Q4 2025 Betterware de Mexico SAPI de CV Earnings Call

February 26, 2026

Speaker #2: To remind participants that this call may contain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

Speaker #2: Please consider these statements alongside the cautionary language and safe-harbor statement in today's earnings release. As well as the risk factors outlined in BETTERWARE DE C4 SEC filings.

Speaker #2: BETTERWARE undertakes no obligation to update any forward-looking statements. A reconciliation of and other information regarding non-GAAP financial measures discussed on this call can also be found on the earnings release published earlier today as well as the investor section of the company's website.

Operator: A reconciliation of, and other information regarding non-GAAP financial measures discussed on this call can also be found on the earnings release published earlier today, as well as the investor section of the company's website. Present on today's call are BeFra's President and Chief Executive Officer, Andrés Campos, and Chief Financial Officer, Rodrigo Muñoz. I will now turn the call over to Mr. Campos. Please go ahead.

Speaker #2: Present on today's call are BETTERWARE DE C4 president and chief executive officer, Andres Campos, and chief financial officer, Rodrigo Muñoz. I will now turn the call over to Mr. Campos.

Speaker #2: Please go ahead. Thank you, operator, and good afternoon, everyone. Thank you for joining our call today. Having closed the fourth quarter and full year 2025, we reflect on a year marked by growth and resilience despite accomplished year in the face of macroeconomic volatility, sociopolitical uncertainty, and softer consumption trends across our core markets.

Andrés Campos Chevallier: Thank you, operator, and good afternoon, everyone. Thank you for joining our call today. Having closed Q4 and full year 2025, we reflect on a year marked by growth and resilience despite a complex year in the face of macroeconomic volatility, sociopolitical uncertainty, and softer consumption trends across our core markets. While net sales increased for both the quarter and the full year, the recovery across our business units continued after a difficult Q1. JAFRA Mexico continued to grow, Betterware Mexico progressively narrowed sales decline, and Jafra US delivered its first back to growth quarter in Q4, following several periods of recovery. Turning to slide four. Q4 revenue grew 1.2% year-over-year in the quarter. Our EBITDA margin remains strong at 19%, although below last year due to temporary gross margin impacts.

Andres Campos: Thank you, operator, and good afternoon, everyone. Thank you for joining our call today. Having closed Q4 and full year 2025, we reflect on a year marked by growth and resilience despite a complex year in the face of macroeconomic volatility, sociopolitical uncertainty, and softer consumption trends across our core markets. While net sales increased for both the quarter and the full year, the recovery across our business units continued after a difficult Q1. JAFRA Mexico continued to grow, Betterware Mexico progressively narrowed sales decline, and Jafra US delivered its first back to growth quarter in Q4, following several periods of recovery. Turning to slide four. Q4 revenue grew 1.2% year-over-year in the quarter. Our EBITDA margin remains strong at 19%, although below last year due to temporary gross margin impacts.

Speaker #2: While net sales increased for both the quarter and the full year, the recovery across our business units continued after a difficult first quarter. JAFRA Mexico continued to grow, BETTERWARE Mexico progressively narrowed sales decline, and JAFRA US delivered its first back-to-growth quarter in Q4.

Speaker #2: Following several periods of recovery, turning to slide 4, fourth quarter revenue grew 1.2% year over year in the quarter. Our EBITDA margin remained strong at 19%, although below last year due to temporary gross margin impacts.

Andrés Campos Chevallier: Importantly, free cash flow more than doubled versus the prior year, thanks to consistent profitability and strategic activities to improve our investments in working capital, specifically inventories. Looking at the full year on slide five, revenue grew 1.2%, despite a difficult Q1 and soft consumption levels in our core markets throughout the year. EBITDA margin closed at 18.7%, primarily impacted by the abnormal contraction in Q1. Cash generation was one of the highlights of the year, with more than 83% of EBITDA converted into free cash flow, thanks to inventory optimization, which released MXN 459 million in cash. Additionally, we reduced total debt by MXN 700 million throughout the year, decreasing our leverage multiple from 1.75x to 1.66x.

Andres Campos: Importantly, free cash flow more than doubled versus the prior year, thanks to consistent profitability and strategic activities to improve our investments in working capital, specifically inventories. Looking at the full year on slide five, revenue grew 1.2%, despite a difficult Q1 and soft consumption levels in our core markets throughout the year. EBITDA margin closed at 18.7%, primarily impacted by the abnormal contraction in Q1. Cash generation was one of the highlights of the year, with more than 83% of EBITDA converted into free cash flow, thanks to inventory optimization, which released MXN 459 million in cash. Additionally, we reduced total debt by MXN 700 million throughout the year, decreasing our leverage multiple from 1.75x to 1.66x.

Speaker #2: Importantly, free cash flow more than doubled versus the prior year thanks to consistent profitability and strategic activities to improve our investments in working capital specifically inventories.

Speaker #2: Looking at the full year on slide 5, revenue grew 1.2% despite a difficult first quarter and soft consumption levels in our core markets throughout the year.

Speaker #2: EBITDA margin closed at 18.7%, primarily impacted by the abnormal contraction in Q1. Cash generation was one of the highlights of the year, with more than 83% of EBITDA converted into free cash flow, thanks to inventory optimization which released $459 million in cash.

Speaker #2: Additionally, we reduced total debt by $700 million throughout the year, decreasing our leverage multiple from 1.75 times to 1.56 times. This combination of discipline execution and strengthening of our balance sheet positioned us well for 2026.

Andrés Campos Chevallier: This combination of disciplined execution and strengthening of our balance sheet positions us well for 2026. On slide 6, as we close another year, we want to reflect on BeFra's evolution over the years, which provides important context about our ability to grow. Since 2018, revenue has grown more than 6 times, from 2.3 billion to 14.3 billion MXN, representing approximately 30% CAGR. What began as a single brand company has become a diversified multi-brand platform, with JAFRA now representing a significant portion of our revenue mix and profitability, while strengthening BeFra's geographic and category exposure. While 2025 was a complex year, more so for discretionary items like in Betterware, we see a great opportunity to ignite more growth going forward. On profitability, EBITDA expanded over 4 times, from 574 million to approximately 2.7 billion MXN.

Andres Campos: This combination of disciplined execution and strengthening of our balance sheet positions us well for 2026. On slide 6, as we close another year, we want to reflect on BeFra's evolution over the years, which provides important context about our ability to grow. Since 2018, revenue has grown more than 6 times, from 2.3 billion to 14.3 billion MXN, representing approximately 30% CAGR. What began as a single brand company has become a diversified multi-brand platform, with JAFRA now representing a significant portion of our revenue mix and profitability, while strengthening BeFra's geographic and category exposure. While 2025 was a complex year, more so for discretionary items like in Betterware, we see a great opportunity to ignite more growth going forward. On profitability, EBITDA expanded over 4 times, from 574 million to approximately 2.7 billion MXN.

Speaker #2: On slide 6, as we close another year, we want to reflect on Betterware de C4 evolution over the years, which provides important context about our ability to grow.

Speaker #2: Since 2018, revenue has grown more than six times, from 2.3 billion to 14.3 billion pesos. Representing approximately 30% CAGR. What began as a single-brand company has become a diversified, multi-brand platform with JAFRA now representing a significant portion of our revenue mix and profitability while strengthening BETTERWARE DE C4 geographic and category exposure.

Speaker #2: While 2025 was a complex year more so for discretionary items like in BETTERWARE, we see a great opportunity to ignite more growth going forward.

Speaker #2: On profitability, EBITDA expanded over four times, from 574 million to approximately 2.7 billion pesos. Margins normalized after the pandemic peak and now reflect a more balanced portfolio and receiving foundation.

Andrés Campos Chevallier: Margins normalized after the pandemic peak and now reflect a more balanced portfolio and receiving foundation. JAFRA's weight on the total revenue decreased margins starting in 2022, and Betterware difficult years of profitability have also weighted in a lower margin, although we expect more stable and even increasing margins going forward. Turning to slide 7. As in previous quarters, we continue advancing to our 5 strategic pillars, which define the next stage of BeFra's evolution. First, we will strengthen our leadership in Mexico. Second, we will continue our regional expansion, driving growth in the US and selectively expanding across Latin. Third, we will develop new brands and/or categories. Fourth, we will activate our digital P2P model. Finally, we will maintain strict financial discipline, prioritizing profitability, cash generation, and strong balance sheets as the foundation of sustainable long-term growth....

