Betterware de Mexico SAPI de CV (BWMX) 2025 Q1 法說會逐字稿

Thank you and welcome to BeFra's first quarter of 2025 earnings conference call.

謝謝您，歡迎參加 BeFra 2025 年第一季財報電話會議。

Speaking on today's call are be Chairman of the board, Luis Campos, President and Chief Executive Officer Andres Campos, and Chief Financial Officer. Rodrigo Muñoz, recently appointed as successor for Alejandro Lua in March 2025.

參加今天電話會議的有董事會主席路易斯·坎波斯 (Luis Campos)、總裁兼執行長安德烈斯·坎波斯 (Andres Campos) 和財務長。Rodrigo Muñoz 最近被任命為 Alejandro Lua 的繼任者，任期為 2025 年 3 月。

Before they begin their remarks, the company would like to remind you that today's call may include forward-looking statements which are subject to risk and uncertainties that could cause actual results to differ materially from those expectations.

在他們開始發言之前，公司想提醒您，今天的電話會議可能包含前瞻性陳述，這些陳述受風險和不確定性的影響，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 today, and risk factors outlined in BFRA's SEC filing. Therefore, undertakes no obligation to update any forward-looking statements.

任何此類聲明都應與今天發布的收益報告中的警告聲明和安全港聲明以及 BFRA 的 SEC 文件中概述的風險因素一起考慮。因此，不承擔更新任何前瞻性陳述的義務。

A reconciliation of and other information regarding non-gap financial measures discussed on the call can also be found in the earnings release as well in the investor section of the company's website.

在電話會議上討論的非缺口財務指標的對帳及其他資訊也可以在收益報告以及公司網站的投資者部分找到。

I'd like to turn the call over to BeFra's President and CEO Andres Campos.

我想將電話轉給 BeFra 總裁兼執行長 Andres Campos。

Thank you. You may begin.

謝謝。你可以開始了。

Thank you, operator, and good afternoon, everyone.

謝謝接線員，大家下午好。

As we begin this call and before we get into the numbers of the quarter with Rodrigo, I'd like to reflect on two very important things that this quarter brings to mind so you know exactly where our minds and actions are at.

在我們開始這次電話會議之前，在我們與羅德里戈討論本季度的數據之前，我想回顧一下本季度讓我想到的兩件非常重要的事情，以便您確切地了解我們的想法和行動。

The first thing is our approach to the current volatility and uncertainty around the world, of which the countries where we operate have not been exempt, thus affecting our ability to yield stronger results in the short term.

首先是我們對當前全球波動性和不確定性的態度，我們經營所在的國家也未能倖免，從而影響了我們在短期內取得更強勁成果的能力。

Beginning with Mexico, consumer trends have shown important softening signs, which have affected all categories alike, but have deepened in more discretionary categories like household goods. Although we believe that Mexico continues to have great potential in the mid to long-term, short-term consumption has been affected by soft economic trends, US created uncertainty, and a weakened Mexican peso in relation to last year. We've also seen disruption in consumption in the US, especially in January and February although we do see a possible comeback in March.

從墨西哥開始，消費趨勢已顯示出重要的疲軟跡象，這對所有類別都產生了相同的影響，但在家庭用品等非必需消費品類別中，這種影響尤其明顯。儘管我們認為墨西哥在中長期內仍具有巨大潛力，但短期消費受到疲軟的經濟趨勢、美國製造的不確定性以及墨西哥比索較去年同期走弱的影響。我們也看到美國消費出現中斷，尤其是在一月和二月，儘管我們確實看到三月消費可能會回升。

Finally, we've also seen disruption in China where we manufacture 80 Plus % of our better work products and where tariffs have escalated by the day. All of these have challenged our short-term actions and results, resulting in a revenue decline of 2.9% in the quarter versus last year. And the short-term growth margin contraction affecting our profitability overall.

