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    BWMX
    Earnings call· Jun 2026(Q2 FY26)

    BETTERWARE DE MEXICO, S.A.P.I. DE C.V Q2 FY26 earnings call BWMX

    Jul 23, 2026 Source

    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

    7

    • 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

    2

    • 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

    5
    SegmentRevenueYoYQoQMargin
    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%——

    Operational metrics

    15
    Tupperware revenue contribution
    10.8%
    Q2 FY26

    Tupperware contributed 10.8% of the quarter's revenue, with an expectation to contribute almost 1/3 going forward.

    Net debt to TTM EBITDA (pro forma)
    1.6xas it was pre-acquisition
    Q2 FY26

    Pro forma ratio, including Tupperware's TTM EBITDA, remained at 1.6x, similar to pre-acquisition levels.

    Net debt to TTM EBITDA (post-acquisition)
    2.6x
    Q2 FY26

    Ratio immediately following the transaction, reflecting only one month of Tupperware's EBITDA.

    EBITDA to Free Cash Flow Conversion
    70%
    Q2 FY26

    Converted more than 70% of EBITDA into free cash flow during the quarter, and nearly 90% on a last 12-month basis.

    Quarterly dividend
    MXN 250 millionincreased
    Q2 FY26

    Board committed to delivering value to shareholders, increasing the quarterly dividend.

    Total debt reduction
    MXN 500 million
    Q2 FY26

    Pre-acquisition, the company delevered by more than MXN 500 million, reducing total debt to MXN 4 billion.

    Independent sellers added (Tupperware)
    300,000
    Q2 FY26

    Tupperware expands the network by adding more than 300,000 independent sellers.

    Manufacturing plant utilization
    60%
    Q2 FY26

    Tupperware's Mexican plant is at around 60% of use.

    Manufacturing plant utilization
    40%
    Q2 FY26

    Tupperware's Brazilian plant is about 40% of use.

    Jafra gross margin (typical)
    73.5%-74.5%
    Future Quarters

    Expected gross margin range for Jafra in coming quarters.

    Jafra gross margin drop
    1 percentage point
    Q2 FY26

    Gross margin dropped by 1 percentage point due to promotional activities.

    Tupperware supplier payment terms
    strong onetime contributionfrom almost 0 days to BeFra's standard 120 days
    Coming quarters

    Actively working on expanding payment terms with Tupperware suppliers from almost 0 days to BeFra's standard 120 days, expected to make a strong onetime contribution to cash flow.

    Return on Total Assets (ROTA)
    23.3%increased
    Q2 FY26

    ROTA increased, demonstrating ability to generate value from deployed capital.

    Return on Invested Capital (ROIC)
    32.3%reached
    Q2 FY26

    ROIC reached, further demonstrating ability to generate value from deployed capital.

    Jafra Mexico beauty brand ranking
    #7 or #6vs #14 4 years ago
    FY25

    Jafra Mexico improved its ranking from #14 four years ago to #7 or #6 last year, with a plan to reach top 5 or top 3.

    Industry KPIs

    7
    MetricValueDetails
    Comparable sales4.1%%
    Store count growth300,000sellers
    Gross margin drivers1 percentage point droppercentage points
    Active customers nspac300,000sellers
    Net debt to adjusted EBITDA1.6xx
    Share buyback capital returnMXN 250 millionMXN
    Inventory position markdown riskmodestly increased

    Product announcements

    1
    ProductTypeDetails
    Jafra Plus applaunch

    Deals & partnerships

    2
    Tupperware Brands CorporationAcquisition 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 ArgentinaDiscontinuation 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

    4
    Deliberate gross margin investment in Jafra MexicoQ2 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 transactionQ2 FY26

    Contributed to organic EBITDA and net income decrease

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

    Increased inventory levelsQ2 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

    5

    Jafra Gross Margin Normalization

    Q3 and Q4
    Current1 percentage point drop from typical 73.5%-74.5%
    Targetbetween 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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.