Betterware de Mexico SAPI de CV (BWMX) 2024 Q3 法說會逐字稿

Thank you and welcome forward to joining Befra third quarter, 2024 earnings conference call.

謝謝您，歡迎參加 Befra 2024 年第三季財報電話會議。

Speaking on today's call are Befra's, chief Chairman, executive Chairman Luis Campos, Chief Executive Officer Andres Campos, and Chief Financial Officer Alejandro Ulloa.

參加今天電話會議的有 Befra 的首席董事長、執行董事長 Luis Campos、執行長 Andres Campos 和財務長 Alejandro Ulloa。

Before beginning the remarks, the company would like to remind you that today's call, a good forward-looking statements which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

在開始發言之前，公司想提醒您，今天的電話會議是一個前瞻性的陳述，它受各種風險和不確定因素的影響，可能導致實際結果與預期有重大差異。

Any such statements should be considered in conjunction with the cautionary statements and the safe Harbor statement in the earnings release issued yesterday. And risk factors discussed in reports filed with the SEC pay for assumes, no obligation to update any of these forward-looking statements or information, a reconciliation of and other information regarding non GAAP financial measures discussed on today's call can be found in the earnings release as well as the investors section of the company's website.

任何此類聲明都應與昨天發布的收益報告中的警告聲明和安全港聲明一起考慮。並且，提交給美國證券交易委員會 (SEC) 的報告中討論的風險因素假設沒有義務更新任何這些前瞻性陳述或信息，有關今天電話會議上討論的非 GAAP 財務指標的對賬表和其他信息可以在收益報告以及公司網站的投資者部分中找到。

Now, I would like to turn the call over to the company's Chairman Luis Campos. Thank you. You may go ahead.

現在，我想將電話轉給公司董事長路易斯‧坎波斯 (Luis Campos)。謝謝。你可以繼續。

Thank you operator. Good afternoon, everyone and welcome to befra third quarter earnings call, Befra deliver second strong result this quarter with net revenues of 6.6% year over year and a 7.4% growth over the first nine months of 2024 adjusted ebita surge by 11.7%. Highlighting the continued strength and momentum across our operations. This performance was driven by solid contributions from all our key business units is playing a crucial role in our overall success. Importantly, these results were achieved despite challenging macroeconomic factors like the depreciation of the Mexican peso and rising freight costs showcasing our operational resilience. Befra's strategic direction continues to deliver results and we are well positioned to sustain growth while further enhancing profitability. As we approach the final quarter of the year, we are confident in our ability to finish the year strongly. Our strategic positioning and building momentum across our business units set us up to capture key opportunities ensuring we are on track to achieve our full year guidance. Our commitment to deliver shareholder value remains unchanged. We are pleased to announce our 19th consecutive dividend payment, reflecting our ongoing dedication to rewarding our shareholders while continuing to drive sustainable long term growth.

謝謝接線生。大家下午好，歡迎參加 Befra 第三季財報電話會議，Befra 本季第二次取得強勁業績，淨收入年增 6.6%，比 2024 年前 9 個月成長 7.4%，調整後息稅折舊攤銷前利潤激增 11.7%。凸顯我們業務營運的持續實力和發展動能。這項業績得益於我們所有關鍵業務部門的堅實貢獻，對我們的整體成功發揮了至關重要的作用。重要的是，儘管面臨墨西哥比索貶值和運費上漲等嚴峻的宏觀經濟因素，我們仍然取得了這些業績，展現了我們的營運韌性。Befra 的策略方向持續取得成果，我們有能力維持成長，同時進一步提高獲利能力。隨著今年最後一個季度的臨近，我們有信心以強勁的勢頭結束這一年。我們的策略定位和各業務部門的建設動能使我們能夠抓住關鍵機遇，確保我們能夠實現全年目標。我們實現股東價值的承諾始終不變。我們很高興地宣布我們連續第 19 次派發股息，這反映了我們持續致力於回報股東，同時繼續推動可持續的長期成長。

Now, I will pass the call to Andres to provide more details on bear's business unit performance in the third quarter.

現在，我將電話轉給安德烈斯，讓他提供有關貝爾斯登業務部門第三季業績的更多詳細資訊。

Thank you, Louise and good afternoon, everyone defra delivered another strong quarter with its net revenue increasing across all three of our business units. This performance underscores the effectiveness of our growth strategy and we are strengthening our strategic initiatives to accelerate this growth even further. As I will explain shortly when I dive into each business unit's performance explanation.

謝謝路易絲，大家下午好，英國環境、食品和鄉村事務部 (DEFR) 又一個季度表現強勁，三個業務部門的淨收入均實現增長。這項業績凸顯了我們成長策略的有效性，我們正在加強策略舉措，以進一步加速這一成長。當我深入探討每個業務部門的績效說明時，我將會簡要地解釋。

As a group, we also deliver substantial improvements in adjusted Evita which grew 11.7% year on year in the quarter. With JRA Mexico's performance standing out as a key driver of setting temporary challenges faced by better word Mexico due to external factors, namely the depreciation of the peso and significant increases in trade costs later in the call, Alejandro will provide a detailed explanation of their impact. But I would like to point out that we have overcome these challenges at better world Mexico. And we are ready to deliver a steady gross margin of between 58 and 59% starting in Q4.

