Betterware de Mexico S.A.P.I. de C.V. announced its financial results for the second quarter of 2022, reporting a significant decline of 45% in net income ($22 million) when compared to the second quarter of 2021. EBITDA decreased by 20% year-over-year as well, totaling $29 million.
Net revenues for the first half of the year decreased 7% but increased by 25% in Q2, explained by the inclusion of JAFRA’s net revenues. The company points to shifts in consumption among product categories, the effects of holidays and the world getting back to normal activities, and inflation as major drivers for the company’s performance.
“The first half of 2022 has presented relevant challenges, with a tougher than expected external environment and increased uncertainty, which negatively impacted our consumers and our associates and distributors,” said Luis G. Campos, Betterware Executive Chairman of the Board. “In this context, we continued to advance our key priorities. We stabilized Betterware´s associate and distributor base at approximately 880 thousand and 44 thousand respectively for the last eight weeks, while showing signs of recovery in the last two weeks and maintaining the activity levels, resulting in average weekly sales of more than double of our pre-pandemic comparable period, and we capitalized on opportunities to expand our reach with the successful completion of the JAFRA acquisition. We are confident that this stabilization period, after the extraordinary growth experienced since the pandemic began, is setting the base for future revenue and EBITDA growth in the years to come. We maintain our focus on our long-term growth opportunities which will allow us to maximize value for all Betterware’s stakeholders in the long term.”
