BeFra Reports Third Quarter 2024 Results

Business Wire10-25

GUADALAJARA, Mexico, October 24, 2024--(BUSINESS WIRE)--Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) ("BeFra" or the "Company"), announced today its consolidated financial results for the third ...

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(NYSE:BWMX) (\"BeFra\" or the \"Company\"), announced today its consolidated financial results for the third ...</p>\n\n<a href=\"https://finance.yahoo.com/news/befra-reports-third-quarter-2024-200500937.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BeFra Reports Third Quarter 2024 Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBeFra Reports Third Quarter 2024 Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-25 04:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/befra-reports-third-quarter-2024-200500937.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GUADALAJARA, Mexico, October 24, 2024--(BUSINESS WIRE)--Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) (\"BeFra\" or the \"Company\"), announced today its consolidated financial results for the third ...</p>\n\n<a href=\"https://finance.yahoo.com/news/befra-reports-third-quarter-2024-200500937.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"USD","symbol_name":"ProShares Ultra Semiconductors","start_time":0,"source_url":"https://finance.yahoo.com/news/befra-reports-third-quarter-2024-200500937.html","article_id":"2478769805","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/2tv7lMPOiv9VN4IZdDinnw--~B/aD00OTM7dz0xMzc3O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/business-wire.com/345f47f99d4c7f92dfa557e54c40f170"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478769805","pubTimestamp":1729800300,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"GUADALAJARA, Mexico, October 24, 2024----Betterware de México, S.A.P.I. de C.V.  , announced today its consolidated financial results for the third quarter 2024. The figures presented in this report are expressed in nominal Mexican Pesos (Ps.) unless otherwise noted, presented and approved by the Board of Directors, prepared in accordance with IFRS, and may include minor differences due to rounding.The Company will host a conference call at 5:30 pm  today, October 24, to discuss its results for the third quarter of 2024.I am pleased to report that BeFra delivered another quarter of strong results, with Q3 net revenue growing 6.6% year-over-year and 7.4% year-to-date, reflecting solid performance across all business units, and reaffirming the strength of our strategic plan.All in all, BeFra’s momentum continues to strengthen within the consumer product goods and the direct selling industry, leveraging our pillars of innovation, business intelligence, and technology. Our evolving busines","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"USD":"ProShares Ultra Semiconductors","BK4211":"区域性银行","FCF":"第一联邦金融","BK4122":"互联网与直销零售","BK4083":"家庭装潢零售","BWMX":"Betterware"},"translate_title":"BeFra报告2024年第三季度业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FCF":1,"USD":1,"BWMX":0.9},"content_text":"GUADALAJARA, Mexico, October 24, 2024--(BUSINESS WIRE)--Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) (\"BeFra\" or the \"Company\"), announced today its consolidated financial results for the third quarter 2024. The figures presented in this report are expressed in nominal Mexican Pesos (Ps.) unless otherwise noted, presented and approved by the Board of Directors, prepared in accordance with IFRS, and may include minor differences due to rounding.\nThe Company will host a conference call at 5:30 pm (Eastern Time) today, October 24, to discuss its results for the third quarter of 2024.\nMessage from the Chairman\nI am pleased to report that BeFra delivered another quarter of strong results, with Q3 net revenue growing 6.6% year-over-year and 7.4% year-to-date, reflecting solid performance across all business units, and reaffirming the strength of our strategic plan.\nBetterware Mexico achieved its fourth consecutive quarter of net revenue year-over-year growth, consolidating its \"back to growth momentum\", and paving the way for a stronger growth coming forward. Jafra Mexico continues to deliver exceptional growth, led by the continued execution of our acquisition business plan. Jafra US saw another consecutive quarter of growth, as we continue to find the road to success in the US market.\nWe are well-positioned for a strong close to the year, supported by key initiatives in Q4, including the improved re-design of the Jafra Mexico catalog, innovative merchandising at Betterware Mexico, and capitalizing the launch of our new Shopify+ website for Jafra US.\nIn terms of profitability, our Q3 Adjusted EBITDA grew an impressive 11.7% year-over-year, highlighting our ability to leverage our growth, and underscoring the relevance of a diverse product portfolio between our Betterware and Jafra brands. Strong profitability at Jafra Mexico helped offset temporary challenges at Betterware Mexico, where gross margin was temporarily impacted by the peso depreciation and higher freight costs. Despite these challenges in Betterware Mexico, it is important to mention that we have implemented corrective measures, expecting gross margin recovery starting in Q4, if no other external movements appear. This, together with our ongoing commitment seeking the maximum expense productivity, has led us to achieve great operating leverage with growth.