BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI de CV has demonstrated significant financial improvements, with EBITDA margins for the Betterware segment increasing by 508 basis points year-over-year and EBITDA rising by 31.8%. The JAFRA segment has shown consistent revenue growth, achieving a 22.2% increase in 4Q24 and contributing approximately 60% to the company’s total revenue for the quarter, highlighting the strength of its beauty and personal care products. Additionally, notable improvements in distribution metrics and SKU counts, along with substantial gains in pricing, further reinforce a positive outlook for the company's operational efficiency and market performance.

Betterware de Mexico SAPI de CV reported EBITDA of 56.4 million below Street consensus, with an overall EBITDA margin of 20.4% reflecting a significant drop of 370 basis points year-over-year, primarily due to rising costs and supply chain challenges. The company has experienced a decline in its distribution network, with levels of Associates and Distributors falling 8.4% year-over-year, raising concerns about its growth potential. Additionally, economic forecasts indicate a projected negative impact on Mexican GDP growth, potential layoffs, and wage contraction, further exacerbating the company’s operational challenges.