BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has demonstrated strong financial performance in the recent quarter, with 3Q25 revenue reaching Ps. 245.96 million, marking a 9.7% increase from the prior month and the highest price recorded since 2021. The company has successfully improved its EBITDA margins, with JAFRA Mexico achieving 23.8% and an overall EBITDA margin of 21.4%, both reflecting significant year-over-year increases of 425 basis points and 360 basis points, respectively. Additionally, Betterware's commitment to financial discipline has resulted in a reduction of net debt to its lowest level since the JAFRA acquisition, alongside a notable decline in inventory levels, indicating a robust strategy for maximizing returns amid a competitive market.

Betterware de Mexico SAPI de CV has revised its 4Q revenue and EBITDA growth expectations down to 1% to 5%, significantly lower than previous forecasts and indicative of a challenging consumer environment in Mexico. The company's revenue experienced a 5.3% year-over-year decline in 3Q25, marking the third consecutive quarter of negative sales growth, which is compounded by a shrinking distributor and associate base. Additionally, the introduction of new product SKUs has reached a near record low, reflecting a lack of innovation and difficulties in generating consumer interest amid sluggish household spending.