\nOn a related note, we would like to stand out that our balance sheet remains strong, with an extraordinary 41.9% increase in Free Cash Flow in Q3 year on year, and the lowest Net Debt to EBITDA ratio since the Jafra acquisition.\nAll in all, BeFra’s momentum continues to strengthen within the consumer product goods and the direct selling industry, leveraging our pillars of innovation, business intelligence, and technology. Our evolving business model, cutting-edge brands, and financially strong business, empower our sales force and keep us ahead. With 24 years of constant double digit growth, we are not just on a sustainable growth path, we are poised to continue to thrive.\nAs we head into Q4, I am confident we will meet our full-year targets, driven by our strong teams and sound strategies. Our focus on growth, innovation, efficiency and profitability across all business remains unwavering, ensuring that we are well-positioned for long-term success.\nLuis G. CamposChairman of the Board\n\n\n\nQ3 2024 Select Consolidated Financial Information\n\n\n\n\n\n \n\n\n\nQ3\n\n9M\n\n\n\n2024\n2023\n\n2024\n2023\n\n\nNet Revenue\n$3,330,394\n$3,123,507\n+6.6%\n\n$10,322,290\n$9,607,815\n+7.4%\n\n\nGross Margin\n71.2%\n70.2%\n+100 bps\n\n72.4%\n72.1%\n+25 bps\n\n\nEBITDA\n$156,545\n$529,424\n-70.4%\n\n$1,568,071\n$1,901,416\n-17.5%\n\n\nEBITDA Margin\n4.7%\n16.9%\n-1,225 bps\n\n15.2%\n19.8%\n-460 bps\n\n\nAdj. EBITDA\n$591,575\n$529,424\n+11.7%\n\n$2,003,100\n$1,901,416\n+5.3%\n\n\nAdj. EBITDA Margin\n17.8%\n16.9%\n+81 bps\n\n19.4%\n19.8%\n-38 bps\n\n\nNet Income\n-$115,614\n$196,991\n-158.7%\n\n$479,300\n$643,358\n-25.5%\n\n\nAdj. Net Income\n$180,531\n$196,991\n-8.4%\n\n$775,445\n$643,358\n+20.5%\n\n\nEPS\n-$3.10\n$5.28\n-158.7%\n\n$12.84\n$17.24\n-25.5%\n\n\nAdj. EPS\n$4.84\n$5.28\n-8.4%\n\n$20.78\n$17.24\n+20.5%\n\n\nFree Cash Flow\n$417,379\n$294,227\n+41.9%\n\n$1,235,471\n$1,599,274\n-22.7%\n\n\nNet Debt / Adj. EBITDA\n1.76\n2.08\n\n\n1.76\n2.08\n\n\n\nInterest Coverage\n3.52\n2.55\n\n\n3.52\n2.55\n\n\n\n\n\n\n\n\n\n\n\n\n\nAssociates\n\n\n\n\n\n\n\n\n\nAvg. Base\n1,127,767\n1,212,618\n-7.0%\n\n1,173,222\n1,217,716\n-3.7%\n\n\nEOP Base\n1,151,069\n1,212,755\n-5.1%\n\n1,151,069\n1,212,755\n-5.1%\n\n\nDistributors\n\n\n\n\n\n\n\n\n\nAvg. Base\n65,235\n62,746\n+4.0%\n\n64,785\n61,535\n+5.3%\n\n\nEOP Base\n64,433\n62,132\n+3.7%\n\n64,433\n62,132\n+3.7%\n\n\n\nThis quarter, we are reporting adjusted EBITDA, Net Income and EPS to reflect the one-time effect of the sale of Jafra Mexico’s former headquarters on BeFra’s consolidated financial results. The sale resulted in a non-cash accounting loss of Ps. 435M as the property was sold for Ps. 385.7M, notably below its book value of Ps. 811M. The transaction price reflects the current market value of the asset. Essentially, this accounting loss does not impact on BeFra's operational performance. The sale will generate post-tax cash inflows of Ps. 315M over the next three years: Ps. 70M expected in November 2024, Ps. 135M in 2025, Ps. 85 in 2026, and Ps. 25.7M in Q2 2027. Excluding this non-recurring event, core EBITDA growth remains strong and continues to align with our strategic goals.\n\nNet Revenue Growth: Consolidated net revenue grew by 6.6% year-over-year in the third quarter and 7.4% for the first nine months of 2024, reflecting a consistent growth trajectory. All business units achieved YoY growth. Betterware Mexico marked its fourth consecutive quarter of year-over-year growth, while Jafra Mexico continues to excel, delivering a 9.2% YoY increase in the quarter.\nRobust EBITDA Growth: Adjusted EBITDA grew by 11.7% for the quarter and increased 5.3% for the first nine months. This reflects the resilience of core operations despite challenges which included exchange rate fluctuations and cost pressures, such as freight costs. The growth highlights the success of operational efficiencies achieved over the last year, strategic growth initiatives underway across all business units, and the group’s diversified portfolio of product categories.\nFree Cash Flow (FCF) Generation. Free Cash Flow (FCF) increased by 41.9% this quarter, largely driven by a more efficient working capital management. By shortening the Cash Conversion Cycle, BeFra is able to convert growing revenues into cash more quickly, resulting in stronger cash flow generation.\nAdjusted Net Income Contracted by 8.4% in Q3, primarily due to an increase in tax provisions for the period. This impact could be temporary, with a potential reversal by year-end following the final calculation of the annual inflation effect. For the first nine months of the year, net income increased by 20.5%, mainly driven by a decrease in interest expense and a gain on FX forwards.\n\nFor more details, please refer to the results of each business unit in the following pages.\nUnmatched Financial Strength and Performance\nStrong balance sheet at the end of Q3 2024.