作為一個集團，我們的調整後 Evita 也取得了顯著的改善，本季年增 11.7%。由於 JRA Mexico 的表現突出，成為推動墨西哥應對外部因素（即比索貶值和貿易成本大幅增加）所面臨的暫時挑戰的關鍵驅動因素，Alejandro 將在稍後的電話會議中詳細解釋這些因素的影響。但我想指出的是，我們在更美好的墨西哥世界已經克服了這些挑戰。我們準備從第四季開始實現 58% 至 59% 之間的穩定毛利率。

With that context, I will now discuss the performance of our individual business units net revenue at better world Mexico. Our domestic home goods business grew 3.2% this quarter and 5.7% year-to-date marking its fourth consecutive quarter of growth. This reflects the business stability and a clear return to a growth trajectory postpandemic. The revenue growth was primarily driven by higher associate productivity versus last year both activity and order value. That said it is important to point out that the end of period associate base saw a modest sequential increase of 0.3% which is a good indicator of sales force stability and a possible return to sales force growth. New categories mainly wellness experience double digit growth while innovation continues to strengthen, accounting for 26% of net revenue versus 18% in the same quarter. Last year, that together with the rest of the strategies we have implemented continues to drive growth at better world Mexico going forward and starting in Q4, we are taking the following steps to further strengthen its growth. Number one, we are slightly increasing our product portfolio in the catalog from approximately 370 to 420 SKU s to capitalize on the success of new categories without compromising the continued growth of core categories. With this, we will also be introducing lower priced SKU S that strike a better balance between price and volume to drive additional sales and further enhance margins. Number two, we have thoroughly prepared for a seasonally heavy quarter in Q4 with great innovation for Dia de Muertos, Halloween and Christmas holidays. Number three, we also continue to improve our merchandizing techniques and are well prepared for Black Friday Weekend in Mexico known as Buen Fin.

基於此，我現在將討論美好世界墨西哥各業務部門淨收入的表現。我們的國內家居用品業務本季成長 3.2%，年初至今成長 5.7%，連續第四個季度成長。這反映出疫情過後業務的穩定性和明顯回歸成長軌跡。收入成長主要得益於與去年相比更高的員工生產力（包括活動和訂單價值）。儘管如此，值得注意的是，期末員工基數環比小幅增加了 0.3%，這是銷售團隊穩定的一個良好指標，顯示銷售團隊可能會恢復成長。以健康為主的新興類別實現兩位數成長，創新能力持續增強，佔淨收入的 26%，而上一季為 18%。去年，這項策略與我們實施的其他策略一起繼續推動墨西哥美好世界的成長，從第四季度開始，我們將採取以下步驟進一步加強其成長。首先，我們將目錄中的產品組合從大約 370 個 SKU 略微增加到 420 個，以利用新類別的成功，同時不影響核心類別的持續成長。同時，我們也將推出價格較低的 SKU S，以在價格和數量之間取得更好的平衡，從而推動更多銷售並進一步提高利潤率。第二，我們為第四季的旺季做好了充分的準備，並針對亡靈節、萬聖節和聖誕節等假期進行了重大創新。第三，我們也將繼續改進我們的行銷技巧，為墨西哥的「黑色星期五」週末（即Buen Fin）做好充分準備。

Finally, we have calibrated our forecasting model and inventory plan to ensure that we effectively meet the growing demand of better, worse products and avoid stockouts that disrupted Q2 this year. Now turning to JAFRA from Mexico, our fragrance and beauty business, we had an outstanding quarter with revenue of 9.2% and 9.8% year-to-date. This performance was driven by successful product innovations in the fragrance, toiletries and cosmetics categories including the G fragrance and the new Biolab. Skincare line. Biolab is our first venture into the Dermo cosmetics product segment and is designed to compete with other high quality products on the market by offering greater affordability. The growth was also driven by higher productivity in our associate base which as we have commented before tends to precede growth in the base going forward and starting in Q4, we're executing the following measures to extend our strong growth at Chiara Mexico. Number one, we have significantly redesigned Jf's monthly catalog. A new version of which has been launched this month. Over the years, we have developed a strong inhouse expertise in catalog design and we believe these recent revamp to our store will lead to significantly higher conversion rates. Number two, our third quarter innovations such as BIOLAB are expected to continue to positively impact revenue further. We have important innovations coming year end, especially in our fragrance category with our new Galaxy line number three, as we're doing a betterware, Jaffer is also fine tuning its merchandizing techniques for the coming quarters. We believe there is a lot of room for improvement going forward on this front to make our portfolio structure more competitive and our offers more attractive to the customers. Before we have also made a great leap in simplifying our incentive program communication. We believe this will eliminate friction that new prospects confront thus improving our recruitment effectiveness.

最後，我們校準了預測模型和庫存計劃，以確保有效滿足更好、更差產品日益增長的需求，避免今年第二季度出現的缺貨現象。現在來看看墨西哥的 JAFRA，我們的香水和美容業務，本季我們表現出色，營收成長了 9.2%，年初至今的營收成長了 9.8%。這項業績得益於香水、盥洗用品和化妝品類別的成功產品創新，包括 G 香水和新款 Biolab。護膚系列。Biolab 是我們首次進軍皮膚化妝品領域，旨在透過提供更實惠的價格與市場上其他高品質產品競爭。成長的另一個推動力是我們員工基礎生產力的提高，正如我們之前所評論的那樣，這往往會先於未來基礎的成長，從第四季度開始，我們正在執行以下措施，以延續 Chiara Mexico 的強勁成長。首先，我們對 Jf 的月度目錄進行了重大的重新設計。本月已推出其新版本。多年來，我們在目錄設計方面已經積累了豐富的內部專業知識，我們相信，最近對我們商店的改造將帶來更高的轉換率。第二，我們第三季的創新（例如 BIOLAB）預計將繼續對收入產生正面影響。我們在年底將有重要的創新，特別是在香水類別中，我們將推出新的 Galaxy 系列第三款產品，同時我們正在開發更好的軟體，Jaffer 也在為未來幾季微調其行銷技術。我們相信，在這方面還有很大的改進空間，以使我們的投資組合結構更具競爭力，我們的服務對客戶更具吸引力。我們之前在簡化激勵計劃溝通方面也取得了巨大的進步。我們相信這將消除新員工面臨的摩擦，從而提高我們的招募效率。

