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