\n\nBeFra’s balance sheet further strengthened in Q3 2024, with net-debt-to-EBITDA decreasing 15.5% YoY to 1.76x and interest coverage increasing 38.0% to 3.52x, providing greater financial flexibility to further reduce debt leverage, continue investing in growth and efficiency initiatives, and pay dividends.\nBeFra’s inventory increased 15.0% vs last year to prevent any supply chain disruptions that could affect our fulfillment capabilities for the Q4 season.\n\nOur key financial metrics reflect our strength and show why to invest in BWMX:\n\n\n\nCash Flow & Liquidity ratiosBeFra continues to demonstrate robust cash flow generation, as is illustrated in the table below.\n\nAsset Light BusinessThe Company’s asset-light business model enables flexibility to swiftly adapt to challenging conditions.\n\n\n\n\n \n\n\n\n\nQ3 2024\nQ3 2023\n∆\n\n\nQ3 2024\nQ3 2023\n∆ bps\n\n\n\nCurrent Ratio\n1.07x\n1.06x\n0.3%\n\nFixed Assets / Total Assets\n19.5%\n25.9%\n-634 bps\n\n\n\nFCF / Adj. EBITDA\n70.6%\n55.6%\n+1,498 bps\n\nVariable Cost Structure\n75.1%\n71.6%\n+351 bps\n\n\n\nCCC (days)\n38\n58\n-20 bps\n\nFixed Cost Structure\n24.9%\n22.2%\n+270 bps\n\n\n*CCC: Cash Conversion Cycle\n\nSG&A / Net Revenues\n51.7%\n51.5%\n+21 bps\n\n\n\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\nFixed Assets decreased significantly due to the sale of the Jafra Mexico building in Mexico City.\n\n\n\n\n\n\n\n\n\n\n\n \n\n\nReturn on InvestmentOver the years, the Company has consistently delivered exceptional returns, making this business highly attractive to our investors.\n\nLeverageCurrent debt primarily stems from the acquisition of Jafra, and the Company is committed to reducing debt levels ahead of the original schedule.\n\n\n\n\n\n\n\n \n\n\n\n\nQ3 2024\nQ3 2023\n∆\n\n\nQ3 2024\nQ3 2023\n∆%\n\n\n\nEquity Turnover\n14.12x\n10.08x\n40.1%\n\nDebt to EBITDA\n1.87x\n2.28x\n-18.0%\n\n\n\nROE\n69.4%\n70.1%\n-72 bps\n\nNet Debt to EBITDA\n1.76x\n2.08x\n-15.5%\n\n\n\nROTA\n11.0%\n13.1%\n-210 bps\n\nInterest Coverage\n3.52x\n2.55x\n38.0%\n\n\n\nDividend Yield\n11.91%\n7.72%\n+419 bps\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\n*Equity Turnover = Net Revenues TTM / Equity*ROTA = Net Income TTM / (Cash + Accounts Receivable + Inventories + Fixed Assets)*Calculation of Dividend Yield Using the Closing Price on September 30, which was $12.68.\n\n\n\n\n\n\n\n\nCapital Allocation\nStrategic Focus on Balance Sheet: BeFra’s balance sheet remains a priority. As of September 30, 2024, Net Debt-to-EBITDA was 1.76x, a decrease from 2.08x at the end of Q3 2023.\nQuarterly Dividends and Shareholder Value: Considering BeFra’s results to date, management remains committed to enhancing shareholder value through quarterly dividends. The board of directors has proposed a Ps. 250 million dividend for Q3 2024, pending approval at the Company’s Ordinary General Shareholders’ Meeting on October 28, 2024. This would mark the nineteenth consecutive quarterly dividend payment since BeFra’s IPO in March 2020. Future levels of dividend payouts are expected to meet this quarter's proposed amount, contingent upon BeFra’s financial performance and the ongoing debt repayment plan.\nThe Company has introduced a new investment policy to provide clear guidelines for the efficient and sustainable use of BeFra’s Free Cash Flow, fully aligned with strategic priorities. This policy reinforces BeFra’s commitment to fostering long term growth, maintaining a solid financial foundation, and delivering consistent value to shareholders. The leverage ratio has been set within a range of 1.5x to 2.5x Net Debt to EBITDA, depending on the growth opportunities that arise. FCF deployment will prioritize inorganic growth initiatives, while ensuring the appropriate allocation of resources for dividends and capital expenditures.\n2024 Guidance and Long-Term Growth Prospects\nLooking ahead, BeFra is well-positioned to deliver a strong year-end finish within the Company’s guidance range. While Revenue is expected within range, EBITDA for the full year will be closer to the lower end range due to the temporary impact on the margin of Betterware Mexico seen in the Q3.\n\n\n\n\n2024\n2023\nVar %\n\n\nNet Revenue\n$ 13,800 – 14,400\n$ 13,010\n6.1% - 10.7%\n\n\nEBITDA\n$ 2,900 – 3,100\n$ 2,721\n6.6% - 13.9%\n\n\n* Figures in millions Ps.\n\n\n\n\n\n\nQ3 2024 Financial Results by BusinessBetterware MexicoKey Financial and Operating Metrics\n\n\n\n\n\n \n\n\n\nQ3\n\n9M\n\n\n\n2024\n2023\n\n2024\n2023\n\n\nNet Revenue\n$1,465,577\n$1,420,739\n+3.2%\n\n$4,496,979\n$4,254,128\n+5.7%\n\n\nGross Margin\n54.8%\n56.2%\n-148 bps\n\n57.1%\n59.7%\n-262 bps\n\n\nEBITDA\n$279,889\n$328,295\n-14.7%\n\n$966,463\n$1,184,159\n-18.4%\n\n\nEBITDA Margin\n19.1%\n23.1%\n-401 bps\n\n21.5%\n27.8%\n-634 bps\n\n\n\n\n\n\n\n\n\n\n\n\nAssociates\n\n\n\n\n\n\n\n\n\nAvg. Base\n694,277\n768,042\n-9.6%\n\n708,022\n758,121\n-6.6%\n\n\nEOP Base\n700,893\n759,310\n-7.7%\n\n700,893\n759,310\n-7.7%\n\n\nMonthly Activity Rate\n66.3%\n65.2%\n+109 bps\n\n66.8%\n66.7%\n+12 bps\n\n\nAvg. Monthly Order\n$2,034\n$1,823\n+11.6%\n\n$2,038\n$1,822\n+11.8%\n\n\nDistributors\n\n\n\n\n\n\n\n\n\nAvg. Base\n44,639\n42,551\n+4.9%\n\n44,159\n40,801\n+8.2%\n\n\nEOP Base\n43,939\n41,932\n+4.8%\n\n43,939\n41,932\n+4.8%\n\n\nMonthly Activity Rate\n98.0%\n97.9%\n+5 bps\n\n98.2%\n98.2%\n-\n\n\nAvg. Monthly Order\n$21,531\n$21,944\n-1.9%\n\n$22,261\n$22,982\n-3.1%\n\n\n\nHighlights\n\nNet Revenue Growth: Betterware Mexico achieved 3.2% year-over-year growth in Q3, marking its fourth consecutive quarter of annual growth, with a 5.7% increase for the first nine months. While growth slowed compared to the first half, the Company continues to gain overall momentum and expects a strong Q4.