Finally, the US continues to improve. So promising results in the third quarter with net revenue up 11.7% and 1.9% year-to-date both in Mexican pesos that marks the second consecutive quarter of growth and moves Jaffer us closer to the breakeven point. It is important to point out that we are introducing figures in US dollars during this quarter because it's this unit's real operating currency. So in US dollars net revenue increased 3.4% for the quarter and 3.3% year-to-date. It is also important to note that we finally launched the new Shopify Plus platform in September, which we expect to have a very positive impact. However, the introduction of Shopify temporarily affected associate activity in September related to user adoption. Nonetheless, we expect users to fully adopt the platform maximum. By November. Looking ahead starting in Q4, we will implement the following to drive more growth at JAFRA US. Number one, skincare innovation would buy a lot was a huge success in the US market with the dermo cosmetics market growing every year. We are now a relevant player within this segment. We will continue to develop more products within biolab as well as other new skin care lines such as Jafra Skin, Novo, Marine and others. We expect these new land to continue to build our success in this area of the market. Number two. Although the launch of the new Shopify Plus website generated temporary activity challenges with take the site will be a platform for growth going forward. Number three, we are continuing to build jf's physical presence with our associates and distributors in the US with a real field team making the difference. And I am personally spending more and more time with them to rebuild trust and to drive recruitment and retention. Number four, while we stay relevant for the general US market, we are building up strategies for the Hispanic market which we believe can be a huge catapult to success for us. Just a US should become a more relevant player within our group in the years to come. Although it operates in a highly competitive market, we have found strategic avenues that should accelerate the renewed growth into strong double digit numbers in US dollars. As you can see, we have new paths to growth in all of our business units and we have the right strategies in place to strengthen that growth in light of this positive context for Bera. We believe it's important to address the specific disruptions that some companies within the direct selling industry have experienced. First, we believe this is not an industry symptom rather individual situations of each of these companies, both the consumer product goods and the direct selling industries in which we play are more vibrant than ever. And our results, as well as those of other companies that are thriving in our industry are evidence of this vitality, our vibrant product portfolio full of innovation and reflecting our customer focus together with an exciting opportunity for many people who are looking for a flexible and profitable source of income. All continue to make a difference. At the same time, the ongoing evolution of our three growth pillars, namely innovation, technology, and business intelligence. Together with our disciplined financial management, provide a solid foundation for even better results and for a promising future overall, as is commonly known, it all comes down to a balancing act of maintaining the correct fundamentals of the business while addressing the evolutionary needs, it demands. Thus, we believe a great future lies ahead for the product categories in which we play as it does for social selling. And we are confident in our ability to effectively capitalize on these opportunities and continue driving higher levels of growth and profitability for the group as we have done for the past 24 years, achieving a double-digit compound annual growth rate in both revenue and EBITA.

最後，美國持續改善。第三季的業績令人欣喜，今年迄今淨收入以墨西哥比索計算分別增長 11.7% 和 1.9%，這標誌著公司連續第二個季度實現增長，並使我們更接近盈虧平衡點。值得指出的是，我們本季引入了以美元計的數據，因為這是該部門的實際營運貨幣。因此，以美元計算，本季淨收入成長了 3.4%，年初至今成長了 3.3%。另外值得注意的是，我們最終在 9 月推出了新的 Shopify Plus 平台，我們預計這將產生非常積極的影響。然而，Shopify 的推出暫時影響了 9 月與用戶採用相關的聯營活動。儘管如此，我們仍然希望用戶能夠最大限度地利用該平台。到十一月。展望從第四季度開始，我們將實施以下措施來推動 JAFRA US 的進一步成長。首先，隨著皮膚化妝品市場每年的成長，護膚品創新將在美國市場取得巨大成功。我們現已成為該領域的重要參與者。我們將繼續在生物實驗室以及其他新的護膚系列（如 Jafra Skin、Novo、Marine 等）內開發更多產品。我們期望這些新土地能夠繼續鞏固我們在該市場領域的成功。第二。儘管新 Shopify Plus 網站的推出帶來了暫時的活動挑戰，但該網站將成為未來成長的平台。第三，我們將繼續與 JF 在美國的同事和經銷商一起打造實體業務，並組建一支真正的現場團隊來發揮作用。我個人也花了越來越多的時間與他們一起重建信任並推動招募和留任。第四，在我們保持與美國整個市場相關性的同時，我們正在製定針對西班牙裔市場的策略，我們相信這對我們成功來說是一個巨大的推動力。在未來的幾年裡，美國應該成為我們團體中更重要的參與者。儘管市場競爭激烈，我們仍找到了策略途徑，可以加速公司業務重新實現強勁的兩位數成長。正如您所看到的，我們所有業務部門都找到了新的成長途徑，並且我們制定了正確的策略，以根據 Bera 的積極環境來加強這種成長。我們認為，解決直銷業內一些公司所經歷的具體中斷非常重要。首先，我們認為這不是一個產業的症狀，而是每個公司的個別狀況，我們所處的消費品和直銷業都比以往更活躍。我們的業績以及我們行業中蓬勃發展的其他公司的業績都證明了這種活力，我們充滿活力的產品組合充滿創新並反映了我們對客戶的關注，同時也為許多尋求靈活且有利可圖的收入來源的人們提供了激動人心的機會。所有這些都將繼續產生影響。同時，我們的三大成長支柱，即創新、技術和商業智慧也在不斷發展。與我們嚴謹的財務管理一起，為更好的業績和充滿希望的未來奠定了堅實的基礎，眾所周知，這一切都歸結為在滿足業務發展需求的同時保持正確的業務基本面的平衡行為。因此，我們相信，我們所涉足的產品類別將像社交銷售一樣擁有美好的未來。我們有信心有效地利用這些機會，繼續推動集團實現更高水準的成長和獲利，正如我們過去24年所做的那樣，實現了收入和EBITA的兩位數複合年增長率。

I will now hand over to Alejandro who will provide additional insights into our results and other financial matters.