Andres Campos: Margins normalized after the pandemic peak and now reflect a more balanced portfolio and receiving foundation. JAFRA's weight on the total revenue decreased margins starting in 2022, and Betterware difficult years of profitability have also weighted in a lower margin, although we expect more stable and even increasing margins going forward. Turning to slide 7. As in previous quarters, we continue advancing to our 5 strategic pillars, which define the next stage of BeFra's evolution. First, we will strengthen our leadership in Mexico. Second, we will continue our regional expansion, driving growth in the US and selectively expanding across Latin. Third, we will develop new brands and/or categories. Fourth, we will activate our digital P2P model. Finally, we will maintain strict financial discipline, prioritizing profitability, cash generation, and strong balance sheets as the foundation of sustainable long-term growth....

Speaker #2: JAFRA's weight on the total revenue decreased margins starting in 2022, and BETTERWARE DE C4 difficult years of profitability have also weighted in a lower margin.

Speaker #2: Although we expect more stable and even increasing margins going forward. Turning to slide 7, as in previous quarters, we continue advancing to our five strategic pillars, which define the next stage of BETTERWARE DE C4 evolution.

Speaker #2: First, we will strengthen our leadership in Mexico, second, we will continue our regional expansion, driving growth in the US and selectively expanding across Latam, third, we will develop new brands and/or categories, fourth, we will activate our digital P2P model, and finally, we will maintain strict financial discipline prioritizing profitability, cash generation, and strong balance sheet as the foundation of sustainable long-term growth.

Andrés Campos Chevallier: These pillars remain the frameworks guiding our decisions and capital allocation going forward. On slide 8 is the first pillar, strengthening our leadership in the Mexican market. Turning to slide 9, we can see how in the Q4, Betterware delivered its strongest quarterly sales performance of 2025. While full year growth was constrained by weaker results in the Q1, commercial momentum progressively improved as the year advanced. It is important to point out that this is the first year since COVID, that throughout the year there was an increase in Betterware associate base, establishing the right momentum going into 2026. Betterware's Q4 EBITDA margin was mainly affected by temporary FX related impacts on growth margin. When excluding these effects, Q4 EBITDA margin would have been approximately 22%, similar to that of last year's quarter.

Andres Campos: These pillars remain the frameworks guiding our decisions and capital allocation going forward. On slide 8 is the first pillar, strengthening our leadership in the Mexican market. Turning to slide 9, we can see how in the Q4, Betterware delivered its strongest quarterly sales performance of 2025. While full year growth was constrained by weaker results in the Q1, commercial momentum progressively improved as the year advanced. It is important to point out that this is the first year since COVID, that throughout the year there was an increase in Betterware associate base, establishing the right momentum going into 2026. Betterware's Q4 EBITDA margin was mainly affected by temporary FX related impacts on growth margin. When excluding these effects, Q4 EBITDA margin would have been approximately 22%, similar to that of last year's quarter.

Speaker #2: These pillars remain the framework guiding our decisions and capital allocation going forward. On slide 8 is the first pillar: strengthening our leadership in the Mexican market.

Speaker #2: Turning to slide 9, we can see how in the fourth quarter, BETTERWARE DE C4 delivered its strongest quarterly sales performance of 2025. While full-year growth was constrained by weaker results in the first quarter, commercial momentum progressively improved as the year advanced.

Speaker #2: It is important to point out that this is the first year since COVID that throughout the year there was an increase in BETTERWARE's stencil base, establishing the right momentum going into 2026.

Speaker #2: BETTERWARE's fourth quarter EBITDA margin was mainly affected by temporary effects-related impacts on gross margin. When excluding these effects, fourth quarter EBITDA margin would have been approximately 22%, similar to that of last year's quarter.

Speaker #2: To summarize BETTERWARE's performance, it finished the year with improving commercial momentum, a healthier balance sheet, and a more efficient operating structure. On slide 10, we summarize BETTERWARE DE C4 Mexico's main achievements in 2025, and we also lay out our main strategic initiatives for 2026.

Andrés Campos Chevallier: To summarize Betterware's performance, it finished the year with improving commercial momentum, a healthier balance sheet, and a more efficient operating structure. On slide 10, we summarize Betterware Mexico's main achievements in 2025, and we also lay out our main strategic initiatives for 2026. In terms of achievements, number 1, we revamped our core categories like home organization and continued igniting new categories like home ovens. We also improved our incentive programs, laying out new rewards such as online education, health, and travel. We improved our Betterware+ app with new features like the new product idea function, where salesforce can send us their ideas for products. We also improved our field management system, refining our tracking systems based on associate and distributor life cycle stage.

Andres Campos: To summarize Betterware's performance, it finished the year with improving commercial momentum, a healthier balance sheet, and a more efficient operating structure. On slide 10, we summarize Betterware Mexico's main achievements in 2025, and we also lay out our main strategic initiatives for 2026. In terms of achievements, number 1, we revamped our core categories like home organization and continued igniting new categories like home ovens. We also improved our incentive programs, laying out new rewards such as online education, health, and travel. We improved our Betterware+ app with new features like the new product idea function, where salesforce can send us their ideas for products. We also improved our field management system, refining our tracking systems based on associate and distributor life cycle stage.

Speaker #2: In terms of achievements, number one, we revamped our core categories like home organization and continued igniting new categories like home wellness. We also improved our incentive programs.

Speaker #2: Laying out new rewards such as online education, health, and travel. We improved our BETTERWARE DE C4 plus app with new features like the new product idea function where Salesforce can send us their ideas for products.

Speaker #2: We also improved our field management system, refining our tracking systems based on associate and distributor lifecycle stage. For 2026, among other initiatives, we will revamp our innovation levers.

Andrés Campos Chevallier: For 2026, among other initiatives, we will revamp our innovation levers, expanding licensing beyond Disney and Mattel, strengthening fast consumption products, and launching a World Cup special edition line. We will also revamp our catalog design after almost 3 years with the same catalog design line. Third, we intend to segment our incentive program even better with direct to associates product delivery and a new better fan plan that we will lay out in the quarters to come. We will also continue enhancing our technology with more features on our Betterware+ app and lay out a new CRM with Salesforce. Finally, we plan to launch a new payment system in partnership with Broxel, a prominent fintech in Mexico. On the next slide, you see that JAFRA Mexico delivered yet another strong quarter.

Andres Campos: For 2026, among other initiatives, we will revamp our innovation levers, expanding licensing beyond Disney and Mattel, strengthening fast consumption products, and launching a World Cup special edition line. We will also revamp our catalog design after almost 3 years with the same catalog design line. Third, we intend to segment our incentive program even better with direct to associates product delivery and a new better fan plan that we will lay out in the quarters to come. We will also continue enhancing our technology with more features on our Betterware+ app and lay out a new CRM with Salesforce. Finally, we plan to launch a new payment system in partnership with Broxel, a prominent fintech in Mexico. On the next slide, you see that JAFRA Mexico delivered yet another strong quarter.

Speaker #2: Expanding licensing beyond Disney and Mattel, strengthening fast consumption products and launching a World Cup special edition line. We will also revamp our catalog design after almost three years with the same catalog design line.

Speaker #2: Third, we intend to segment our incentive program even better with direct-to-associate product delivery and a new better fan plan that we will lay out in the quarters to come.

Speaker #2: We will also continue enhancing our technology with more features in our BETTERWARE DE C4 plus app and lay out a new CRM with Salesforce.

Speaker #2: Finally, we plan to launch a new payment system in partnership with Broxel, a prominent fintech in Mexico. On the next slide, you see that JAFRA Mexico delivered yet another strong quarter, despite a challenging consumption environment.

