Cuộc họp công bố kết quả kinh doanh Q3 2026 của BeFra (BWMX): Doanh thu tăng 43,1%, nâng triển vọng kinh doanh

Các điểm chính

• Doanh thu hợp nhất tăng 43,1% so với cùng kỳ năm ngoái lên 4.832 triệu Ps., bao gồm đóng góp trọn một quý đầu tiên của Tupperware. Doanh thu tự thân từ Betterware và Jafra tăng 2,3%.
• EBITDA hợp nhất tăng 39,6% lên 1.008 triệu Ps. Biên EBITDA giảm xuống 20,9% từ mức 21,4%, trong khi biên EBITDA 9 tháng mở rộng lên 19,2% từ mức 18,5%.
• Lợi nhuận ròng tăng 24,2% lên 390 triệu Ps. dù thuế suất thực tế cao hơn. Ban lãnh đạo dự kiến thuế suất cả năm sẽ trở lại mức bình thường trong khoảng giữa 30%.
• Doanh thu của Betterware Mexico tăng 8,5%, trong khi doanh thu của Jafra giảm 2,8%. Doanh thu bán hàng trực tiếp cốt lõi của Tupperware tăng 14%, bao gồm mức tăng trưởng 23% tại Mexico.
• Ban lãnh đạo đã thu hẹp dự báo tăng trưởng doanh thu thuần tự thân cả năm xuống 4%-5% và nâng dự báo tăng trưởng doanh thu thuần sau sáp nhập lên 24%-26%. Mục tiêu biên EBITDA cả năm vẫn giữ ở mức 19%.
• Dòng tiền tự do báo cáo đạt 1.059 triệu Ps., tương đương 105% EBITDA quý. Tỷ lệ nợ thuần pro forma trên EBITDA 12 tháng gần nhất cải thiện lên 1,65 lần.

Dữ liệu tài chính chính

Trong 9 tháng đầu năm 2026, dòng tiền tự do báo cáo đạt tổng cộng 1.871 triệu Ps., tương đương tỷ lệ chuyển đổi 78% EBITDA từ đầu năm đến nay. EPS pro forma tăng 114% lên 45,4 Ps., bao gồm lợi nhuận ròng của Tupperware trong toàn bộ giai đoạn 9 tháng.

Cổ tức trị giá 250 triệu Ps. đã được phê duyệt vào tháng 10 và dự kiến thanh toán trong quý 4. Đây sẽ là kỳ trả cổ tức hàng quý thứ 27 liên tiếp của BeFra kể từ khi IPO.

Kết quả kinh doanh và hoạt động

Betterware

Betterware đạt quý thứ ba liên tiếp tăng trưởng so với cùng kỳ năm ngoái. Doanh thu tại Mexico tăng 8,5%, nhờ năng suất của cộng tác viên cao hơn dù hoạt động thương mại mùa hè yếu hơn do sự chú ý của người tiêu dùng dịch chuyển trong thời gian diễn ra World Cup.

Ban lãnh đạo cho biết Betterware vẫn còn dư địa mở rộng tại Mexico. Công ty cũng đang phát triển các hoạt động tại khu vực Mỹ Latinh sau khi ra mắt tại Ecuador và Colombia.

Biên lợi nhuận gộp của Betterware chịu áp lực từ chi phí vận tải tăng cao do hầu hết sản phẩm được nhập từ Trung Quốc. Ban lãnh đạo đang sử dụng chính sách giá, khuyến mãi và các biện pháp thương mại khác để phục hồi biên lợi nhuận và không kỳ vọng cước phí vận tải sẽ giảm đáng kể trong ngắn hạn.

Jafra

Doanh thu của Jafra giảm 2,8%. Tại Mexico, hoạt động của cộng tác viên giảm trong thời gian diễn ra World Cup và kỳ nghỉ hè kéo dài đã không được bù đắp hoàn toàn bởi sự gia tăng năng suất.

CEO Andres Campos đã đảm nhận vị trí Giám đốc điều hành tạm thời của Jafra Mexico. Ban lãnh đạo có kế hoạch cải thiện việc lập kế hoạch khuyến mãi, tính nhất quán trong vận hành và khâu thực thi. Công ty cũng dự định ra mắt ứng dụng Jafra Plus vào đầu năm 2027 sau những trì hoãn trong quá trình phát triển.

