Betterware de Mexico, S.A. de C.V. (NASDAQ:BWMX) Q1 2022 Earnings Conference Call April 29, 2022 9:00 AM ET

Company Participants

Luis Campos - Executive Chairman

Andres Campos - Chief Executive Officer

Carlos Doormann - Corporate Chief Financial Officer

Conference Call Participants

Cristina Fernandez - Telsey

Operator

Thank you and welcome to today’s Betterware’s First Quarter Fiscal Year 2022 Earnings Conference Call. With me on today’s call for Betterware’s Executive Chairman, Luis Campos; Chief Executive Officer, Andres Campos; and Corporate Chief Financial Officer, Carlos Doormann.

Before we get started, I would like to remind you that this call include forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Any such statement should be considered in conjunction with the cautionary statements and the Safe Harbor statement in the earnings release, and risk factors discussed in a report filed with the SEC.

Betterware assumes no obligation to update any of these forward-looking statements or information. A reconciliation of the information regarding non-GAAP financial measures discussed on the call can be found in the earnings release issued yesterday, as well as Investor sections of the company’s website.

Now, I’d like to turn the call over to the company Executive Chairman, Luis Campos. Please proceed.

Luis Campos

Thank you, operator. Good morning, everyone and thank you for joining us today. I would like to begin my remarks by highlighting the strength and resiliency of our company. And its asset-light and agile business model which has allowed us to successfully navigate through an uncertain environment, both locally and globally, of high inflation, supply chain disruptions and changing consumer trends, and to recover our profitability levels after the extraordinary expenses experienced during the fourth quarter of last year.

Compared to the preceding quarter, our gross and EBITDA margins expanded 993 and 1003 basis points, respectively, which demonstrates the flexibility of our business to adapt promptly to different market conditions. While we are operating in a dynamic and challenging environment, we remain focused on our long-term growth strategy and the opportunities ahead as we have in the last 20 years. And we are confident that we have the right strategies in place to seize these opportunities to achieve a 40% household penetration in Mexico by the end of 2025.

Later in the call, Andres will discuss some of these strategies in detail, which are based on our three strategic pillars of product innovation, technology and business intelligence and will pave the way for future growth. Carlos will discuss our quarterly financial results, our expectations for the rest of the year, and the financial strength of our business.