Betterware de Mexico (NASDAQ: BWMX): Mexico’s Direct Selling Powerhouse With Big Expansion Plans

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Betterware de Mexico (NASDAQ: BWMX) is Mexico’s leading Direct-to-Consumer (bypassing retailers, wholesalers, other middlemen, etc.) company focused on creating innovative products that solve specific needs regarding organization, practicality, space-saving and hygiene within the household. The Company plans to further expand its asset-light model in the USA, as well as target Central and South America, and has just released Q1 earnings after the market closed yesterday. Dividend: $0.93 / 8%

OVERVIEW:

Products
  • “We move forward as a diversified group, with cosmetics and discretionary products in our portfolio, and unique brands in different market segments in Mexico and the USA. We intend to leverage the acquisition of JAFRA [skincare-cosmetics, etc] to bring Betterware to the US by the end of 2023. Central America is also a natural expansion opportunity for our Group, and we will be working this year to enter the region in 2024. We will go to South America until 2025, starting with Colombia and Peru.” Betterware Reports Fourth Quarter and Fiscal Year 2022 Results
  • “It is essential to remember that part of our success is based on the flexibility of our asset-light business model and on our ability to adapt to different market conditions, which translates into preserving our profitability through cost control and efficient expenses, which are mostly variable. This applies to both Betterware and Jafra, and we will leverage this to achieve better profitability and higher cash flow generation. Our solid business model, our knowledge and experience in direct selling companies, and our involvement in the business as the controlling group, completely differentiate Betterware de México from other public direct selling companies.” Betterware Reports First Quarter Fiscal Year 2023 Results
  • “We are proud of our track record of success since we started this company, recently demonstrated by a 2019-2022 sales CAGR of 55% and EBITDA CAGR of 38%, considering Jafra, and only considering Betterware’s operations, a 2019-2022 sales CAGR of 27% and EBITDA CAGR of 18%. More impressively, from 2001 to 2022, Betterware achieved a 20% net revenue CAGR and a 22% EBITDA CAGR.” Betterware Reports First Quarter Fiscal Year 2023 ResultsBetterware Reports First Quarter Fiscal Year 2023 ResultsBetterware Reports Fourth Quarter and Fiscal Year 2022 Results
  • “Our distributors are the link between our company and our associates. Both distributors and associates are incentivized by product discounts and earning Betteware Points.”Business Model
  • P/E (Finviz): 10.68 / P/E (Yahoo! Finance): 10.63
  • Dividend Yield (Finviz): 7.97% / Forward Dividend & Yield (Yahoo! Finance): 8.20%

1 YEAR CHART:

Finviz Chart

LONG TERM CHART:

ADDITIONAL RESOURCES:

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