Jafra Mỹ ghi nhận quý thứ hai liên tiếp đạt EBITDA dương nhờ cơ cấu chi phí tinh gọn hơn.

Tupperware

Tupperware đóng góp 28,5% doanh thu hợp nhất trong quý trọn vẹn đầu tiên thuộc BeFra. Betterware chiếm 31,5% và Jafra chiếm 40%.

Doanh thu bán hàng trực tiếp của Tupperware tăng 14%, dẫn đầu là mức tăng trưởng 23% tại Mexico. Doanh thu tại Brazil giảm 3,3%, đã cải thiện so với mức sụt giảm 10%-15% trước khi diễn ra thương vụ thâu tóm.

Ở cấp độ thương hiệu, doanh thu pro forma giảm 6,8%. Ban lãnh đạo giải thích mức giảm này là do doanh số xuất khẩu và bán hàng doanh nghiệp (B2B) đạt mức cao trong quý 3/2025. BeFra đã ngừng hoạt động B2B để tập trung vào bán hàng trực tiếp từ người sang người. Ban lãnh đạo cho biết vấn đề so sánh này sẽ không kéo dài sang quý 4 vì quý cùng kỳ năm trước không có doanh số bán lẻ đáng kể.

BeFra đang xây dựng năng lực cho Tupperware về đổi mới sáng tạo, công nghệ và trí tuệ kinh doanh. Việc phát triển sản phẩm sẽ xem xét các chất liệu ngoài nhựa, bao gồm thủy tinh, thép không gỉ và gốm sứ, cũng như các ngành hàng như dụng cụ uống nước, dụng cụ nhà bếp và thiết bị nấu nướng. Ban lãnh đạo có kế hoạch tùy chỉnh các sản phẩm mới để đáp ứng cụ thể nhu cầu của người tiêu dùng Mexico và Brazil.

Dự báo của Ban lãnh đạo

Khoảng tăng trưởng doanh thu tự thân đã được thu hẹp trong phạm vi dự báo trước đó của công ty, trong khi triển vọng tăng trưởng sau sáp nhập được nâng lên dựa trên đóng góp trọn một quý đầu tiên của Tupperware và kết quả hoạt động trong 9 tháng đầu năm.

Ban lãnh đạo cho biết triển vọng biên EBITDA 19% đã bao gồm các khoản đầu tư cho tăng trưởng tại Tupperware và chi phí liên quan đến việc vận hành một tập đoàn quy mô lớn hơn. Trong quý 4, các giả định của công ty bao gồm tăng trưởng ở mức một chữ số tầm trung tại Jafra và tăng trưởng ở mức một chữ số tầm cao tại Betterware.

Rủi ro và các yếu tố cần theo dõi

• Jafra ghi nhận sự tăng trưởng và các quyết định vận hành thiếu nhất quán, dẫn đến thay đổi nhân sự quản lý và tập trung trở lại vào khâu thực thi thương mại.
• Betterware vẫn chịu rủi ro từ chi phí vận tải quốc tế tăng cao do mô hình nguồn cung ứng đặt tại Trung Quốc.
• Sự chuyển dịch sự chú ý của người tiêu dùng liên quan đến World Cup và kỳ nghỉ hè kéo dài đã làm giảm hoạt động của cộng tác viên, đặc biệt là tại Jafra Mexico.
• Tupperware cần đầu tư vào đổi mới sáng tạo, công nghệ và trí tuệ kinh doanh, điều này đã được đưa vào triển vọng biên lợi nhuận của công ty.
• Quý 3 bao gồm 47 triệu Ps. chi phí liên quan đến thương vụ thâu tóm được ghi nhận trong sổ sách hợp nhất, bao gồm cả trong kết quả hoạt động của công ty Betterware.
• Hiệu ứng cộng hưởng về mua sắm và sản xuất từ thương vụ thâu tóm Tupperware vẫn đang được đánh giá và chưa được định lượng.

Tóm tắt phần Hỏi & Đáp với chuyên viên phân tích

Ban lãnh đạo xác định đổi mới sản phẩm là cơ hội lớn của Tupperware. BeFra đang thành lập một đội ngũ đổi mới sáng tạo do cựu Giám đốc R&D và Đổi mới toàn cầu của Tupperware, ông David Kusuma, một phần dẫn dắt. Chiến lược này bao gồm việc mở rộng ra ngoài các hộp đựng bằng nhựa và phát triển sản phẩm cho các thị trường Mỹ Latinh cụ thể thay vì phụ thuộc vào các thiết kế toàn cầu.