\n  \nRevenue growth was driven by a higher pricing mix, reflecting a shift toward higher priced items that drive Associates’ average monthly order. Net revenue was also significantly enhanced by the revamp of Betterware’s main categories: On the Go, Kitchen, Hygiene, Home Solutions and Food Preservation, each reflecting double-digit growth on a year-to-date basis.\nIncreased productivity among Distributors and Associates continues to be an important sales driver, rather than the expansion of Betterware’s sales force, with activity levels and average order values increasing YoY. The Company expects that the increased productivity will precede an expansion of the base.\n\nTemporary EBITDA contraction. Lower than expected sales and the decline in gross margin led to an EBITDA contraction in Q3 and YTD. Gross margin decreased by 148 bps YoY in Q3, and 262 bps year-to-date (YTD), mainly due to the Mexican peso depreciation (the Peso weakened relative to the US dollar by 14.5% from its lowest point in Q1 2024 and by 10.7% compared to the average seen in the first half of the year), and to the international freight costs, which surged by 154% from the beginning of the year. However, adjustments have been made and will be reflected in Q4, in addition to the fact that international freight costs have started to decline.\nComprehensive financing costs include gains or losses from foreign exchange hedges used to mitigate currency risk related to purchases priced in USD. In Q3 2024, we recorded a Ps. 59M gain, bringing the year-to-date total to Ps. 93M. If hedge accounting had been applied, these gains would have increased the gross margin by 162 basis points in Q3 to 56.4%, and by 135 basis points year-to-date to 58.5%. The Company is evaluating initiating the process to transition to hedge accounting for FX risk management to more accurately reflect these gains or losses in the gross margin.\n\nQ4 2024 Priorities\n\nProduct Innovation: Betterware is launching an ambitious product innovation plan in Q4, with a robust pipeline in place for the rest of the year to ensure sustained growth and continued market relevance.\nPricing Strategy: The Company is also implementing a comprehensive pricing strategy to protect margins while remaining competitive. This plan will enable Betterware to mitigate external cost impacts, maintain profitability, and strengthen its market position, further enhancing consumer loyalty.\nIncentives Program: The Associates and Distributors incentive program has been refined to better align rewards with performance, driving increase activity levels, as noted before.\n\nInternational Expansion\n\nInternational operations. We continue to build a strong foundation and establish our presence in the U.S. and Peru, making progress with the strategic initiatives we have planned for each market. We anticipate initial tangible results and more relevant financial contributions from Betterware US by the end of 2025, reflecting investments and projects currently underway in this sizable market. Since these projects began, total investments in the U.S. and Peru have amounted to $80.2 million. Without these investments, Betterware Mexico's EBITDA would have been Ps. 1,047 million, representing an EBITDA margin of 23.3%.\n\n\n\n\nJafra MexicoKey Financial and Operating Metrics\n\n\n\n\n\n\n\n\n\n \n\n\n\nQ3\n\n9M\n\n\n\n2024\n2023\n\n2024\n2023\n\n\nNet Revenue\n$1,623,697\n$1,486,816\n+9.2%\n\n$5,144,830\n$4,685,996\n+9.8%\n\n\nGross Margin\n85.7%\n83.0%\n+274 bps\n\n85.5%\n82.8%\n+275 bps\n\n\nEBITDA\n-$116,882\n$209,267\n-155.9%\n\n$610,716\n$755,538\n-19.2%\n\n\nEBITDA Margin\n-7.2%\n14.1%\n-2,127 bps\n\n11.9%\n16.1%\n-420 bps\n\n\nEBITDA Adj\n$318,148\n$209,267\n+52.0%\n\n$1,045,746\n$755,538\n+38.4%\n\n\nEBITDA Margin Adj\n19.6%\n14.1%\n+552 bps\n\n20.3%\n16.1%\n+42 bps\n\n\n\n\n\n\n\n\n\n \n\n\nAssociates\n\n\n\n\n\n\n\n\n\nAvg. Base\n403,340\n414,968\n-2.8%\n\n435,027\n430,413\n+1.1%\n\n\nEOP Base\n421,073\n422,956\n-0.4%\n\n421,073\n422,956\n-0.4%\n\n\nMonthly Activity Rate\n51.6%\n52.2%\n-60 bps\n\n52.0%\n51.7%\n+27 bps\n\n\nAvg. Monthly Order\n$2,347\n$2,088\n+12.4%\n\n$2,290\n$2,081\n+10.0%\n\n\nDistributors\n\n\n\n\n\n\n\n\n\nAvg. Base\n18,823\n18,553\n+1.5%\n\n18,883\n18,812\n+0.4%\n\n\nEOP Base\n18,722\n18,555\n+0.9%\n\n18,722\n18,555\n+0.9%\n\n\nMonthly Activity Rate\n93.2%\n94.0%\n-79 bps\n\n94.2%\n94.1%\n+1 bps\n\n\nAvg. Monthly Order\n$2,694\n$2,236\n+20.5%\n\n$2,594\n$2,319\n+11.9%\n\n\n\nHighlights\n\nHigh Single-digit Growth in Net Revenue. Net revenue for the third quarter increased by 9.2% YoY, also with a cumulative 9.8% increase over the first nine months. These results were primarily driven by YTD increases of 17.2% in Fragrances, 7.9% in Toiletries, and 6.4% in Cosmetics, reflecting the strong performance of Jafra’s best-selling products and key innovations such as the Gii fragrance and the new Dermocosmetic Skin Care line, BioLab.In Q3, the average Associate base contracted 2.8% year-over-year. Net revenue growth was driven by increased productivity and a higher average monthly order (+12.4%). While recruitment and retention remain priorities, the higher-value transactions from the existing Associate network are a positive indicator for future base growth.