Andrés Campos Chevallier: Despite a challenging consumption environment, the beauty market remained resilient, and together with relevant internal actions, JAFRA achieved record high sales in the Q1. The slight decline in JAFRA's sales force was driven by aggressive productivity focused promotions. Going forward, we are rebalancing our commercial strategy to focus on both stencil growth and productivity growth. Adjusted EBITDA recovered significantly from the weak Q1 and returned to growth for the year, while the margin remained within a healthy range, despite delivered investments into late growth margin initiatives. Turning to slide 12, we summarize JAFRA Mexico's solid operational progress and achievements of 2025, and also highlight some 2026 selected strategic initiatives. For 2025, we redesigned our most prominent core lines, like Royal Jelly, nature, and Navîgo. We launched strengthened productivity incentives that we had spoken about.

Andres Campos: Despite a challenging consumption environment, the beauty market remained resilient, and together with relevant internal actions, JAFRA achieved record high sales in the Q1. The slight decline in JAFRA's sales force was driven by aggressive productivity focused promotions. Going forward, we are rebalancing our commercial strategy to focus on both stencil growth and productivity growth. Adjusted EBITDA recovered significantly from the weak Q1 and returned to growth for the year, while the margin remained within a healthy range, despite delivered investments into late growth margin initiatives. Turning to slide 12, we summarize JAFRA Mexico's solid operational progress and achievements of 2025, and also highlight some 2026 selected strategic initiatives. For 2025, we redesigned our most prominent core lines, like Royal Jelly, nature, and Navîgo. We launched strengthened productivity incentives that we had spoken about.

Speaker #2: The beauty market remained resilient, and together with relevant internal actions, JAFRA achieved record-high sales in the quarter. The slight decline in JAFRA's Salesforce was driven by aggressive productivity-focused promotions.

Speaker #2: Going forward, we are rebalancing our commercial strategy to focus on both stenciled growth and productivity growth. Adjusted EBITDA recovered significantly from the weak first quarter and returned to growth for the year.

Speaker #2: While the margin remained within a healthy range despite deliberate investments in select gross margin initiatives. Turning to slide 12, we summarize JAFRA Mexico's solid operational progress and achievements of 2025 and also highlight some 2026 selected strategic initiatives.

Speaker #2: For 2025, we redesigned our most prominent core lines like Royal Jelly, Nature, and Navijo. We launched strengthened productivity incentives that we had spoken about.

Speaker #2: We improved our field management operations with less expenditure in non-productive fronts and changing our gears to real and impactful field work. We also redesigned the catalogs in September 2024, and leave the benefits of that redesign throughout all of 2025.

Andrés Campos Chevallier: We improved our field management operations with less expenditure in non-productive fronts and changing our gears to real and impactful field work. We redesigned the catalogs in September 2024, and leave the benefits of that redesign throughout all of 2025. Finally, we launched our new Shopify Plus platform for Jafra Mexico, enabling personalized social selling links for our leaders and consultants. Looking into 2026, we will refocus now on innovation, expanding Disney, Mattel, and other licenses, and launching new skincare lines and entering hair care category by the second semester of 2026. We will strengthen our sample trial initiatives to help consultants show real product experience together with catalog demonstration. Third, we will begin new subscription initiatives to drive retention and overall experience and satisfaction. Fourth, we will segment associate incentives to better cater different needs.

Andres Campos: We improved our field management operations with less expenditure in non-productive fronts and changing our gears to real and impactful field work. We redesigned the catalogs in September 2024, and leave the benefits of that redesign throughout all of 2025. Finally, we launched our new Shopify Plus platform for Jafra Mexico, enabling personalized social selling links for our leaders and consultants. Looking into 2026, we will refocus now on innovation, expanding Disney, Mattel, and other licenses, and launching new skincare lines and entering hair care category by the second semester of 2026. We will strengthen our sample trial initiatives to help consultants show real product experience together with catalog demonstration. Third, we will begin new subscription initiatives to drive retention and overall experience and satisfaction. Fourth, we will segment associate incentives to better cater different needs.

Speaker #2: Finally, we launched our new Shopify Plus platform for JAFRA Mexico enabling personalized social selling links for our leaders and consultants. Looking into 2026, we will refocus now on innovation expanding Disney, Mattel, and other licenses and launching new skincare lines and entering haircare category by the second semester of 2026.

Speaker #2: We will also strengthen our sample trial initiatives to help consultants show real product experience together with catalog demonstration. Third, we will begin new subscription initiatives.

Speaker #2: To drive retention and overall experience and satisfaction. Fourth, we will segment associate incentives to better cater different needs. And fifth, and very important, we will launch our JAFRA Plus platform and the new CRM with Salesforce for servicing our consultants and leaders of JAFRA.

Andrés Campos Chevallier: Fifth, and very important, we will launch our Jafra Plus platform and the new CRM with Salesforce for servicing our consultants and leaders of JAFRA. As shown on slide 13, our second pillar is regional expansion, which we are executing by replicating JAFRA's successful business model in the US and Latin American markets. Moving to the next slide, revenue at Jafra US again showed significant improvement, maintaining quarter-over-quarter growth since Q1. While Q4 marked JAFRA's Q1 of year-over-year growth, supported by stronger consultant productivity and sharper commercial focus. EBITDA also improved meaningfully. Although the full year comparison still reflects a decline, underlying performance strengthened following the organizational restructuring carried out at Jafra US in 2025. In addition, ongoing legal expenses impacted on reported profitability.

Andres Campos: Fifth, and very important, we will launch our Jafra Plus platform and the new CRM with Salesforce for servicing our consultants and leaders of JAFRA. As shown on slide 13, our second pillar is regional expansion, which we are executing by replicating JAFRA's successful business model in the US and Latin American markets. Moving to the next slide, revenue at Jafra US again showed significant improvement, maintaining quarter-over-quarter growth since Q1. While Q4 marked JAFRA's Q1 of year-over-year growth, supported by stronger consultant productivity and sharper commercial focus. EBITDA also improved meaningfully. Although the full year comparison still reflects a decline, underlying performance strengthened following the organizational restructuring carried out at Jafra US in 2025. In addition, ongoing legal expenses impacted on reported profitability.

Speaker #2: As shown on slide 13, our second pillar is regional expansion. Which we are executing by replicating BETTERWARE DE C4 successful business model in the US and Latin American markets.

Speaker #2: Moving to the next slide, revenue at JAFRA US again showed significant improvement maintaining quarter over quarter growth since the first quarter. While Q4 marked JAFRA's first quarter of year-over-year growth, supported by stronger consultant productivity and sharper commercial focus.

Speaker #2: EBITDA also improved meaningfully. Although the full-year comparison still reflects a decline, underlying performance strengthened following the organizational restructuring carried out at JAFRA US in 2025.

Speaker #2: In addition, ongoing legal expenses impacted on reported profitability. When excluding these expenses, full-year EBITDA would have been approximately $869,000 marking a positive profitability for the company.

Andrés Campos Chevallier: When excluding these expenses, full year EBITDA would have been approximately $869,000, marking a positive profitability for the company. Turning to slide 15, I would also like to highlight the main achievements and plans for 2026. In terms of 2025, we redesigned our most prominent core lines, like we have done so in JAFRA Mexico, and we introduced these new redesigns to the US market. We also launched our new incentive program, completely revamping it to further focus on expansion. This included a totally new rewards section. Number three, we benefited from our new Shopify platform, which we launched by year-end 2024, improving user experience and attracting younger audiences.

Andres Campos: When excluding these expenses, full year EBITDA would have been approximately $869,000, marking a positive profitability for the company. Turning to slide 15, I would also like to highlight the main achievements and plans for 2026. In terms of 2025, we redesigned our most prominent core lines, like we have done so in JAFRA Mexico, and we introduced these new redesigns to the US market. We also launched our new incentive program, completely revamping it to further focus on expansion. This included a totally new rewards section. Number three, we benefited from our new Shopify platform, which we launched by year-end 2024, improving user experience and attracting younger audiences.

Speaker #2: Turning to slide 15, I would also like to highlight the main achievements and plans for 2026. In terms of 2025, we redesigned our most prominent core lines, like we have done so in JAFRA Mexico.