現在我將把話題交給亞歷杭德羅，他將對我們的業績和其他財務問題提供更多見解。

Thank you, Andres. Good afternoon, everyone. Please note that all figures and projections that we are discussing today are in Mexican Pesos or functional currency. Additional details can be found in today's earnings press release in this call. I will focus on relevant points of interest within our financial statements rather than reviewing the numbers that clearly are explained in our earnings release or have been explained by Andres and Louis on this call. First of all, I would like to address the adjusted EBITA and adjusted net income figures for BEFRA consolidated, adjusted EBITA for the quarter grew 11.7% to MEX592 million compared to MEX529 million in the third quarter of 2023. With the ebita the margin expanding by 81 basis points to 17.8% adjusted net income ended the quarter at MEX180.5 million. That is 8.4% below the third quarter of 2023. Mainly due to increased tax provisions that could be reversed by year end. Following the final calculation of the annual inflation effect. It is important to highlight that the adjustments made to both EBITA and net income where we have excluded the onetime impact of the sale of its former headquarters in Mexico. The property had a book value of MEX811 million but the transaction was completed at MEX385.7 million resulting in a noncash accounting loss of MEX435 million net of transaction costs. Notably, it accounting loss has no impact on the company's operational performance or in the company's cash generation and the sale price reflects the asset per market value on their current Mexico City real estate conditions. Second, I would also like to address those temporary external factors that impacted negatively. Better words, gross margin in Q3, the margin was 54.8% compared to 56.2% last year and was below the 58, 59% steady state gross margin. We typically expect lucky factors drove this decline first, the Mexican peso depreciated on average 9.9% in the third quarter versus the second quarter affecting a total of 340 basis points of margin. Given the fact that approximately 90% of our costs are based in us dollars. Second price costs increase more than 200% by the end of the second quarter. With container spot prices rising from USD1,500 to over USD4,000 which affected the gross margin by approximately 150 basis points. It is important to state that over the past three years, we have experienced unusually sharp fluctuations in both exchange rates and freight cost levels. We haven't seen in many years. These swings have in turn caused notable volatility in our gross margin from quarter to quarter. Despite these challenges, we have successfully managed to maintain a consistent gross margin in the 57, 58% range during this period. Looking ahead to Q4, assuming freight costs and exchange rates remain where they were at the end of September, we can expect beras gross margin to be within the 58, 59% range. And for the coming years, we anticipate maintaining margins within this range provided that there are no significant disruptions of this nature. Again. Third, I would like to highlight that Befra's year-to-date adjusted EBITA was impacted by strategic investments in our international expansion. So far this year, we have invested MEX8.2 million in expanding the better world footprint into the US and Peru markets that we believe hold significant longterm growth potential. While these investments are still in their initial phases, when excluding them be adjusted. EBITA would have been MEX2083 million for the first nine months with a margin of 20.2% or better were Mexico even though for the first nine months would have totaled MEX1047 million representing a margin of 23.3%. Yes, be comprehensive financing costs reflect gains or losses from foreign exchange hedges used to manage currency risk related to purchases denominated in US dollars. We are currently evaluating a potential application of hedge accounting which would allow us to reflect the impact of our operational hedges within cost of goods sold rather than in financing costs. For instance, this year, applying hedge accounting would have raised our gross margin to 56.4% in Q3 and 58.5% for the first nine months in better work accurately, reflecting the impact of catching activities on the EBITA level as well. Returning to the sale of Jf's property in Mexico. We completed the transaction in August as an installment sale. The total deal valued at MEX385.7 million will be paid over a three year period with MEX70 million already received. We expect to collect the remaining MEX315 million in the next three years. MEX70 million in November 2024 MEX135 million in 2025 MEX85 million in 2026 and MEX25.7 million in May 2027. Additionally, we are actively pursuing the sale of another property. One that was previously utilized as a parking lot for employees at from Mexico. It is valued at approximately MEX40 to 50 million. We anticipate analyzing this sale by the first quarter of 2025 with proceeds earmarked either for investment in business growth or debt reduction last but not least at the end of the third quarter of 2024 we maintained a strong financial position with net debt down 4.7% year over year and the net debt to a ratio of 1.76 times an improvement from 2.08 times in the prior year. We remain on track to meet our year end target of approximately 1.5 times. Additionally, our interest coverage ratio improved to 3.5 times up from 2.6 times. This positive trend reinforces our financial strength and positions as well to navigate the current macroeconomic environment along those lines and to further strengthen our financial position. We have introduced a new investment policy. One focused on the efficient allocation of free cash flow with priority on growth initiatives that drive company value. We plan to allocate between 30 to 40% of free cash flow to acquisitions contingent on available opportunities. We will maintain a balanced approach. The shareholder returns including dividends, share repurchases and capital expenditures. Our leverage target is to sustain a net debt to ebita ratio of 1.5 times to 2.5 times depending on acquisition prospects. As always, our capital allocation policy may be adjusted as necessary in response to evolving business opportunities and market conditions. Consistent with our commitment to shareholder value. The board of directors has proposed a dividend payment of MEX250 million for the third quarter subject to shareholder approval. It would mark the 19th consecutive quarter dividend payments since we became a public company. Looking ahead, we remain confident in the final quarter of the year and are fully committed to achieving our full year net revenue guidance.