\nExceptional Adjusted EBITDA Growth. Adjusted EBITDA grew significantly; 52.0% for the quarter and 38.4% year-to-date, driven by a combination of increased sales, improved gross margins, and operating expense efficiencies. Gross margin expanded by 274 bps for the quarter and 275 bps year-to-date, derived from higher volume manufacturing efficiencies.\n\nQ4 2024 Priorities\n\nProduct Innovation Plan: Jafra has a strong product innovation pipeline for the remainder of the year, with key launches planned. Product innovations introduced this quarter, including BioLab, have already gained market share, positioning Jafra well for continued growth.\nNew Catalog Design: A new and improved catalog design was launched in October 2024, which is expected to have a strong impact of the sales growth.\nEnhanced Incentives Program Communication: Jafra’s incentive program communication is also being refined to boost sales force engagement and to drive sponsorship, recruitment, and Consultant retention to achieve sustained growth levels.\n\n\n\n\nJafra USKey Financial and Operating Metrics\n\n\n\n\n\n\n\n\n\n \n\n\n\nQ3\n\n9M\n\n\n\n2024\n2023\n\n2024\n2023\n\n\nNet Revenue\n$241,120\n$215,952\n+11.7%\n\n$680,481\n$667,691\n+1.9%\n\n\nGross Margin\n73.3%\n74.1%\n-81 bps\n\n73.6%\n76.2%\n-257 bps\n\n\nEBITDA\n-$6,462\n-$8,138\n+20.6%\n\n-$9,108\n-$38,281\n+76.2%\n\n\nEBITDA Margin\n-2.7%\n-3.2%\n+109 bps\n\n-1.3%\n-5.7%\n+439 bps\n\n\n\n\n\n\n\n\n\n\n\n\nAssociates\n\n\n\n\n\n\n\n\n\nAvg. Base\n30,150\n29,608\n+1.8%\n\n30,173\n29,183\n+3.4%\n\n\nEOP Base\n29,103\n30,489\n-4.5%\n\n29,103\n30,489\n-4.5%\n\n\nMonthly Activity Rate\n41.6%\n45.1%\n-347 bps\n\n43.6%\n42.4%\n+118 bps\n\n\nAvg. Monthly Order\n$233\n$228\n+2.2%\n\n$229\n$232\n-1.0%\n\n\nDistributors\n\n\n\n\n\n\n\n\n\nAvg. Base\n1,774\n1,642\n+8.0%\n\n1,743\n1,921\n-9.3%\n\n\nEOP Base\n1,772\n1,645\n+7.7%\n\n1,772\n1,645\n+7.7%\n\n\nMonthly Activity Rate\n87.5%\n90.4%\n-290 bps\n\n88.8%\n85.1%\n+374 bps\n\n\nAvg. Monthly Order\n$233\n$217\n+7.7%\n\n$226\n$219\n+3.6%\n\n\n\nHighlights\n\nJafra US Continues to Grow Net Revenues. The business has demonstrated a strong turnaround, delivering double-digit net revenue growth for the second consecutive quarter. Q3 net revenues increased by 11.7%, enabling 1.9% year-to-date growth. Strong Q3 revenue was primarily driven by higher productivity per Associate, and Associate base growth. Jafra US net revenues in USD grew by 3.4% during the quarter, reaching $12.7M, and by 3.2% for the first nine months of the year, totaling $38.4M. It is important to stand out that Jafra US successfully launched a Shopify e-commerce platform in September 2024; a technological development designed to enhance sales. The launch of this new platform temporarily affected our activity levels in September, due to a normal \"new platform learning curve\", which we expect to be completed in October.\nNegative EBITDA Performance. Jafra US reported a slight negative EBITDA for the third quarter primarily due to decreased sales in September due to the new platform launch, and from a slightly reduced gross margin vs last year. However, we continue to reduce losses compared to last year, demonstrating progress related to stabilizing the business. While our focus on profitability is now mainly operational leverage from revenue growth, we continue to attack expense reduction strategies to optimize operational efficiencies.\n\nQ4 2024 Priorities\n\nBrochure Revenue Growth: Q4 2024 growth will be led by further optimization of Jafra’s US brochure, which will include strategic pricing adjustments, refined pagination, and an enhanced promotion mix, together with improved design.\nSkincare Focus – BioLab Dermocosmetics: Jafra US is positioning BioLab Dermocosmetics as a flagship offering to more successfully access increasing demand for premium, science-based skincare. Jafra US expects to significantly boost skincare sector market share by promoting BioLab.\nPromotional Campaigns – \"Power Week\": Jafra US is strengthening the execution of \"Jafra Power Week\", a nationwide lead-generation campaign aimed at boosting recruitment of Associates and Consultants.\n\n\n\n\nAppendixFinancial Statements\n\n\n\n\n\nBetterware de México, S.A.P.I. de C.V.