.1%
Monthly Churn Rate   10.6%   10.8%   11.9%   8.6%   12.5%   11.3%
Distributors                              
Avg. Base   18,927    19,073    18,823    18,889    19,150    19,036 
EOP Base   19,159    19,035    18,722    19,093    19,202    18,966 
Monthly Activity Rate   96.0%   93.10%   93.2%   94.6%   95.1%   94.1%
Avg. Monthly Order  $2,396   $2,693   $2,694   $2,758   $2,744   $2,855 
Monthly Growth Rate   1.6%   0.7%   0.9%   1.8%   1.2%   0.6%
Monthly Churn Rate   0.8%   0.8%   1.5%   1.1%   1.0%   1.0%

 

Jafra US

 

   Q1 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Associates                        
Avg. Base   29,506    31,013    30,149    26,540    24,703    27,191 
EOP Base   29,470    31,474    29,101    25,272    25,973    28,188 
Monthly Activity Rate   42.4%   45.9%   41.6%   44.5%   45.9%   49.2%
Avg. Monthly Order (USD)  $223   $232   $233   $248   $243   $225 
Monthly Growth Rate   11.3%   14.4%   11.2%   10.0%   12.8%   13.2%
Monthly Churn Rate   13.1%   11.9%   13.7%   14.7%   11.8%   9.7%
Distributors                              
Avg. Base   1,728    1,726    1,774    1,786    1,504    1,808 
EOP Base   1,674    1,766    1,774    1,638    1,493    1,901 
Monthly Activity Rate   88.3%   89.8%   87.5%   85.5%   89.3%   89.8%
Avg. Monthly Order (USD)  $217   $229   $233   $219   $228   $206 
Monthly Growth Rate   4.6%   8.5%   5.8%   2.7%   4.0%   8.5%
Monthly Churn Rate   6.9%   6.7%   5.7%   5.0%   6.9%   0.0%

 

12

 

Key Financial Metrics

 

Consolidated

 

   Q1 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Net Revenue  $3,602,503   $3,389,393   $3,330,394   $3,778,468   $3,499,151   $3,562,643 
Gross Margin   69.7%   67.8%   66.9%   67.3%   66.2%   67.1%
EBITDA  $755,390   $656,136   $591,575   $771,596   $535,265   $678,812 
EBITDA Margin   21.0%   19.4%   17.8%   20.4%   15.3%   19.1%
Net Income  $295,263   $303,745   $183,608   $270,083   $150,728   $327,306 
Free Cash Flow  $359,655   $818,092   $1,235,471   $1,769,026   $-55,841   $536,311 

 

Betterware Mexico

 

   Q1 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Net Revenue  $1,555,027   $1,476,375   $1,465,577   $1,494,855   $1,403,065   $1,458,593 
Gross Margin   60.0%   56.4%   54.8%   57.2%   55.3%   55.2%
EBITDA  $382,107   $304,467   $279,889   $330,075   $261,493   $290,745 
EBITDA Margin   24.6%   20.6%   19.1%   22.1%   18.6%   19.9%

 

Jafra Mexico

 

   Q1 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Net Revenue  $1,849,996   $1,671,137   $1,623,697   $2,038,993   $1,869,818   $1,853,832 
Gross Margin   77.4%   77.0%   76.8%   74.1%   73.5%   75.3%
EBITDA  $383,120   $344,478   $318,146   $440,630   $286,706   $393,360 
EBITDA Margin   20.7%   20.6%   19.6%   21.6%   15.3%   21.2%

 

Jafra US

 

   Q1 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Net Revenue  $197,480   $241,881   $241,120   $244,620   $226,268   $250,218 
Gross Margin   74.0%   73.6%   73.3%   73.1%   73.9%   76.0%
EBITDA  $-9,838   $7,192   $-6,463   $891   $-12,934   $-5,293 
EBITDA Margin   -5.0%   3.0%   -2.7%   0.4%   -5.7%   -2.1%

 

13

 

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 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.

 

14

 

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.

 

Q2 2025 Conference Call

 

Management will hold a conference call with investors on July 24th, 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

 

15