最後，我們也看到中國發生了混亂，我們 80% 以上的優質產品在中國生產，而中國的關稅日益上漲。所有這些都對我們的短期行動和結果提出了挑戰，導致本季營收較去年同期下降了2.9%。短期成長利潤率的收縮影響了我們的整體獲利能力。

And although 2025 will be a difficult year to navigate, We'd like to stand out relevant features of our business that have helped us navigate challenging times in the past. And will help us navigate these new ones.

儘管 2025 年將是艱難的一年，但我們希望突出我們業務的相關特點，這些特點曾幫助我們度過過去的艱難時期。並將幫助我們應對這些新問題。

Number one, we operate with a very low fixed expenses and an asset light model in all business fronts, which allows us to protect profitability and cash flow in difficult times. Number two, our commercial model has high resiliency, where distributors and associates alike increase their efforts to maintain sales going, outpacing other channels without extra cost to them or to the company, but their time and effort. Number three, we are now a diversified group with two brands in two strong categories, both home and beauty. Number four, our agile internal culture where we are all ready to adapt improve and adjust. Although volatility in the market can present challenging quarters, we adapt quickly and swiftly achieving resilient revenue and profits as quarters go by that said.

首先，我們在所有業務方面都採用非常低的固定支出和輕資產模式，這使我們能夠在困難時期保護獲利能力和現金流。第二，我們的商業模式具有很強的彈性，經銷商和合作夥伴都會加強維持銷售，超越其他管道，而他們或公司無需承擔額外成本，只需付出時間和精力。第三，我們現在是一個多元化的集團，擁有家居和美容兩個強項類別的兩個品牌。第四，我們的內部文化非常敏捷，我們都隨時準備好適應、改進和調整。儘管市場波動可能會帶來挑戰，但隨著季度的推移，我們能夠快速適應並迅速實現彈性收入和利潤。

I'd now like to speak about the second thing that this quarter brings to mind, which is that the long-term growth fundamentals of our business remain strong, and thus we must not lose that perspective in all decisions we make. Both of our brands are playing in strong categories, household and beauty goods, which have shown secular trends of growth around different markets.

現在我想談談本季我想到的第二件事，那就是我們業務的長期成長基本面依然強勁，因此我們在做出所有決策時都不能忽視這一觀點。我們的兩個品牌都在家居和美容用品這兩個強勢領域佔據優勢地位，這兩個領域在不同市場都呈現長期成長趨勢。

On the other side, our commercial model based on person to person selling powered by incentive intelligence, technological tools, and gig economy trends will continue to prove as an effective model going forward for those who know how to manage it that said,

另一方面，我們的商業模式以人對人銷售為基礎，並由激勵情報、技術工具和零工經濟趨勢驅動，對於那些知道如何管理它的人來說，它將繼續被證明是一種有效的模式，

I'd like to pass the word on to Rodrigo, our CFO, so he can explain some specifics in our results, and then I'll come back to tell you some of the commercial strategies we are carrying out in each business to tackle the challenges and opportunities that lay ahead.

我想把這個消息傳達給我們的財務長羅德里戈，讓他解釋一下我們業績的一些具體細節，然後我會回來告訴你們我們在每個業務部門正在實施的一些商業策略，以應對未來的挑戰和機遇。

Thank you, Andres, and good afternoon, everyone. This being my first conference call with BeFra Group, I would like to state that I am grateful and honored to contribute to BeFra's promising future. After great experiences in diverse consumer product companies like Alsea and Devlin, I am excited to be a new face.

謝謝你，安德烈斯，大家午安。這是我與 BeFra 集團的第一次電話會議，我想說，我很感激並很榮幸能夠為 BeFra 的美好未來做出貢獻。在 Alsea 和 Devlin 等多家消費品公司累積了豐富的經驗後，我很高興能成為新面孔。

I look forward to proactively help the company achieve its promising goals as well as helping all of our investor community to better understand our business. I will now dive into some relevant figures in the quarter. So, we understand the details and context. Please have in mind that all figures that I'll be referencing are in Mexican pesos or functional and reporting currency. And no period comparisons are year over year unless otherwise stated. Additional details are available in our earning release published earlier.

