The following is a summary of the Betterware De México, S.A.P.I. De C.V. (BWMX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Betterware reported double-digit year-over-year growth in net revenues for Q1 2024, reflecting improved operational and financial efficiencies.
The company's EBITDA increased by 15.4% compared to Q1 2023, with EBITDA margin improving by 92 basis points.
Consolidated gross margin increased by 79 basis points to 73.6% compared to Q1 2023, largely due to improvements in Jafra Mexico's gross margin.
Betterware Mexico recorded a 12% increase in net revenues year-on-year, marking its second consecutive quarter of growth.
The company's consolidated net income for Q1 2024 was MXN294.1 million, a 56.5% increase from Q1 2023.
Business Progress:
Betterware continues its international expansion with the US operations starting as planned.
The company reported a 16% increase in average monthly orders per associate in the quarter.
They launched new Betterware products, including a gourmet brand and hydration subcategory products.
Jafra Mexico exceeded expectations with net revenue and EBITDA growing by 11.3% and 38% respectively.
Betterware launched a cross-border incentive program for Mexican distributors and associates, and plans to begin operations in Peru in Q1 2025.
The company anticipates that the US and other international markets will become significant growth sources.
Betterware aims to pay down approximately MXN800 million in debt in 2024, mainly from the business's cash flow.
Despite lower-than-expected success with skincare products last year, with Jafra Skin launch in Q1 2024 and another line due in July, the company anticipates a positive impact in future quarters.
More details: Betterware de Mexico IR
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