Recent developments include the release of Q1 2026 earnings results and transcripts, highlighting operational performance and financial outcomes. The company continues to address market challenges and pursue strategic initiatives to maintain revenue growth and margin stability.

• Betterware reported Q1 2026 earnings with operational highlights and financial results detailed in earnings transcripts and releases [N1][N2].
• The company continues to mitigate tariff impacts and currency risks through sourcing strategies and hedging as disclosed in recent filings [S1].
• Jafra segment showed growth in 2025, contributing positively to consolidated revenue despite macroeconomic headwinds [N3][S1].
• Management remains focused on strengthening brand presence, product innovation, and technology integration to support sustainable growth [N2][S1].

The company benefits from a diversified product portfolio across two distinct consumer segments, with Jafra showing revenue growth despite macroeconomic headwinds. Its direct sales model fosters strong customer relationships and recurring purchases. Management's active mitigation of tariff impacts and currency risks through sourcing strategies and hedging enhances margin stability. The increase in cash flow from operating activities and efforts to reduce debt leverage indicate financial discipline. Continued innovation, digital transformation initiatives, and expansion in core markets could support sustained operational performance. The experienced leadership team and independent board members provide governance and strategic oversight aligned with shareholder interests.

The company faces challenges from a subdued consumption environment and socio-political uncertainties in its core markets, which have led to slower revenue growth and a decline in Betterware segment sales. Import tariffs on Chinese products have negatively impacted gross margins, and currency volatility remains a risk despite hedging efforts. Liquidity ratios below 1 suggest potential short-term financial constraints. The company's reliance on a direct sales model may be vulnerable to changes in consumer behavior and competitive pressures. Additionally, fluctuations in macroeconomic conditions and regulatory changes could adversely affect profitability and cash flow. The need to manage debt levels and comply with financial covenants adds to financial risk.

Betterware's moat is supported by its established direct-to-consumer sales model leveraging a network of distributors and associates, enabling broad market reach and customer engagement. The dual-segment structure with Betterware and Jafra diversifies revenue streams across home organization and beauty/personal care markets. The company's proactive approach to mitigating tariff impacts through supplier renegotiations and production nationalization enhances cost competitiveness. Additionally, disciplined foreign exchange hedging strategies reduce currency volatility risks. The leadership team's deep industry experience and strategic focus on innovation and technology integration further support operational resilience. However, the company's current liquidity ratios below 1 indicate working capital constraints that require ongoing management attention.

• Macroeconomic and Consumption Risks: The company operates in a subdued consumption environment influenced by macroeconomic volatility and socio-political uncertainty, which can reduce consumer spending and slow revenue growth.
• Tariff and Supply Chain Risks: Import tariffs on Chinese-manufactured plastic goods have reduced gross margins, particularly affecting categories dependent on Chinese imports, despite mitigation efforts.
• Currency and Exchange Rate Risks: Exposure to U.S. dollar-denominated imports creates foreign exchange risk, with volatility potentially impacting costs and financial results despite hedging strategies.
• Liquidity and Financial Covenants: Current liquidity ratios below 1 indicate working capital constraints. The company must manage debt levels and comply with financial covenants to avoid financial distress.
• Competitive and Market Risks: The direct sales and multilevel marketing models face competitive pressures and depend on distributor and consultant engagement, which may be affected by market dynamics and consumer preferences.

• BETTERWARE DE MEXICO, S.A.P.I. DE C.V operates primarily in Mexico with two main business segments: Betterware (home organization products) and Jafra (beauty and personal care products).
• Betterware sells products through a two-tier sales model involving distributors and associates, with weekly product distribution and a two-week credit line to distributors.
• Jafra operates a multilevel marketing program with leaders and consultants, offering 30-day credit lines and monthly promotional catalogues.
• Betterware's product categories include kitchen and food preservation, home solutions, bathroom, laundry & cleaning, tech and mobility, bedroom and wellness.
• Jafra's product categories include fragrance, color, skin care, and toiletries.
• For the fiscal year ended December 31, 2024, the company reported revenue of approximately 14.1 billion MXN and net income of approximately 711.5 million MXN.
• Basic earnings per share for 2024 were 19.11 MXN, with diluted EPS reported as 27.89 MXN for 2023.
• As of December 31, 2024, the company had cash and cash equivalents of approximately 296.6 million MXN, current assets of 4.54 billion MXN, and current liabilities of 4.76 billion MXN, resulting in a current ratio of 0.95 and a cash ratio of 0.06.
• The company faced a subdued consumption environment in 2025 due to macroeconomic volatility and socio-political uncertainty, leading to slower revenue growth.
• Import tariffs on Chinese plastic-based goods reduced gross margin by about 0.6%, mainly affecting categories dependent on Chinese imports.
• The company mitigated tariff impacts through supplier renegotiations, selective price adjustments, and progress toward production nationalization.
• The Mexican peso remained relatively strong against the U.S. dollar in 2025, providing cost benefits but also exchange rate volatility risks, which the company manages through disciplined hedging strategies.
• For the year 2025, Betterware segment revenue decreased by 5.1% to approximately 5.69 billion MXN, while Jafra segment revenue increased by 5.5% to approximately 8.55 billion MXN.
• Total net revenue for 2025 was approximately 14.24 billion MXN, a 1.0% increase over 2024.
• EBITDA for Betterware decreased by 15.2% in 2025, while Jafra's EBITDA increased by 4.7%.
• Adjusted EBITDA for the group decreased by 4.6% in 2025, influenced by FX impacts and revenue changes.
• The company maintains revolving credit facilities and long-term debt with financial covenants including leverage and coverage ratios.
• Management aims to prepay long-term debt to achieve leverage below 2x, financing long-term debt mainly through Jafra's cash flow.
• The board of directors includes experienced executives and independent members with backgrounds in consumer products, finance, and corporate governance.
• Executive compensation for 2025 totaled approximately 59.1 million MXN, including fixed and variable components.
• The company uses a five-step revenue recognition model consistent with IFRS 15.
• Deferred revenue relates to a promotional points program where distributors and consultants earn points redeemable for rewards.
• Cash flow from operating activities increased by 24.5% in 2025 compared to 2024.
• The company has lease obligations for cars, IT equipment, warehouses, and buildings with expirations through 2034.
• The company complies with bond issuance obligations including interest payments and financial reporting requirements.
• The company reported a decrease in administrative expenses in 2025 compared to 2024, partly due to absence of impairment charges recognized in 2024.