我期待積極幫助公司實現其良好目標，並幫助我們所有的投資者社群更好地了解我們的業務。我現在將深入研究本季的一些相關數據。因此，我們了解細節和背景。請記住，我將引用的所有數字都是墨西哥比索或功能和報告貨幣。除非另有說明，否則沒有同比的時期比較。更多詳細資訊請參閱我們先前發布的收益報告。

Consolidated net revenues decreased 2.9% year-over-year, due mainly to the short-term challenging microeconomic environment as Andres mentioned earlier. During this quarter, the FXs posted additional challenges with the Mexican pesos depreciated around 20% year-over-year from an average of MXN17 pesos in quarter one 2024 to 20.4% in quarter one 2025.

合併淨收入年減 2.9%，這主要是由於安德烈斯先前提到的短期嚴峻微觀經濟環境。本季度，外匯面臨更多挑戰，墨西哥比索年減約 20%，從 2024 年第一季的平均 17 墨西哥比索貶值至 2025 年第一季的 20.4%。

Although we have absorbed some of this impact in our gross margin, we decided to increase some prices impacting our volumes and engagement levels. This resulted in a 9.8% decrease in better Mexico revenue versus last year as well as an associates-based decline. In contrast, it affected the growth strength of Java, decreasing growth from double to single digits.

儘管我們已經在毛利率中吸收了部分影響，但我們決定提高一些會影響我們銷售和參與的價格。這導致墨西哥營收較去年同期下降 9.8%，同時聯營公司營收也出現下降。相反，它影響了 Java 的成長實力，使成長率從兩位數降至個位數。

Our commercial teams continue to work very hard to navigate these times as they have done in the past, maintaining a good balance between short-term solutions and long-term strategic focus. Consolidated gross margin declined by 353 basis points, primarily driven by the impact of the Mexican peso depreciation, which increased the cost of goods that there were imports, as well as those of some raw materials used by Jafra, such as essence and bottles.

我們的商業團隊一如既往地繼續努力度過這段時期，在短期解決方案和長期策略重點之間保持良好的平衡。合併毛利率下降353個基點，主要受墨西哥比索貶值的影響，導致進口商品成本增加，以及Jafra使用的一些原料，如香精、瓶子等成本增加。

A better word, the margin impact was intensified by lower sales volumes and increasing investment in promotional suppliers which diluted the profitability. Yes, from Mexico also saw margin compression driven by investments in volume driving promotions. Consolidated EBITDA decreases 29.1%, reflecting the weaker sales volumes and compressed growth margin. Particularly at our business units in Mexico.

更確切地說，銷售量下降和促銷供應商投資增加加劇了對利潤率的影響，從而稀釋了獲利能力。是的，墨西哥也因對促銷活動進行大量投資而導致利潤率受到壓縮。合併 EBITDA 下降 29.1%，反映銷售量下降和成長利潤率壓縮。特別是我們在墨西哥的業務部門。

EBITDA for better where Mexico fell 31.6%, mainly driven by the drop in sales volumes and margin compression. Jafra's Mexico EBITDA decreased 25.2% as margin pressure and promotional expenditure weighed on profitability.

EBITDA 表現較好，其中墨西哥下降 31.6%，主要受銷售量下降和利潤率壓縮的影響。由於利潤壓力和促銷支出影響獲利能力，Jafra 墨西哥的 EBITDA 下降了 25.2%。

That said, it's important to point out that our business remains strongly profitable with EBITDA margin of 15.3% this quarter. And we are taking all necessary actions to recover our normal EBITDA margin.

話雖如此，值得指出的是，我們的業務仍然保持強勁盈利，本季 EBITDA 利潤率為 15.3%。我們正在採取一切必要措施恢復正常的 EBITDA 利潤率。

Free cash flow was negative for the quarter. Historically, we have converted around 40% of free cash flow versus EBITDA in the first quarter due to seasonality. Our normal levels are around 60%. However, during the quarter, we experienced extraordinary outflows, mainly in Japan, Mexico as a result of an increase in working capital. Driven by higher inventory levels related to brand renewal strategies, as well as innovation preparation for the coming quarters. Which we expect to decrease in the coming quarter.

