Betterware (BWMX) Q2 2025 earnings summary

Executive summary

• Consolidated revenue grew 5.1% year-over-year in Q2 2025, with EBITDA up 3.5% and net income up 7.7%, marking a strong recovery after a challenging Q1.

• Free cash flow reached MXN $592.2 million, up 29.2% year-over-year, with an 87.2% EBITDA conversion rate.

• Growth was driven by Jafra Mexico (+10.9% YoY), sequential rebounds in Betterware Mexico and Jafra US, and expansion into Ecuador.

• All business units contributed to growth, with the associate base expanding to 1.13 million and Ecuador surpassing 2,500 associates.

• Both brands in Mexico outpaced their respective markets by 3–5 times in 2024.

Financial highlights

• Q2 2025 net revenue: MXN $3,563M (+5.1% YoY); H1 2025 net revenue: MXN $7,061.8M (+1.0% YoY).

• Q2 2025 EBITDA: MXN $679M (+3.5% YoY); EBITDA margin: 19.1%.

• Q2 2025 free cash flow: MXN $592.2M (+29.2% YoY); FCF conversion: 87.2% of EBITDA.

• Q2 2025 gross margin: 67.1%, stable year-over-year.

• Net debt to EBITDA ratio: 1.97x, improved from Q1 2025.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: net revenue MXN $14,900M–$15,300M and EBITDA MXN $2,900M–$3,000M, representing 6–9% growth.

• Management expects continued margin improvement in H2 2025 from product mix, strong peso, and lower freight costs.

• JAFRA U.S. expected to reach breakeven by year-end through top-line growth and cost controls.

• Plans to reduce leverage and maintain historical EBITDA-to-FCF conversion of 60% by year-end.

• Cautiously optimistic for H2 2025, focusing on commercial strategies to drive growth and profitability.