Về sự xoay trục giai đoạn đầu của Tupperware, ban lãnh đạo đề cập đến việc thiết kế lại danh mục sản phẩm, cải thiện hoạt động trưng bày sản phẩm, kỹ thuật khuyến mãi và khôi phục niềm tin ở các nhà phân phối và cộng tác viên. Công ty cũng đang đánh giá ứng dụng Tupperware Plus sử dụng cùng nền tảng công nghệ với Betterware Plus và ứng dụng Jafra Plus đang trong kế hoạch.

Về các hiệu ứng cộng hưởng từ thương vụ sáp nhập, ban lãnh đạo cho biết đang đánh giá xem liệu một số sản phẩm của Betterware có thể được sản xuất tại nhà máy của Tupperware ở Mexico hay không, và liệu năng lực chuỗi cung ứng của Betterware có thể hỗ trợ các sản phẩm của Tupperware làm từ chất liệu thay thế hay không. Tăng tốc doanh thu vẫn là ưu tiên hàng đầu trước mắt và chưa có ước tính nào về hiệu ứng cộng hưởng được đưa ra.

Về phân bổ vốn, Giám đốc Tài chính (CFO) Raúl del Villar không đưa ra mục tiêu đòn bẩy dài hạn. Ông cho biết BeFra dự kiến sẽ tiếp tục đầu tư vào việc mở rộng và chi phí vốn, trả cổ tức và giảm nợ, nhờ vào khả năng tạo tiền từ cả ba thương hiệu.

Toàn văn Biên bản Cuộc họp Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Thank you. Thank you and welcome to BeFra's third quarter 2026 earnings conference call. Before BeFra's management begins their prepared remarks, please note the disclaimer regarding forward-looking statements on slide 2. We remind participants that this call may contain forward-looking statements which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Please consider these statements alongside the cautionary language and safe harbor statement in today's earnings release, as well as the risk factors outlined in BeFra's SEC filings. BeFra undertakes no obligation to update any forward-looking statements. A reconciliation of and other information regarding non-GAAP financial measures discussed on this call can also be found in the earnings release published earlier today, as well as the investor section of the company's website. Present on today's call are BeFra's President and Chief Executive Officer, Andres Campos, and Chief Financial Officer, Raúl del Villar. I will now turn the conference over to Mr. Campos. Please go ahead, sir.

Unknown Speaker

Thank you, operator, and good afternoon, everyone. The third quarter marked a significant step in BeFra's evolution. We substantially increased our scale, brand diversification, geographic reach, and financial strength. It was also our first full quarter with Tupperware as part of the group. We are very pleased with the progress we are seeing across our businesses. Betterware delivered its third consecutive quarter of year-over-year growth. We are encouraged by the progress at Tupperware. At Jafra, we experienced a slight revenue shortfall, which we are addressing head on through stronger promotional planning, faster commercial execution, and a change in management. Together with our strong cash generation and continued leveraging, these quarter's results reinforce our long-term strategy of building a unique House of Brands, supported by our person-to-person commercialization model and disciplined financial management.

Let's move to slide 4 and review the highlights of the quarter. Consolidated revenue increased 43.1% year over year to Ps. 4,832 million. On an organic basis, meaning Betterware and Jafra, revenue increased 2.3%, supported by another strong quarter at Betterware and partially offset by lower revenue at Jafra. Both brands faced a more challenging summer period as World Cup-related shifts in consumer attention affected commercial activity. Betterware offset these pressures through higher associated productivity, while Jafra's commercial execution did not fully compensate for it. The addition of Tupperware also expanded our commercial networks. Our consolidated average associate base reached approximately 1.46 million during the quarter, an increase of 23.7% year over year, while the organic associate base was broadly stable. These results demonstrate the greater scale of the group, while also highlighting the importance of discipline execution across each brand.

Turning to slide 5, the addition of Tupperware has meaningfully expanded and diversified BeFra's revenue base. In the third quarter, Betterware represented 31.5% of consolidated revenue, Jafra represented 40%, and Tupperware represented 28.5%. Our geographic mix also broadened. Mexico remained our largest market at 87.5% of revenue, while Latin America increased to 8.2%, primarily reflecting the addition of Tupperware's Brazil operations. This broader portfolio provides BeFra with multiple avenues for growth across brands and markets, both in Mexico and abroad.