\n\n\nConsolidated Statements of Final Position\n\n\nAs of September 30, 2024 and 2023\n\n\n(In Thousands of Mexican Pesos)\n\n\n\nSep 2024\nSep 2023\n\n\nAssets\n\n\n\n\nCash and cash equivalents\n316,378\n496,068\n\n\nTrade accounts receivable, net\n1,200,117\n1,275,837\n\n\nAccounts receivable from related parties\n2,407\n48\n\n\nInventories\n2,504,370\n2,178,018\n\n\nPrepaid expenses\n100,303\n129,138\n\n\nIncome tax recoverable\n67,701\n112,215\n\n\nDerivative Financial Instruments\n105,469\n0\n\n\nOther assets\n421,875\n177,761\n\n\nTotal current assets\n4,718,620\n4,369,085\n\n\nProperty, plant and equipment, net\n2,121,418\n2,877,944\n\n\nRight of use assets, net\n294,056\n339,446\n\n\nDeferred income tax\n523,568\n386,657\n\n\nIntangible assets, net\n1,590,916\n1,671,845\n\n\nGoodwill\n1,599,718\n1,599,718\n\n\nOther assets\n14,387\n53,794\n\n\nTotal non-current assets\n6,144,063\n6,929,404\n\n\nTotal assets\n10,862,683\n11,298,489\n\n\n\n\n\n\n\nLiabilities and Stockholders’ Equity\n\n\n\n\nShort term debt and borrowings\n618,279\n600,123\n\n\nAccounts payable to suppliers\n2,372,500\n1,944,445\n\n\nAccrued expenses\n410,253\n391,572\n\n\nProvisions\n778,992\n865,213\n\n\nValue added tax payable\n44,614\n51,905\n\n\nTrade accounts payable to related parties\n20\n0\n\n\nStatutory employee profit sharing\n86,885\n104,675\n\n\nLease liability\n107,609\n87,815\n\n\nDerivative financial instruments\n0\n25,279\n\n\nTotal current liabilities\n4,419,152\n4,071,027\n\n\nEmployee benefits\n139,701\n161,952\n\n\nDeferred income tax\n572,301\n783,169\n\n\nLease liability\n214,098\n264,594\n\n\nLong term debt and borrowings\n4,334,713\n4,743,980\n\n\nTotal non-current liabilities\n5,260,813\n5,953,695\n\n\nTotal liabilities\n9,679,965\n10,024,722\n\n\n\n\n\n\n\nStockholders’ Equity\n\n\n\n\nCapital stock\n321,312\n321,312\n\n\nShare premium account\n-25,264\n-16,370\n\n\nRetained earnings\n919,658\n974,174\n\n\nOther comprehensive income\n-31,508\n-3,412\n\n\nNon-controlling interest\n-1,480\n-1,937\n\n\nTotal Stockholders’ Equity\n1,182,718\n1,273,767\n\n\nTotal Liabilities and Stockholders’ Equity\n10,862,683\n11,298,489\n\n\n\n\n\n\nBetterware de México, S.A.P.I. de C.V.\n\n\nConsolidated Statements of Profit or Loss and Other Comprehensive Income\n\n\nFor the three-months ended September 30, 2024 and 2023\n\n\n(In Thousands of Mexican Pesos)\n\n\n\n\n\n\n\n\n\nQ3 2024\nQ3 2023\n∆%\n\n\nNet revenue\n3,330,394\n3,123,507\n6.6%\n\n\nCost of sales\n959,135\n930,636\n3.1%\n\n\nGross profit\n2,371,259\n2,192,871\n8.1%\n\n\n\n\n\n\n\n\nAdministrative expenses\n792,483\n739,928\n7.1%\n\n\nSelling expenses\n928,707\n867,743\n7.0%\n\n\nDistribution expenses\n155,992\n147,089\n6.1%\n\n\nTotal expenses\n1,877,182\n1,754,760\n7.0%\n\n\n\n\n\n\n\n\nOther expenses - Sale of fixed assets\n435,030\n0\n100.0%\n\n\n\n\n\n\n\n\nOperating income\n59,047\n438,111\n12.8%\n\n\n\n\n\n\n\n\nInterest expense\n-161,352\n-207,722\n-22.3%\n\n\nInterest income\n2,751\n11,850\n-76.8%\n\n\nUnrealized gain in valuation of financial derivative instruments\n82,876\n54,787\n51.3%\n\n\nForeign exchange loss, net\n-27,586\n-50,082\n-44.9%\n\n\nFinancing cost, net\n-103,311\n-191,167\n-46.0%\n\n\n\n\n\n\n\n\nIncome before income taxes\n-44,264\n246,944\n58.2%\n\n\n\n\n\n\n\n\n...\n   \n\n\n\n\nIncome taxes\n71,326\n50,070\n463.6%\n\n\n\n\n\n\n\n\nNet (loss) income including minority interest\n-115,590\n196,874\n-265.8%\n\n\nNon-controlling interest (loss) gain\n-24\n117\n-120.5%\n\n\nNet (loss) income\n-115,614\n196,991\n-265.7%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nEBITDA breakdown (Ps. 591.5 million)\n\n\nConcept\nQ3 2024\nQ3 2023\n∆%\n\n\nNet (loss) income including minority interest\n-115,590\n196,874\n-265.8%\n\n\n(+) Income taxes\n71,326\n50,070\n463.6%\n\n\n(+) Financing cost, net\n103,311\n191,167\n-46.0%\n\n\n(+) Depreciation and amortization\n97,498\n91,313\n6.8%\n\n\nEBITDA\n156,545\n529,424\n-70.4%\n\n\nEBITDA Margin\n4.7%\n16.9%\n\n\n\n(+) Other expenses - Sale of fixed assets\n435,030\n0\n\n\n\nAdjusted EBITDA\n591,575\n529,424\n11.7%\n\n\nAdjusted EBITDA Margin\n17.8%\n16.9%\n\n\n\n\n \n\n\nNet adjusted income breakdown\n\n\nConcept\nQ3 2024\nQ3 2023\n∆%\n\n\nNet (loss) income including minority interest\n-115,614\n196,991\n-158.7%\n\n\n(+) Other expenses - Sale of fixed assets\n435,030\n0\n100.0%\n\n\n(+) Income taxes for the sale of fixed assets\n71,983\n0\n100.0%\n\n\n(+) Income taxes – deferred\n-210,868\n0\n100.0%\n\n\nNet adjusted income\n180,531\n196,874\n-8.4%\n\n\n\n\n\n\nBetterware de México, S.A.P.I. de C.V.\n\n\nConsolidated Statements of Profit or Loss and Other Comprehensive Income\n\n\nFor the nine-months ended September 30, 2024 and 2023\n\n\n(In Thousands of Mexican Pesos)\n\n\n\n\n\n\n\n\n\n9M 2024\n9M 2023\n∆%\n\n\nNet revenue\n10,322,290\n9,607,815\n7.4%\n\n\nCost of sales\n2,851,608\n2,679,383\n6.4%\n\n\nGross profit\n7,470,682\n6,928,432\n7.8%\n\n\n\n\n\n\n\n\nAdministrative expenses\n2,350,939\n2,307,435\n1.9%\n\n\nSelling expenses\n2,907,457\n2,551,742\n13.9%\n\n\nDistribution expenses\n500,299\n445,455\n12.3%\n\n\nTotal expenses\n5,758,695\n5,304,632\n8.6%\n\n\n\n\n\n\n\n\nOther expenses - Sale of fixed assets\n435,030\n0\n100.0%\n\n\n\n\n\n\n\n\nOperating income\n1,276,957\n1,623,800\n-21.4%\n\n\n\n\n\n\n\n\nInterest expense\n-496,610\n-624,830\n-20.5%\n\n\nInterest income\n20,985\n39,338\n-46.7%\n\n\nUnrealized