By Jarrett Banks
Betterware de Mexico S.A.P.I. de C.V. (Nasdaq: BWMX) reported a rise in revenue for the second quarter, mainly due to the acquisition of JAFRA, a leading company in the beauty and personal care products industry, in April.
Net revenue for the quarter increased 25% to Ps. 3,242.9M from Ps. 2,594.5M a year earlier, the company said in a statement. Betterware lowered its guidance for 2022 revenue and Ebitda due to a tougher external environment than anticipated.
“The acquisition provides a unique opportunity for us to enter an attractive and complementary new industry for Betterware, with estimated annual revenues in Mexico and the U.S. of approximately US$100 billion, with the proven experience of JAFRA´s management team,” Luis G. Campos, Executive Chairman of the Board, said in the statement.
Betterware´s associate and distributor base has stabilized, while showing signs of recovery and maintaining the activity levels, it said.
“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,” Campos said.
The home solutions market pre-pandemic secular trends remain valid and stronger than ever, it said. The company added it will continue to focus on product innovation, technology and business intelligence.