Company Description

A Resilient Multi-Product Group with Diversified Businesses

After acquiring Jafra, our company has expanded its expertise to include the beauty products sector. We now boast a robust, internationally recognized brand with a presence in millions of homes across Mexico and the U.S. This strategic decision has enhanced our resilience by diversifying our product range. We are now uniquely positioned in distinct product segments, giving us a foothold in the lucrative beauty markets of both countries, and opening opportunities for further expansion into other markets.

At Betterware, we offer an extensive array of products featuring innovative and practical household solutions, showcasing over 370 unique stock-keeping units (SKUs) in our monthly catalogs. We have recently attained consistent double-digit growth through effective market expansion, propelled by our network of approximately 43,000 distributors and 768,000 associates. Our advanced infrastructure ensures the safe and prompt delivery of our products nationwide, supported by the advantageous positioning of our distribution center.

The purchase of Jafra has proven to be accretive, forming a robust, unified group with a varied and complementary range of products, ideally situated for expansion. Post-acquisition, Jafra's performance in the Mexican market has been outstanding, surpassing targets nearly every month. This success is attributed to an increasing average consultant base, alongside enhanced activity and productivity rates. In the U.S., our emphasis is on stabilizing sales trends and preparing the business for enduring growth. We are modifying our commercial tactics to broaden our leaders and consultants’ network.

Through this approach, the product portfolios of Jafra and Betterware transform into significant contributors to the Group's steady growth, financial stability, robust cash flow generation, and enhanced performance, particularly in the evolving market conditions.



Unparalleled Supply Chain and Production Platform

Betterware: All of our products are designed in-house and produced by external factories that meet Betterware's quality standards. Currently, we source 90% of our products from China, with the remaining 10% being manufactured in Mexico. To ensure the continued high quality and certification standards of our suppliers, we have strategically set up an office in Ningbo, China, dedicated to overseeing these crucial aspects.

Jafra: We operate a vertically integrated manufacturing facility in Queretaro, Mexico, which we own and where we fabricate 95% of our products. This facility encompasses a full range of operations, including innovation, research and development (R&D), product development, manufacturing, and distribution.

Differentiated Business Model that drives our growth

Differentiated Business Model that drives our growth

Supported by our top-notch Product Innovation, Business Intelligence and Technology units, which provide daily monitoring of key metrics and product intelligence, we have been able to achieve sustainable double-digit growth rates. Our market penetration is driven by our network of almost 63K distributors and 1,213K associates.

Safe and Punctual Deliveries

Safe and Punctual Deliveries

Our state-of-the-art infrastructure and logistics network allows us to safely deliver products on time to every part of the country. Our infrastructure is backed by the strategic location of our distribution centers in the Metropolitan area of Guadalajara, Jalisco, Mexico; Lerma, Estado de Mexico, and Dallas, Texas.

Our Competitive Strengths

We offer a unique and broad range of products for every corner of the household through Betterware, and beauty products through Jafra. Innovating our products is crucial to our businesses, as it ensures that what we offer stays relevant and appealing to our final consumers.

Supported by our top-notch Product Innovation, Business Intelligence and Technology units, which provide daily monitoring of key metrics and product intelligence, we have achieved historically sustained double-digit sales growth rates. Our market penetration is driven by our network of 63K average distributors/leaders and 1,213K associates/consultants as of 3Q 2023.

Our distribution centers are strategically situated in the Metropolitan area of Guadalajara, Jalisco, Mexico; Lerma, Estado de Mexico, and Dallas, Texas. This positioning enables us to efficiently and timely deliver our products to our entire network of distributors/leaders and consultants.

Our asset-light business approach results in a low fixed cost structure, and when combined with our operational flexibility, allows us to adapt to diverse market conditions. This adaptability helps us maintain profitability during economic downturns and maximize opportunities in robust economic times. We consider this adaptability a unique competitive edge and have successfully utilized our business model to enhance profitability and increase cash flow generation throughout various economic cycles.

Boasting over 14 years of experience in business intelligence, we possess state-of-the-art technology tools, essential for our company's operation and strategic direction. Our focus is on product analysis, enabling us to track performance and quick market reactions, as well as to identify markets that align with our business model. In the case of Betterware, beginning January 2023, we have upgraded our catalog, both in design and product assortment. This includes increasing our SKU count, enhancing our main product line, introducing new categories, and encouraging the adoption of our digital catalog.

Betterware has a distinctive two-tier structure and one of the strongest networks in the sector, consisting of an average of 43,000 distributors and 768,000 associates as of the third quarter of 2023. This network reaches over a million households monthly, covering 850 locations throughout Mexico. In Jafra, we operate a multilevel distribution network with approximately 20,000 leaders and 445,000 consultants, who market our products in both Mexico and the U.S. We have developed exceptional and unparalleled reward programs that foster the growth and advancement of our distributors/leaders and associates/consultants.

Betterware products are manufactured by more than 350 third-party certified factories located in China and Mexico, which are produced under our high-quality standards. Jafra’s beauty products are manufactured in our state-of-the-art facility located in Queretaro, Mexico.

Our management team is highly experienced in the direct-to-consumer industry and has consistently demonstrated a capability to provide value to our shareholders, coupled with a dedication to excellence. The foundation of our corporate culture lies in a focus on results, problem-solving, execution, discipline, and dedication, leading to a streamlined and professional business free from bureaucratic processes.

Our Mission, Vision, and Values

Mission

To create opportunities for those who can and want to seize them.

Vision

Harmony at home: we want to bring harmony to every household in the markets that we operate through our product portfolio that provides whole-home practical solutions, as well as give thousands of people the opportunity to generate income.

Values

Positive Attitude

We forge the path towards meeting objectives while spreading optimism across our network.

Honesty

We’re driven by transparency and loyal to our environment.

Commitment

We go beyond the limits set within our standard goals; we make things happen.

Respect

We recognize everyone’s worth, including our own, by treating everyone with dignity, while also promoting diversity of opinion.

Strategy

Growth Strategies

Near Term Growth Strategies

  1. Accelerating our product innovation process, which contributed 14% of 3Q2023.revenue
  2. Higher Market Penetration: We only own around 4% of that market as of 2022, and only reach around 25% of potential households.
  3. Product Innovation
  4. State-of-the-art Technology
  5. Quality and Service
  6. Jafra turnaround. Beauty market is worth Ps. 228,000 million in Mexico, we estimate to have a 3.5% market share today with ample room for growth by implementing Betterware’s expertise and strategies.

Medium Term Growth Strategies

  1. New Product Lines
  2. Jafra turnaround: Our strategy has improved losses by 80%, from 3Q2022 to 3Q2023. We are very close to our goal of achieving breakeven operations within 2023 and we are positioned to record increasing profitability in 2024.
  3. International Expansion: The acquisition of Jafra allowed us to set a footprint for expansion in the U.S. and we will continue to focus market expansion in Mexico,Central America, Colombia and Peru.
  4. Strategic Acquisitions

Learn More

Betterware

Jafra

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