BWMX · Betterware de México, S.A.P.I. de C.V.

BeFra's Q1 2026 results demonstrated resilience in a challenging macro environment, with modest revenue growth of 0.3% YoY to Ps. 3,509.7 million reflecting early recovery signs across key units. Betterware Mexico grew 2.6% despite one fewer week, aided by a 2.8% average associate base expansion and 3.3% average weekly revenue growth. Jafra US returned to growth in USD terms, though FX impacts softened MXN reporting, while Jafra Mexico dipped 0.6% due to a shift toward consultant productivity over recruitment, with recovery eyed for Q2 via base expansion. Profitability shone brightly, as EBITDA climbed 13.9% to Ps. 609.9 million with a 211 bps margin expansion to 17.4%, driven by cost discipline, operational efficiencies, and favorable mix across the portfolio; excluding Tupperware-related costs, margins hit 18.4%. Net income more than doubled to Ps. 281.4 million, boosting EPS 85.7% to Ps. 7.54, supported by normalized operations absent prior-year extraordinary items and lower leverage. Cash generation normalized strongly at Ps. 351.5 million free cash flow (58% conversion), enabling deleveraging to 1.50x Net Debt/EBITDA from 2.08x, alongside ROIC improvement to 27.0%. Management reaffirmed FY2026 guidance of 4-8% revenue growth to Ps. 14.8-15.4 billion and >=19% EBITDA margin, excluding Tupperware, with Q2 approvals anticipated for the accretive acquisition (40% EPS boost). Strategic focus includes Jafra Mexico consultant growth, Colombia launch success, and digital enhancements like Salesforce CRM and J+ platform, underscoring a diversified, asset-light model poised for sustained execution amid geopolitical uncertainties.