本季自由現金流為負。從歷史上看，由於季節性因素，我們在第一季將約 40% 的自由現金流轉換為 EBITDA。我們的正常水準在60%左右。然而，在本季度，我們經歷了異常資金流出，主要集中在日本和墨西哥，這是由於營運資本增加造成的。受品牌更新策略相關的庫存水準上升以及未來幾季的創新準備所推動。我們預計下一季這一數字將會下降。

We also experience higher tax payments derived from the difference of total tax incurs versus provisional tax payments in Jafra, which did not happen in Q1 2024. Thus, we feel confident in our return to normal cash flow generation in the coming quarter. Consolidated EPS decreased 48.7%, reflecting the combined impact of lower sales and overall profitability with a decrease in EBITDA explained before.

我們也經歷了更高的稅收，這是由於賈夫拉的總稅收與臨時稅收之間的差異造成的，而這種情況在 2024 年第一季並沒有發生。因此，我們對下一季恢復正常現金流充滿信心。合併每股盈餘下降 48.7%，反映了銷售額和整體獲利能力下降以及先前解釋的 EBITDA 下降的綜合影響。

In addition, financial costs had a positive impact on net income, driven by a decrease in the net interest expense. As a result of lower interest rates and net currency effects that include the implementation of hedge accounting. Also, profit for the period suffered a negative effect due to higher taxes paid.

此外，由於淨利息支出的減少，財務成本對淨收入產生了積極影響。由於較低的利率和淨貨幣效應，包括實施套期會計。此外，由於繳納的稅款增加，本期利潤也受到負面影響。

Despite the short-term challenges, we continue to maintain a healthy financial position, closing the quarter with a net debt to EBITDA ratio of 2.08, slightly higher than 1.83 in Q1 2024 and in line with our internal policy.

儘管面臨短期挑戰，我們仍保持健康的財務狀況，本季末的淨債務與 EBITDA 比率為 2.08，略高於 2024 年第一季的 1.83，符合我們的內部政策。

We maintain our commitment to shareholder returns, but the current economic uncertainty in Mexico and the US calls for prudent cash management. As part of this cautious approach, our board director is proposing a MXN200 million pesos dividend for Q1 2025, consistent with our strategy to strengthen free cash flow for new organic and inorganic growth opportunities.

我們始終致力於股東回報，但墨西哥和美國當前經濟的不確定性要求我們進行審慎的現金管理。作為這種謹慎做法的一部分，我們的董事會成員提議在 2025 年第一季派發 2 億墨西哥比索的股息，這符合我們加強自由現金流以獲得新的有機和無機增長機會的策略。

Q1 was an atypical quarter impacted by short term volatility and challenges. However, looking ahead, we are maintaining our full year guidance for 2025 with expectations for net revenue and a growth still in the range of 6% to 9%.

第一季是一個非典型的季度，受到短期波動和挑戰的影響。然而，展望未來，我們維持 2025 年全年指引，預期淨收入和成長率仍在 6% 至 9% 之間。

While we remain well positioned to achieve these targets, we will continue to review our daily costs, inventories, and cash flow as we recognize that the current economic environment will likely continue to present certain challenges that might further impact our performance as the year unfolds.

雖然我們仍然有能力實現這些目標，但我們將繼續審查我們的日常成本、庫存和現金流，因為我們認識到當前的經濟環境可能會繼續帶來某些挑戰，這些挑戰可能會進一步影響我們在今年的業績。

We are monitoring external conditions closely and we continue to evaluate the potential impact on our operations. I will now turn the call back to Andres to speak about the actions we're internally taking to achieve success.

我們正在密切關注外部條件，並繼續評估其對我們營運的潛在影響。現在我將把電話轉回給安德烈斯，讓他談談我們為取得成功而採取的內部行動。

Thank you, Rodrigo.

