Can management explain the improvement in Tupperware Brazil (down 7%) despite discontinuing sales to Argentina, and what is the plan for Argentina?

Andres explained that the previous owners had a distribution license in Argentina ending in September 2026, which BeFra will not continue. The company is assessing future entry into Argentina but is currently prioritizing growth in Mexico and Brazil. “So there was -- the past owners of Tupperware, the party holdings, the one that sold Topper LatAm, they had given out a distribution license to a third party in Argentina that would end this September of 2026. So we have noticed them that, that will not continue. And we are still assessing what we will do or more we are assessing when is the right time to go into Argentina.”

What are the opportunities to move Betterware manufacturing into Tupperware plants to absorb excess capacity?

Andres stated that the Mexican plant is at ~60% use and the Brazilian plant at ~40%. The primary focus is to grow Tupperware sales to utilize this capacity. They are starting to assess manufacturing Betterware products in those plants but it's too early to provide details. “Still early to say. I would not like to really say anything because we are really assessing what it means, what it means for the volume of the plant, if it's strategically the best thing to do. So still early to tell.”

BWMX

Betterware de México (BWMX) Q2 FY26 earnings call: the analyst Q&A

Q: Will BeFra focus purely on the direct selling channel for Tupperware, abandoning non-direct selling?

Andres confirmed that BeFra will focus solely on the direct selling channel for Tupperware, evolving it through digital transformation, and abandoning other revenue streams, which were not significant annually. “Doug, yes, the answer is we're going to focus solely in the direct selling channel. As we have mentioned in all of our brands, we're focusing on the direct selling channel by evolving that channel through everything we've mentioned of digital transformation and the different things we've mentioned. So we are totally abandoning those other revenue that Tupperware has.”

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Jul 23, 2026

Source: earnings call transcript

Executive summary

Betterware de México Q2 FY26 — Strong Organic Growth and Accretive Tupperware Integration

BeFra delivered a strong quarter, marked by robust organic growth across its core brands and the successful, immediately accretive integration of Tupperware's Latin America operations. The company is strategically expanding its geographic footprint and seller network while maintaining financial discipline and a healthy leverage profile. Management is focused on digital transformation and expects continued growth across its diversified consumer products platform.

Highlights

Organic revenue increased 4.1% YoY and 5.7% QoQ, driven by Betterware Mexico, LatAm expansion, and Jafra Mexico rebound.
Total revenue increased 16.8% in the quarter, including Tupperware's first month of results, with EBITDA growing 15% and net income growing 20.6%.
Pro forma net debt to trailing 12 months EBITDA remained at 1.6x post-Tupperware acquisition, similar to pre-acquisition levels.
The organic seller base returned to growth, and Tupperware added over 300,000 independent sellers, significantly strengthening commercial reach.
EBITDA converted to free cash flow at over 70% for the quarter and nearly 90% on a last 12-month basis.
The quarterly dividend was increased to MXN 250 million, marking the 26th consecutive quarter of payments, and ROTA increased to 23.3% with ROIC reaching 32.3%.
Tupperware's pro forma net income trailing 12 months EPS is more than 36% higher than organic 12 months EPS, demonstrating its accretive nature.

Concerns

Organic EBITDA and net income decreased during the quarter due to a deliberate gross margin investment in Jafra Mexico and nonrecurring Tupperware transaction expenses.
Inventory levels increased modestly following strategic purchases to strengthen supply chain resilience due to possible supply chain disruptions from the Middle East conflict.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Organic (Betterware & Jafra) Strong organic growth driven by Betterware Mexico, LatAm expansion, and Jafra Mexico rebound. H1 FY26 EBITDA margin expanded, and net income grew despite Q2 temporary effects. EBITDA margin (H1 FY26): 17.5% (vs 17.2% H1 FY25)Net income growth (H1 FY26): 19.1%	—	4.1%	5.7%	—
Total (incl. Tupperware) Total revenue and profitability increased with Tupperware's first month contribution. EBITDA growth: 15%Net income growth: 20.6%	—	16.8%	—	—
Jafra U.S. Achieved a positive EBITDA margin for the quarter, indicating continued profitability improvement.	—	—	—	Positive EBITDA margin
Tupperware Direct Selling (Mexico & Brazil) Excluding extraordinary non-direct selling sales from last year, consolidated direct selling revenue grew significantly, underscoring renewed confidence and strong commercial fundamentals.	—	nearly 30%	—	—
Tupperware Brazil June performance signals a rebound to growth compared to 10-15% declines in the prior two years.	—	decreased less than 7%	—	—