Speaker #2: And we introduced these new redesigns to the US market. We also launched our new incentive program, completely revamping it to further focus on expansion.

Speaker #2: This included a totally new rewards section. And number three, we benefited from our new Shopify platform, which we launched by year-end end 2024, improving user experience and attracting younger audiences.

Speaker #2: For 2026, we plan to refocus on innovation as we're doing in JAFRA Mexico. And we're also proud to announce that we have reached a deal to launch Disneyland licenses products in the US.

Andrés Campos Chevallier: For 2026, we plan to refocus on innovation as we're doing in JAFRA Mexico, we're also proud to announce that we have reached a deal to launch Disney licenses products in the US. Second, we will also strengthen our sample trial. Third, we will strengthen our merchandising techniques, leveraging the knowledge that we have in Betterware JAFRA Mexico. Fourth, we will launch a new payment terms methodology so that new associates don't have to invest in working capital when they start with us, similar to what we have in other countries. On slide 15, we map out our regional expansion plan. The Andean and Central American direct selling markets represent approximately $6.1 billion in total addressable markets. Ecuador's expansion enables us to grow into Colombia and Peru.

Andres Campos: For 2026, we plan to refocus on innovation as we're doing in JAFRA Mexico, we're also proud to announce that we have reached a deal to launch Disney licenses products in the US. Second, we will also strengthen our sample trial. Third, we will strengthen our merchandising techniques, leveraging the knowledge that we have in Betterware JAFRA Mexico. Fourth, we will launch a new payment terms methodology so that new associates don't have to invest in working capital when they start with us, similar to what we have in other countries. On slide 15, we map out our regional expansion plan. The Andean and Central American direct selling markets represent approximately $6.1 billion in total addressable markets. Ecuador's expansion enables us to grow into Colombia and Peru.

Speaker #2: Second, we will also strengthen our sample trial. Third, we will strengthen our merchandising techniques, leveraging the knowledge that we have in Better One JAFRA Mexico.

Speaker #2: And fourth, we will launch a new payment terms methodology so that new associates don't have to invest in working capital when they start with us.

Speaker #2: Similar to what we have in other countries, on slide 15 we map out our regional expansion plan. The Andean and Central American dressing markets will present approximately $6.1 billion in total addressable markets.

Speaker #2: Ecuador's expansion enables us to grow into Colombia and Peru. We are confident that our scalable business model and proven playbook will enable us to replicate our success in these new markets.

Andrés Campos Chevallier: We are confident that our scalable business model and proven playbook will enable us to replicate our success in these new markets, representing another significant source of growth for the group in the years to come. As shown on slide 17, our geographic expansion strategies continues gaining traction. Ecuador surpassed 11,500 associates and 730 distributors at year-end, representing a more than sevenfold increase since our launch there. Revenue also grew substantially. Using Ecuador as an initial beachhead in the Andean region, we plan to launch operations in Colombia next week on 2 March. On the right of the slide, you see that Guatemala sales increased 50% since the beginning of 2025, with significant associate-based growth as well. Turning to slide 18, we continue exploring new brands and categories that complement our portfolio as we did when we acquired JAFRA in 2022.

Andres Campos: We are confident that our scalable business model and proven playbook will enable us to replicate our success in these new markets, representing another significant source of growth for the group in the years to come. As shown on slide 17, our geographic expansion strategies continues gaining traction. Ecuador surpassed 11,500 associates and 730 distributors at year-end, representing a more than sevenfold increase since our launch there. Revenue also grew substantially. Using Ecuador as an initial beachhead in the Andean region, we plan to launch operations in Colombia next week on 2 March. On the right of the slide, you see that Guatemala sales increased 50% since the beginning of 2025, with significant associate-based growth as well. Turning to slide 18, we continue exploring new brands and categories that complement our portfolio as we did when we acquired JAFRA in 2022.

Speaker #2: Representing another significant source of growth for the group in the years to come. As shown on slide 17, our geographic expansion strategies continue gaining traction.

Speaker #2: Ecuador surpassed 11,500 associates. And 730 distributors at year-end. Representing a more than seven-fold increase since our launch there. Revenue also grew substantially. Using Ecuador as an initial beachhead in the Andean region, we plan to launch operations in Colombia next week on March 2nd.

Speaker #2: On the right of the slide, you see that Guatemala sales increased 50% since the beginning of 2025. With significant associate-based growth as well. Turning to slide 18, we continue exploring new brands and categories that complement our portfolio.

Speaker #2: As we did when we acquired JAFRA in 2022, our objective is to identify opportunities that leverage our scalable platform, enhance profitability, and expand into adjacent brands and categories aligned with our person-to-person model.

Andrés Campos Chevallier: Our objective is to identify opportunities that leverage our scalable platform, enhance profitability, and expand into adjacent brands and categories aligned with our person-to-person model. On slide 19, we summarize the acquisition of 100% of Tupperware's Latin American business for $250 million. $215 million in debt-funded cash and $35 million in BeFra shares. As previously communicated, the transaction includes Tupperware's operations in Mexico and Brazil, including 2 production facilities in these key markets, as well as a perpetual royalty-free license for the brand across Latin America. The closing of the transaction is expected in Q2 2026, subject to customary regulatory approvals. Strategically, this transaction unlocks meaningful potential across the region.

Andres Campos: Our objective is to identify opportunities that leverage our scalable platform, enhance profitability, and expand into adjacent brands and categories aligned with our person-to-person model. On slide 19, we summarize the acquisition of 100% of Tupperware's Latin American business for $250 million. $215 million in debt-funded cash and $35 million in BeFra shares. As previously communicated, the transaction includes Tupperware's operations in Mexico and Brazil, including 2 production facilities in these key markets, as well as a perpetual royalty-free license for the brand across Latin America. The closing of the transaction is expected in Q2 2026, subject to customary regulatory approvals. Strategically, this transaction unlocks meaningful potential across the region.

Speaker #2: On slide 19, we summarize the acquisition of 100% of Tupperware's Latin American business for $250 million. $215 million in debt-funded cash. And $35 million in BETTERWARE shares.

Speaker #2: As previously communicated, the transaction includes Tupperware's operations in Mexico and Brazil. Including two production facilities in this key markets. As well as a perpetual royalty-free license for the brand across Latin America.

Speaker #2: The closing of the transaction is expected in the second quarter of 2026. Subject to customary regulatory approvals. Strategically, this transaction unlocks meaningful potential across the region.

Speaker #2: Tupperware remains a highly recognized brand in food and drink containers and we see clear opportunities to enhance revenue and profitability through innovation technology and our proven commercial model.

Andrés Campos Chevallier: Tupperware remains a highly recognized brand in food and drink containers, and we see clear opportunities to enhance revenue and profitability through innovation, technology, and our proven commercial model. It also provides a strong entry into Brazil, a country with a population of over 200 million, with an established operation that creates a platform to introduce Betterware and capture cross-market synergies. At the same time, the manufacturing footprint in Mexico and Brazil strengthens our sourcing flexibility, enabling us to leverage excess capacity, localize production, and optimize costs. At an implied multiple of 3.1x enterprise value to EBITDA, we consider this a highly attractive as well as accretive acquisition, with an estimated 40% earnings per share accretion based on our purchase price assumptions. Overall, this transaction reinforces our strategy of scaling strong brands with a proven discipline value-creating platform.

Andres Campos: Tupperware remains a highly recognized brand in food and drink containers, and we see clear opportunities to enhance revenue and profitability through innovation, technology, and our proven commercial model. It also provides a strong entry into Brazil, a country with a population of over 200 million, with an established operation that creates a platform to introduce Betterware and capture cross-market synergies. At the same time, the manufacturing footprint in Mexico and Brazil strengthens our sourcing flexibility, enabling us to leverage excess capacity, localize production, and optimize costs. At an implied multiple of 3.1x enterprise value to EBITDA, we consider this a highly attractive as well as accretive acquisition, with an estimated 40% earnings per share accretion based on our purchase price assumptions. Overall, this transaction reinforces our strategy of scaling strong brands with a proven discipline value-creating platform.

