Betterware Reports Fourth Quarter and Fiscal Year 2023 Results

GUADALAJARA, Mexico, Feb. 22, 2024

The Company will host a conference call at 9:00 am (Eastern Time) on February 23, 2024, to discuss its results for the fourth quarter of fiscal year 2023.

Message from the Chairman

We are immensely proud of our performance throughout the last quarter of the year, which significantly contributed to our strong overall results for 2023. This includes achieving double-digit revenue growth and increased profitability. Moreover, our robust cashflow generation has enabled us to further strengthen our capital structure and bolster the resilience of our balance sheet as we enter 2024.

As a group, we have embarked upon a phase of renewed growth, driven in part by the notable stabilization of Mexico's home solutions market following the pandemic's disruptive impact. This, coupled with strong execution on commercial strategies based on our four key elements (Portfolio, Incentives, Ease of Doing Business, and Kinship) have fueled a resurgence in growth at Betterware Mexico, reflected in a 7% year over year increase in Q4 revenues.  Further, Jafra Mexico continues to capture the tremendous opportunity in Latin America's second largest beauty market and the tenth largest globally.  And we are well-positioned to grow Jafra US and to introduce Betterware to the US market in 2024.  

Our Jafra acquisition has proven both successful and highly accretive; surpassing our expectations and delivering exceptional results. Prior to the acquisition, Jafra Mexico faced a declining trend in net revenue, which we successfully reversed to secure double-digit growth in 2023. Similarly, EBITDA and EBITDA margin have followed this positive trend. The initial implementation of our proven model's key pillars- product innovation, technology, and business intelligence- has propelled the company back into a growth phase while elevating profitability to new heights.  We have also realized meaningful synergies resulting in cost savings across various areas including catalog printouts, cardboard, insurance, market research, software, technology resources, and organizational optimization.  Jafra is poised for a strong trajectory within Mexico's large and growing beauty market, approximately 50% of which is served by the direct sales segment.  2023 has been a pivotal year in our pursuit of becoming the number one direct sales beauty company in Mexico, and we remain steadfast in our commitment to implementing all necessary transformations to achieve this goal.

We are currently ramping up our international operations.  Despite 2023's challenging start at Jafra US, due to unforeseen decisions made by the prior newly installed management, we have successfully stabilized revenue and made important decisions to position the Company for future growth.  A key milestone was almost reaching operational breakeven in the fourth quarter. This marks a crucial turning point for the Company, setting the stage for a new phase of financial stability and expansion opportunities.  In parallel, Betterware US is ready for launch at the beginning of Q2, showcasing an enhanced direct selling model that we are confident will pave the way for success.  Finally, we made continued progress to launch Betterware in Peru during the first half of 2025.