謝謝你，羅德里戈。

Looking ahead, we're actively executing strategies at Betterware de Mexico to reaccelerate growth and improve profitability in the following ways.

展望未來，我們正在積極執行 Betterware de Mexico 的策略，以透過以下方式重新加速成長並提高獲利能力。

Number one, pricing. We are making strategic pricing decisions in all price levels to balance between product affordability and margin protection. We are executing new merchandizing techniques to achieve this. Number two, promotional activity. We are increasing our promotional activity to keep our sales force constantly engaged.

第一，定價。我們在所有價格水準上做出策略性定價決策，以在產品可負擔性和利潤保護之間取得平衡。我們正在實施新的行銷技術來實現這一目標。第二，促銷活動。我們正在增加促銷活動，以保持我們的銷售人員持續參與。

Number three, Salesforce engagement techniques. We are actively looking into more proactive and deeper engagement with our sales force through data analysis segmentation to improve sales coaching and communication also with the aim of rebuilding sales momentum. Number four, innovation. We continue to work on improving our innovation process and pipeline to continue to surprise and delight customers. We're also doing an extensive revision of product cost structures to find opportunities to make products more accessible to our customers. Number 5, sourcing. We continue to monitor China tension closely, evaluating Plan B manufacturing options that we have developed in Mexico, Southeast Asia, and other regions in the world.

第三，Salesforce 參與科技。我們正在積極尋求透過數據分析細分與我們的銷售人員進行更主動、更深入的互動，以改善銷售指導和溝通，同時重建銷售動能。第四，創新。我們將繼續致力於改進我們的創新流程和管道，以繼續為客戶帶來驚喜和愉悅。我們也對產品成本結構進行了廣泛的修改，以尋找機會讓客戶更容易獲得產品。第五，採購。我們將繼續密切關注中國的緊張局勢，評估我們在墨西哥、東南亞和世界其他地區制定的 B 計畫製造方案。

In Japan, Mexico, we will focus on the following actions. Number one, product mix we are rebalancing the product mix through strategic price adjustments and promotions to regain lost margins while maintaining volume growth in more resilient categories.

在日本、墨西哥，我們將專注於以下行動。第一，產品組合我們正在透過策略性價格調整和促銷來重新平衡產品組合，以重新獲得失去的利潤，同時保持更具彈性的類別的銷售成長。

Number two, renovation and innovations. We continue with our renovation plans where we will continue to renovate our biggest brands, reinvigorating their value to customers. We also have an exciting new product pipeline which will continue to make Jafra a more attractive and successful brand in the market.

第二，革新與創新。我們將繼續推行革新計劃，不斷革新我們最大的品牌，重振它們對客戶的價值。我們還有令人興奮的新產品線，這將繼續使 Jafra 成為市場上更具吸引力和更成功的品牌。

Number three, ease of doing business advancements. We continue to execute Betterware's playbook at Jafra with technology, business intelligence, and process improvements, making it easier for distributors and associates alike to do business with us. We are beginning to attract a younger generation whilst remaining attractive to a vibrant baby boomer and Generation X sales force.

第三，營商便利度的提升。我們繼續在 Jafra 執行 Betterware 的策略，利用技術、商業智慧和流程改進，使經銷商和合作夥伴更輕鬆地與我們開展業務。我們開始吸引較年輕的一代，同時仍對充滿活力的嬰兒潮世代和 X 世代銷售隊伍保持吸引力。

Number four, Jafra Queretaro plant improvements we have a great asset with the Jafra manufacturing plants, owning or manufacturing in Mexico. We will continue to leverage on this advantage both for Mexican and US markets alike.

第四，Jafra Queretaro 工廠的改進，我們在墨西哥擁有或製造 Jafra 製造工廠，這是我們的寶貴資產。我們將繼續利用這項優勢，開拓墨西哥和美國市場。

In summary, the first quarter of 2025 presented significant challenges due to weakening macroeconomic conditions in both our markets. While we remain cautious as lower consumption levels may persist, we're taking proactive steps to protect revenue margins and ensure financial health.

