Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) Q2 2024 Earnings Conference Call July 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

Cristina Fernandez - Telsey Advisory

Operator

Thank you and welcome to Betterware’s Second 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. Betterware assumes no obligation to update any of these forward looking statements or information.

A reconciliation of 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. In the second quarter, Betterware maintained its growth momentum and the underlying fundamentals remain strong. We achieved 5.3% year-over-year revenue growth with Betterware Mexico marking its third consecutive quarter of growth and Jafra US recording its first year-over-year revenue increase since the acquisition of Jafra in 2022.

First half results show an 8% growth in net revenue while EBITDA increased 3%, primarily driven by Jafra Mexico, which has maintained a steady growth pace and strong performance. Positive results in the period happened under ongoing global supply chain disruptions and temporary market volatility in Mexico experienced after the federal election process.

Nevertheless, we remain confident in achieving our 2024 revenue and EBITDA targets as we will explain. Looking ahead, we remain positive about the second half of the year. Our performance in the second quarter underscores Betterware's resilience and our ability to effectively navigate challenges.

Additionally, we remain firmly committed to increasing shareholder value as evidenced by our 18th consecutive quarterly dividend payment representing a yield of 10.7% at the end of the quarter. Now, I will pass the call to Andres to provide more details on Betterware's business unit performance in the second quarter of 2024.