Speaker #2: It also provides a strong entry into Brazil. A country with a population of over 200 million. With an established operation that creates a platform to introduce betterware and capture cross-market synergies.

Speaker #2: At the same time, the manufacturing footprint in Mexico and Brazil strengthens our sourcing flexibility. Enabling us to leverage excess capacity localized production and optimize costs.

Speaker #2: At an implied multiple of 3.1 times enterprise value to EBITDA, we consider this a highly attractive as well as accretive acquisition, with an estimated 40% earnings per share accretion based on our purchase price assumptions.

Speaker #2: Overall, this transaction reinforces our strategy of scaling strong brands with a proven discipline value creating platform. Moving to slide 20, we outline what's next with Tupperware.

Andrés Campos Chevallier: Moving to slide 20, we outline what's next with Tupperware. In the short term, we're waiting for transaction approval from the antitrust agency in Mexico, expected in Q2 2026. In the medium term, we will focus on 3 main objectives. First, return Tupperware to growth in its current markets through innovation, technology, pricing, and other commercial initiatives. Second, extend the brand to new countries by leveraging our current footprint. Third, fully integrate Tupperware into BeFra to capture operational synergies, such as leveraging the manufacturing capacity of Tupperware's plants to produce certain Betterware products. In the long term, we plan to fully integrate Tupperware into BeFra to capture additional operational synergies as well as leverage Tupperware's Brazil operation to introduce and scale Betterware in that massive on-tap market.

Andres Campos: Moving to slide 20, we outline what's next with Tupperware. In the short term, we're waiting for transaction approval from the antitrust agency in Mexico, expected in Q2 2026. In the medium term, we will focus on 3 main objectives. First, return Tupperware to growth in its current markets through innovation, technology, pricing, and other commercial initiatives. Second, extend the brand to new countries by leveraging our current footprint. Third, fully integrate Tupperware into BeFra to capture operational synergies, such as leveraging the manufacturing capacity of Tupperware's plants to produce certain Betterware products. In the long term, we plan to fully integrate Tupperware into BeFra to capture additional operational synergies as well as leverage Tupperware's Brazil operation to introduce and scale Betterware in that massive on-tap market.

Speaker #2: In the short term, we're waiting for transaction approval from the antitrust agency in Mexico, expected in the second quarter of 2026. In the medium term, we will focus on three main objectives.

Speaker #2: First, return Tupperware to growth in its current markets through innovation, technology, pricing, and other commercial initiatives. Second, extend the brand to new countries by leveraging our current footprint.

Speaker #2: And third, fully integrate Tupperware into Betterware to capture operational synergies, such as leveraging the manufacturing capacity of Tupperware's plants to produce certain Betterware products.

Speaker #2: In the long term, we plan to fully integrate Tupperware into Betterware. This will allow us to capture additional operational synergies, as well as leverage Tupperware's Brazil operation to introduce and scale Betterware in that massive, on-top market.

Speaker #2: Turning to slide 21, our digital transformation remains a strategic imperative. And an enabler for each of our other pillars. Our objective is to accelerate growth through a physical platform that maximizes the sales opportunity of every person-to-person interaction.

Andrés Campos Chevallier: Turning to slide 21, our digital transformation remains a strategic imperative and an enabler for each of our other pillars. Our objective is to accelerate growth through a digital platform that maximizes the sales opportunity of every person-to-person interaction. Slide 22 outlines our digital transformation across three main pillars. First, growing the business for our distributors and associates. We are enhancing our platform to simplify operations, expand social selling, and embed agentic capabilities to improve productivity and conversion. Second, digitizing BeFra's core operations. This includes customer service automation, personal seller enablement, and end-to-end automation of commercial processes to drive efficiency and scalability. Third, leveraging our data. We are strengthening analytics, deepening insights into product and customer behavior, and building the foundations to become fully AI-ready.

Andres Campos: Turning to slide 21, our digital transformation remains a strategic imperative and an enabler for each of our other pillars. Our objective is to accelerate growth through a digital platform that maximizes the sales opportunity of every person-to-person interaction. Slide 22 outlines our digital transformation across three main pillars. First, growing the business for our distributors and associates. We are enhancing our platform to simplify operations, expand social selling, and embed agentic capabilities to improve productivity and conversion. Second, digitizing BeFra's core operations. This includes customer service automation, personal seller enablement, and end-to-end automation of commercial processes to drive efficiency and scalability. Third, leveraging our data. We are strengthening analytics, deepening insights into product and customer behavior, and building the foundations to become fully AI-ready.

Speaker #2: Slide 22 outlines our digital transformation across three main pillars. First, growing the business for our distributors and associates. We are enhancing our platform to simplify operations, expand social selling, and embed identic capabilities to improve productivity and conversion.

Speaker #2: Second, digitizing BETTERWARE's core operations. This includes customer service automation, personal seller enablement, and end-to-end automation of commercial processes to drive efficiency and scalability. And third, leveraging our data.

Speaker #2: We are strengthening analytics deepening insights into product and customer behavior. And building the foundations to become fully AI ready. Finally, on slide 23, we come to our fifth pillar.

Andrés Campos Chevallier: Finally, on slide 23, we come to our fifth pillar, which is the foundation that supports every strategic decision we make: financial strength, discipline, and control. This principle has consistently defined our company over the years. It enables us to pursue growth while safeguarding the long-term health of the organization and has proven especially critical during periods of volatility in our markets. We remain focused on rigorous cost oversight, inventory control, disciplined working capital management, and maintaining prudent leverage levels. Financial discipline is not simply an element of our strategic framework, it is embedded in the way we operate every day. With that overview, I will now hand the call over to Rodrigo Muñoz, our Chief Financial Officer, who will review these five pillars in more detail.

Andres Campos: Finally, on slide 23, we come to our fifth pillar, which is the foundation that supports every strategic decision we make: financial strength, discipline, and control. This principle has consistently defined our company over the years. It enables us to pursue growth while safeguarding the long-term health of the organization and has proven especially critical during periods of volatility in our markets. We remain focused on rigorous cost oversight, inventory control, disciplined working capital management, and maintaining prudent leverage levels. Financial discipline is not simply an element of our strategic framework, it is embedded in the way we operate every day. With that overview, I will now hand the call over to Rodrigo Muñoz, our Chief Financial Officer, who will review these five pillars in more detail.

Speaker #2: Financial strength, discipline, and control are the foundation that supports every strategic decision we make. These principles have consistently defined our company over the years.

Speaker #2: It enables us to pursue growth while safeguarding the long-term health of the organization. And has proven especially critical during periods of volatility in our markets.

Speaker #2: We remain focused on rigorous cost oversight, inventory control, disciplined working capital management, and maintaining prudent leverage levels. Financial discipline is not simply an element of our strategic framework.

Speaker #2: It is embedded in the way we operate every day. With that overview, I will now hand the call over to Rodrigo, our Chief Financial Officer, who will review this fifth pillar in more detail.

Speaker #2: Thank you, Andrés. And good afternoon, everyone. On slide 24, quarterly EBITDA margin reached 19% despite temporary gross margin impacts. Full-year EBITDA margin was 18.7%, mainly affected by Q1 contraction and prior year derivative effects effects.

Rodrigo Muñoz: Thank you, Andres. Good afternoon, everyone. On slide 24, quarterly EBITDA margin reached 19% despite temporary gross margin impacts. Full year EBITDA margin was 18.7%, mainly affected by Q1 contraction and prior year derivative FX effects. Adjusted net income comparison was affected by approximately MXN 200 million positive mark-to-market derivative effects recorded. On the following slide is free cash flow, which increased 106% year-over-year in Q4 2025, closed the year with a 24.6% increase, mainly driven by inventory reduction at Betterware Mexico, totaling MXN 459 million. We are also proud to note that this will be the 24th consecutive quarter of paying dividends since the IPO.

Speaker #2: Adjusted net income comparison was affected by approximately 200 million pesos positive mark-to-market derivative effects recorded. On the following slide is free cash flow, which increased 106% year over year in Q4 2025.

