Betterware de México, S.A.P.I. de C.V. (BWMX) Earnings

Management highlights

### Overall Quarterly Performance - Delivered strong Q2 2026 results, with improved performance across all existing core brands, and closed the first half of 2026 with accelerating organic growth momentum (4.1% YoY organic growth in Q2 2026, up from 0.3% YoY in Q1 2026). - Successfully completed the acquisition of Tupperware's Latin America operations, which contributed positively to revenue and profitability in its first month as part of BEFRA, with stronger-than-expected initial momentum. - Organic seller base returned to growth in Q2 2026, and the Tupperware acquisition added over 300,000 independent sellers, expanding BEFRA's commercial reach significantly. ### Acquisition Integration Update - Tupperware's consolidated direct selling revenue (excluding extraordinary non-direct selling sales from the prior year) grew nearly 30% YoY in June 2026. Tupperware Brazil declined less than 7% YoY in June, a marked improvement from the 10-15% quarterly declines seen over the prior two years, signaling an approaching growth rebound. - The acquisition is immediately accretive, with trailing 12-month pro forma earnings per share more than 36% higher than BEFRA's stand-alone organic trailing 12-month EPS. - The acquisition expanded BEFRA's geographic footprint, adding an immediate presence in Brazil, reducing overexposure to the Mexican market and diversifying BEFRA's consumer product platform. ### Strategic Pillars - Strengthen leadership in Mexico across Betterware, Jaffra, and the newly added Tupperware, with revenue growth across all brands in Mexico in Q2 2026. - Expand regionally, grow existing operations in the Andean region, Guatemala, and Jaffra U.S., while focusing on scaling the new Tupperware business in Brazil. - Expand and diversify the brand and product portfolio through strategic, complementary acquisitions, as demonstrated by the Tupperware transaction. - Advance digital transformation to enhance the direct selling model, including full deployment of Salesforce CRM across Betterware and Jaffra Mexico, with the Jafra Plus app scheduled to launch in H2 2026. - Maintain strict financial discipline, underpinned by strong cash generation, disciplined capital allocation, and a healthy leverage profile to support long-term growth. ### Financial Operations - The board increased the quarterly dividend to 250 million pesos, marking the 26th consecutive quarter of dividend payments since BEFRA's IPO. - Post-acquisition, reported net debt to trailing 12-month EBITDA is 2.6x (including only one month of Tupperware EBITDA and full acquisition debt), while pro forma net debt to trailing 12-month EBITDA including full Tupperware EBITDA remains 1.6x, the same as pre-acquisition leverage. - Working capital remains well managed, with a shortened cash conversion cycle reflecting ongoing operational efficiency. Modest strategic inventory builds were completed to strengthen supply chain resilience amid potential disruptions.

Guidance

There was no explicit full-year financial guidance provided in this call, but management shared the following forward-looking statements: - Gross margin is expected to normalize between Q3 and Q4 2026, after deliberate promotional investments in Jaffra Mexico pushed organic margin below typical levels in Q2. - Management expects Tupperware's revenue contribution to rise to nearly one-third of consolidated revenue in the medium term. - Management expects to see continued growth across all three core brands (Betterware, Jaffra, Tupperware) through the second half of 2026 and beyond. - Extending payment terms to Tupperware suppliers to match BEFRA's standard 120 days is expected to deliver a strong one-time cash flow contribution in coming quarters.

Segment performance

For Q2 2026, organic revenue (excluding Tupperware Latin America, which only contributed one month of results after acquisition) grew 4.1% year-over-year, and total consolidated revenue including Tupperware grew 16.8% year-over-year. Tupperware contributed 10.8% of total Q2 2026 revenue, and management expects this to rise to nearly one-third of consolidated revenue going forward. Betterware delivered sustained sequential growth, with three consecutive quarters of positive growth in Mexico, and strong expansion across other Latin American markets. Jaffa Mexico returned to growth in Q2 2026 after tactical corrections to prior operational moves, with organic growth that met management expectations. Excluding non-recurring transaction costs and deliberate promotional investments, organic EBITDA margin was 19.3% for the quarter, and first-half 2026 organic EBITDA margin expanded to 17.5% from 17.2% in the first half of 2025. Organic net income grew 20.6% year-over-year in Q2 2026. Free cash flow conversion exceeded 70% of EBITDA for the quarter, and nearly 90% on a trailing 12-month basis.

Risks & headwinds

- Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including potential supply chain disruptions resulting from the ongoing Middle East conflict, which prompted BEFRA to build strategic inventory reserves. - Tupperware's existing Argentine distribution license is held by a third party and expires in September 2026, creating near-term uncertainty around BEFRA's entry into the Argentine market. - Integration of the newly acquired Tupperware business carries execution risk, including assessments of manufacturing capacity utilization, potential cross-brand production synergies, and business restructuring, with no guarantee of planned synergies being realized on expected timelines.

Analyst Q&A

• Q: The 36% pro forma EPS accretion from the Tupperware acquisition excludes integration synergies, right? Can we expect the accretion to increase from this level? /

  A: The question is correct. The 36% figure only uses Tupperware's historical trailing 12-month results, and does not include any future synergies expected from the integration of the business into BEFRA. No updated accretion forecast was provided, but the implication is that synergies will lead to higher accretion over time.

• Q: Will BEFRA continue Tupperware's non-direct selling channel sales, or will it focus solely on direct selling going forward? /

  A: BEFRA will focus solely on the direct selling channel for Tupperware, aligned with the company's core focus on direct selling across all its brands. The prior non-direct sales were concentrated in Q2-Q3 and were not material to full-year annual results, so BEFRA is fully abandoning these non-core revenue streams. BEFRA will evolve the direct selling model for Tupperware via its existing digital transformation initiatives.

• Q: What is the plan for the Argentine market, and why was Tupperware Brazil's decline improving even after discontinuing Argentine sales? /

  A: The prior owner of Tupperware granted a third-party distribution license for Argentina that expires in September 2026, and BEFRA will not continue that arrangement. Management is currently assessing when the right time to enter the Argentine market is, and short-term focus is entirely on growing Tupperware in its two largest markets, Mexico and Brazil, so no near-term entry is planned. The 7% decline in Brazil is an improvement on prior double-digit declines even without Argentine sales, signaling a natural rebound for the Brazilian business.

• Q: What opportunities are there to use excess capacity at Tupperware's Mexican and Brazilian manufacturing plants, including producing other BEFRA products there? /

  A: Currently, Tupperware's Mexican plant operates at ~60% capacity utilization, and the Brazilian plant operates at ~40% utilization. The first priority is growing Tupperware's sales in both markets to ramp up capacity utilization naturally. Management has only just begun assessing the possibility of producing some Betterware products at these excess facilities, and it is too early to share any details or confirm if this will be strategically viable.