BeFra reported modest top-line growth but a sharp improvement in profitability in the first quarter of 2026, as management pointed to strengthening execution across most business units and continued progress on its strategic plan. On the call, President and CEO Andrés Campos also introduced Raúl del Villar as the company’s new chief financial officer, citing his “more than 30 years of experience in senior finance roles within multinational consumer companies.”
Revenue edged higher as Betterware and Jafra U.S. offset Jafra Mexico softness
Campos said the company delivered “slight revenue growth of 0.3% year-over-year” alongside “EBITDA growth of 14% year-over-year,” with EBITDA margin expanding to 17.4% from 15.3% a year ago. He described net income and free cash flow as remaining strong, reflecting “a more normalized quarter without the extraordinary effects seen last year.”
Management highlighted early contributions from regional expansion. Campos noted Betterware’s expansion in Ecuador and improving performance in Guatemala, with those markets’ revenue contribution increasing “from 0.1% to 0.7% of total revenue over the past year.” He said the company expects the share to keep rising as operations scale.
Margin expansion supported by cost discipline; transaction costs pressured reported results
On profitability, del Villar said EBITDA margin expanded 211 basis points to 17.4%, reflecting “a clear improvement in profitability across our business units.” He noted that extraordinary expenses tied to the pending Tupperware transaction affected the quarter; excluding those expenses, margin “would have been approximately 18.4%.”
He also said net income “nearly doubl[ed] year-over-year,” attributing the change to a return to “more normalized profitability levels” after prior-year extraordinary expenses, along with lower interest expense.
Free cash flow “normalized during the quarter,” converting 58% of EBITDA into cash, supported by profitability and working capital discipline, “particularly with respect to inventory,” according to del Villar.
Dividend proposal and balance sheet: 25th consecutive quarterly payout, leverage set to rise with Tupperware
Del Villar said the quarter’s cash generation supports what would be BeFra’s “25th consecutive quarterly dividend since going public,” with the board proposing a MXN 200 million dividend, subject to shareholder approval. He said the dividend aligns with the company’s capital allocation approach, including maintaining “a 33% trailing 12-month dividend to EBITDA ratio,” reducing leverage, and funding geographic expansion.
BeFra’s balance sheet improved during the quarter, with total debt falling and net debt to EBITDA improving to 1.5x, del Villar said. However, following completion of the Tupperware transaction, management expects leverage to rise to “approximately 1.9x,” while aiming to keep leverage at healthy levels.
Del Villar also highlighted returns metrics, stating that return on total assets improved to 22.7% and return on invested capital increased to 27%. He said trailing EPS reached 31.9 MXN.
Business unit updates: Betterware inflection in associates; Jafra Mexico reset; Jafra U.S. growth continues
Campos said BeFra’s strategy remains organized around five pillars:
- Strengthen leadership in Mexico with Betterware and Jafra
- Continue regional expansion, including Jafra’s U.S. growth and selective LATAM expansion
- Develop or acquire new brands and/or product categories
- Advance digital transformation
- Maintain strict financial discipline
Betterware: Management reported improving commercial momentum and an “inflection point in the associate base,” which has “returned to growth.” Campos said the missing week affected reported growth; on a comparable basis, Betterware revenue growth would have been “approximately 3.3%.” He added that Latin America represents 1.7% of Betterware revenue today but is expected to expand as regional operations scale. EBITDA margin for Betterware rose 190 basis points to 20.5%, with EBITDA up 12.9% year-over-year, driven by cost discipline and execution, while gross margin remained stable despite external pressures.
On initiatives for 2026, Campos cited:
- Innovation, including “strong performance” from the Better Klin Tabs fast-consumption line
- A new catalog format expected to launch in the second half of 2026
- A pilot of incentive-program segmentation, with broader rollout expected in Q3
- New analytics capabilities and Betterware+ app features, plus a Salesforce CRM expected to launch in Q2
- A payment system pilot, with full rollout targeted for the second half of the year
Jafra Mexico: Campos described Q1 as a “temporary moderation in revenue growth,” driven mainly by a shift toward productivity initiatives that “undermin[ed] base expansion.” He said the company has implemented initiatives to rebalance toward associate growth, with results expected in Q2.
Campos also said market reports for 2025 show Jafra reached the number two position in Mexico’s beauty market within the direct selling channel, up from number four at the time of its 2022 acquisition. He added that Jafra now ranks number seven in Mexico’s overall beauty market across all channels. EBITDA margin in Jafra Mexico increased 165 basis points to 17%, supported by cost management, restructuring benefits from last year, and lower extraordinary expenses.
On priorities, management cited the launch of the “Stitch sunblock” through its Disney partnership, increased sensorial sampling, a subscription plan launched in March that is “already showing early traction,” and digital initiatives including a new CRM expected in Q2 and a Jafra Plus app planned for Q3.
Jafra U.S.: Campos said the business showed “significant progress,” with net revenue in U.S. dollars up 8.6%, supported by an associate base that grew 3.4% year-over-year and improved productivity. He added that profitability improved on cost discipline, and that excluding extraordinary legal expenses, EBITDA would have been positive with an “approximately 2.6%” margin.
Regional expansion: Campos announced the launch of Betterware Colombia, calling it a milestone that builds on Ecuador’s performance. He said the Andean region reached approximately 14,000 associates, while Guatemala reached about 2,200 associates. Despite that growth, the markets remain small, representing 0.7% of group revenue and 1.7% of Betterware revenue.
Tupperware transaction: regulatory approval expected in Q2; EPS accretion cited
Campos said BeFra is waiting for regulatory approval from Mexico’s antitrust authority for the previously announced Tupperware acquisition, which he said the company expects in Q2 2026. He described the transaction as diversifying the company’s revenue mix, providing entry into Brazil, and being “immediately earnings accretive,” contributing an estimated 40% to earnings per share.
During the Q&A, Campos reiterated management’s enthusiasm after meeting with stakeholders at Tupperware. He said Tupperware is “a very well-positioned brand in customers’ minds in all of Latin America,” and he sees opportunities to apply BeFra’s model in areas such as merchandising and innovation. He emphasized Brazil as a key opportunity, describing Tupperware as “already an almost $100 million revenue company there,” providing a “strong foothold” to expand in the market.
On guidance, Campos said the company maintained its full-year revenue growth outlook of 4% to 8%. In response to a question about the slower Q1 growth, he said management expects Betterware Mexico’s growth to strengthen, continued contribution from Betterware’s LATAM expansion, and ongoing momentum in Jafra U.S. He also said management expects an inflection at Jafra Mexico beginning in Q2.
Campos also addressed external conditions, saying the company is seeing a “slight rebound” in Mexican consumption, with expectations rising from about 1.1% growth last year to 1.6% this year. He said BeFra has seen some temporary increases in freight costs from China linked to oil price volatility, while noting the company had not yet experienced significant supplier pressure on raw material costs and was preparing tactics to respond if pressures persist.
About Betterware de Mexico SAPI de C (NYSE:BWMX)
Betterware de Mexico SAPI de C.V. is a Mexico City–based home solutions company that designs, sources and distributes a broad portfolio of organizational and household products. Through a direct-to-consumer model, Betterware offers storage and organization items, kitchenware, cleaning tools, personal care accessories and pet care products. The company leverages both digital channels and a catalog-driven distribution network to reach end customers, pairing an e-commerce platform with an independent sales advisor network.
Founded in 1995, Betterware has built a multi-channel sales infrastructure that relies on regional distribution centers and a large community of independent representatives.
