Betterware de Mexico SAPI de C (NYSE:BWMX), which operates under the BeFra name, reported a sharp increase in third-quarter revenue and earnings as Tupperware completed its first full quarter within the group, while management outlined plans to address weaker sales at Jafra Mexico.
Consolidated revenue rose 43.1% year over year to MXN 4.83 billion, driven largely by the addition of Tupperware. On an organic basis, comprising Betterware and Jafra, revenue increased 2.3%. Consolidated EBITDA increased 39.6% to MXN 1.01 billion, while net income rose 24.2% to MXN 390 million.
Tupperware Broadens Portfolio
Tupperware represented 28.5% of consolidated third-quarter revenue, compared with 31.5% for Betterware and 40% for Jafra. Mexico accounted for 87.5% of consolidated revenue, while Latin America represented 8.2%, primarily reflecting Tupperware’s Brazil operations.
Campos said Tupperware’s core direct-selling revenue increased 14% during the quarter. Direct-selling revenue in Mexico rose 23% year over year, while the revenue decline in Brazil moderated to 3.3%, an improvement from the 10% to 15% declines experienced before the acquisition.
Reported Tupperware revenue declined 6.8% on a pro forma basis, however, because the prior-year quarter included significant exports and business-to-business sales. The company has chosen to discontinue the business-to-business activity in favor of its person-to-person sales channel. Campos said the comparison should be less affected in the fourth quarter because there were no significant retail sales in the fourth quarter of 2025.
Management said it is investing in Tupperware’s innovation, technology and business-intelligence capabilities. Campos said the company is exploring food-container materials beyond plastic, including glass, stainless steel and ceramics, while also evaluating growth opportunities in drinkware, kitchen utensils and cooking-related products.
“We are going to start innovating specifically for the Latin American markets,” Campos said, noting that products suited for the U.S. or Europe may not necessarily fit consumer and economic needs in Mexico and Brazil.
Betterware Gains, Jafra Mexico Faces Pressure
Betterware Mexico revenue increased 8.5% year over year, marking the brand’s third consecutive quarter of year-over-year growth. Campos said Betterware also continued to grow in Latin America, where the company opened Ecuador last year and Colombia this year as part of its focus on the Andean region.
Jafra’s total revenue declined 2.8%. Management attributed the pressure in Mexico to lower associate activity during an extended summer holiday period and shifts in consumer attention related to the World Cup. Unlike Betterware, Jafra did not offset the lower activity through higher associate productivity.
Campos said he has assumed the role of interim managing director of Jafra Mexico and plans to improve promotional planning, commercial execution and operating decision-making. He said the company expects to launch its Jafra Plus app at the beginning of next year after delays and is pursuing more complex product innovation in skincare.
For the fourth quarter, Campos said BeFra expects mid-single-digit growth at Jafra and high-single-digit growth at Betterware. Jafra’s U.S. operations delivered their second consecutive quarter of positive EBITDA under a leaner expense structure.
Margins, Cash Flow and Guidance
Consolidated EBITDA margin was 20.9%, compared with 21.4% a year earlier. For the first nine months, EBITDA margin expanded to 19.2% from 18.5%. Management said Betterware’s gross margin faced pressure from higher freight costs, as the brand sources most of its products from China. Tupperware, by contrast, manufactures most of its products locally in Mexico and Brazil.
Campos said BeFra is considering pricing, promotions and other measures to help recover Betterware’s gross margin. Chief Financial Officer Raúl del Villar said MXN 47 million of extraordinary Tupperware acquisition-related expenses were recorded in the consolidated business, with those expenses included within Betterware’s reported results because the holding company also operates that brand.
BeFra narrowed its full-year organic net revenue growth outlook to 4% to 5%, within its prior range. It raised post-acquisition net revenue growth guidance to 24% to 26% and maintained its expectation for a 19% full-year EBITDA margin.
- Third-quarter free cash flow totaled MXN 1.06 billion, equal to 105% of EBITDA.
- First-nine-month free cash flow was MXN 1.87 billion, representing 78% conversion of year-to-date EBITDA.
- Pro forma net debt to trailing-12-month EBITDA improved to 1.65 times after MXN 431 million of debt reduction.
- Interest coverage increased to 6.91 times, while the cash conversion cycle improved to 50 days from 78 days a year earlier.
The company also said shareholders approved a MXN 250 million dividend at the October meeting, to be paid in the fourth quarter. Del Villar said it will mark BeFra’s 27th consecutive quarter of dividend payments since its initial public offering.
Management did not provide a long-term leverage target but said it expects to continue using cash generation to support investment, dividends and debt reduction.
About Betterware de Mexico SAPI de C (NYSE:BWMX)
Betterware de México, SAP.I. de C.V. is a Mexico-based direct-to-consumer company that develops, distributes and sells products for the home, personal care and beauty markets. Its Betterware brand is known primarily for home-organization, kitchen, cleaning, storage and lifestyle products.
The company sells through a network of independent distributors and representatives, supported by product catalogs, digital commerce and other direct-selling channels. This model allows Betterware to reach consumers across Mexico and provides distributors with product, ordering and promotional support.
In 2022, Betterware de México expanded its business through the acquisition of JAFRA, an international direct-selling beauty company.