謝謝你，安德烈斯。大家下午好。請注意，我們今天討論的所有數字和預測都是以墨西哥比索或功能貨幣為單位的。更多詳細資訊請參閱本次電話會議中的今天的收益新聞稿。我將重點放在我們財務報表中的相關關注點，而不是審查我們的收益報告中明確解釋的數字或 Andres 和 Louis 在本次電話會議上解釋過的數字。首先，我想談談 BEFRA 合併的調整後 EBITA 和調整後淨收入數據，本季調整後的 EBITA 成長 11.7% 至 5.92 億墨西哥比索，而 2023 年第三季為 5.29 億墨西哥比索。隨著息稅折舊攤銷前利潤率擴大 81 個基點至 17.8%，調整後的淨收入本季末為 1.805 億墨西哥比索。這比 2023 年第三季低 8.4%。主要是由於年底前可以沖銷的稅收準備金增加。以下是年度通貨膨脹效應的最終計算。值得強調的是，我們對 EBITA 和淨收入所做的調整排除了出售其位於墨西哥的原始總部所產生的一次性影響。該房產的帳面價值為 8.11 億墨西哥比索，但交易以 3.857 億墨西哥比索完成，扣除交易成本後導致非現金會計損失 4.35 億墨西哥比索。值得注意的是，會計損失對公司的經營業績或現金產生沒有影響，出售價格反映了其當前墨西哥城房地產狀況的資產與市場價值。第二，我還想談談那些產生負面影響的暫時的外在因素。較好的說法是，第三季的毛利率為 54.8%，而去年同期為 56.2%，且低於 58%、59% 的穩定狀態毛利率。我們通常預期幸運因素首先會推動這種下降，墨西哥比索在第三季平均貶值 9.9%，而第二季則影響了總計 340 個基點的利潤率。鑑於我們大約 90% 的成本都是以美元計算的。到第二季末，第二價格成本上漲了200％以上。貨櫃現貨價格從1,500美元上漲至4,000美元以上，影響了毛利率約150個基點。值得一提的是，過去三年，我們經歷了匯率和運費水準的異常劇烈波動。我們已經很多年沒見面了。這些波動反過來又導致我們的毛利率在每個季度之間出現顯著的波動。儘管面臨這些挑戰，我們仍成功將毛利率維持在 57% 至 58% 左右。展望第四季度，假設運費和匯率維持在 9 月底的水平，我們可以預期 Beras 的毛利率將在 58% 至 59% 之間。並且在未來幾年內，只要不出現此類重大干擾，我們預計利潤率將保持在這個範圍內。再次。第三，我想強調的是，Befra 年初至今的調整後 EBITA 受到了我們國際擴張策略投資的影響。今年到目前為止，我們已投資 820 萬墨西哥比索，用於將更好的世界業務擴展到美國和秘魯市場，我們相信這些市場具有巨大的長期成長潛力。雖然這些投資尚處於起步階段，但將其排除時需進行調整。如果在墨西哥，前 9 個月的 EBITA 總額將達到 10.47 億墨西哥比索，利潤率為 23.3%，那麼 EBITA 應為 20.83 億墨西哥比索，利潤率為 20.2% 或更高。是的，綜合融資成本反映的是用於管理以美元計價的採購相關的貨幣風險的外匯對沖收益或損失。我們目前正在評估套期會計的潛在應用，這將使我們能夠在銷售成本而不是融資成本中反映營運套期的影響。例如，今年，如果應用避險會計，我們的毛利率在第三季將提高到 56.4%，前九個月將提高到 58.5%，這更為準確，同時也反映了避險活動對 EBITA 水準的影響。回到 Jf 在墨西哥的房產出售問題。我們在八月以分期付款的方式完成了交易。該交易總價值為 3.857 億墨西哥比索，將分三年支付，目前已收到 7,000 萬墨西哥比索。我們預計在未來三年內收回剩餘的 3.15 億墨西哥比索。2024 年 11 月為 7,000 萬墨西哥比索，2025 年為 1.35 億墨西哥比索，2026 年為 8,500 萬墨西哥比索，2027 年 5 月為 2,570 萬墨西哥比索。此外，我們正在積極尋求出售另一處房產。該停車場以前是墨西哥員工的停車場。其價值約為 4000 萬至 5000 萬墨西哥比索。我們預計將在 2025 年第一季對此次出售進行分析，所得收益將專門用於投資業務增長或減少債務，最後但並非最不重要的是，在 2024 年第三季度末，我們保持了強勁的財務狀況，淨債務同比下降 4.7%，淨債務比率為 1.76 倍，比上年的 2.08 倍有所改善。我們仍有望實現約 1.5 倍的年底目標。此外，我們的利息覆蓋率從2.6倍提高到3.5倍。這一正面趨勢增強了我們的財務實力和地位，使我們能夠順應當前的宏觀經濟環境，進一步加強我們的財務狀況。我們推出了一項新的投資政策。一項重點是有效分配自由現金流，優先考慮推動公司價值的成長計畫。我們計劃根據現有機會將 30% 到 40% 的自由現金流分配給收購。我們將保持平衡的做法。股東回報包括股利、股票回購和資本支出。我們的槓桿目標是根據收購前景，將淨負債與息稅折舊攤提前利潤的比率維持在 1.5 倍至 2.5 倍之間。像往常一樣，我們的資本配置政策可能會根據不斷變化的商業機會和市場條件進行必要的調整。與我們對股東價值的承諾一致。董事會提議第三季派發 2.5 億墨西哥比索的股息，但須經股東批准。這將是我們上市以來連續第19季派發股利。展望未來，我們對今年最後一個季度仍然充滿信心，並全力致力於實現全年淨收入預期。

Although EBITA is expected to be at the lower end of our guidance range, primarily due to better were Mexico's temporary stockouts in Q2 and gross margin pressure in Q3.

儘管預計 EBITA 將處於我們指導範圍的低端，但這主要歸因於第二季度墨西哥的暫時缺貨情況以及第三季度的毛利率壓力有所改善。

Despite these short term challenges, he is well positioned for sustained growth and success in the fourth quarter of 2024 and beyond.

儘管面臨這些短期挑戰，但他仍有望在 2024 年第四季及以後實現持續成長和成功。

I will now turn the call back to the operator for any questions. Thank you.

我現在將把電話轉回給接線員以回答您的任何問題。謝謝。

Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two to remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys. One moment please. While we pull for questions.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號 1。確認音將表示您的線路已處於問題佇列。您可以按星號二將自己從使用揚聲器裝置的參與者群組中移除。按下星號鍵之前可能需要拿起聽筒。請稍等。當我們提出問題時。

Our first question is from Eric Bader from CC research. Please go ahead.

我們的第一個問題來自 CC 研究公司的 Eric Bader。請繼續。

Hey, congratulations.

嘿，恭喜你。

Oh, I want to start talking about the increase in the skus on the catalog.

哦，我想開始談談目錄上SKU的增加。

You know how much of that when you look at it is going to be falling into new categories. What are you trying to do in terms of get more customers with? This is most of is probably going to be part of the lower priced expansion. I should be thinking about like the overall pricing in the catalog.

