Betterware de México, S.A.P.I. de C.V. (NASDAQ:BWMX) Q1 2024 Earnings Call Transcript April 26, 2024 9:00 AM ET

Company Participants

Luis Campos - Executive Chairman
Andres Campos - Chief Executive Officer
Alejandro Ulloa - Chief Financial Officer

Conference Call Participants

Eric Beder - SCC Research
Cristina Fernandez - Telsey Advisory Group

Operator

Thank you, and welcome to Betterware's Fiscal First Quarter 2024 Earnings Conference Call. Speaking on today's call are Betterware's Executive Chairman, Luis Campos; Chief Executive Officer, Andres Campos; and Chief Financial Officer, Alejandro Ulloa.

Before they begin their remarks, the company would like to remind you that today's 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 statements should be considered in conjunction with the cautionary statements and the safe harbor statement in the earnings release issued yesterday, and risk factors discussed in reports filed with the SEC. BeFra assumes no obligation to update any of these forward-looking statements or information. A reconciliation of and other information regarding non-GAAP financial measures discussed on today's call can also be found in the earnings release as well as the Investors section of the company's website.

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

Luis Campos

Thank you, operator. Good morning, everyone, and thank you for joining us today. During the first quarter of 2024, BeFra maintained its growth momentum and its performance levels strengthened. Our increasing profitability is being driven primarily by the effective execution of our various strategies to sustainably drive top line growth and improve operational and financial efficiencies. Our business strengths and the strategies we have been implementing across BeFra are evident in the results that we published yesterday. We achieved double-digit year-over-year growth in net revenues during the quarter, fueled by a revitalized promotional mix at Betterware as well as through product innovation and special promotional campaigns at Jafra Mexico.

The combination of strategic initiatives and financial discipline has greatly improved our profitability. Consequently, our EBITDA rose by 15.4% compared to the first quarter of 2023, while our EBITDA margin improved 92 basis points. It is the two-year anniversary of our acquisition of Jafra, which remains highly accretive. Jafra Mexico continues to exceed our expectations, delivering outstanding quarterly results once again. The double-digit growth in both the top line and profitability of this business is the result of outstanding efforts made by our commercial, operational and administrative teams, which have worked intensively to transform the entire operation of the business, producing significant improvements across the board.