Betterware de Mexico S.A.P.I. de C.V. has announced its financial results for the second quarter of 2023. The company experienced a 4% increase in net revenue, reaching $192 million. This marks the second consecutive quarter of growth for Betterware.
Key Data:
- Net revenue increased by 4% to $192 million.
- Jafra Mexico saw a 14.5% increase in net revenue and a 25% increase in EBITDA compared to Q2 2022.
- Jafra Mexico and Jafra USA contributed 48% and 7% of the net revenue, respectively.
- Comparable net revenue, excluding Jafra, decreased by 18.2%.
The growth in net revenue was partly driven by Jafra Mexico, which experienced a significant increase in both net revenue and EBITDA. However, when looking solely at Betterware’s performance, comparable net revenue decreased by 18.2%. This decline was attributed to lower numbers of active associates and distributors.
Observations:
- Betterware’s net revenue increased by 4%, thanks to the strong performance of Jafra Mexico.
- Comparable net revenue for Betterware decreased by 18.2% due to a decline in active associates and distributors.
- Jafra Mexico and Jafra USA played a significant role in contributing to Betterware’s net revenue.
Betterware also reported improved financial indicators in the second quarter. Inventories decreased by 20% year over year, indicating more efficient inventory management. Additionally, net debt at the end of the semester was 17.7% lower than the same period in 2022.
Observations:
- Betterware’s inventory management has become more efficient, with a 20% decrease in inventories.
- Net debt decreased by 17.7% YoY, indicating improved financial stability.
Luis G. Campo, Betterware’s Executive Chairman of the Board, expressed optimism about the company’s future. He emphasized the company’s focus on achieving greater efficiencies, differentiating themselves from competitors through innovation, providing technological support to the sales force, and utilizing data analysis for strategic decision-making. Campo also expressed confidence in achieving their 2023 guidance and believes that Betterware is on track for sustained long-term growth based on the positive trends seen in their results so far.
Observations:
- Betterware’s Executive Chairman of the Board, Luis G. Campo, is optimistic about the company’s future.
- The company’s strategic focus includes achieving greater efficiencies, innovation, technological support, and data analysis.
- Campo believes Betterware is on track for sustained growth based on positive performance trends.