總而言之，由於我們兩個市場的宏觀經濟狀況疲軟，2025 年第一季面臨重大挑戰。由於較低的消費水平可能會持續下去，我們仍保持謹慎，但我們正在採取積極措施來保護收入利潤率並確保財務健康。

Finally, and before questions for final remarks, I will now pass the call to Luis Campos, our Chairman of the board, for a final message.

最後，在提出最後發言問題之前，我現在將把電話轉給我們的董事會主席路易斯·坎波斯 (Luis Campos)，請他發表最後講話。

Thank you, Andres, and thank you again, everyone, for joining us today. After more than 47 years in the consumer goods industry, you would understand I have experienced a diverse set of challenges and opportunities. Thus, want you to know that I have full confidence in our business model. Our strategies and more importantly, our management team to navigate these times and come out stronger than ever for better times. Together with that, our strong culture that we have waived throughout the years, one of As movements and long-term mindset, will continue to be the most important asset we have and allow us to gain advantage every step of the way.

謝謝你，安德烈斯，再次感謝大家今天加入我們。在消費品產業工作了 47 多年後，您會明白我經歷了各種各樣的挑戰和機會。因此，我想讓你們知道，我對我們的商業模式充滿信心。我們的策略，更重要的是，我們的管理團隊將帶領我們度過這段時期，並在更好的時期變得比以往任何時候都更加強大。除此之外，我們多年來所秉持的強大文化，即積極進取和長遠思維，將繼續成為我們最重要的資產，並使我們在前進的每一步中獲得優勢。

As macroeconomic conditions improve or stop deteriorating. The fundamentals of our business remain strong. And we are confident that the resilience of BeFra and the steps we are taking to improve performance will allow us to continue to deliver growth and profitability in the coming quarters in line with our original guidance.

隨著宏觀經濟狀況改善或停止惡化。我們的業務基礎依然強勁。我們相信，BeFra 的韌性以及我們為提高業績而採取的措施將使我們能夠在未來幾季繼續按照我們最初的指導實現成長和獲利。

I will now pass the call to the operator for any questions you may have.

我現在將把電話轉接給接線員，以便解答您的任何問題。

Great, thank you. At this time, we'll be conducting a question-and-answer session. (Operator Instructions)

太好了，謝謝。這次，我們將進行問答環節。（操作員指示）

Eric Bader, SCC Research.

Eric Bader，SCC 研究部。

Good afternoon. A few things. Hi, could you talk about the inventory and how we should be thinking about the flows on that. I noticed you noticed that it was a little bit high for Q1. How should we be thinking about that going forward as a potential driver of free cash flow.

午安.有幾件事。您好，您能談談庫存以及我們應該如何考慮庫存流程嗎？我注意到您注意到 Q1 有點高。我們應該如何看待它作為自由現金流的潛在驅動力。

Yes, hi Eric, this is Andres. So, inventory increased a little bit in Q1. From the Jafra business, we are renovating the branding on most of our most important lines of products and we're also preparing some innovations. So, this was kind of one-time increase in inventory, and we expect to start decreasing inventory, going forward. We do not expect it to continue to increase.

是的，嗨，艾瑞克，我是安德烈斯。因此，第一季庫存略有增加。從 Jafra 業務開始，我們正在對大多數最重要的產品線進行品牌革新，我們也正在準備一些創新。因此，這是一種一次性的庫存增加，我們預計未來庫存將開始減少。我們預計它不會繼續增加。

Okay. China Now on one hand you have a great relationship with your suppliers there and you've used them before. Given what's going on in the states in terms of orders, other pieces, are there opportunities there for you to improve overall returns from your China product going forward or opportunities in terms of flowing products that are going forward. Thank you.

好的。中國現在一方面您與那裡的供應商關係很好並且您以前曾與他們合作過。考慮到美國訂單等方面的情況，您是否有機會提高中國產品未來的整體回報，或在未來產品流通方面有機會？謝謝。

Thank you, Eric. Can you clarify your question on China. I did not understand very well what the actual question.

