管理層發言
Good afternoon, and welcome to the BeFra's Second Quarter 2026 Earnings Conference Call. Before BeFra management begins their prepared remarks, please note the disclaimer regarding forward-looking statements on Slide 2. To remind participants, this call may contain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Please consider these statements alongside the cautionary language and safe harbor statement in today's earnings release as well as the risk factors outlined in BeFra's SEC filings. BeFra undertakes no obligation to update any forward-looking statements. A reconciliation of, and other information regarding, non-GAAP financial measures discussed on this call can also be found in the earnings release published earlier today as well as the Investors section of the company's website. Present on today's call are BeFra's President and Chief Executive Officer, Andres Campos; and Chief Financial Officer, Raul Del Villar. I will now turn the call over to Mr. Campos. Please begin.
Thank you, operator, and good afternoon, everyone. Thank you for joining our call today. I am delighted to let you know that I am speaking to you from Sao Paulo, Brazil, where our Tupperware team is making great progress on our commercial and innovation strategies to revamp growth. I've been visiting and talking to our associates and distributors here and can feel a strong sense of trust in the brand's future with BeFra. Turning to talk about our results, I'm also delighted to share that we delivered a strong second quarter, closing the first half of 2026 with improved performance across all of our brands. This quarter also represents a defining milestone in BeFra's history with the successful incorporation of Tupperware's Latin America operations, which, with only one month of results in our books, immediately contributed to our revenue and profitability. Let's move to Slide 4 and dive into the highlights of these results. Before we begin, let me clarify that throughout this presentation, we will refer to organic growth. This refers to Betterware and Jafra only, excluding Tupperware to provide a like-for-like comparison with prior periods. We delivered strong organic growth during the quarter with revenue increasing 4.1% compared to the second quarter of last year and 5.7% compared to the first quarter of this year. The growing momentum of our commercial strategies in Betterware Mexico, our continued success in our Betterware LatAm expansion and a sharp rebound to growth in Jafra Mexico, as we anticipated last quarter, all contribute to an increasing momentum of growth in BeFra's organic results, which is seen in this quarter's growth of 4.1% compared to last quarter's growth of 0.3%. Including Tupperware's first month of results, total revenue increased 16.8% in the quarter. We'll review in detail in a few slides. Having this contribution from the Tupperware acquisition, while our pro forma net debt to trailing 12 months EBITDA remains at 1.6x as it was pre-acquisition, makes us confident that this acquisition is very valuable right off the bat. Tupperware has gained more momentum than we expected as the months go by in the year. We are also pleased to see our organic associate base return to growth during the quarter, an important indicator that reinforces the health of our commercial platform. At the same time, Tupperware expands our network by adding more than 300,000 independent sellers, significantly strengthening BeFra's commercial reach and providing a solid foundation for future growth. On the next slide, we can see how our revenue mix continues to evolve as BeFra becomes a more diversified consumer products platform with Tupperware already contributing 10.8% of the quarter's revenue, while we expect it to contribute almost one third going forward. In that same note, the incorporation of Tupperware expands our geographic footprint through an immediate presence in Brazil, increasing Latin America's contribution to consolidated revenue and decreasing our sales exposure to the Mexican market. Now I'll hand the call over to Raul, so he can explain BeFra's key financials in detail.
Thank you, Andres. Good afternoon, everyone. Turning to Slide 6. Profitability remains strong. Organic EBITDA and net income decreased during the quarter, mainly due to a deliberate gross margin investment in Jafra Mexico and nonrecurring expenses associated with the Tupperware transaction. Without these items, organic EBITDA margin would have been approximately 19.3% and organic net income would have been broadly in line with last year. We expect gross margin to normalize between Q3 and Q4. Our overall organic profitability continues to strengthen as the year progresses with first half EBITDA margin expanding to 17.5% compared to 17.2% in the first half of last year. On this same note, organic net income remains strong, growing 19.1% in the first half despite the temporary effects mentioned in the second quarter. It is noteworthy to state that Jafra U.S. continues its profitability improvement, achieving a positive EBITDA margin for the quarter. Including Tupperware, total profitability increased our financial strength with EBITDA growing 15% and net income growing 20.6% in the quarter. Turning to Slide 7. Cash generation remained strong during the quarter. We converted more than 70% of EBITDA into free cash flow during the quarter and nearly 90% on a last 12-month basis, highlighting the strength of our business model and our disciplined financial management. Turning to dividends. Our Board remains committed to delivering value to shareholders. Accordingly, we are increasing the quarterly dividend to MXN 250 million, reflecting the additional shares issued as part of the Tupperware acquisition while further enhancing the value return to shareholders. This will mark our 26th consecutive quarter of dividend payments since IPO. Turning to Slide 8. The successful acquisition of Tupperware proves the strength of BeFra's financial position. Following the transaction, net debt to trailing 12 months EBITDA stands at 2.6x, despite consolidating only one month of Tupperware's EBITDA while assuming the full acquisition debt. We are also presenting a pro forma net debt to trailing 12 months EBITDA ratio of 1.6x, which comprises Tupperware's trailing 12 months EBITDA. It is important to point out that pre-acquisition, we delevered by more than MXN 500 million during the quarter, reducing our total debt to MXN 4 billion. This illustrates the strong financial position at which we stand post-acquisition, while we have added almost one third of EBITDA without significantly changing our pre-acquisition leverage position. Note that the Tupperware acquisition was financed through $35 million of newly issued shares and $213 million of long-term debt. Working capital remained well managed during the quarter with a shorter cash conversion cycle, reflecting continued operational efficiency. Inventory levels increased modestly following strategic inventory purchases to strengthen supply chain resilience due to possible supply chain disruptions resulting from the Middle East conflict. It is also important to note that we are actively working on expanding payment terms with suppliers from almost 0 days to BeFra's standard 120 days. We expect this to make a strong one-time contribution to cash flow in the coming quarters. Beyond leverage, our asset-light business model continues to support attractive returns, with ROTA increasing to 23.3% and ROIC reaching 32.3%, further demonstrating our ability to generate value from the capital we deploy. I will now pass the call back to Andres, who will provide an update on the strategic pillars.