gain (loss) in valuation of financial derivative instruments\n153,389\n-9,950\n-1641.6%\n\n\nForeign exchange loss, net\n-88,839\n-99,190\n-10.4%\n\n\nFinancing cost, net\n-411,075\n-694,632\n-40.8%\n\n\n\n\n\n\n\n\nIncome before income taxes\n865,882\n929,167\n-6.8%\n\n\n\n\n\n\n\n\nIncome taxes\n386,534\n288,839\n33.8%\n\n\n\n\n\n\n\n\nNet income including minority interest\n479,348\n640,328\n-25.1%\n\n\nNon-controlling interest (loss) gain\n-48\n3,030\n-101.6%\n\n\nNet income\n479,300\n643,358\n-25.5%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nEBITDA breakdown (Ps. 2,003 million)\n\n\nConcept\n9M 2024\n9M 2023\n∆%\n\n\nNet income including minority interest\n479,348\n640,328\n-58.1%\n\n\n(+) Income taxes\n386,534\n288,839\n106.8%\n\n\n(+) Financing cost, net\n411,075\n694,632\n-40.8%\n\n\n(+) Depreciation and amortization\n291,115\n277,617\n4.9%\n\n\nEBITDA\n1,568,072\n1,901,417\n-17.5%\n\n\nEBITDA Margin\n15.19%\n19.79%\n\n\n\n(+) Other expenses - Sale of fixed assets\n435,030\n0\n\n\n\nAdjusted EBITDA\n2,003,102\n1,901,417\n5.3%\n\n\nAdjusted EBITDA Margin\n19.4%\n19.8%\n\n\n\n \n\n\nNet adjusted income breakdown\n\n\nConcept\n9M 2024\n9M 2023\n∆%\n\n\nNet (loss) income including minority interest\n479,300\n643,358\n-25.5%\n\n\n(+) Other expenses - Sale of fixed assets\n435,030\n0\n100.0%\n\n\n(+) Income taxes for the sale of fixed assets\n71,983\n0\n100.0%\n\n\n(+) Income taxes – deferred\n-210,868\n0\n100.0%\n\n\nNet adjusted income\n775,445\n643,358\n20.5%\n\n\n\n\n\n\nBetterware de México, S.A.P.I. de C.V.\n\n\nConsolidated Statements of Cash Flows\n\n\nFor the nine-months ended September 30, 2024 and 2023\n\n\n(In Thousands of Mexican Pesos)\n\n\n\n9M 2024\n9M 2023\n\n\nCash flows from operating activities:\n\n\n\n\nProfit for the period\n479,348\n640,328\n\n\n\n\n\n\n\nAdjustments for:\n\n\n\n\nIncome tax expense recognized in profit of the year\n386,534\n288,839\n\n\nDepreciation and amortization of non-current assets\n291,114\n277,617\n\n\nInterest income recognized in profit or loss\n-13,554\n-39,337\n\n\nInterest expense recognized in profit or loss\n489,179\n624,830\n\n\nUnrealized loss in valuation of financial derivative instruments\n-153,389\n9,950\n\n\nShare-based payment expense\n-8,894\n-3,699\n\n\nLoss (gain) on disposal of equipment\n699,176\n-2,483\n\n\nCurrency effect\n-17,021\n-5,494\n\n\nMovements in non- controlling interest\n103\n-90\n\n\nOther gains and losses\n0\n3,100\n\n\nMovements in working capital:\n\n\n\n\nTrade accounts receivable\n-127,662\n-304,775\n\n\nTrade accounts receivable from related parties\n-2,303\n13\n\n\nInventory, net\n-470,236\n-55,348\n\n\nPrepaid expenses and other assets\n-170,656\n-47,968\n\n\nAccounts payable to suppliers and accrued expenses\n668,348\n656,184\n\n\nProvisions\n-25,756\n71,942\n\n\nValue added tax payable\n-73,747\n-37,237\n\n\nStatutory employee profit sharing\n-45,970\n-30,623\n\n\nTrade accounts payable to related parties\n20\n-96,859\n\n\nIncome taxes paid\n-633,554\n-322,241\n\n\nEmployee benefits\n12,551\n8,045\n\n\nNet cash generated by operating activities\n1,283,631\n1,634,694\n\n\n\n\n\n\n\nCash flows from investing activities:\n\n\n\n\nPayments for property, plant and equipment, net\n-174,996\n-54,082\n\n\nProceeds from disposal of property, plant and equipment, net\n126,836\n18,662\n\n\nInterest received\n13,554\n39,337\n\n\nNet cash (used in) generated by investing activities\n-34,606\n3,917\n\n\n\n\n\n\n\nCash flows from financing activities:\n\n\n\n\nRepayment of borrowings\n-2,071,500\n-6,593,695\n\n\nProceeds from borrowings\n1,945,000\n5,708,974\n\n\nInterest paid\n-497,796\n-529,381\n\n\nBond issuance costs\n0\n-8,003\n\n\nLease payment\n-109,541\n-86,958\n\n\nDividends paid\n-748,540\n-449,124\n\n\nNet cash used in financing activities\n-1,482,377\n-1,958,187\n\n\nNet decrease in cash and cash equivalents\n-233,352\n-319,576\n\n\nCash and cash equivalents at the beginning of the period\n549,730\n815,644\n\n\nCash and cash equivalents at the end of the period\n316,378\n496,068\n\n\n\n\n\n\nKey Operating Metrics\n\n\n\n\n\nBetterware Mexico\n\n\n\nQ2 2023\nQ3 2023\nQ4 2023\nQ1 2024\nQ2 2024\nQ3 2024\n\n\nAssociates\n\n\n\n\n\n\n\n\nAvg. Base\n753,743\n768,042\n756,250\n716,645\n713,144\n694,277\n\n\nEOP Base\n756,637\n759,310\n741,170\n724,707\n699,033\n700,893\n\n\nMonthly Activity Rate\n66.7%\n65.2%\n66.0%\n67.7%\n66.4%\n66.3%\n\n\nAvg. Monthly Order\n$1,877\n$1,823\n$1,959\n$2,052\n$2,027\n$2,034\n\n\nMonthly Growth Rate\n15.2%\n15.7%\n14.9%\n15.1%\n13.8%\n15.7%\n\n\nMonthly Churn Rate\n15.5%\n15.5%\n15.7%\n15.8%\n15.0%\n15.6%\n\n\nDistributors\n\n\n\n\n\n\n\n\nAvg. Base\n40,825\n42,551\n42,369\n42,886\n44,953\n44,639\n\n\nEOP Base\n41,981\n41,932\n41,825\n44,482\n45,009\n43,939\n\n\nMonthly Activity Rate\n98.1%\n97.9%\n98.1%\n98.5%\n98.0%\n98.0%\n\n\nAvg. Monthly Order\n$23,440\n$21,944\n$23,518\n$23,582\n$21,669\n$21,531\n\n\nMonthly Growth Rate\n10.7%\n10.4%\n9.9%\n11.8%\n11.4%\n10.4%\n\n\nMonthly Churn Rate\n9.1%\n10.4%\n10.0%\n9.7%\n11.0%\n11.2%\n\n\n\n\n\n\nJafra Mexico\n\n\n\nQ2 2023\nQ3 2023\nQ4 2023\nQ1 2024\nQ2 2024\nQ3 2024\n\n\nAssociates\n\n\n\n\n\n\n\n\nAvg. Base\n427,289\n414,968\n461,712\n469,290\n432,450\n403,340\n\n\nEOP