The following is a summary of the Betterware De México, S.A.P.I. De C.V. (BWMX) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 highlighted a 5.3% year-over-year revenue growth, marking the third consecutive quarter of growth for Betterware Mexico and a first year-over-year increase for Jafra US since its acquisition in 2022.

• EBITDA increased by 3%, driven by Jafra Mexico's steady performance despite global supply chain disruptions and market volatility in Mexico.

• Consolidated gross margin contracted by 103 basis points due to a less favorable product mix and higher freight costs.

• Free cash flow decreased by 39% primarily due to a reduction in operating cash flow and higher capital expenditures.

Business Progress:

• Continued growth despite challenges like global supply chain disruptions and geopolitical tensions.

• Launched a redesigned catalog for Jafra which is expected to boost purchases.

• Plans to increase the digital presence of Jafra in the US with the rollout of the Shopify Plus platform.

• Initiatives include improved demand forecasting, enhanced pricing structures, and strategic use of property sales proceeds for debt servicing.

Opportunities:

• The ongoing expansion in the US and product innovation are expected to drive growth, leveraging the redesigned Jafra catalog and Shopify platform launch.

Risks:

• Ongoing challenges include higher import taxes on 116 SKUs and increased freight costs impacting profitability.

• Market volatility influenced by Mexico's presidential election and geopolitical tensions could affect operation.

More details: Betterware de Mexico IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.