Summary of BeFra's Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: Grew 1.2% year-over-year.

Full Year Revenue: Also increased 1.2%, despite a challenging first quarter.

EBITDA Margin: Q4 margin at 19%, down from the previous year due to temporary gross margin impacts; full-year margin at 18.7%.

Free Cash Flow: More than doubled year-over-year in Q4, with a 24.6% increase for the full year, driven by inventory optimization.

Debt Reduction: Total debt decreased by MXN 700 million, lowering net debt-to-EBITDA from 3.1x in 2022 to 1.56x at year-end 2025.

2Strategic Updates and Business Highlights

Business Units Performance:

Jafra Mexico: Achieved record-high sales in Q4, marking a return to growth.

Betterware Mexico: Improved commercial momentum with the strongest quarterly performance of 2025.

Jafra U.S.: First quarter of year-over-year growth, supported by stronger consultant productivity.

Strategic Pillars: Focus on strengthening leadership in Mexico, regional expansion, developing new brands, activating digital models, and maintaining financial discipline.

Acquisition: Announced acquisition of Tupperware's Latin American business for $250 million, expected to enhance revenue and profitability through innovation and operational synergies.

3Forward Guidance and Outlook

2026 Growth Expectations: Management projects revenue growth of 4% to 8%, supported by a more stable consumer environment and internal strategies to regain growth.

EBITDA Margin Guidance: Expected to remain at or above 19%, with various factors influencing this metric.

4Challenges and Points of Concern

Consumer Environment: The Mexican consumer experienced slight contraction in 2025, with ongoing economic uncertainties impacting discretionary spending, particularly for Betterware products.

Jafra's Distributor Base: A slight decline in the number of distributors was noted, raising concerns about sustaining growth.

Legal Expenses: Ongoing legal costs impacted reported profitability for Jafra U.S.

5Notable Q&A Insights

Consumer Stability: Management expressed confidence in a more stable consumer outlook for 2026, citing decreasing interest rates and stable inflation.

Inventory Management: Optimized inventory levels are expected to stabilize, with less significant reductions anticipated in 2026.

Jafra's Growth: Management is optimistic about Jafra's continued growth, driven by product innovation and improved technology initiatives.

EBITDA Expectations: Management indicated that while the EBITDA margin is expected to remain stable, various investments and external factors could influence this. Overall, BeFra demonstrated resilience in Q4 2025, with a focus on strategic initiatives and a positive outlook for 2026, despite facing challenges in consumer spending and distributor dynamics.