Betterware (BWMX) Q4 2024 earnings summary

Executive summary

• Q4 2024 net revenue increased 11.1% year-over-year, led by JAFRA Mexico's 22.2% growth and Betterware Mexico's 1.5% rise, despite external headwinds.

• Full-year 2024 revenue grew 8.4%, with JAFRA Mexico up 13% and Betterware Mexico up 4.6%.

• Adjusted EBITDA for 2024 rose 2% to $2,775M, driven by JAFRA Mexico (+15.5%), while Betterware Mexico's EBITDA declined 9.6% due to temporary supply chain issues.

• Adjusted EPS grew 10.5% in Q4 and 17.3% for the year, supported by higher revenue, margin gains, and lower interest expense.

• Leadership transition: Andres Campos appointed President and CEO; Luis Campos becomes non-executive chairman.

Financial highlights

• Q4 2024 net revenue: $3,778M (+11.1% YoY); full-year: $14,101M (+8.4% YoY).

• Q4 gross margin: 67.3% (+116 bps YoY); full-year: 67.9% (+70 bps YoY), driven by Betterware Mexico.

• Q4 adjusted EBITDA: $772M (-5.8% YoY); full-year adjusted EBITDA: $2,775M (+2.0% YoY).

• Q4 adjusted net income: $437M (+10.5% YoY); full-year: $1,219M (+17.3% YoY).

• Free cash flow for 2024: $1,769M (-21.6% YoY), impacted by one-time supplier payment adjustments in 2023.

Outlook and guidance

• 2025 guidance: net revenue of $14,900M–$15,300M and EBITDA of $2,900M–$3,000M, representing 6–9% growth in both metrics.

• Targeting net debt to EBITDA ratio of 1.5x or below in 2025.

• Board proposes MXN 250 million ($250M) Q4 dividend, marking the twentieth consecutive quarterly payment.