當您查看時，您就會知道其中有多少將落入新的類別。為了吸引更多客戶，您正在採取什麼措施？其中大部分可能都屬於低價擴張的一部分。我應該考慮目錄中的整體定價。

I am sorry. Is your line on mute? I am sorry.

對不起。您的線路是否處於靜音狀態？對不起。

I am sorry. Can you hear me now?

對不起。現在你能聽到我的聲音嗎？

Well, we can hear Eric. It might be the speaker's line.

好吧，我們可以聽到艾瑞克的聲音。這可能是演講者的台詞。

We are not getting any audio from their line.

我們沒有收到來自他們線路的任何音訊。

Just give it a moment here.

請稍等片刻。

Thank you for your patience and

感謝您的耐心和

You can you hear us there?

你聽得到我們的聲音嗎？

Hello. Hello? Yes.

你好。你好？是的。

Yes. Now, we can hear you. Thank

是的。現在，我們可以聽到您的聲音了。感謝

You. You can hear us now. Okay, thank you. Sorry. Hi Eric, this is Andres. How are you?

你。現在您可以聽到我們的聲音了。好的，謝謝。對不起。你好，艾瑞克，我是安德烈斯。你好嗎？

I am good, how are you? Good, thank you. Yeah. You know, the the increase in SKU S is actually attacking two verticals, specifically one vertical is making sure that we expand the line into the new categories while keeping the core categories, let's say full of their needed SKU S and what we, you know, we have done this in the past in in different years where we introduce a new category and once it's successful, it's very important.

我很好，你呢？很好，謝謝。是的。您知道，SKU 的增加實際上是在攻擊兩個垂直領域，具體來說，一個垂直領域是確保我們將產品線擴展到新類別，同時保持核心類別，比如說充滿它們所需的 SKU，您知道，我們過去在不同的年份都這樣做過，我們推出了一個新類別，一旦它成功了，這非常重要。

Please stand by for a moment. Looks like experiencing a technical difficulty. Just please stand by for one moment.

請稍等片刻。看起來好像遇到技術故障了。請稍等片刻。

Let us see. Do

讓我們看看。做

You hear me there?

你聽見我說話了嗎？

Can you hear me there again or no?

你還能聽到我的聲音嗎？

Yeah,

是的，

I can hear you now.

我現在能聽到你的聲音了。

Okay, perfect. Okay. So sorry for that. We had a problem with the microphone with the microphone battery. But so Eric number one, you know category expansion and the and number two, with this category expansion, we're slightly introducing a lower price items to make sure that we balance out the growth between volume and and and prices. I don't know if this is clear to you.

好的，完美。好的。我很抱歉。我們的麥克風和麥克風電池出現了問題。但 Eric，第一，你知道類別擴展；第二，隨著類別擴展，我們會稍微推出一些價格較低的商品，以確保平衡銷售量和價格之間的成長。我不知道你是否清楚這一點。

No, that makes sense. Talk a little bit about inventories, inventories are up significantly. I know that part of that is that you want to be in stock for some of the key holidays. Other pieces are you comfortable with the levels of inventory you have now? And how new is the inventory here as we look at it for the holiday season?

不，這很有道理。談談庫存，庫存大幅增加。我知道部分原因是你想在一些重要假期期間有充足的庫存。另外，您對現在的庫存水準滿意嗎？那麼，就我們目前所見，假期期間這裡的庫存有多新呢？

Yeah, it's basically all new and it's, for, to be prepared for the holiday season. If you can remember, we had some disruptions that better were in Q2 from stockouts because, and we, we weren't able to fulfill the, the, the demand for growth and, and you know, Q4 is very important for us and in terms of revenue every day, everything. So we, we prepared well, and then we also saw the disruption in the freight prices that we talked about and normally when you have these disruptions, you can also have disruptions in blank sailings and not being able to get your products here on time. So we both of those things to make sure that we were ready with, with, with inventory for, for the four Q

是的，基本上都是新的，是為了假期做好準備。如果你還記得的話，我們在第二季度遇到了一些中斷，因為缺貨，我們無法滿足成長需求，而且你知道，第四季對我們來說非常重要，就每天的收入而言，一切都很重要。因此，我們做好了充分的準備，然後我們也看到了我們談到的運費價格的波動，通常當出現這些波動時，也會出現停航波動，無法按時將產品運送到這裡的情況。因此，我們確保我們已經為接下來的四個季度做好了充足的庫存。

Great. And last question, we got an update on what's happening with Betterware USA and roll out into Peru, I believe for next year. Are those still on track? And kind of what's again? I know they're haven't been open for that long. But what are you seeing there? That's, that's encouraging or what are you seeing period for those areas? Thank you.

偉大的。最後一個問題，我們了解了 Betterware USA 的最新進展以及明年在秘魯的推廣情況。這些都還在進行中嗎？那又怎麼樣？我知道他們開業的時間還不是那麼長。但你在那裡看到了什麼？這是令人鼓舞的，或者您認為這些領域將會出現怎樣的情況？謝謝。

Yeah. This address again, Eric. So in terms of better word us. And we are, we, we have launched the, the operations in, in Betterware us already. We are, you know, still in, in piloting phases, kind of running water through the pipes and making sure that our compensation plan is attractive, that the products are attractive, that everything makes sense. And we, you know, we are, we're already selling, we we have our, our first brand partner scene and, but still in a phase of kind of running water through the pipes. And we, we believe, you know, during next year along next year, we will be able to give more figures on this. And, and things are going okay? And in terms of a better word, Peru, we, we're setting everything up and I think we mentioned we will launch by the end of Q1 or starting Q2 of next year. So we're still preparing everything and we will begin with the, with the pilot testing and everything by the end of Q1 or, or, or beginning of Q2. But yeah, we, we're starting that and we'll give more details during 2025.