Thank you, Raul. Turning to Slide 9. Our strategy continues to be guided by the same five pillars that have successfully driven BeFra's transformation and long-term growth. First, strengthen our leadership in Mexico across Betterware, Jafra and now Tupperware. This quarter marked another period of solid commercial execution for BeFra with revenue growth across all our brands in Mexico. Second, regional expansion, expanding our footprint to Brazil, the largest direct selling market in Latin America, while sustaining strong growth across the Andino region and Guatemala and continuing to build momentum at Jafra U.S. Third, continue developing, strengthening and expanding our portfolio of brands and product categories as we are now doing with Tupperware. Fourth, digital transformation, further enhancing our person-to-person business model through the successful rollout of our Salesforce CRM across Betterware and Jafra Mexico and the Jafra Plus app scheduled to launch in the second half of the year. And finally, financial discipline, the foundation supporting every strategic decision we make, underpinned by disciplined capital allocation, strong cash generation and a healthy leverage profile. These pillars remain the framework guiding our strategic decisions and capital allocation going forward. With that framework in mind, we will now turn to our third pillar, new brands or categories. Turning to Slide 10. The successful incorporation of Tupperware marks an important milestone in our strategy of developing and strengthening our portfolio through complementary brands and product categories. The strong initial performance of the business reinforces our confidence in the acquisition and validates our disciplined approach to capital allocation. More importantly, it demonstrates our ability to successfully integrate iconic brands and unlock long-term value for our shareholders. Turning to Slide 11. Tupperware delivered a strong first month as part of BeFra. Last year, Tupperware Mexico recorded extraordinary sales outside the direct selling channel. Excluding these sales, Tupperware's consolidated direct selling revenue across Mexico and Brazil grew nearly 30% year-over-year, underscoring the renewed confidence among our associates following the acquisition and the strength of the brand's commercial fundamentals. On the same note, Tupperware Brazil decreased less than 7% in June versus last year, while the last two years have been marked by 10% to 15% declines quarter-on-quarter, signaling a rebound to growth. Including Tupperware's pro forma net income, trailing 12 months earnings per share is more than 36% higher than organic 12 months earnings per share, demonstrating the accretive nature of the acquisition. Turning to our final slide. Today's results reinforce the strength of BeFra's strategy and the opportunities that lie ahead. The successful incorporation of Tupperware further demonstrates our ability to execute strategic acquisitions while maintaining disciplined capital allocation. Following the transaction, we continue to maintain a healthy leverage profile, reinforcing the resilience of our balance sheet and our confidence in executing our deleveraging strategy. At the same time, our core business continued to deliver solid organic growth across revenue, EBITDA and net income, while Tupperware made an immediate positive contribution to the group's results. Together, these achievements reinforce our confidence in BeFra's ability to continue delivering sustainable and profitable long-term growth. BeFra today is a larger, more diversified and financially stronger company than ever before. We are excited about the opportunities ahead as we continue executing our strategy and creating long-term value for our shareholders. With that, operator, we would be happy to take any questions. Thank you.
分析師問答
Our first question comes from Doug Lane with Water Tower Research.
Staying on Slide 11 here, you mentioned the EPS accretion from the Tupperware was 36.6%, and that's pro forma trailing 12 months. So that doesn't really include any benefit from integration, right? So arguably, that number should go up from here?
Good question. Thank you. You're correct. We are just using the historical numbers that Tupperware had over the last 12 months. So that does not include any synergies that we might get in the future.
Got it. And also on Slide 11, you pointed out the nondirect selling channel sales that Tupperware does. And that's been part of their strategy all along here. So I guess, Andres, the question for you is, are you going to focus purely on the direct selling channel going forward with Tupperware?
