Betterware (BWMX) Q1 2026 earnings summary

Executive summary

• Revenue grew 0.3% year-over-year, with EBITDA up 13.9%–14% and margin expanding 211 bps to 17.4%, driven by cost management and operational efficiency.

• Net income surged 85.8%–86.7% year-over-year, reflecting normalized profit levels and lower leverage.

• Free cash flow improved significantly to $351.5M–$352M MXN, with a 58% cash conversion rate.

• All business units contributed to improved profitability, despite a temporary slowdown in Jafra Mexico.

• The Tupperware Latin America acquisition is expected to accelerate expansion, with regulatory approval anticipated in Q2 2026.

Financial highlights

• EBITDA margin expanded by 211 bps to 17.4%; excluding extraordinary expenses, margin would have been 18.4%.

• Net income nearly doubled year-over-year, driven by normalized profitability and lower interest expenses.

• Free cash flow normalized, converting 58% of EBITDA into cash, with 25 consecutive quarters of dividend payments.

• Net revenue reached $3,509.7M, with gross margin at 66.3%.

• Net debt/EBITDA improved to 1.5x from 2.08x year-over-year.

Outlook and guidance

• Revenue growth guidance for 2026 is $14,800M–$15,400M, representing 4%–8% growth over 2025.

• Management expects EBITDA margin of at least 19% for 2026.

• Tupperware acquisition expected to close in Q2, anticipated to be immediately earnings accretive and contribute 40% to EPS.

• Continued focus on innovation, digital transformation, and regional expansion to drive future growth.

• Guidance will be updated after the Tupperware transaction closes.