是的。再次提及這個地址，艾瑞克。因此用更好的字來表達我們。我們已經在 Betterware 中啟動了相關營運。你知道，我們仍處於試點階段，就像在管道中流動水一樣，並確保我們的薪酬計劃具有吸引力，產品具有吸引力，一切都合理。你知道，我們已經開始銷售了，我們有了第一個品牌合作夥伴場景，但仍處於管道流水的階段。我們相信，明年我們將能夠提供更多相關數據。一切還順利嗎？用一個更好的詞來表達，秘魯，我們正在安排一切，我想我們提到我們將在第一季末或明年第二季初推出。因此，我們仍在準備一切，我們將在第一季末或第二季初開始試點測試並完成一切準備工作。但是是的，我們正在開始這項工作，並將在 2025 年提供更多細節。

Great good luck for the holiday season.

祝節日快樂。

Thank you.

謝謝。

Thank you, Eric.

謝謝你，埃里克。

As a reminder if you would like to ask a question, it is star one.

提醒一下，如果您想提問，它是星號一。

Our next question is from Cristina Fernandez from Telsey Advisory Group. Please go ahead.

下一個問題來自 Telsey Advisory Group 的克里斯蒂娜·費爾南德斯 (Cristina Fernandez)。請繼續。

Hi, good afternoon. Everyone. I, wanted to follow up on on the prior question around the, the US expansion now that you know, just for a better foot and better work, you know, a couple of quarters into the US. Can you take a step back and talk about the, the learnings that you're seeing in, in any differences or similarities that you're seeing between the US and and the Mexican consumer that you know, can explain, you know, the business model. Go going forward.

嗨，下午好。每個人。我想跟進之前關於美國擴張的問題，您知道，這只是為了在美國有更好的立足點和更好的工作，您知道，在美國擴張的幾個季度裡。您能否退一步談談您所看到的經驗，即美國和墨西哥消費者之間的差異或相似之處，能否解釋一下商業模式。勇往直前吧。

Yeah. Yeah, sure. Hi Christina, this is Andres again. So, yeah, this, this first phase. These first months is as I was mentioning, kind of running the water through the pipes, making sure that everything works. And kind of trying out in, in, in different markets. We do, we have seen that the Hispanic market specifically is very keen to what we're doing. We're seeing a very good reaction in, in, in that sense and we are seeing, you know, we, we haven't really set out the whole cross border program, but we, we are starting to lay out in the first two states of Mexico where people from Mexico can reference their relatives and friends from the US. And then, and we're, we're getting some interesting early figures on that. So, so, you know, looking forward to continue to lay out the whole opportunity to in the US and I think, I think we will be able to, to comment a little bit more on that in the, in the coming quarters.

是的。是的，當然。你好，克里斯蒂娜，我又是安德烈斯。是的，這是第一階段。正如我剛才提到的那樣，這最初的幾個月就是讓水流過管道，確保一切正常。並且在不同的市場進行嘗試。我們確實看到西班牙裔市場對我們所做的事情特別熱衷。從這個意義上說，我們看到了非常好的反應，你知道，我們還沒有真正制定出整個跨境計劃，但是我們已經開始在墨西哥的前兩個州進行佈局，在那裡來自墨西哥的人可以聯繫到他們來自美國的親戚和朋友。然後，我們得到了一些有趣的早期數據。所以，你知道，期待繼續在美國佈局整個機會，我認為，我們將能夠在未來幾季對此發表更多評論。

Okay, fair enough. I, I wanted to also ask there's a table that's new on the, on the press release today about how the business has changed, you know, fixed versus variable expenses. So this cost structure shifted. Can you talk, can you talk about sort of what changed? When I look at the table both are up. So I'm not sure if that's correct or reflects the changes in, in, in, in the business model, I assume it's more variable today than six versus a year ago.

好吧，夠公平。我還想問一下，今天的新聞稿中有一張新表格，是關於業務如何變化的，固定費用與變動費用。因此這種成本結構發生了變化。能談談，能談談發生了哪些變化嗎？當我看表時，兩者都已上升。因此，我不確定這是否正確，或者是否反映了商業模式的變化，我認為今天的變化比一年前六年的變化更大。

Yeah. Yeah. It's a good observation and it's definitely more more variable today. So if you see Q3 of 2024 variable cost structure is 75% and, and normally this happens with, with growth, no, as we, as we continue to grow and we have some operating leverage on fixed costs on fixed expenses. And, and at the same time that we have that operating leverage, we, we always talk about the fact that we're continuously looking for optimization in our fixed expenses. So we continue to you know, find ways to, to optimize the expenses. And, and I think this is a reflection of that point

是的。是的。這是一個很好的觀察，而且今天的情況肯定更加多變。因此，如果您看到 2024 年第三季的變動成本結構為 75%，並且通常會隨著成長而發生，不，隨著我們繼續成長，我們在固定成本和固定費用上具有一定的營運槓桿。而且，在我們擁有經營槓桿的同時，我們總是談論這樣一個事實，即我們不斷尋求固定支出的最佳化。因此，我們會繼續尋找方法來優化費用。我認為這反映了這一點

And the Christina, this is with, I will add something else. Remember that since we completed the acquisition of JAFRA. We have been cutting fixed expenses there to bring it to more or less the level we used to have in better work. Okay. Then that's also a good reason why our cost structure change from Q3 2023 to Q3 2024. We have almost completed this reduction in the fixed expenses in Java.

還有克里斯蒂娜，這是，我還想補充一些其他內容。請記住，自從我們完成對 JAFRA 的收購以來。我們一直在削減那裡的固定開支，以使其達到或多或少與我們以前更好的工作水平相當。好的。這也是我們的成本結構從 2023 年第三季到 2024 年第三季發生變化的一個很好的理由。我們幾乎已經完成了 Java 中固定開支的削減。

Yeah, thank you. And another question I had Alejandro mentioned that you were going to, I guess allocate 30, 40% of free cash flow to acquisitions, I guess. You know, talk about what the strategy there. I mean, you just absorbed a big acquisition which you asked for us. So how are you thinking about the company? And should we think, I mean, down the line more talking acquisitions, any sectors you want to be in or will you stay close to where, where you're operating now?