Doug, yes, the answer is we're going to focus solely on the direct selling channel. As we have mentioned for all of our brands, we're focusing on the direct selling channel by evolving that channel through digital transformation and other initiatives. So we are abandoning those other revenue streams that Tupperware had. That, by the way, was basically concentrated between the second and third quarters. We used to rely a bit more between June and August, but for the rest of the year it's not as heavy as it seems. So on an annual basis, it wasn't too relevant.
Okay. That's helpful. I noticed in your release, you also mentioned Brazil improving to down 7% from down double digits despite the discontinuation of sales to Argentina. Can you explain what's going on with Argentina? That was not Mexico or Brazil, but it's still a fairly sizable market. So that is one of the markets that you're operating in, isn't it?
Yes. The past owners of Tupperware had given a distribution license to a third party in Argentina that will end this September 2026. We have informed them that the license will not continue. We are still assessing what we will do and, more importantly, when is the right time to enter Argentina directly. Right now, our main focus is to grow in Mexico and Brazil. Those are the largest markets, and we see a lot of opportunity there, so that is where our focus will be in the short term. We are evaluating what to do in Argentina and the timing for that.
That makes sense. Then there's plenty of opportunity in Mexico and Brazil, as you pointed out. Along with those two markets, you also have manufacturing capacity. Can you update us on what you found now that Tupperware has been part of BeFra for a month on manufacturing? What are the opportunities to move some manufacturing into those plants and absorb some excess capacity?
Yes. As we mentioned before, the Mexican plant is running at around 60% utilization, and the Brazilian plant is about 40% utilization. The first focus is to grow Tupperware in these two markets so that Tupperware's growth will ramp up plant utilization. As we mentioned, Tupperware Mexico grew 30% in June. As we continue to accelerate growth and revamp Brazil, this will increase the use of capacity in the plants. At the same time, we are just starting to assess the possibility of manufacturing some Betterware products in those plants. It's still early to say. We are assessing what it would mean for plant volumes and whether it is strategically the best thing to do. So it's still early to tell.
Our next question comes from Eric Beder with SCC Research.
Congratulations on completing the acquisition. I want to talk about the core businesses. Another positive quarter for Betterware and another positive quarter — a return to positive quarter for Jafra. When you look at the back half and beyond, where do you see the changes that you're making in Jafra having more impact going forward? And in terms of Betterware, you're seeing momentum in both distributors and the associate pool expanding. How should we be thinking about that and the ability for those to both drive continued positive growth through 2026 and beyond?
Yes, Eric. The first half has been a very positive and transformative period, not only because the Tupperware acquisition was concluded but because even with only one month of contribution it's proving to be accretive and valuable. Regarding Jafra, Q4 of last year and Q1 of this year were slightly affected by some tactical moves we made. We corrected those moves and Q2 is back on the growth track we expected. Beyond that correction, we continue to do a lot at Jafra to reach its potential: improving innovation, rolling out new technology, and launching the Jafra Plus app, which is the Betterware Plus technology adapted for Jafra. When we acquired Jafra four years ago it was the #14 beauty brand in Mexico; last year we closed around #6 or #7, so there is still room to grow toward top 5 or top 3 in Mexico and the U.S. For Betterware, it has grown significantly over the past ten years—more than sixfold—and we have been working on finding the next wave of growth through targeted innovations. We have begun to implement those innovations and are seeing a positive trend in Betterware Mexico for the third consecutive quarter, which suggests the growth sequence is durable rather than a one-quarter coincidence. We are very happy about this and believe all three brands are now in growth mode together, and we expect that to continue.
Our next question is from Joe Feldman with Telsey Advisory Group.
Andres, congrats on the good quarter. I wanted to ask about the Jafra gross margin. You guys talked about a little bit of pressure related, I think, to price investments. And I'm wondering if you could share a little more color on that, if that's going to continue in the second half of this year or the price investments done at this point? And how much you think that may have contributed to the sales improvement that you saw?
Thanks, Joe. We invested in promotional activities rather than a broad price adjustment. Normally we have a bandwidth for our margin; this quarter the promotions were successful but ended slightly lower than our historical levels—about a one percentage-point drop from our typical margin around 73.5% to 74%. It was a deliberate promotional action, and some of the other corrections we made were unrelated to margin. We expect margins to normalize and return to our typical range of roughly 73.5% to 74.5% in the coming quarters.
Thank you. That concludes our question-and-answer portion of today's conference call. I would like to turn it back over to management for closing remarks.
Well, thank you again to all for joining us today. We are very glad to report this strong quarter where all of our brands are coming back to growth, and we are adding this new Tupperware brand, which we're sure will be another transformative era for BeFra. Thank you again and we look forward to talking to you again soon. Thank you.
Ladies and gentlemen, this concludes BeFra's Second Quarter 2026 Earnings Conference Call. We would like to thank you again for your participation. You may now disconnect.