{"id":841859,"date":"2025-04-24T16:37:19","date_gmt":"2025-04-24T20:37:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/befra-reports-first-quarter-2025-results\/"},"modified":"2025-04-24T16:37:19","modified_gmt":"2025-04-24T20:37:19","slug":"befra-reports-first-quarter-2025-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/befra-reports-first-quarter-2025-results\/","title":{"rendered":"BeFra Reports First Quarter 2025 Results"},"content":{"rendered":"

<\/p>\n

BeFra Reports First Quarter 2025 Results<\/b><\/p>\n

GUADALAJARA, Mexico–(BUSINESS WIRE<\/a>)–
\nBetterware de M\u00e9xico, S.A.P.I. de C.V. (NYSE:BWMX) (“BeFra” or the “Company”), announced today its consolidated financial results for the first quarter 2025. 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.\n<\/p>\n

Message from the President and CEO<\/b><\/p>\n

\nReflecting on the first quarter of 2025, I want to provide a comprehensive overview of our performance amid an increasingly complex macroeconomic environment, the short-term challenges that we are currently navigating, and the progress that we continued making toward our long-term goals.\n<\/p>\n

\nDuring the first quarter, we faced revenue pressure across our business, particularly in Mexico. The broader economic environment\u2014characterized by deteriorating consumption trends, lower consumer confidence, and reduced household discretionary spending\u2014resulted in a decline in volumes sold and ultimately weighed on our revenues, which ended the quarter with a 2.9% decrease versus last year. These economic factors impacted Betterware Mexico\u2019s revenue, which decreases 9.8%, while Jafra Mexico posted a 1.1% increase. The macroeconomic landscape in Mexico not only reduced demand for our products but also led to a reduction in our Associate and Distributor base, alongside lower activity levels across both brands.\n<\/p>\n

\nProfitability was also impacted by a prevailing environment of uncertainty, particularly because the depreciation of the Mexican peso led to higher costs of imported products and some raw materials. This cost pressure affected our profitability in two ways primarily – an immediate impact on gross margin and, to protect profitability, the implementation of price increases for certain SKUs. The price adjustments, while necessary, created additional pressure on customer demand.\n<\/p>\n

\nDespite the current macroeconomic challenges, our agile business model and financial strength provide resiliency, as BeFra has consistently demonstrated during adverse economic cycles in the past. We believe that BeFra\u2019s flexible and low fixed-cost structure, financial discipline, a now diversified business portfolio, as well as steps we have taken to more actively engage our salesforce, will continue giving us the agility needed to respond to the rapidly changing conditions in our markets today.\n<\/p>\n

\nWhile we are acting with caution in the short term, we remain fully committed to our long-term vision and growth strategy, continuing to advance on key strategic initiatives that position us for stronger performance when the macroeconomic landscape stabilizes and improves. Our international expansion remains a priority, and we are confident in the potential of our core business in Mexico as well as our entry into new markets in Latin America and the United States.\n<\/p>\n

\nJafra US had a slow start to the year, especially in January and February, amid cautious consumer sentiment\u2014particularly within the Hispanic community. However, we saw a meaningful recovery in March. With the Shopify+ platform now fully implemented and other operational improvements in place, we are seeing the first signs of this business\u2019s recovery. Although we remain cautiously optimistic, due to current macro uncertainty, we believe it has strong mid to long-term potential, given the size and growth of the US beauty market.\n<\/p>\n

\nThe expansion of Betterware in Latin America is progressing well, with Guatemala showing encouraging signs of growth, and Ecuador on track to launch in May of this year. Betterware US is currently facing uncertainty due to recent policies introduced by the country\u2019s new administration. Accordingly, we have decided to pause operations for the time being.\n<\/p>\n

\nAcross our businesses, we are executing with operational discipline, preserving financial flexibility, and focusing our resources on areas with the highest strategic potential. BeFra\u2019s brands remain strong, our sales model is effective – particularly in challenging operating environments such as the current one – and we believe that our Company is well-positioned to capture renewed growth when economic and market conditions improve. We will continue to operate with caution in the near term\u2014remaining vigilant and agile\u2014while steadfastly advancing toward our long-term goals.\n<\/p>\n

Andr\u00e9s Campos Chevallier
\n<\/b>
President and CEO BeFra Group<\/b><\/p>\n

Q1 2025 Select Consolidated Financial Information<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Q1<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Results in \u2018000 MXN<\/i><\/b><\/p>\n<\/td>\n

\n

2025<\/b><\/p>\n<\/td>\n

\n

2024<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Net Revenue<\/b><\/p>\n<\/td>\n

\n

$3,499,151<\/b><\/p>\n<\/td>\n

\n

\n$3,602,503\n<\/p>\n<\/td>\n

\n

\n-2.9%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Gross Margin<\/b><\/p>\n<\/td>\n

\n

66.2%<\/b><\/p>\n<\/td>\n

\n

\n69.7%\n<\/p>\n<\/td>\n

\n

\n-353 bps\n<\/p>\n<\/td>\n<\/tr>\n

\n

EBITDA<\/b><\/p>\n<\/td>\n

\n

$535,265<\/b><\/p>\n<\/td>\n

\n

\n$755,389\n<\/p>\n<\/td>\n

\n

\n-29.1%\n<\/p>\n<\/td>\n<\/tr>\n

\n

EBITDA Margin<\/b><\/p>\n<\/td>\n

\n

15.3%<\/b><\/p>\n<\/td>\n

\n

\n21.0%\n<\/p>\n<\/td>\n

\n

\n-567 bps\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet Income\n<\/p>\n<\/td>\n

\n

\n$151,394\n<\/p>\n<\/td>\n

\n

\n$295,164\n<\/p>\n<\/td>\n

\n

\n-48.7%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nEPS\n<\/p>\n<\/td>\n

\n

\n$4.06\n<\/p>\n<\/td>\n

\n

\n$7.91\n<\/p>\n<\/td>\n

\n

\n-48.7%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nFree Cash Flow\n<\/p>\n<\/td>\n

\n

\n-$55,841\n<\/p>\n<\/td>\n

\n

\n$359,655\n<\/p>\n<\/td>\n

\n

\n-115.5%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Net Debt \/ EBITDA<\/b><\/p>\n<\/td>\n

\n

2.08<\/b><\/p>\n<\/td>\n

\n

\n1.78\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nInterest Coverage\n<\/p>\n<\/td>\n

\n

\n3.20\n<\/p>\n<\/td>\n

\n

\n3.12\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n
\n

Associates<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAvg. Base\n<\/p>\n<\/td>\n

\n

\n1,138,418\n<\/p>\n<\/td>\n

\n

\n1,215,441\n<\/p>\n<\/td>\n

\n

\n-6.3%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nEOP Base\n<\/p>\n<\/td>\n

\n

\n1,122,047\n<\/p>\n<\/td>\n

\n

\n1,205,869\n<\/p>\n<\/td>\n

\n

\n-7.0%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Distributors<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAvg. Base\n<\/p>\n<\/td>\n

\n

\n61,856\n<\/p>\n<\/td>\n

\n

\n63,367\n<\/p>\n<\/td>\n

\n

\n-2.4%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nEOP Base\n<\/p>\n<\/td>\n

\n

\n62,505\n<\/p>\n<\/td>\n

\n

\n65,317\n<\/p>\n<\/td>\n

\n

\n-4.3%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n