Betterware (BWMX) Water Tower Research Virtual Insights Conference summary

Brand strategy and channel evolution

• Focus on building a house of brands, not acting as a retailer or e-commerce platform.

• Direct selling channel is positioned as vibrant and part of the gig economy, leveraging technology and business intelligence to support sellers.

• Each brand is kept separate in the marketplace, with best practices and technology shared across brands for efficiency.

• Associates are encouraged, but not required, to sell multiple brands, maintaining distinct catalogs to avoid customer confusion.

• Back office synergies are being realized through shared technology and logistics, positively impacting the bottom line.

Financial performance and margin outlook

• Tupperware acquisition added about 30% to sales and EBITDA, with no increase in leverage.

• Tupperware's strong brand in Latin America is expected to drive additional margin and revenue over time.

• Margin impacts from reinvestment in Tupperware are expected to be minimal, with efficiencies offsetting new spending.

• Supplier terms for Tupperware are being renegotiated, targeting a $25 million cash flow benefit within 9-12 months.

• Dividend policy remains stable, with a recent increase and a focus on maintaining strong leverage and cash flow.

Geographic expansion and growth priorities

• Mexico remains the largest and primary growth market, with significant runway for all three brands.

• Brazil is a key focus post-Tupperware acquisition, with early signs of turnaround and plans for further brand launches.

• U.S. operations, particularly Jafra, have reached profitability and are positioned for renewed growth.

• Expansion into the Andean region is underway, with launches in Ecuador and Colombia and plans for Peru.

• Future strategy includes disciplined, stepwise brand launches in new markets, leveraging existing platforms.