Base\n424,435\n422,956\n467,736\n451,692\n419,931\n421,073\n\n\nMonthly Activity Rate\n51.2%\n52.2%\n52.9%\n53.7%\n50.50%\n51.6%\n\n\nAvg. Monthly Order\n$2,091\n$2,088\n$2,181\n$2,238\n$2,284\n$2,347\n\n\nMonthly Growth Rate\n8.9%\n10.5%\n11.5%\n9.5%\n8.4%\n12.0%\n\n\nMonthly Churn Rate\n9.1%\n10.6%\n8.3%\n10.6%\n10.8%\n11.9%\n\n\nDistributors\n\n\n\n\n\n\n\n\nAvg. Base\n18,853\n18,553\n18,576\n18,927\n19,073\n18,823\n\n\nEOP Base\n18,721\n18,555\n18,719\n19,159\n19,035\n18,722\n\n\nMonthly Activity Rate\n94.0%\n94.0%\n95.3%\n96.0%\n93.10%\n93.2%\n\n\nAvg. Monthly Order\n$2,463\n$2,236\n$2,624\n$2,396\n$2,693\n$2,694\n\n\nMonthly Growth Rate\n1.0%\n1.1%\n1.4%\n1.6%\n0.7%\n0.9%\n\n\nMonthly Churn Rate\n1.4%\n1.4%\n1.1%\n0.8%\n0.8%\n1.5%\n\n\n\n\n\n\nJafra US\n\n\n\n\n\n\n\n\n\nQ2 2023\nQ3 2023\nQ4 2023\nQ1 2024\nQ2 2024\nQ3 2024\n\n\nAssociates\n\n\n\n\n\n\n\n\nAvg. Base\n28,541\n29,608\n31,268\n29,506\n30,864\n30,150\n\n\nEOP Base\n29,921\n30,489\n31,117\n29,470\n31,026\n29,103\n\n\nMonthly Activity Rate\n44.4%\n45.1%\n43.8%\n42.4%\n46.7%\n41.6%\n\n\nAvg. Monthly Order (USD)\n$235\n$228\n$231\n$223\n$232\n$233\n\n\nMonthly Growth Rate\n12.9%\n14.5%\n12.5%\n11.3%\n14.4%\n11.2%\n\n\nMonthly Churn Rate\n11.5%\n13.8%\n11.5%\n13.1%\n12.5%\n13.7%\n\n\nDistributors\n\n\n\n\n\n\n\n\nAvg. Base\n2,041\n1,642\n1,782\n1,728\n1,726\n1,774\n\n\nEOP Base\n1,760\n1,645\n1,793\n1,674\n1,766\n1,772\n\n\nMonthly Activity Rate\n83.8%\n90.4%\n90.2%\n88.3%\n90.7%\n87.5%\n\n\nAvg. Monthly Order (USD)\n$220\n$217\n$215\n$217\n$229\n$233\n\n\nMonthly Growth Rate\n2.6%\n6.3%\n7.9%\n4.6%\n8.5%\n5.8%\n\n\nMonthly Churn Rate\n7.6%\n8.4%\n5.0%\n6.9%\n6.7%\n5.7%\n\n\n\n\n\n\nKey Financial Metrics\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\nConsolidated\n\n\n\n\n\n\n\n\n\nQ2 2023\nQ3 2023\nQ4 2023\nQ1 2024\nQ2 2024\nQ3 2024\n\n\nNet Revenue\n$3,220,097\n$3,123,507\n$3,401,692\n$3,602,503\n$3,389,393\n$3,330,394\n\n\nGross Margin\n73.3%\n70.2%\n70.0%\n73.6%\n72.2%\n71.2%\n\n\nEBITDA\n$717,433\n$529,424\n$819,484\n$755,390\n$656,136\n$591,575\n\n\nEBITDA Margin\n22.3%\n16.9%\n24.1%\n21.0%\n19.4%\n17.8%\n\n\nNet Income\n$258,370\n$196,991\n$406,104\n$294,146\n$300,768\n$108,548\n\n\nFree Cash Flow\n$936,121\n$1,134,621\n$1,628,456\n$180,217\n$522,210\n$1,235,471\n\n\n\n\n\n\nBetterware Mexico\n\n\n\n\n\n\n\n\n\nQ2 2023\nQ3 2023\nQ4 2023\nQ1 2024\nQ2 2024\nQ3 2024\n\n\nNet Revenue\n$1,444,406\n$1,420,739\n$1,472,480\n$1,555,027\n$1,476,375\n$1,465,577\n\n\nGross Margin\n61.8%\n56.2%\n50.2%\n60.00%\n56.4%\n54.8%\n\n\nEBITDA\n$443,508\n$328,295\n$250,342\n$382,107\n$304,467\n$279,889\n\n\nEBITDA Margin\n30.7%\n23.1%\n17.0%\n24.60%\n20.6%\n19.1%\n\n\n\n\n\n\nJafra Mexico\n\n\n\n\n\n\n\n\n\nQ2 2023\nQ3 2023\nQ4 2023\nQ1 2024\nQ2 2024\nQ3 2024\n\n\nNet Revenue\n$1,536,775\n$1,486,816\n$1,668,956\n$1,849,996\n$1,671,137\n$1,623,697\n\n\nGross Margin\n83.3%\n83.0%\n86.5%\n85.00%\n86.0%\n85.7%\n\n\nEBITDA\n$268,724\n$207,985\n$532,780\n$383,120\n$344,478\n$318,148\n\n\nEBITDA Margin\n17.5%\n14.0%\n31.9%\n20.70%\n20.6%\n19.6%\n\n\n\n\n\n\nJafra US\n\n\n\n\n\n\n\n\n\nQ2 2023\nQ3 2023\nQ4 2023\nQ1 2024\nQ2 2024\nQ3 2024\n\n\nNet Revenue\n$238,916\n$215,952\n$260,256\n$197,480\n$241,881\n$241,120\n\n\nGross Margin\n77.8%\n74.1%\n74.4%\n74.00%\n73.6%\n73.3%\n\n\nEBITDA\n$5,201\n($8,138)\n$37,033\n($9,838)\n$7,192\n($6,462)\n\n\nEBITDA Margin\n2.2%\n(3.2%)\n14.0%\n(5.00%)\n3.0%\n-2.7%\n\n\n\nUse of Non-IFRS Financial MeasuresThis 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.\nDefinitions: Operating Metrics\nStarting 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.\nBetterware (Associates and Distributors)Avg. Base: Weekly average Associate/Distributor baseEOP Base: Associate/Distributor base at the end of the periodWeekly 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\nJafra (Associates and Distributors)Avg. Base: Monthly average Associate/Distributor baseEOP Base: Associate/Distributor base at the end of the periodMonthly 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 Catalogue Revenue divided by number of Associates orders.Avg. Monthly Order (Distributors): Average monthly data. Total Distributors Revenue divided by number of Distributors orders.\nAbout 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.\nForward-Looking Statements\n\n\n\nThis 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 differencesThe 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.\n\n\n\nQ3 2024 Conference CallManagement will hold a conference call with investors on October 24th, 2024, 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: 1-877-451-6152Toll/International: 1-201-389-0879Conference ID: 13749450\nIf you wish to listen to the replay of the conference call, please see instructions below:Toll Free: 1-844-512-2921Toll/International: 1-412-317-6671Replay Pin Number: 13749450\nView source version on businesswire.com: https://www.businesswire.com/news/home/20241024857063/en/\nContacts\nCompany: BeFra IRir@better.com.mx +52 (33) 3836 0500 Ext. 2011\nInspIR: Investor RelationsIvan Peillivan@inspirgroup.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2478769805"}