Product announcements

Product	Type	Timeline	Details
Jafra Plus app	launch	second half of the year

Deals & partnerships

Tupperware Brands Corporation Acquisition of Tupperware's Latin America operations. $35 million of newly issued shares and $213 million of long-term debt

Successful incorporation of Tupperware's Latin America operations, contributing to revenue and profitability from the first month. The acquisition was financed through newly issued shares and long-term debt.

third party in Argentina Discontinuation of a distribution license for Tupperware in Argentina. until September of 2026

The distribution license given by past owners to a third party in Argentina, set to end in September 2026, will not be continued by BeFra. The company is assessing future plans for Argentina.

Risks & headwinds

Deliberate gross margin investment in Jafra Mexico Q2 FY26

1 percentage point drop from typical 73.5%-74.5% margins

Mitigation:Management expects margins to return to typical levels between Q3 and Q4.

Nonrecurring expenses associated with the Tupperware transaction Q2 FY26

Contributed to organic EBITDA and net income decrease

Mitigation:These are nonrecurring, implying they will not persist.

Increased inventory levels Q2 FY26

modestly increased

Mitigation:Strategic inventory purchases to strengthen supply chain resilience due to possible supply chain disruptions resulting from the Middle East conflict.

Tupperware Brazil sales decline (historical context) June

decreased less than 7% in June

Mitigation:This is presented as an improvement from prior 10-15% declines, signaling a rebound to growth.

What to watch in Q3 FY26

Jafra Gross Margin Normalization

Q3 and Q4

Current 1 percentage point drop from typical 73.5%-74.5%

Target between 73.5% and 74.5%

Why it matters

Indicates whether the promotional activities were a temporary drag or a more persistent issue, impacting overall profitability.

We expect gross margin to normalize between Q3 and Q4.

Find out whether BWMX delivers this. Inve re-checks your case every morning.

Q&A highlights

Does the 36.6% pro forma TTM EPS accretion for Tupperware include integration benefits, or is it purely historical?

Raul confirmed that the 36.6% accretion is based on historical numbers and does not include any future synergies, implying potential for further improvement.

“You're correct. You're right. We are just using the historical numbers that Tupperware had over the last 12 months. So that does not include any -- any synergies that we might get in the future.”

asked by Doug Lane · answered by Raul Del Villar Zanella

2 min read 5 chapters

Detailed narrative

Tupperware Acquisition & Integration

BeFra successfully incorporated Tupperware's Latin America operations, which immediately contributed to revenue and profitability. The acquisition was financed through $35 million of newly issued shares and $213 million of long-term debt. Tupperware's pro forma net income trailing 12 months EPS is more than 36% higher than organic 12 months EPS, demonstrating its accretive nature.

The company plans to focus solely on the direct selling channel for Tupperware, abandoning non-direct selling channels.

Strategic Pillars & Diversification

BeFra's strategy continues to be guided by five pillars: strengthening leadership in Mexico, regional expansion (Brazil, Andino region, Guatemala, Jafra U.S.), expanding portfolio (Tupperware), digital transformation (Salesforce CRM, Jafra Plus app), and financial discipline. The Tupperware acquisition expands geographic footprint, increasing Latin America's contribution to consolidated revenue and decreasing exposure to the Mexican market.

Jafra Performance & Outlook

Jafra Mexico rebounded to growth in Q2 after tactical moves in Q4 FY25 and Q1 FY26 temporarily affected performance. The company continues to improve innovation and will roll out the Jafra Plus app in H2 FY26. Jafra U.S. achieved a positive EBITDA margin for the quarter, indicating continued profitability improvement.

Management expects Jafra's gross margin to normalize to 73.5%-74.5% in coming quarters after a 1 percentage point drop due to promotional activities.

Betterware Momentum

Betterware Mexico showed growing momentum, marking its third consecutive quarter of growth. The company is innovating to drive its 'next wave of growth' after significant expansion in the past decade. The organic seller base also returned to growth during the quarter, reinforcing the health of the commercial platform.

Manufacturing Capacity & Argentina Strategy

Tupperware's Mexican plant operates at approximately 60% capacity, and the Brazilian plant at approximately 40%. The primary focus is to grow Tupperware sales to utilize this capacity. The company is assessing the possibility of manufacturing Betterware products in these plants. BeFra discontinued a distribution license in Argentina and is assessing future entry into that market, prioritizing growth in Mexico and Brazil.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.