Speaker #2: And closed the year with a 24.6% increase mainly driven by inventory reduction at betterware Mexico totaling 459 million pesos. We are also proud to note that this will be the 24th consecutive quarter of paying dividends since the IPO.

Speaker #2: Dividend payments remain aligned with our disciplined capital allocation framework. Maintaining a 32% trading 12-month dividend-to-EBITDA ratio. While using cash to reduce leverage and continue investing in geographic expansion.

Rodrigo Muñoz: Dividend payments remain aligned with our disciplined capital allocation framework, maintaining a 32% trailing twelve-month dividend to EBITDA ratio, while using cash to reduce leverage and continue investing in geographic expansion. On slide 26, we can see how total debt declined significantly, with net debt to EBITDA improving from 3.1x in 2022 to 1.56x at the end of 2025. A total of MXN 700 million of debt was repaid during the year. In summary, our balance sheet is stronger, our leverage profile healthier, and our liquidity position robust, making BeFra even more resilient and enabling us to continue funding growth initiatives across our five strategic pillars. I will now pass the word back to Andrés for some final comments.

Speaker #2: On slide 26, we can see how top-of-debt declined significantly. With net debt-to-EBITDA improving from 3.1 times in 2022 to 1.56 times at the end of 2025.

Speaker #2: A total of 700 million pesos of debt was repaid during the year. In summary, our balance sheet is stronger, our leverage profile healthier, and our liquidity position robust.

Speaker #2: Making BETTERWARE even more resilient and enabling us to continue funding growth initiatives across our five strategic pillars. I will now pass the word back to Andrés for some final comments.

Speaker #3: Thank you, Rodrigo. Before we open the line for questions, let me conclude with a few remarks on slide 27. 2025 demonstrated the resilience of our great brands. One Essence strategic platform translated into our five strategic pillars for our 2025-2030 strategy.

Andrés Campos Chevallier: Thank you, Rodrigo. Before we open the line for questions, let me conclude with a few remarks on slide 27. 2025 demonstrated the resilience of our Great Brands, One Essence strategic platform, translated into our five strategic pillars for our 2025, 2030 strategy. We strengthened profitability after a difficult start to the year. We generated strong cash flow. We reduced leverage. We significantly advanced our regional expansion strategy. We accelerated BeFra's digital transformation, and we paved the way to welcome a new promising brand at the start of 2026. This way, we have entered 2026 with improving momentum, and we remain excited about our long-term value creation capacity. BeFra today stands as a stronger, more diverse, and well-positioned group with great brands, highly committed teams, and a clear roadmap for long-term growth.

Andres Campos: Thank you, Rodrigo. Before we open the line for questions, let me conclude with a few remarks on slide 27. 2025 demonstrated the resilience of our Great Brands, One Essence strategic platform, translated into our five strategic pillars for our 2025, 2030 strategy. We strengthened profitability after a difficult start to the year. We generated strong cash flow. We reduced leverage. We significantly advanced our regional expansion strategy. We accelerated BeFra's digital transformation, and we paved the way to welcome a new promising brand at the start of 2026. This way, we have entered 2026 with improving momentum, and we remain excited about our long-term value creation capacity. BeFra today stands as a stronger, more diverse, and well-positioned group with great brands, highly committed teams, and a clear roadmap for long-term growth.

Speaker #3: We strengthened profitability after a difficult start to the year. We generated strong cash flow. We reduced advanced our regional expansion strategy. We accelerated BETTERWARE's digital transformation.

Speaker #3: And we paved the way to welcome a new promising brand at the start of 2026. This way, we have entered 2026 with improving momentum.

Speaker #3: And we remain excited about our long-term value creation capacity. Betterware today stands as a stronger, more diverse, and well-positioned group, with great brands, highly committed teams, and a clear roadmap for long-term growth.

Speaker #3: I will now pass the call back to our operator for any questions you may have. Thank you.

Andrés Campos Chevallier: I will now pass the call back to our operator for any questions you may have. Thank you.

Andres Campos: I will now pass the call back to our operator for any questions you may have. Thank you.

Speaker #4: Thank you. We will now begin the question and answer session. To ask a question, dial in by phone and press star, then one on your telephone keypad.

Operator: Thank you. We will now begin the question and answer session. To ask a question, dial in by phone and press star, then one on your telephone keypad. Make sure your mute function is turned off, and if you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, press star then two. At this time, we'll pause momentarily to assemble our roster. Our first question will come from Eric Beder with SCC Research.

Speaker #4: Make sure your mute function is turned off. And if you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, press star, then two.

Speaker #4: At this time, we'll pause momentarily to assemble our roster. For our first question, we'll come from Eric, Betterware, with SCC Research.

Eric Beder: Good afternoon.

Speaker #5: Good afternoon. Tough year.

Andrés Campos Chevallier: Hi, Eric.

Andres Campos: Hi, Eric.

Rodrigo Muñoz: Hi.

Eric Beder: tough year. You know, how should we-

Andrés Campos Chevallier: Thank you. Thank you.

Andres Campos: Thank you. Thank you.

Speaker #2: Thank you. Thank you.

Speaker #5: How should we be thinking about the Mexican consumer? I know that last year, especially Q1, was difficult. And I guess Q1 is having its own interesting issues right now too.

Eric Beder: How should we be thinking about the Mexican consumer? I know that last year, especially Q1, was difficult, and I guess Q1 is having its own interesting issues right now, too. You know, how are they looking at the world, and how would you look this year in terms of getting a bigger share of their wallet?

Speaker #5: How are they looking at the world? And how do you look this year in terms of getting a bigger share of their wallet?

Speaker #2: Yeah, thank you, Rick. And thank you for your question. We think the Mexican consumer had a slight contraction or deceleration last year, and we believe this year should be more stable throughout the year.

Rodrigo Muñoz: Yeah. Thank you, Eric. Thank you for your question. We think the Mexican consumer had a slight contraction or deceleration last year. We believe this year should be more stable throughout the year. We believe the growth adjustment was last year, and we believe this year it should be more stable. You know, there's some positive factors, economic factors, like decreasing interest rates, that should help Mexican consumer, a more stable inflation. You know, I think with these factors, together with general economic factors, Mexican consumers should be more stable going forward.

Andres Campos: Yeah. Thank you, Eric. Thank you for your question. We think the Mexican consumer had a slight contraction or deceleration last year. We believe this year should be more stable throughout the year. We believe the growth adjustment was last year, and we believe this year it should be more stable. You know, there's some positive factors, economic factors, like decreasing interest rates, that should help Mexican consumer, a more stable inflation. You know, I think with these factors, together with general economic factors, Mexican consumers should be more stable going forward.

Speaker #2: We believe the growth adjustment was last year, and we believe this year it should be more stable. There are some positive factors—economic factors, like decreasing interest rates—that should help Mexican consumers.

Speaker #2: A more stable inflation. And I think with these factors, together with general economic factors, Mexican consumers should be more stable going forward.

Speaker #5: Okay. You guys are an incredible job with the inventories. Obviously, it generated a lot of free cash flow in Q4. And you've reduced I guess a lot of some of the overhangs you have.

Eric Beder: Okay, how you guys did an incredible job with the inventories. Obviously, it generated a lot of free cash flow in Q4, and you've reduced, I guess, a lot of some of the overhangs you have. How should we be thinking about inventory growth in 2026? How should we be thinking about that in terms of A, the opportunities, and B, what levels should be coming forward?

Speaker #5: How should we be thinking about inventory growth in 2026? Michelle, how should we be thinking about that in terms of the opportunities? And, B, what levels should be coming forward?

Speaker #2: Yeah, so if you can see, we started off the year with approximately 2,500 million pesos in inventory, and we've reduced to 2,000 million pesos by the end of this year.

Andrés Campos Chevallier: Yeah. If you can see, we started off the year with MXN 2,500 million in inventory, approximately, and we've reduced to MXN 2,000 million by the end of this year. I think we are very close to optimal inventory levels, and we should not necessarily expect any relevant inventory decrease or extraordinary inventory decrease like we did this year. There's still a little bit to go, probably MXN 100 or MXN 200 million, but not much more than that.

