Betterware de México has upheld its 2025 financial forecast, anticipating a high single-digit growth in net revenue and EBITDA, despite a conservative 6% to 9% growth range for its related entity, BeFra, in light of current market conditions. The company remains resolute in its outlook while navigating ongoing economic challenges.
The first quarter of 2025, however, presented hurdles for Betterware. The company faced a 2.9% decline in net revenue, a downturn attributed to economic difficulties in Mexico, where consumer spending and confidence have waned. Notably, Betterware Mexico's revenue declined by 9.8%, contrasting with Jafra Mexico's slight revenue uptick of 1.1%. This led to a reported net revenue of $3.5 billion USD, falling short of analysts' expectations of $3.78 billion USD. Additionally, gross margin slipped by 353 basis points to 66.2%, and EBITDA dropped by 29.1%, landing the EBITDA margin at 15.3%.
In response to these financial pressures, Betterware is steering its strategy towards international expansion and product innovation, bolstering its position in challenging macroeconomic conditions. According to Insider Monkey, the company's management is committed to adapting and optimizing strategies in both Mexico and the U.S. to hit growth targets, underscoring their proactive stance in an evolving economic landscape.