Betterware de México, S.A.P.I. de C.V. (BWMX) Q3 Earnings call transcript Oct 24, 2024
1min read BeFra, a leading direct-selling company, held its third quarter earnings call, highlighting a robust performance with a 6.6% year-over-year increase in net revenues and a 7.4% growth over the first 9 months of 2024. The company's adjusted EBITDA surged by 11.7%, underscoring its operational strength and resilience.
Strategic Positioning and Growth Drivers
Luis Campos, Executive Chairman of BeFra, expressed confidence in the company's strategic positioning and its ability to sustain growth, despite challenging macroeconomic factors such as the depreciation of the Mexican peso and rising freight costs. The company's commitment to innovation, technology, and business intelligence has been instrumental in its success, as reflected in its double-digit compound annual growth rate in both revenue and EBITDA over the past 24 years.
Business Unit Performance
Andres Chevallier, CEO of BeFra, delved into the performance of the company's three business units, with Betterware Mexico and Jafra Mexico leading the charge. Betterware Mexico reported a 3.2% quarterly growth and a 5.7% year-to-date growth, driven by higher associate productivity and the successful introduction of new categories like wellness. Jafra Mexico, the fragrance and beauty business, saw a 9.2% revenue increase, fueled by successful product innovations and a focus on operational efficiency.
Financial Highlights
Alejandro Ulloa, CFO of BeFra, provided insights into the company's financial performance, noting a 17.8% EBITDA margin and an 8.4% decrease in adjusted net income due to increased tax provisions. Despite temporary disruptions, such as the sale of Jafra's former headquarters in Mexico, BeFra maintained a strong financial position, with a net debt down 4.7% year-over-year and a net debt-to-EBITDA ratio of 1.76x.
Future Outlook
Looking ahead, BeFra is optimistic about its ability to finish the year strongly, with a focus on innovation, technology, and business intelligence. The company is expanding its product portfolio and exploring new markets, including the U.S. and Peru, to drive growth and create lasting shareholder value.
Investor Questions
Analysts on the call inquired about the company's expansion strategies, inventory management, and the impact of external factors on its performance. Management addressed these concerns, emphasizing the importance of operational efficiency, strategic investments, and a customer-centric approach.
Conclusion
BeFra's third quarter earnings call underscored the company's resilience and adaptability in the face of challenges, while highlighting its strategic initiatives to drive growth and profitability. With a strong focus on innovation, technology, and business intelligence, BeFra is well-positioned for a successful fourth quarter and a promising future.
