GUADALAJARA, Mexico, April 7,
2022 /PRNewswire/ -- Betterware de México,
S.A.P.I. de C.V. (Nasdaq: BWMX) ("Betterware" or the "Company"),
today announced the successful completion of its previously
announced acquisition of 100% of JAFRA's operations in Mexico and the
United States, along with JAFRA's trademark rights
worldwide, from the Vorwerk Group based in Germany, after the approval from COFECE,
Mexico´s antitrust agency.
Luis G. Campos, Executive
Chairman of Betterware's Board, stated, "We are very pleased to
complete the acquisition of JAFRA's operations in Mexico and the
United States. This acquisition increases our categories
served 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, leaders and consultants to our company
and are excited to begin this next chapter of growth more
powerfully positioned. Overall, we remain confident in our ability
to deliver long term profitable growth and increase value for all
Betterware stakeholders."
JAFRA is a world leading brand of Direct Selling in the Beauty
and Personal Care (B&PC) products industry with a strong
presence in Mexico and
the United States, with ~443k
independent leaders and consultants selling unique products the
company registered revenues of ~Ps 5.8bn in 2021. JAFRA has built,
in over 65 years of experience in the direct selling of B&PC
products, a proven track record and a profitable business model
that yields high 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 reinforce its three strategic pillars of
Product Innovation, Technology and Business Intelligence across
JAFRA's operations in order to drive and capitalize on operational
synergies. Betterware expects that by implementing best practices
across JAFRA's to enable it to reach its full potential in the US
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 building on its technology tools and
platforms it will enable JAFRA to have a greater market reach and
to take advantage of the e-commerce opportunity in Mexico and the US.
About Betterware de México, S.A.P.I. de C.V.
Founded in 1995, Betterware de Mexico is the leading direct-to-consumer
company in Mexico focused on
creating innovative products that solve specific needs regarding
organization, practicality, space saving and hygiene within the
household. Betterware's wide product portfolio includes home
organization, kitchen, commuting, laundry and cleaning, as well as
other categories that include products and solutions for every
corner of the household.
The Company has a differentiated two-tier network of
distributors and associates that sell their products through twelve
catalogues per year. All products are designed by the Company and
under the Betterware brand name through its different sources of
product innovation. The Company's state-of-the-art infrastructure
allows it to safely and timely deliver its products to every part
of the country, backed by the strategic location of its national
distribution center. Today, the Company distributes its products in
Mexico and Guatemala, and has plans of additional
international expansion.
Supported by its asset light business model and its 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 household
penetration and share of wallet.
About JAFRA
With more than 65 years of experience, JAFRA is a world leading
brand of Direct Selling in the Beauty and Personal Care products
industry with a strong presence in Mexico and the
United States. The company registered an average leader and
consultant base of ~448k in 2021[1] in Mexico and US 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 SKUs in 4 different business segments:
Fragrances, Color & Cosmetics, Skin Care and Toiletries.
About Vorwerk
The Vorwerk SE & Co. KG family enterprise 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 a central point of contact for the customer. The Vorwerk
family also includes Neato Robotics and the AKF Bank. Vorwerk
generated consolidated sales of €3.2Bn in 2020 and operates in more
than 60 countries.
Non-IFRS Measures
We define "EBITDA" as profit for the year adding back the
depreciation of property, plant and equipment and right of use
assets, amortization of intangible assets, financing cost, net and
total income taxes. Adjusted EBITDA also excludes the effects of
gains or losses on sale of fixed assets and adds back other
non-recurring expenses. EBITDA and Adjusted EBITDA are not measures
required by 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 from, or as a substitute for
analysis of, our results of operations or financial condition as
reported 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 they represent a measure of operating profitability and
(ii) these measures will serve investors to understand and evaluate
Betterware's EBITDA and provide more tools for their analysis as it
makes Betterware's results comparable to industry peers that also
prepare these measures.
Forward Looking Statement Disclaimer
Statements contained in this press release that are not
historical and reflect our views about future periods 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 can be identified by
words such as "will," "would," "anticipate," "expect," "believe,"
"plan," "hope," "estimates," "suggests," "has the potential to,"
"projects", "assumes", "goal", "targets", "likely", "should" or
"intend," and other words and phrases of 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, accordingly, 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, decline in demand for the Company's services or
products, the effect of general economic conditions generally,
factors affecting consumer goods products, our reliance on
third-party suppliers and manufacturers; our ability to attract,
develop and retain talented personnel and our sales and labor
force; our ability to maintain consistent practices across our
locations; 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
caption entitled "Risk Factors" in our most recent Annual Report on
Form 20-F filed with the SEC and under similar headings in our
subsequently filed Quarterly Reports on Forms 6-K and other filings
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 emerge from time to time, and it is not
possible for us to predict all of them. Unless required by law, we
undertake no obligation to update publicly 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 that are contained herein, which management uses to manage
our business, provide users of this financial information with
additional meaningful comparisons between current results and
results in our prior periods. Non-GAAP performance measures and
ratios should be viewed in addition, and not as an alternative, to
the Company's reported results under accounting principles
generally accepted in the 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:
www.investors.betterware.com.mx
[1] JAFRA ended 2021 with ~443k independent consultants in
Mexico and US
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SOURCE Betterware de México, S.A.B. de C.V.