Andres Campos: Yeah. If you can see, we started off the year with MXN 2,500 million in inventory, approximately, and we've reduced to MXN 2,000 million by the end of this year. I think we are very close to optimal inventory levels, and we should not necessarily expect any relevant inventory decrease or extraordinary inventory decrease like we did this year. There's still a little bit to go, probably MXN 100 or MXN 200 million, but not much more than that.

Speaker #2: I think we are very close to optimal inventory levels. And we should not necessarily expect any relevant inventory decrease or extraordinary inventory decrease like we did this year.

Speaker #2: There's still a little bit to go, probably 100 or 200 million pesos, but not much more than that.

Speaker #5: Okay. So we should see more basically growth within kind of top-line growth of going forward, if I think about it.

Eric Beder: Okay. We should see more basically growth within kind of top line growth going forward, if I think about it.

Speaker #2: Yes. In terms of cash flow, cash flow should come more in at our normal levels, derived from top-line growth and profitability.

Andrés Campos Chevallier: Yes. In terms of, in terms of cash flow, cash flow should come more in our normal levels, derived from top line growth and profitability.

Andres Campos: Yes. In terms of, in terms of cash flow, cash flow should come more in our normal levels, derived from top line growth and profitability.

Speaker #5: Okay. Last question on Jafra. So I saw that you had a decline in the level of distributors and other associates. And you talked about gross margin and cleaning out some of the inventories.

Eric Beder: Okay, last question on JAFRA. I saw that you had a decline in the level of distributors and other associates, and you talked about gross margin and cleaning out some of the inventories. You know, is kind of Q4 when you look at it, kind of a blip here, or should we be thinking about growth continuing for JAFRA now to somewhat more normalize the levels as the rest of the company? Thank you.

Speaker #5: Is kind of Q4, when you look at it, kind of a blip here? Or is that or should we be thinking about growth continuing for Jafra now to somewhat more normalize the levels as the rest of the company?

Speaker #5: Thank you.

Andrés Campos Chevallier: Are you asking specifically about gross margin levels?

Speaker #2: Do you are you asking specifically about gross margin levels?

Andres Campos: Are you asking specifically about gross margin levels?

Eric Beder: I'm actually yes, also top line, too.

Speaker #5: I'm actually—so, yes. And also top-line, too.

Eric Beder: I'm actually yes, also top line, too.

Speaker #2: Yeah. I think we should expect Jafra has continued to grow. Revenue, versus previous quarters. And consequentially, it has continued to grow the fourth quarter.

Andrés Campos Chevallier: Yeah, I think, we should expect, you know, JAFRA has continued to grow revenue versus previous quarters, and consequentially, it has continued to grow. The Q4 delivered the highest revenue mark that we have had in history. We should expect this to continue. You know, in 2025, we focused a lot of our innovation team into renovating the core lines of products. It was a lot of renovation and not that much innovation. And now that we have, you know, redesigned all those products, now 2026 is going to start seeing, again, a lot of innovation. I think this is going to start igniting growth again, and continue our expansion. There are still...

Andres Campos: Yeah, I think, we should expect, you know, JAFRA has continued to grow revenue versus previous quarters, and consequentially, it has continued to grow. The Q4 delivered the highest revenue mark that we have had in history. We should expect this to continue. You know, in 2025, we focused a lot of our innovation team into renovating the core lines of products. It was a lot of renovation and not that much innovation. And now that we have, you know, redesigned all those products, now 2026 is going to start seeing, again, a lot of innovation. I think this is going to start igniting growth again, and continue our expansion. There are still...

Speaker #2: Delivered the highest revenue mark that we have had in history. We should expect this to continue. In 2025, we focused a lot of our innovation team on renovating the core lines of products.

Speaker #2: So it was a lot of renovation and not that much innovation. And now that we have redesigned all those products, now 2026 is going to start seeing again a lot of innovation.

Speaker #2: So I think this is going to start igniting growth again, and continue our expansion. There's still—I mean, obviously, Jafra is a big business.

Andrés Campos Chevallier: I mean, obviously, JAFRA is a big business, and we plan to keep growing it. I think there's still a lot of things we, as we mentioned in the presentation, there's a lot of things that we plan to do, within our model in terms of innovation, in terms of laying out new technology, among other things that we plan to do to continue growing JAFRA Mexico.

Andres Campos: I mean, obviously, JAFRA is a big business, and we plan to keep growing it. I think there's still a lot of things we, as we mentioned in the presentation, there's a lot of things that we plan to do, within our model in terms of innovation, in terms of laying out new technology, among other things that we plan to do to continue growing JAFRA Mexico.

Speaker #2: And we plan to keep growing it. But I think there are still a lot of things we, as we mentioned in the presentation, there are a lot of things that we plan to do within our model in terms of innovation, in terms of laying out new technology, among other things that we plan to do to continue growing Jafra Mexico.

Speaker #5: Great. Good luck in what's going to be a very eventful 2026.

Eric Beder: Great. It's looking like it's going to be a very eventful 2026.

Speaker #2: Yeah, thank you, Eric. Looking forward to it. Thank you.

Andrés Campos Chevallier: Yeah. Thank you, Eric. Looking forward to it. Thank you.

Andres Campos: Yeah. Thank you, Eric. Looking forward to it. Thank you.

Speaker #1: And again, if you have a question, please press star, then one. And our next question comes from Christina Fernandez with TLC Advisory Group.

Operator: Again, if you have a question, please press star then one. Our next question comes from Cristina Fernández with Telsey Advisory Group.

Speaker #6: Hi. Good afternoon. I wanted to follow up on Eric's question about growth. Next year, but thinking overall about the company, the four to eight percent growth that you've guided to, I guess, what gives you confidence in that outlook?

Cristina Fernández: Hi, good afternoon. I wanted to follow up on Eric's question about growth next year, but thinking overall about the company, the 4% to 8% growth that you guided to, I guess, what gives you confidence in that outlook? I mean, you talked earlier about a stable consumer, but it's a pretty big acceleration from the 1% growth in 2025. What's underpinning that, and how do you expect Betterware to grow versus JAFRA in 2026?

Speaker #6: I mean, you talked earlier about a stable consumer. But it is a pretty big acceleration from the 1% growth in 2025. So what's underpinning that, and how do you expect Betterware to grow versus Jafra in 2026?

Speaker #2: Yeah. Thank you, Christina, and hi. This is Andres again. So yeah, we as you mentioned the first thing that we expect is a more stable consumption.

Andrés Campos Chevallier: Yeah. Thank you, Cristina, and hi, this is Andrés again. Yeah, we, as you mentioned, the first thing that we expect is a more stable consumption. What happened last year is that last year we had, you know, declining figures in consumption and a very sluggish consumption figures in the economy, which affected all our businesses in Mexico. Specifically, it affected Betterware more because they are discretionary products. In 2026, we do expect a more stable consumption. We are actually seeing some positive figures in the first months, in January and beginning of February, we're starting to see general better consumption trends in the country.

Andres Campos: Yeah. Thank you, Cristina, and hi, this is Andrés again. Yeah, we, as you mentioned, the first thing that we expect is a more stable consumption. What happened last year is that last year we had, you know, declining figures in consumption and a very sluggish consumption figures in the economy, which affected all our businesses in Mexico. Specifically, it affected Betterware more because they are discretionary products. In 2026, we do expect a more stable consumption. We are actually seeing some positive figures in the first months, in January and beginning of February, we're starting to see general better consumption trends in the country.

Speaker #2: What happened last year is that last year, we had declining figures in consumption, and very sluggish consumption figures in the economy, which affected both our businesses in Mexico.

Speaker #2: And specifically, it affected Betterware more because they are discretionary products. In 2026, we do expect more stable consumption. We are actually seeing some positive figures in the first months, in January.

Speaker #2: And beginning of February, we're starting to see generally better consumption trends in the country. And we think that with this, it is the main factor that we can use to get back to the level of growth we had before, more in the 4% to 8% range.