Turning to slide 6, consolidated EBITDA increased 39.6% year over year to Ps. 1,008 million, reflecting Tupperware's contribution and continued profitability at Betterware, partially offset by lower EBITDA at Jafra. The consolidated EBITDA margin was 20.9% compared with 21.4% in the prior year quarter. Operating expense discipline helped mitigate profitability pressures across the portfolio. For the first nine months, EBITDA margin expanded to 19.2% from 18.5% in the prior year period. Net income increased a strong 24.2% year over year to Ps. 390 million. Net income in the quarter was affected by a higher effective tax rate than the prior year period. Based on our current expectations, the full year effective tax rate is expected to normalize, landing in the mid-30s by year end. Even with that tax effect, net income growth remained substantial and reflected the earnings contribution of our expanded portfolio.

Turning to slide 7, the strength of our three-brand portfolio is coming into focus, with each brand contributing differently to our results and shaping our opportunities for growth. On the left, Betterware Mexico revenue increased 8.5% year over year, demonstrating strong commercial momentum. Betterware Latin America also remained on a continued growth trajectory, with the region developing into a second growth engine for the brand.

Turning to Jafra in the middle, the brand faced a more difficult quarter with a total revenue down 2.8%. In Mexico, as I mentioned before, lower associate activity related to the World Cup and the extended summer holiday period affected sales. And unlike Betterware, Jafra was not able to fully offset this effect through higher productivity. Following several quarters of inconsistent growth, I have taken on the role of interim managing director of Jafra Mexico for the short term. My immediate priority is to reverse Jafra's revenue trajectory by reinforcing alignment with the group's commercial model and accelerating commercial execution as we unlock the full potential of the brand. In the U.S., Jafra delivered its second consecutive EBITDA-positive quarter under its linear expense structure, an encouraging sign of the progress being made there.

At Tupperware, on the right, for direct selling revenue increased a strong 14%, demonstrating the renewed growth momentum of the business as Tupperware continues its integration into Jafra. In Mexico, direct selling revenue grew 23% year over year. While in Brazil, the decline moderated to 3.3%, a substantial improvement from the 10% to 15% decline experienced before the acquisition. At the brand level, reported revenue declined 6.8% on a pro forma basis, as the third quarter of 2025 included a significant amount of exports and business-to-business sales, the latter of which we have chosen to strategically discontinue to focus on our person-to-person channel. Because a significant portion of these business-to-business sales occurred in the third quarter of 2025, the reported comparison does not fully reflect the strong growth of the core direct selling business. This impact will not carry into the fourth quarter, as there were no significant retail sales in the fourth quarter of 2025.

With that, I'll hand the call over to Raúl to cover our key financial metrics, dividends, and guidance.

Unknown Speaker

Thank you, Andres. Turning to guidance, as we approach year end, we are narrowing organic net revenue growth guidance to 4% to 5% within our original range. At the same time, based on Tupperware's first full quarter contribution and our performance through the first nine months, we are raising post-acquisition net revenue growth guidance to 24% to 26%. We continue to expect a full year EBITDA margin of 19%. That assumption incorporates a prudent view of the growth investments required at Tupperware and the cost associated with expanding the scale of the group. We believe this balance reflects the strong progress we've achieved to date while preserving the flexibility to invest in long-term opportunity.

Slide 9 highlights the earnings and shareholder return benefits of our expanded portfolio. For the first nine months of the year, Pro forma EPS increased 114% to Ps. 45.4, reflecting the inclusion of Tupperware's net income for the full nine-month period and demonstrating the strong accretive nature of the acquisition. A dividend of Ps. 250 million was approved at the October shareholders meeting and will be paid in the fourth quarter of this year. This will represent BeFra's 27th consecutive quarter of dividend payments since the IPO. This continuity reflects our commitment to shareholder value while maintaining the financial discipline required to invest in the group and strengthen the balance sheet.