是的，謝謝。我的另一個問題是亞歷杭德羅提到，你打算將 30% 到 40% 的自由現金流分配給收購。你知道，談論那裡的策略是什麼。我的意思是，您剛剛完成了一項您為我們提出的重大收購。那麼您對於這家公司有什麼看法呢？我們是否應該考慮，我的意思是，未來會更多地談論收購，您想涉足哪些領域，或者您會留在現在的經營地點附近嗎？

Yeah. Hi Christina. So yeah, definitely, you know, as we mentioned, we, we, we created the Bert Group naming it the great brands, one essence. And, you know, after we completed the acquisition of JRA which is at almost three year. No, well, 2.5 year anniversary. No. We have seen that our hypothesis was right in the fact that you know, acquiring a brand in a new category and where we replicate our model has been a great success. A very quick and great success. So, you know, now that leverage is down to 1.76 times. If it done, we, we will continue to, to deleverage in, in, in that sense, we have opportunity to be looking at different options. No, it can, I would think of it in two verticals and one could be the possibility of adding other categories or other companies within the same category. Or another one is something where we can look at international expansion and look for opportunities there instead of starting from two. So that I would think about about it. That, that, that way, I don't know if that answers your question.

是的。你好，克里斯蒂娜。是的，正如我們所提到的，我們創建了 Bert 集團，並將其命名為偉大的品牌，一個精髓。您知道，我們完成對 JRA 的收購已經快三年了。不，嗯，2.5週年紀念日。不。我們已經看到，我們的假設是正確的，收購一個新類別的品牌並複製我們的模式取得了巨大的成功。很快就取得了巨大的成功。所以，你知道，現在槓桿率已經降到 1.76 倍了。如果這樣做了，我們將繼續去槓桿，從這個意義上說，我們有機會考慮不同的選擇。不，可以。或者我們可以考慮國際擴張並在那裡尋找機會，而不是從兩個開始。這樣我就會思考這個問題。那，那，那樣的話，我不知道這是否回答了你的問題。

Yeah. Yeah, that's helpful. Thank you. And, and then just last one, I just also clarifying on the, on the inventory. I is the step up just now for the fourth quarter and holiday or do you think, you know, going forward into 2025? You also need to make additional inventory investments to make sure you're in stock particularly during promotional periods.

是的。是的，這很有幫助。謝謝。最後一點，我還要澄清一下庫存。我現在正在為第四季度和假期做準備，還是您認為會持續到 2025 年？您還需要進行額外的庫存投資，以確保在促銷期間有庫存。

Well, no, I think that that's you know, we have to, to after the shop that we have during Q2 in better where Mexico, where we have a lot of stockout, we have to build up again the inventory and, and the second thing that, that affected us and is that what since freight costs started going up so much? As we mentioned, we were a little bit worried about and disruptions in the supply chain as well. We are seeing that the supply chain has not really suffered disruptions and the prices are starting to stabilize in that sense. So as long as the supply chain stabilizes and, and prices stabilize as well, and we do, we, we will not have to keep building up inventory for future quarters. It's just, you know, it was just a matter of that disruption in the prices and the and the and the supply chain that led us to this build up at this specific time.

嗯，不，我認為那是，你知道，我們必須，在我們第二季度在墨西哥開設商店之後，那裡有很多缺貨，我們必須再次增加庫存，第二件影響我們的事是，自從運費開始大幅上漲以來，是什麼原因造成的？正如我們所提到的，我們也有點擔心供應鏈中斷。我們看到供應鏈實際上並未受到中斷，而且價格也開始穩定下來。因此，只要供應鏈穩定，價格也穩定，我們就不必為未來幾季繼續累積庫存。您知道，只是價格和供應鏈中斷導致我們在這段特定時期進行這種累積。

Okay. Makes sense. Thank you. And best of luck here in the fourth quarter.

好的。有道理。謝謝。祝你在第四季好運。

Okay. Thank you.

好的。謝謝。

As a reminder. If you would like to ask a question, it is star one and if there are no further questions, I have to turn the floor back to management for any closing comments.

提醒一下。如果您想提問，這是第一個問題，如果沒有其他問題，我必須將發言權交還給管理層以進行結束語。

Thank you operator and thank you once again everyone for joining today's call. As we approach the final quarter of 2024 we take pride in the solid results we have delivered so far, fueled by our commitment to innovation, technology and business intelligence.

謝謝接線員，再次感謝大家參加今天的電話會議。隨著 2024 年最後一個季度的臨近，我們為迄今為止所取得的堅實業績感到自豪，這得益於我們對創新、技術和商業智慧的承諾。

These pillars along with our cost efficient and asset light business model have allowed us to thrive in a competitive environment, driving consistent double digit growth and profitability throughout our history, including the last quarter, our ability to adapt to market trends while maintaining operational efficiency has been key to our continued success.

這些支柱以及我們的成本效益和輕資產業務模式使我們能夠在競爭激烈的環境中蓬勃發展，在我們的歷史上（包括上個季度）持續推動兩位數的增長和盈利，我們適應市場趨勢同時保持運營效率的能力一直是我們持續成功的關鍵。

Looking ahead, we are confident in our ability to close the year strongly with a solid pipeline of new product launches, enhanced customer experience and strategic initiatives in place.

展望未來，我們有信心憑藉一系列新產品的推出、增強的客戶體驗和實施的策略舉措，強勢結束這一年。

BEFRA is well positioned for a successful fourth quarter and a strong start to 2025.

BEFRA 已做好準備，迎接第四季度的成功以及 2025 年的強勁開局。

Our resilience, adaptability and diversified portfolio position us to create lasting shareholder value, reinforcing our leadership in this evolving market.

我們的韌性、適應性和多元化投資組合使我們能夠創造持久的股東價值，鞏固我們在這個不斷發展的市場中的領導地位。

Have a great evening everyone and thank you for joining us today.

祝大家有個愉快的夜晚，感謝大家今天的參與。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.

今天的電話會議到此結束。現在您可以斷開您的線路。再次感謝您的參與。