Eric Martin Beder

Eric Martin Beder inquired about Betterware's inventory management strategy, specifically the reduction in inventory year-over-year, its potential impact on free cash flow for debt reduction and expansion, and future inventory targets. He also asked how Betterware Mexico leverages the stronger peso and lower freight costs to maximize margins and drive top-line growth, and the progress of Jafra's expansion into new product categories like skincare. Finally, he questioned the preferred ownership structure for new regional expansions in Latin America.

Answer

Betterware's CFO, Rodrigo Muñoz, projected year-end 2025 inventory to be around $2,100 million to $2,200 million, down from $2,500 million at the start of the year, with CEO Andres Campos clarifying the target. CEO Andres Campos explained that the stronger peso and reduced freight costs benefit Betterware Mexico by allowing more aggressive consumer pricing to stimulate demand while maintaining profitability. For Jafra Mexico, he noted that while fragrances remain the primary category, other categories are expected to accelerate growth. Regarding regional expansion, CEO Andres Campos confirmed that new ventures like Colombia are 100% directly owned, managed by local professional teams.

Eric Martin Beder inquired about Betterware's inventory reduction strategy, its impact on free cash flow and debt repayment, the benefits derived from a stronger Mexican peso and lower freight costs for the Betterware catalog, and the strategic direction for Jafra's category expansion and the ownership structure for new international market entries like Colombia.

Answer

CFO Rodrigo Muñoz projected year-end inventory to be around MXN 2,100 million, down from MXN 2,500 million at the start of the year, confirming the company's aim to reduce inventory. CEO Andres Campos explained that the strong peso and reduced freight costs benefit Betterware Mexico, allowing for more aggressive consumer pricing to drive demand while maintaining profitability. For Jafra, CEO Andres Campos noted that while fragrances remain the main category, other categories are expected to grow faster. He also confirmed that international expansion, including Colombia, will be 100% owned by Betterware, with local professional management.