Andrés Campos Chevallier: We think that with this, we can. Is the main factor that we can use to get back to the level of growth we had before, more in the 4% to 8% range. It's not only about the external factor of consumption being steady, it's also about many internal strategies that we have in place to regain that growth. For us, the 1.2% that we had last year is abnormally low growth. We plan to come back to more regular levels of growth that we have seen in the past of 4% to 8% with all the strategies we have to implement. First of all, obviously, is Mexico, both Betterware and JAFRA.

Andres Campos: We think that with this, we can. Is the main factor that we can use to get back to the level of growth we had before, more in the 4% to 8% range. It's not only about the external factor of consumption being steady, it's also about many internal strategies that we have in place to regain that growth. For us, the 1.2% that we had last year is abnormally low growth. We plan to come back to more regular levels of growth that we have seen in the past of 4% to 8% with all the strategies we have to implement. First of all, obviously, is Mexico, both Betterware and JAFRA.

Speaker #2: Now, it's not only about the external factory of consumption being steady. It's also about many internal strategies that we have in place to regain that growth.

Speaker #2: For us, the 1.2% that we had last year is abnormally low growth. And we plan to come back to more regular levels of growth that we have seen in the past of 4% to 8%, with all the strategies we have to implement.

Speaker #2: First of all, obviously, is Mexico. Both Betterware and Jafra. We laid out in the presentation some of the key initiatives that we're having out with, I would say, very strong innovation in both brands.

Andrés Campos Chevallier: we laid out in the presentation some of the key initiatives that we're having out with, I would say, very strong innovation in both brands. On the other hand, we're laying out a lot of technology in JAFRA that we have not done before. We're also attacking different initiatives in both brands that we are confident that together with a stable consumption can take us to those levels that we have seen in the past for our brands. Now, that's on the Mexico side. Now, if you add to that, the fact that in Jafra US we have been able to not only stabilize the company but start to tilt the curve upwards in terms of revenue.

Andres Campos: we laid out in the presentation some of the key initiatives that we're having out with, I would say, very strong innovation in both brands. On the other hand, we're laying out a lot of technology in JAFRA that we have not done before. We're also attacking different initiatives in both brands that we are confident that together with a stable consumption can take us to those levels that we have seen in the past for our brands. Now, that's on the Mexico side. Now, if you add to that, the fact that in Jafra US we have been able to not only stabilize the company but start to tilt the curve upwards in terms of revenue.

Speaker #2: On the other hand, we're laying out a lot of technology in Jafra that we have not done before. And we're also attacking different initiatives in both brands that we are confident that together with a stable consumption, we can take us to those levels that we have seen in the past

Speaker #1: Past for our for our brands . So now that's on the Mexico side . Now if you add to that , the fact that Ninja us , we have been able to not only stabilize the company , but start to tilt the curve upwards in terms of revenue And then you add the entrance into Colombia and Ecuador and the weight that that will start having .

Andrés Campos Chevallier: You add the entrance into Colombia and Ecuador and the weight that that will start having. I mean, it's not the main part. The main part is Mexico, but it will start adding additional growth points to the group. Hope I was clear on the buildup of that growth.

Andres Campos: You add the entrance into Colombia and Ecuador and the weight that that will start having. I mean, it's not the main part. The main part is Mexico, but it will start adding additional growth points to the group. Hope I was clear on the buildup of that growth.

Speaker #1: I think it's I mean , it's not the main part . The main part is Mexico , but it will start adding . Additional growth points to , to the group .

Speaker #1: So, hope I was clear on the build-up of that growth.

Speaker #2: That's helpful . Thanks , Andres . And then I had an also on on Jafra you mentioned on your comments and on the , on the press release that the beauty market has been having some challenges .

Cristina Fernández: That's helpful. Thanks, Andrés. Also on JAFRA, you mentioned in your comments and on the press release that the beauty market has been having some challenges. Can you talk about what those are or how is JAFRA, you know, positioned, whether it's by product category, to overcome those challenges?

Speaker #2: Can you talk about what those are, or how Jafra is positioned—whether it's by product category—to overcome those challenges?

Speaker #1: And I think we talked about some challenges in consumption in general in Mexico , not specifically challenges in the beauty market . We think that the beauty market is still has , you know , if you compare beauty category versus household , home goods category in Betterware , the beauty category still has more tailwinds .

Andrés Campos Chevallier: I think we talked about some challenges in consumption in general in Mexico, not specifically, challenges in the beauty market. We think that the beauty market is still, as you know, if you compare beauty category versus home goods category in Betterware, the beauty category still have more tailwinds. I mean, both suffered some of the consumption effects, the general consumption effects of Mexico. We think that the beauty category has more tailwinds, within that context. We think it's still going to be a very a very resilient and growing category, and we are optimistic about the the evolution of the of the category as a whole.

Andres Campos: I think we talked about some challenges in consumption in general in Mexico, not specifically, challenges in the beauty market. We think that the beauty market is still, as you know, if you compare beauty category versus home goods category in Betterware, the beauty category still have more tailwinds. I mean, both suffered some of the consumption effects, the general consumption effects of Mexico. We think that the beauty category has more tailwinds, within that context. We think it's still going to be a very a very resilient and growing category, and we are optimistic about the the evolution of the of the category as a whole.

Speaker #1: I mean , both suffered some of the consumption effects . The general consumption effects of Mexico , but but we think that the beauty category has more tailwinds within that context .

Speaker #1: So so we think it's still going to be a very a very resilient and growing category . And we are optimistic about the the evolution of the of the category as a whole

Speaker #2: And the last question I had was on the EBITDA guidance , the 19% . Any color by segment , you can give , I mean , it's sort of flattish , right ?

Cristina Fernández: The last question I had was on the EBITDA guidance, the 19%. Any color by segment you can give? I mean, it's sort of flattish, right? Slightly up versus 2025. Any of the, I guess, businesses expected to have any material variance versus 2025? Thanks.

Speaker #2: Slightly up versus 2025, but are any of the businesses expected to have any material variance versus 2025? Thanks.

Andrés Campos Chevallier: I think in general, we see the balance there in that 19 or above 19 margin. We do think definitely that we do believe that that's, you know, our floor and baseline margin that we can deliver. It all comes... There's many different factors going into that margin, including the investment outside and including these investments, extraordinary investments in the Tupperware operation and different factors. We, you know, we prefer to leave it as a group, from 19 up, as EBITDA margin.

Speaker #1: So I think in general , the the the we see the balance there in that 19 or above 19 . Margin . We do think definitely that we do believe that that's , you know , our floor and baseline margin that we can deliver .

Andres Campos: I think in general, we see the balance there in that 19 or above 19 margin. We do think definitely that we do believe that that's, you know, our floor and baseline margin that we can deliver. It all comes... There's many different factors going into that margin, including the investment outside and including these investments, extraordinary investments in the Tupperware operation and different factors. We, you know, we prefer to leave it as a group, from 19 up, as EBITDA margin.

Speaker #1: But it all comes . There's there's many different factors going into that margin , including the investment outside and including is investments , extraordinary investments in the in the Tupperware operation and and different factors .

Speaker #1: So so we you know , we prefer to leave it as a group from 19 up EBITDA margin

Speaker #2: Thanks

Cristina Fernández: Thanks.

Speaker #3: And that concludes the question and answer portion of today's conference call. I would like to turn it back over to management for closing remarks.

Operator: That concludes the question and answer portion of today's conference call. I would like to turn it back over to management for closing remarks.

Speaker #1: Thank you . Once again , everyone , for your trust . And continued support We look forward to updating you on the next quarter .

Andrés Campos Chevallier: Thank you once again, everyone, for your trust and continued support. We look forward to updating you on the next quarter in April. Thank you.

Andres Campos: Thank you once again, everyone, for your trust and continued support. We look forward to updating you on the next quarter in April. Thank you.

Speaker #1: In April . Thank you

Speaker #3: Ladies and gentlemen, this concludes our fourth quarter 2020 earnings conference call. We would like to thank you again for your participation.

Operator: Ladies and gentlemen, this concludes BeFra's Q4 2025 earnings conference call. We would like to thank you again for your participation. You may now disconnect. Goodbye.

Speaker #3: You may now disconnect

Q4 2025 Betterware de Mexico SAPI de CV Earnings Call

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