Betterware de México (BeFra) Reports Fourth Quarter 2025 Results

Guadalajara, Mexico – Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) (“BeFra” or the “Company”), announced today its consolidated financial results for the fourth quarter 2025.

The figures presented in this report are expressed in nominal Mexican Pesos (Ps.) unless otherwise noted, presented and approved by the Board of Directors, prepared in accordance with IFRS, and may include minor differences due to rounding.

Message from the President and CEO

Andrés Campos Chevallier, President and CEO of BeFra Group, shared:

“As we close the fourth quarter and full year 2025, we reflect on a year not marked by robust growth, but that highlighted the resilience of our business model, despite a year marked by macroeconomic volatility, socio-political uncertainty, and softer consumption trends across our core markets.

“Although net sales increased only slightly for both the quarter and full year, the performance of our business units continued to recover after a difficult 1Q25. JF Mexico continues to grow, BW Mexico progressively recovered from a weak start to the year, JF US delivered its first “back to growth” quarter, and BW Latam continues to deliver strong QoQ growth, validating the portability of our brand to new Latam markets.

“Profitability also recovered throughout the year, underpinned by disciplined expense management and despite extraordinary FX-related impacts to our Gross Margin in Q4, as well as growth investments in international expansion and related M&A fees. When excluding these effects, underlying profitability fundamentals (external and internal) of our business remain healthy and consistent.

“Cash generation remained a core strength of the business, as we closed the year with an 83% EBITDA cash conversion, thanks to core profitability and still improving inventory control. This financial discipline has enabled us to further deleverage the balance sheet, continue returning cash to shareholders through consistent dividends, and provide significant balance sheet flexibility for future growth.

“Finally, as we recently announced, the completion of the Tupperware Latam deal is set to advance our strategy of adding Great Brands that we can grow with BeFra’s proven model. Aside from being substantially accretive, the acquisition accelerates our ability to exploit many market opportunities throughout Latin America, including establishing a solid foothold in the Brazilian market. Tupperware’s operations will also enable us to strengthen our supply chain by nearshoring production, among other value-added benefits.

“As we enter 2026, we do so from a position of strength, with improving commercial trends, strong underlying profitability, and an increasingly stronger balance sheet. The five pillars we have laid out for our 2025-2030 strategic expansion remain more relevant than ever and will enable us to consistently deliver value to shareholders and other stakeholders alike. Today more than ever, we feel confident on our ongoing belief that ‘The best is yet to come’.”

Q4 2025 Select Consolidated Financial Information

	Q4				FY
Results in ‘000 MXN	2025	2024			2025	2024
Net Revenue	$3,825,539	$3,778,469	1.2%		$14,264,632	$14,100,758	1.2%
Gross Margin	65.0%	67.3%	-233 bps		66.6%	67.9%	-130 bps
EBITDA	$726,463	$510,323	42.4%		$2,662,689	$2,078,394	28.1%
EBITDA Margin	19.0%	13.5%	549 bps		18.7%	14.7%	397 bps
Adj. EBITDA	$726,463	$771,596	-5.8%		$2,662,689	$2,774,697	-4.0%
Adj. EBITDA Margin	19.0%	20.4%	-142 bps		18.7%	19.7%	-104 bps
Net Income	$249,851	$225,305	10.9%		$1,042,756	$711,728	46.5%
Adj. Net Income	$249,851	$436,664	-42.8%		$1,042,756	$1,219,280	-14.5%
EPS	6.70	6.04	10.9%		27.94	19.07	46.5%
Adj. EPS	6.70	11.70	-42.8%		27.94	32.66	-14.5%
Free Cash Flow	$1,132,307	$548,430	106.5%		$2,222,191	$1,783,901	24.6%
Net Debt / Adj. EBITDA	1.56	1.76			1.56	1.76
Interest Coverage	4.16	3.46			4.16	3.46

Associates
Avg. Base	1,132,220	1,196,417	-5.4%		1,126,867	1,179,058	-4.4%
EOP Base	1,125,605	1,180,458	-4.6%		1,125,605	1,180,458	-4.6%
Distributors
Avg. Base	62,665	62,727	-0.1%		62,756	64,654	-2.9%
EOP Base	61,206	63,339	-3.4%		61,206	63,339	-3.4%

Revenue: Consolidated net revenue increased 1.2% in the quarter, with JF Mexico continuing to grow, BW Mexico narrowing its decline, and JF US returning to growth for the first time. BeFra finished the year with growth that was at the low end of management’s expectations, but which has continued to strengthen on various fronts, despite a volatile year. Although the associate base closed the year slightly lower, this was offset by higher productivity levels achieved through a new VIP program and incentives.

Profitability: EBITDA for the quarter remained strong, with a 19.0% margin, although decreasing 5.8% YoY due to temporary Gross Margin impacts in both the Betterware and Jafra Mexico businesses, as explained in their respective sections below. The margin decrease during 2025 was mainly due to an unusually weak first quarter, but there was a progressive recovery throughout the remainder of the year. It is also relevant to note that Adjusted Net Income for the year decreased 14.5%, although the YoY comparison was affected by an almost Ps. 200 million positive “mark to market” non-cash accounting effect of derivative positions in 2024; as a reminder, BeFra switched to derivative accounting in 2025, which accounted for derivatives under COGS in 2025. Without that change, FY Adjusted Net Income would have grown 2.2%.

Cash Generation: BeFra continued to deliver strong Free Cash Flow in both the quarter and year, with more than 83% of EBITDA converted to cash for the year, boosted by a reduction of excess inventory that represented Ps. 459 million in cash. This adds to BeFra’s historical ability to generate strong free cashflow despite volatile markets, and marks an important year in which the Company approaches optimal inventory levels. Going forward, cashflow is expected to normalize to a historical 60-65% of EBITDA levels.

Value Creation: As a result of the year, and despite the effects of 1Q25 on profitability, shareholder return ratios are strengthening, with ROIC trending back toward 25% and ROTA approaching 20%.

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