Slide 10 shows the strength of our balance sheet and cash generation. Pro forma net debt to trailing 12 months EBITDA improved to 1.65 times, supported by debt reduction of Ps. 431 million, while interest coverage increased to 6.91 times as we continue deleveraging and generating strong EBITDA. Turning to cash flow, reported free cash flow reached Ps. 1,059 million, or 105% of EBITDA. Strong cash generation across all three brands supported continued balance sheet strengthening during the quarter. Through the first nine months, reported free cash flow reached Ps. 1,871 million, representing 78% conversion of year-to-date EBITDA, with contributions from both the organic businesses and Tupperware. Tupperware has been profitable and cash generative since day one as part of BeFra. Our cash conversion cycle improved to 50 days from 78 days a year ago. This reflects a stronger working capital efficiency across the group, including improved supplier terms at Tupperware. Taken together, this result demonstrates the strength of BeFra's business model, as well as our capacity to reduce leverage while continuing to invest in growth, and as I said, continue enhancing shareholder value through dividends. I will now hand the call back to Andres for closing remarks. Thank you, Raúl.

Unknown Speaker

In conclusion, this was a very strong quarter for BeFra. We delivered substantial consolidated growth. Betterware continued to build momentum. Jafra U.S. remained EBITDA positive for the second consecutive quarter, and Tupperware Core Direct Selling Business grew strongly while contributing attractive profitability and cash generation. At Jafra Mexico, as we mentioned, our focus is on building upon the brand's strong foundation and taking the actions necessary to help the business reach its full potential. The quarter also demonstrated the value of our expanded portfolio and the financial discipline behind it. We generated strong cash flow, reduced leverage, strengthened interest coverage, and continued to return capital to shareholders. We believe BeFra is stronger, more diversified, and better positioned than ever. This was a very successful quarter and the best is yet to come.

With that, operator, we would be happy to take your questions. Thank you.

Operator

Thank you. We will now begin the question and answer session. To ask a question, dial in by phone and press star then 1 on your telephone keypad. Make sure your mute function is turned off, and if you are using speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Your first question comes from Eric Beder with SCC Research. Please proceed with your question.

Phần hỏi đáp

Eric Beder

Good afternoon. Congratulations on the quarter. I want to talk a little bit about...

Unknown Speaker

Hi, Eric. Thank you. Thank you.

Eric Beder

I want to talk a little bit about Tupperware. So you've owned it now for about four months. I know this prior, you know, I know this, you're a very innovative company, in terms of new products and other pieces. Betterware is almost 80% of that, which offers a very high number. While Tupperware, for various reasons not related to you, has not been as high. I guess the question is, should it be higher? And yes, it should. What do you see going forward in terms of the opportunities at Tupperware to increase the level of innovation? Eric, sorry, just to clarify the question, is your question should the revenue be higher? No, the question is, what are the opportunities in terms of new products and categories at Tupperware?

Unknown Speaker

Okay, yes. Thank you, Eric. This is Andres here. Well, we believe the opportunities are very important. You know that on one hand, Tupperware had been in history very focused in plastic material products. We are considering other materials beyond plastic. In the container category, there are new materials like glass or stainless steel, ceramics, or other kinds of material that we are obviously considering to continue to expand the brand in its core category, which is food containers. But at the same time as managing other materials in that category, we are also looking to expand other categories within Tupperware that are not fully such as drinkware, it's a category that can be more highly explored. Another one is kitchen utensils or kitchen appliances in general for cooking. So there are different avenues for growth in Tupperware, I would say, beyond plastics and beyond containers. So, we think that there is a lot to do there. We are, you know, assembling a very strong innovation team. As we announced, we brought in David Kusuma, who used to be back in the time, Tupperware's global R&D and innovation director. We are, together with that, assembling a whole innovation team and process, and we think there's a lot of interesting things to come for Tupperware there.

Eric Beder

Okay. You've done a great job turning it around with the associates and the revenue coming back. How sustainable do you see that and what do you see the opportunities there at the Betterware division, both in Mexico and for potential expansion outside of Mexico right now?

Unknown Speaker

The Betterware division. Yeah, so we are, you know, as you can see in the report, we are very glad of the results of Betterware Mexico and Betterware in general. Betterware has started to come back to growth. We have our third quarter of consecutive growth year over year, and now almost reaching double digits. So Betterware's growth is strengthening both in Mexico and abroad. So, you know, this was our first brand and it had huge CAGR in the last 10 years, then became flat two or three years, but now we're starting to regain growth from all the different strategies, commercial strategies that we've laid forward before, and we're happy for that to be happening. We still have a lot of work, a lot of room to grow in Mexico, as we've said before. And then at the same time, we opened Ecuador last year. We just opened Colombia this year. So with our focus in Ecuador, in the Andean region, we think that the brand in general will continue to expand at a very good pace.

