BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has demonstrated strong financial performance, with overall EBITDA margins for its Betterware segment increasing by 508 basis points year-over-year and an impressive 31.8% rise in EBITDA. The JAFRA segment has also shown robust metrics, evidenced by an 11.8% increase in the average monthly order for JAFRA Mexico Associates and a significant 22.2% revenue growth in the fourth quarter of 2024, contributing approximately 60% to total revenue. Additionally, the company has achieved notable improvements in gross margins for Betterware, which increased by 675 basis points in the fourth quarter of 2024, supported by higher pricing and a broader product offering in key categories.

Betterware de Mexico SAPI de CV reported an EBITDA of 56.4 million below Street consensus for 4Q24, along with a significant decline in its EBITDA margin, which fell by 370 basis points year-over-year to 20.4%, primarily due to increased costs and supply chain disruptions. The company has faced challenges in expanding its distribution network, as Associate and Distributor levels decreased by 8.4% year-over-year, further exacerbated by concerns over potential tariffs impacting the Mexican economy. Additionally, macroeconomic projections indicate a possible negative effect on Mexican GDP growth and increased unemployment, which could hinder consumer spending and adversely affect Betterware's overall financial performance.