Betterware de Mexico has reported its financial results for the third quarter of fiscal year 2023. The company has seen stability and strong profitability, resulting in strong cash flow generation. Net debt-to-EBITDA has improved, and the company’s balance sheet remains strong with reduced debt and increased stockholders’ equity. The company also plans to pay out a dividend of Ps. 200M, marking the 15th consecutive quarter of dividend payments since becoming public in 2020. Betterware’s revenue has shown stability and improvement for the fourth consecutive quarter, with a 3% increase in Q3 2023 compared to Q4 2022. EBITDA has also increased, with a 10.1% growth in Q3 2023 and a 3.3pp margin expansion.
Jafra Mexico, a subsidiary of Betterware, has achieved positive results with an 11.6% YoY increase in net revenue for Q3 2023. The company’s consultant base has also grown by 13.9% compared to the previous year. EBITDA for Jafra Mexico, however, decreased due to the reversal of provisions in Q3 2022, but performance remains in line with expectations. Jafra USA is undergoing a turnaround, aiming to achieve business stability and revenue growth. The company has seen progress, with decreased EBITDA losses in Q3 2023 compared to the previous year. The chairman of Betterware expressed confidence in the company’s performance and future growth, highlighting the successful initiatives and positive results achieved so far.
In terms of financials, Betterware’s consolidated net revenue for Q3 2023 decreased by 1.5% compared to the same period last year. However, year-to-date net revenue has increased by 16.1% due to the inclusion of Jafra’s results for the entire year. Gross margin has expanded, and EBITDA margin remains consistent with the previous year. Net income has significantly increased in Q3 2023, and EPS has also seen a significant growth. Overall, the company’s financials indicate stability, profitability, and positive growth prospects.
