Betterware de México completes the acquisition of JAFRA’s operations in Mexico and the United States
GUADALAJARA, Mexico, April 7, 2022 /PRNewswire/ — Betterware de México, SAPI de CV (Nasdaq: BWMX) (“Betterware” or the “Company”), today announced the successful completion of its previously announced acquisition of 100% of JAFRA’s business in Mexico and United Statesas well as the trademark rights of JAFRA worldwide, of the Vorwerk Group based in Germanyafter approval by COFECE, Mexico’s antitrust agency.
Luis G. CamposExecutive Chairman of the Board of Betterware, said, “We are very pleased to complete the acquisition of JAFRA’s business in Mexico and United States. This acquisition expands our served categories to include beauty and personal care products, accelerates our entry into new geographies and leverages our infrastructure to elevate JAFRA’s distribution model. We are delighted to welcome all JAFRA employees, executives and consultants to our company and are excited to begin this next chapter of growth from a more powerful position. Overall, we remain confident in our ability to drive long-term profitable growth and increase value for all Betterware stakeholders.”
JAFRA is a leading global direct selling brand in the beauty and personal care (B&PC) industry with a strong presence in Mexico and United States, with ~443,000 independent executives and consultants selling unique products, the company recorded revenues of ~Ps5.8 billion in 2021. JAFRA has built, in more than 65 years of experience in direct sales of B&PC products , a proven track record and a profitable business model that generates strong cash flow generation. JAFRA will operate as a separate subsidiary, with its management team remaining fully focused on its operations and growth strategies.
Betterware intends to strengthen its three strategic pillars of product innovation, technology and business intelligence across all JAFRA operations to generate and capitalize on operational synergies. Betterware expects that by implementing best practices across JAFRA to enable it to reach its full potential in the United States and Mexico and accelerate overall revenue growth at increasing rates of profitability for the combined company. Betterware’s management team strongly believes that by elevating and leveraging its technology tools and platforms, it will allow JAFRA to achieve greater market reach and capitalize on the opportunity of the e-commerce in Mexico and the United States.
About Betterware de México, SAPI de CV
Founded in 1995, Betterware’s Mexico is the leader in direct-to-consumer sales in Mexico focused on creating innovative products that meet specific needs for organization, practicality, space saving and hygiene within the home. Betterware’s extensive product portfolio includes home organization, cooking, on the go, laundry and cleaning, and other categories that include products and solutions for every corner of the home.
The Company has a differentiated network of distributors and associates at two levels who sell their products through twelve catalogs a year. All products are Company designed and branded Betterware through its various sources of product innovation. The company’s state-of-the-art infrastructure enables it to deliver its products safely and in a timely manner to all regions of the country, thanks to the strategic location of its national distribution center. Today, the Company distributes its products in Mexico and Guatemalaand has plans for further international expansion.
Supported by its asset-light business model and three strategic pillars of product innovation, business intelligence and technology, Betterware has been able to achieve sustainable double-digit growth rates by successfully expanding its penetration into households and its share of wallet.
With over 65 years of experience, JAFRA is a leading global direct selling brand in the beauty and personal care products industry with a strong presence in Mexico and United States. The company recorded an average executive and consultant base of approximately 448,000 in 2021 in Mexico and the United States combined. JAFRA is vertically integrated, with an end-to-end operation encompassing product development, R&D, manufacturing and distribution. The company has more than 1,200 references in 4 different business segments: perfumes, colors and cosmetics, skincare and toiletries.
The family business Vorwerk SE & Co. KG was founded in 1883. The holding company is based in Wuppertal, Germany. Vorwerk’s core business encompasses both the production and sale of high-quality household products. As a direct sales company, Vorwerk always seeks direct contact with its customers. Here, the advisor is at the center of activities and serves as the central point of contact for the client. The Vorwerk family also includes Neato Robotics and AKF Bank. Vorwerk generated consolidated revenue of €3.2 billion in 2020 and operates in over 60 countries.
We define “EBITDA” as profit for the year by adding depreciation of property, plant and equipment and rights of use, depreciation of intangible assets, cost of financing, net and total income taxes. Adjusted EBITDA also excludes the effects of gains or losses on the sale of fixed assets and adds in other non-recurring expenses. EBITDA and Adjusted EBITDA are not required measures or presented in accordance with IFRS. The use of EBITDA and Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analyzing our results of operations or our financial position as presented under IFRS. Betterware believes that these non-IFRS financial measures are useful to investors because (i) Betterware uses these measures to analyze its financial results internally and believes that they represent a measure of operating profitability and (ii) these measures will enable investors to understand and evaluate Betterware EBITDA results and provide more tools for their analysis as it makes Betterware’s results comparable to those of its industry peers who also prepare these measures.
Disclaimer of Forward-Looking Statements
Statements in this press release that are not historical and reflect our views on future times and events, including our future performance, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “will”, “would”, “anticipate”, “expect”, “believe”, “plan”, “hope”, “estimate”, “suggest”, ” has the potential to”, “projects”, “assumes”, “goal”, “targets”, “probable”, “should” or “intends” and other words and phrases with similar meanings, the negative of these terms and similar references to anticipated or expected events, activities, trends, future periods or results. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that are difficult to predict and, therefore, our actual results may differ materially from the results discussed or implied in our forward-looking statements. Forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, without limitation, declining demand for the Company’s services or products, the effect of economic conditions general, factors affecting consumer products; our dependence on third-party suppliers and manufacturers; our ability to attract, develop and retain talented personnel and our sales and workforce; our ability to maintain consistent practices across all of our sites; our ability to maintain our competitive position; our ability to integrate acquisitions; changes in the costs of the products we manufacture and/or distribute; increases in fuel costs; significant competition in our industry; seasonal effects on our business; and other risks and uncertainties described under the heading “Risk Factors” in our most recently filed Annual Report on Form 20-F with the SEC and under similar headings in our subsequently filed Quarterly Reports on Forms 6-K and otherwise. documents filed with the SEC. Our forward-looking statements in this press release/presentation speak only as of the date of this press release/presentation. Factors or events that could cause our actual results to differ may arise from time to time and it is impossible for us to predict all of them. Except as required by law, we undertake no obligation to publicly update any forward-looking statements as a result of new information, future events or otherwise.
The Company believes that the non-GAAP performance measures and ratios contained herein, which management uses to manage its business, provide users of this financial information with additional meaningful comparisons between current results and the results of our previous periods. Non-GAAP performance measures and ratios should be considered in addition to, and not as an alternative to, the Company’s reported results under generally accepted accounting principles. United States. Additional information about the Company is contained in the Company’s filings with the SEC and is available on Betterware’s website at:
 JAFRA ended 2021 with ~443k independent consultants in Mexico and U.S
SOURCE Betterware de México, SAB de CV