Betterware de Mexico SAPI de C (NYSE:BWMX) Announces Earnings Results, Misses Estimates By $0.17 EPS

Betterware de Mexico SAPI de C (NYSE:BWMX) issued its quarterly earnings results on Thursday. The company reported $0.55 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.17), FiscalAI reports. Betterware de Mexico SAPI de C had a net margin of 8.35% and a return on equity of 77.89%. The company had revenue of $267.27 million during the quarter.

Here are the key takeaways from Betterware de Mexico SAPI de C’s conference call:

• Consolidated revenue rose 43.1% year over year to MXN 4,832 million, while EBITDA increased 39.6% to MXN 1,008 million and net income grew 24.2% to MXN 390 million, aided by Tupperware’s contribution and Betterware’s continued profitability.
• Tupperware’s core direct-selling revenue increased 14%, including 23% growth in Mexico, while Brazil’s decline moderated to 3.3%; the company expects further opportunities from new product categories, localized innovation, technology, and business intelligence.
• Jafra revenue declined 2.8% as lower associate activity and inconsistent commercial execution weighed on Mexico. CEO Andrés Campos has assumed the interim managing director role, with management targeting a return to mid-single-digit growth in the fourth quarter.
• Management narrowed full-year organic revenue growth guidance to 4%-5%, reflecting Jafra’s challenges, while raising post-acquisition net revenue growth guidance to 24%-26%; full-year EBITDA margin guidance remains 19%.
• Strong cash generation supported MXN 431 million of debt reduction, reduced pro forma net debt to EBITDA to 1.65 times, and improved the cash conversion cycle to 50 days. BeFra also approved a MXN 250 million dividend, marking its 27th consecutive quarter of dividend payments.

Betterware de Mexico SAPI de C Price Performance

Shares of NYSE BWMX opened at $16.02 on Friday. The firm has a 50-day simple moving average of $16.15 and a 200-day simple moving average of $17.04. The stock has a market capitalization of $632.79 million, a price-to-earnings ratio of 8.76 and a beta of 0.99. The company has a quick ratio of 0.57, a current ratio of 1.11 and a debt-to-equity ratio of 2.96. Betterware de Mexico SAPI de C has a 52 week low of $12.91 and a 52 week high of $19.79.

Betterware de Mexico SAPI de C Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 5th will be issued a dividend of $0.3424 per share. The ex-dividend date of this dividend is Thursday, November 5th. This is a positive change from Betterware de Mexico SAPI de C’s previous quarterly dividend of $0.3252. This represents a $1.37 dividend on an annualized basis and a dividend yield of 8.5%. Betterware de Mexico SAPI de C’s payout ratio is currently 71.04%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Betterware de Mexico SAPI de C in a report on Tuesday, September 1st. Zacks Research upgraded Betterware de Mexico SAPI de C from a “strong sell” rating to a “hold” rating in a research report on Tuesday, September 22nd. Finally, Wall Street Zen raised Betterware de Mexico SAPI de C from a “buy” rating to a “strong-buy” rating in a research note on Saturday, September 5th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy”.

Insider Transactions at Betterware de Mexico SAPI de C

In other Betterware de Mexico SAPI de C news, CEO Andres Campos Chevallier purchased 30,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were purchased at an average cost of $16.41 per share, for a total transaction of $492,300.00. Following the completion of the transaction, the chief executive officer owned 80,000 shares of the company’s stock, valued at $1,312,800. The trade was a 60.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Santiago Campos Chevallier acquired 15,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 16th. The shares were acquired at an average cost of $16.46 per share, with a total value of $246,900.00. Following the purchase, the insider owned 95,000 shares in the company, valued at $1,563,700. This represents a 18.75% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have acquired 200,762 shares of company stock valued at $3,306,350.

About Betterware de Mexico SAPI de C

Betterware de México, SAP.I. de C.V. is a Mexico-based direct-to-consumer company that develops, distributes and sells products for the home, personal care and beauty markets. Its Betterware brand is known primarily for home-organization, kitchen, cleaning, storage and lifestyle products.

The company sells through a network of independent distributors and representatives, supported by product catalogs, digital commerce and other direct-selling channels. This model allows Betterware to reach consumers across Mexico and provides distributors with product, ordering and promotional support.

In 2022, Betterware de México expanded its business through the acquisition of JAFRA, an international direct-selling beauty company.