Eric Beder

I guess a question for Raúl. You know, the net debt, even after the acquisition has remained pretty steady in terms of net debt to EBITDA. What should we be looking at here longer term as a use for free cash flow? What kind of ratios should we be thinking as goals longer term for the company in terms of debt and kind of again use for the free cash flow? Thank you.

Unknown Speaker

Hi, Eric. Thank you for your question. I don't think we are ready at this point to provide a long-term guidance on where we want to be in terms of net debt, but what I want to convey, the message I want to convey, is that we will continue executing disciplined operations, disciplined finance, and we'll continue deleveraging as we have in the past. All of our three businesses are cash generative. All of them are performing well. As you can see, we are generating enough cash to invest in expansion, invest in CAPEX, and continue paying dividends and deleveraging. So that's what you would expect. I don't think we have a definite guidance on where we want to be in terms of leverage, but we will continue performing as we have as of today.

Eric Beder

Great, thank you and good luck on the holiday season.

Operator

Thank you, Eric. Your next question comes from Linda Bolton-Weiser with Water Tower Research. Please proceed with your question.

Unknown Speaker

Hi, hi, how are you? So I just wanted to ask about about the narrowing of the organic sales growth guidance range. Because in the quarter, you know, even though Jafra was below expectations, I guess, Betterware did really well. I mean, it was quite a bit above where I would have expected it to grow, higher than I would have thought. So it seemed to me that the whole thing kind of put together was, you know, net it was better than I would have expected. So I guess I'm wondering, even with Jafra having problems, if Betterware is kind of doing well on the top line, what did you feel the need to narrow that guidance or kind of actually lower it at the midpoint you lowered it. What is the real reason? Is it the Jafra more than anything that is the issue? Thanks.

Unknown Speaker

Thank you for your question. We believe that we can turn Jafra around fairly quickly. But obviously we don't want to overreach on that expectation, but we do believe we can reach mid-single-digit growth in Jafra for the fourth quarter. So with that plus, we're growing stronger and Tupperware performing well. Obviously our guidance contemplates that for the fourth quarter, no? And for the year around a high single-digit organic growth, in a combination of mid-single digit for Jafra and high single digit for Betterware.

Unknown Speaker

Okay, so that's in the fourth quarter you would just saying.

Unknown Speaker

Yes, in the fourth quarter.

Unknown Speaker

Okay. Okay, got you. So, secondly, on the cost side, I just wanted to ask you about, you mentioned, and it's appearing in the numbers, that Betterware's gross margin did seem a little pressured. I guess you mentioned supply chain pressures, and yet Tupperware's gross margin was actually quite strong. It was better than I would have expected. So is this the difference of where you're sourcing, Betterware you're bringing it in from outside, and Tupperware you're sourcing more regionally? Or what is the difference in terms of why those two businesses are experiencing different effects on the growth margin?

Unknown Speaker

Yeah, well, what you mentioned is exactly right. It's, it's where we source from. So as you remember, Tupperware manufactures most of its products in our plants both in Mexico and in Brazil, so we manufacture locally and Betterware manufactures mostly in China. So what made the difference in Betterware was mainly the freight prices. So freight prices have gone up and have stayed higher than we expected for a longer period of time because of the whole supply chain, supply chain issues in Hormuz, et cetera. So it's mainly the freight prices that affected Betterware and which are not affecting Tupperware.

Unknown Speaker

Okay, that makes sense. So, are you considering different pricing actions then in Betterware to try to offset or like, what is your plan in terms of trying to improve the Betterware growth margin?

Unknown Speaker

Yes, well, we, you know, we were when we started, I'm waiting a little bit to see if this corrected in the short term because freight prices have been a little bit volatile because of all the global situations. They have eased a little bit, but not as much as we expected. So we are taking the strategic actions to recover either through pricing, promotions, or certain strategies to compensate for that in Betterware Mexico. So we are taking actions to recover our gross margin. I'm not expecting these tariffs to decrease highly in the short term.

Unknown Speaker

Okay. I guess just going back, I was interested in your comment that you thought, Jafra, you could turn it around and have growth, your growth in the fourth quarter. I mean, what particular product launch or promotions or what do you think you can do so quickly to improve Jafra?

