Betterware de México, S.A.P.I. de C.V. (NASDAQ:BWMX) Q3 2023 Earnings Conference Call October 27, 2023 9:00 AM ET

Company Participants

Luis Campos - Executive Chairman

Andres Campos - CEO

Alejandro Ulloa - Corporate CFO

Conference Call Participants

Eric Beder - SCC Research

Cristina Fernandez - Telsey Group

Andres Lomeli - LCA Capital

Operator

Thank you, and welcome to Betterware's Third Quarter Fiscal 2023 Earnings Conference Call.

With me on the call today are Betterware's Executive Chairman, Luis Campos; Betterware's Chief Executive Officer, Andres Campos; and Corporate Chief Financial Officer, Alejandro Ulloa.

Before we get started, I would like to remind you that the call will 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 reports filed with the SEC.

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

Now, I would like to turn the call over to the Company's Executive Chairman, Luis Campos. Please proceed.

Luis Campos

Thank you, operator and good morning, everyone.

I am very proud to present our third quarter results. As a group, we have experienced consistent revenue stability which has allowed us to regain a strong cash flow generation. Thanks to the strengthened profitability and working capital easy that this stability brings.

During the year, we have generated MXN1,635 million of operating cash flow, representing 86% of the EBITDA for the period. We have strategically used this cash to pay down debit, strengthen our stockholder's equity, fund our international expansion preparations and with the remaining cash pay dividends while continuing to hold cash balances in support of our ongoing growth. As it relates to dividends, it is important to note that we are proposing a payment of MXN200 million for the quarter, accumulating a total of MXN650 million paid out this year.

All that said, it is important to talk about what has always been our main focus, which is consistent and profitable revenue growth. Betterware's revenue stability and slight growth must not be taken for granted. The strategies and execution this year were pivotal to stabilize revenue at a level of 89% higher than 2019.