Betterware de Mexico SAPI de C (NYSE:BWMX) reported stronger second-quarter 2026 results as its core brands returned to growth and its newly acquired Tupperware Latin America operations made an immediate contribution after one month of consolidation.
President and Chief Executive Officer Andres Campos said the quarter marked “a defining milestone” for the company, which now operates as a broader consumer products platform under the BeFra umbrella. Campos spoke from São Paulo, where he said Tupperware’s Brazil team was making progress on commercial and innovation initiatives aimed at reviving growth.
Tupperware Adds Scale and Geographic Diversification
The acquisition of Tupperware’s Latin America operations was a central focus of the call. Campos said Tupperware contributed 10.8% of second-quarter revenue despite being included for only one month, and he said the brand is expected to account for nearly one-third of revenue going forward.
The acquisition also expands Betterware’s presence in Latin America, including Brazil, which Campos described as the region’s largest direct selling market. He said Tupperware added more than 300,000 independent sellers to the company’s network, expanding its commercial reach.
Campos said Tupperware’s direct selling revenue across Mexico and Brazil grew nearly 30% year over year when excluding extraordinary prior-year sales outside the direct selling channel in Mexico. In Brazil, Tupperware’s June revenue declined less than 7% from the prior year, compared with quarter-over-quarter declines of 10% to 15% over the previous two years, which Campos said signaled an improving trend.
During the question-and-answer session, Campos said the company will focus Tupperware “solely” on the direct selling channel and is abandoning other revenue streams Tupperware previously had. He said those sales were concentrated mainly between June and August and were not highly relevant on a full-year basis.
Profitability Pressured by Jafra Investment and Deal Costs
Chief Financial Officer Raúl del Villar said organic EBITDA and net income declined in the second quarter, mainly because of deliberate gross margin investment in Jafra Mexico and non-recurring costs tied to the Tupperware transaction. Excluding those items, he said organic EBITDA margin would have been approximately 19.3%, and organic net income would have been broadly in line with the prior year.
Del Villar said the company expects gross margin to normalize between the third and fourth quarters. For the first half of 2026, organic EBITDA margin expanded to 17.5% from 17.2% in the prior-year period, while organic net income rose 19.1%. He also noted that Jafra U.S. continued to improve profitability and achieved a positive EBITDA margin for the quarter.
Including Tupperware, total EBITDA rose 15% and net income increased 20.6% in the quarter, according to del Villar.
Cash Flow, Leverage and Dividend
Betterware converted more than 70% of EBITDA into free cash flow during the quarter and nearly 90% on a trailing 12-month basis, del Villar said. He attributed the performance to the company’s business model and disciplined financial management.
The board approved an increase in the quarterly dividend to MXN 250 million, reflecting the additional shares issued as part of the Tupperware acquisition. Del Villar said the payment will represent the company’s 26th consecutive quarterly dividend since its IPO.
Following the Tupperware transaction, net debt to trailing 12-month EBITDA stood at 2.6 times, reflecting only one month of Tupperware EBITDA while including the full acquisition debt. On a pro forma basis, including Tupperware’s trailing 12-month EBITDA, net debt to trailing 12-month EBITDA was 1.6 times, del Villar said.
Del Villar said the acquisition was funded with $35 million of newly issued shares and $213 million of long-term debt. Before the acquisition, the company reduced debt by more than MXN 500 million during the quarter, bringing total debt to MXN 4 billion.
He also said Betterware is working to expand payment terms with Tupperware suppliers from nearly zero days to Betterware’s standard 120 days, which he said is expected to provide a one-time cash flow benefit in coming quarters.
Core Brands Return to Growth
Campos said all of the company’s brands in Mexico recorded revenue growth during the quarter. He said Jafra Mexico rebounded as anticipated after prior tactical moves affected performance in the fourth quarter of 2025 and first quarter of 2026.
In response to an analyst question, Campos said Jafra is still being positioned for further growth through innovation, new technology and the planned launch of the Jafra Plus app in the second half of the year. He said Jafra was the No. 14 beauty brand in Mexico when Betterware acquired it four years ago and finished last year around No. 6 or No. 7, leaving room to move into the top five or top three.
Campos also said Betterware Mexico has now shown three consecutive quarters of growth momentum after the brand sought a new phase of expansion following significant growth over the past decade.
On Jafra’s gross margin, Campos said the pressure came from promotional activity rather than a broad price adjustment. He said the impact was about one percentage point from the typical margin range of roughly 73.5% to 74.5%, and he expects margins to return to that range in coming quarters.
Manufacturing and Argentina Plans Under Review
Analysts also asked about Tupperware’s manufacturing footprint and Argentina operations. Campos said Tupperware’s Mexican plant is operating at about 60% utilization, while the Brazilian plant is at about 40%. The first priority, he said, is to grow Tupperware in Mexico and Brazil to increase utilization. The company is also beginning to assess whether some Betterware products could be manufactured in those plants, though Campos said it is too early to provide specifics.
Regarding Argentina, Campos said Tupperware’s previous owners had granted a third-party distribution license that ends in September 2026. Betterware has notified the party that the arrangement will not continue, and the company is assessing if and when to enter the market directly. Campos said the near-term focus remains on Mexico and Brazil.
Campos closed the call by saying the quarter showed all brands “coming back to growth” while Tupperware adds what management views as another transformative platform for the company.
About Betterware de Mexico SAPI de C (NYSE:BWMX)
Betterware de Mexico SAPI de C.V. is a Mexico City–based home solutions company that designs, sources and distributes a broad portfolio of organizational and household products. Through a direct-to-consumer model, Betterware offers storage and organization items, kitchenware, cleaning tools, personal care accessories and pet care products. The company leverages both digital channels and a catalog-driven distribution network to reach end customers, pairing an e-commerce platform with an independent sales advisor network.
Founded in 1995, Betterware has built a multi-channel sales infrastructure that relies on regional distribution centers and a large community of independent representatives.