Unknown Speaker

I think, Linda, the angle is more, I would say, on two things. The first thing is for short-term results. The inconsistency was more from inconsistent operating decisions that affected our short-term results. And it's more about taking the correct decisions, the operating decisions. So taking the correct decisions, you can see a very quick rebound. And we saw it, for instance, in the second quarter of this year. It's just that we, we have been taking inconsistent decisions managing. The reason why the board and I decided that I would take over directly to make sure that we start making more consistent decisions in the short-term. The other part is kind of more in the midterm. Is that, you know, after five years that we've had Jafra, we started implementing the more low hanging fruit of our commercial model at BeFra, but now we need to go into the mid-hanging fruit. And we were not going into the mid-hanging fruit strategies as quickly as we wanted to. So this is also the reason why I'm taking over to accelerate strategies. When I'm talking about this, I'm talking about new technologies. And we are working to launch a new technology, the new app, the new Jafra Plus app. Next year we had some delays in the launch and now we are set to launch it at the beginning of next year. More complex innovation into more complex products in skincare. You know, some ways of making it easier for consumers to buy and sellers to execute. And so we are, you know, rolling out this second phase of strategies within our model. And we have had some development delays in them and now we're going to accelerate. So I think these things together can bring the short-term back to growth and then the mid-term continue at consistent growth.

Unknown Speaker

Okay, that sounds good. I just have two more questions. One of them has to do with, yeah, one has to do with, I think you mentioned that in the Tupperware phenomenon, there are maybe some unusual integration charges or expenses because the OPEX did look pretty high for the Tupperware piece. Is there any way to quantify that in terms of how much one-time type expenses there were in the third quarter under the Tupperware? Sure.

Unknown Speaker

Let me pass the word to Raúl.

Unknown Speaker

To to clarify exactly. So what we mean with the, with the, with the expenses for the Tupperware acquisition actually sit at the consolidated base and actually reflected, keep in mind that our holding company is also the operating company of Betterware. So when you have a, when you look at the Betterware results, they include some extraordinary expenses that we incurred into with the for the acquisition of Tupperware. So that's what we mean. Those expenses are reflected in the in the consolidated books, but not necessarily in Tupperware stand-alone books. I don't know if that's what you refer to. Well, it's... If you want to... If you want to, and just a quick question. And just to give you the number, those expenses accounted for Ps. 47 million. So it's significant for the quarter, but it's really non-material on a full year basis.

Unknown Speaker

Okay, I got you. Thank you. And then, so my last question is, you know, the question of innovation and other categories for Tupperware Latin America, I used to follow the U.S., well, all of Tupperware, but in the U.S., Tupperware certainly had many kitchen utensil items. They were very diversified. They even had cutlery and all kinds of things. So are you saying that those innovations were purely sort of more developed markets like the U.S. and they were never taken into Latin America? And do you have the rights to any of those designs or products or innovations that Tupperware U.S. had? Or do you have to start all over again and redesign certain of their items?

Unknown Speaker

Yes, Linda, so, you know, in the past, Tupperware did go into some of these categories. But in our view and from our standpoint, it did not go in enough depth into the categories or with the correct strategy. This includes the fact that some of these products cannot be designed for a worldwide success because each market has specific cooking needs and even specific economic needs that you cannot satisfy worldwide markets with one same product. So now one of the important and very interesting things is that we are going to start innovating specifically for the Latin American markets in these categories with understanding, understanding the consumer in Brazil, understanding the consumer in Mexico, and this makes a huge difference, because not necessarily what works for the U.S. or Europe is going to work for Latin America. So even though we can have access to fast innovations or to products that are in the worldwide organization or the new party, we are thinking more about innovating products, new products, completely new products specific for the Latin American markets. And we think that that's going to make a huge difference for the success and for the depth and breadth into which we can go into these categories.

Unknown Speaker

Okay, that makes complete sense. Thank you very much for explaining all that. I'll leave it at that. Thank you.

Unknown Speaker

Thank you, Linda.

Operator

Thank you. Again, if you have a question, please press star then 1. Your next question comes from Cristina Fernandez with Telsey Advisory Group. Please proceed with your question.

Unknown Speaker

Good afternoon and thanks for taking my questions. I had a few on Betterware. I wanted to see if you can give an update of what you've learned in the last 90 days since the last call and what changes you've made to drive the 14% growth you saw in Mexico.

Unknown Speaker

You mean in Tupperware? Hi, Cristina. This is Andres. You mean hi. Yes, in Tupperware? In Tupperware. Yes. Ah, okay, okay. Sorry, I thought you had said Betterware, but yes. So, you know, a little bit similar to, within our commercial model, we have some low-hanging fruit strategies we started implementing in Tupperware Mexico. Some of that has to do with, for instance, catalog organization and catalog design. You know, our catalog is a store, but the benefit we have is that we can do a whole revamp of the design of our store very quickly. So we launched the new design of the Tupperware catalog, both design and merchandising techniques in the catalog such that it becomes a lot more attractive. And this is really starting to to help us to grow. At the same time, you know, our sales force, distributors and associates, they had, you know, kind of lost a lot of confidence from what was going on and the fact that they did not know what was going to happen with Tupperware. And we did a whole tour to make sure to communicate that now Tupperware LatAm was part of BeFra, that its future was secure and that its future great possibilities, and this brings a lot of confidence to the sales force who are now, you know, investing time and investing effort again into expanding their businesses. You know, these together with some promotional techniques that we also applied. So, you know, this is kind of the first run in Tupperware since it had, you know, come from a long period of very unfavorable results and we think that, you know, these strategies have a higher impact in the short term as we are seeing now. So we are happy with the start. I would also say, and it's very important to know, that the Tupperware management in general is a, it's a great management. And the thing is that they needed to have, you know, the foundation on which they could invest and the correct guidance in order to, or the correct direction in order to execute correctly. They were a little bit tight in hands before of what they could do and what they could not. But, you know, something very important to stand out is that management is great. And so we are able to execute very fast on what we need to execute with them. So I think all of this combination, you know, good management, better confidence and trust of our distributors and associates, plus some of the first strategies such as catalog design and promotional techniques are all coming together to to start taking the the the the business in the short term.

Unknown Speaker

Thank you. And then also on Tupperware, you mentioned that you were going to make some investments in the brand and in scaling the group, could you provide more detail into what those investments are?

Unknown Speaker

Yeah, well, we are, you know, first of all, and I think the most important is we're investing in the innovation team. Tupperware had no innovation team. And we are assembling the team, the processes, the capabilities, everything we need in terms of innovation. So I think that that's going to be, you know, the main thing. Another capability, a couple of capabilities, capabilities that we're building is technological capabilities. No. And, you know, we have in Betterware, the Betterware Plus app. In Jafra, as I mentioned before, we're about to launch the Jafra Plus app, and obviously we are aiming to build the Tupperware Plus app, which are all built on the same technology, on the same platform. And so we're building on the technology team to expand the technological capabilities of Tupperware. And finally, the third thing in which we're investing is business intelligence. You know, we have talked a lot about the great impact business intelligence in our model and Tupperware did not have that capability built in it. So we're building that capability and we think that, you know, we've talked a lot about these three pillars in our model, innovation, technology, and business intelligence. So we're building on those three. They were basically at zero and we think these three things together are going to bring a lot of value in the in the medium and long term.

Unknown Speaker

And then the last one I had was in the past you've talked about some synergies from the acquisition primarily in procurement, in manufacturing. Any update there or quantification of what the synergies could be?

Unknown Speaker

We do not have an update yet there, Cristina, we're still evaluating. You know, the reality is that our first priority is implementing the commercial model and everything that I just talked about in innovation, technology, et cetera, to accelerate revenue. We are analyzing the potential synergies of, for instance, bringing some Betterware products to be manufactured in the Tupperware plant in Mexico or helping Tupperware develop other material products with Betterware's supply chain capabilities. We are assessing all of that, but still early to tell. We have not quantified them yet.

Operator

Thanks so much. Thank you, Christina. Thank you. That concludes our question and answer portion of today's conference call. I would like to turn it back over to management for closing remarks.

Unknown Speaker

Thank you again to all for joining us today. We are very pleased with this strong quarter, which demonstrates the strength of our expanded portfolio and the financial discipline behind it. BeFra is stronger, more diversified and well positioned for the future. Thank you again, and we look forward to speaking to you in the next quarter. Thank you.

Operator

Ladies and gentlemen, this concludes BeFra's third quarter 2026 earnings conference call. We would like to thank you again for your participation. You may now disconnect.

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