謝謝你，埃里克。您能否澄清一下有關中國的問題？我不太明白實際的問題是什麼。

Approximately 80% of your goods come from China. What we've been hearing is that there have been a lot of canceled orders from American players for these for good, so there's extra capacity potentially coming on board. Is that a potential advantage or better way going forward.

你們大約80%的貨物來自中國。我們聽說，許多美國玩家已經永久取消了這些產品的訂單，因此可能會有額外的產能加入。這是一個潛在的優勢還是更好的前進方式。

Well, At the moment we cannot state as a fact that it's an advantage.

嗯，目前我們還不能肯定這是優勢。

What we have seen is, for instance, number one, container prices coming down and we have confirmed that so this. Will definitely be an advantage for us, now that container prices are coming down in terms of the ability to get better prices from our Chinese manufacturers because of less orders from US, etc. We are talking with them, but we cannot confirm at the moment.

例如，我們看到的是，第一，貨櫃價格正在下降，我們已經證實了這一點。這對我們來說絕對是一個優勢，因為現在貨櫃價格正在下降，由於來自美國的訂單減少等，我們可以從中國製造商那裡獲得更優惠的價格。我們正在與他們交談，但目前無法確認。

Okay. I think the other thing is that you mentioned the final question, you mentioned FX. I know it affects your shipping and other pieces. Could you kind of remind us on the flow of the FX and where I believe Q1 was the worst comparison if FX rates stayed the same going forward. Is that correct and is this become an opportunity the back half of the year I believe. Thank you.

好的。我認為另一件事是您提到的最後一個問題，您提到了 FX。我知道這會影響您的運輸和其他物品。您能否提醒我們外匯的流動情況，如果外匯匯率保持不變，我認為第一季的比較結果最差。這是正確的嗎？我相信這會成為今年下半年的機會嗎？謝謝。

Yes, Eric, definitely Q1 was the hardest comparison. In Q1 of last year we have an average pesos to dollar exchange rate of around MXN17 pesos per dollar, and in Q1 of this year we were at 20.4%. And last year, the second semester. The average was around 20, so it already definitely the coming quarters will be kind of a more stable comparison to the 20 where we're at right now. So, definitely. The actually, the gross margin that we saw in Q1 2024 was the highest gross margin of that year and an unusual, unusually high gross margin for our company. So, it was definitely a tough comparison in terms of profitability.

是的，艾瑞克，毫無疑問 Q1 是最難比較的。去年第一季度，比索兌美元的平均匯率約為 17 墨西哥比索兌 1 美元，而今年第一季則為 20.4%。還有去年第二學期。平均值約為 20，因此與目前的 20 相比，未來幾季肯定會更加穩定。所以，肯定是如此。實際上，我們在 2024 年第一季看到的毛利率是當年的最高毛利率，也是我們公司異常高的毛利率。因此，從獲利能力的角度來看，這絕對是一個艱難的比較。

Okay, good luck for the rest of the year. Thank you.

好的，祝你今年剩下的時間一切順利。謝謝。

Thank you.

謝謝。

Cristina Fernández, Telsey Advisory Group.

Cristina Fernández，特爾西諮詢小組。

Good afternoon. I had a couple of questions as well. The first one is if you could talk about how the quarter progressed, it definitely seems like obviously your tones much different today than back in early February. I guess at what point did you start to see that more marked deceleration. And are you seeing any change in the trend so far in April relative to what you saw in the first quarter or towards the end of the first quarter.

午安.我也有幾個問題。第一個問題是，如果您可以談談本季的進展情況，那麼今天您的語氣顯然與 2 月初大不相同。我猜你是在什麼時候開始看到更明顯的減速的。與第一季或第一季末相比，您是否看到 4 月的趨勢有任何變化？

Hi Cristina, how are you. This is Andres again. So, yes, I think that we did see a softening in consumption as the Q1 progressed no it's very hard to say with some weeks of the quarter to say exactly where we're at but we did see something in progress.

你好，克里斯蒂娜，你好嗎？我又是安德烈斯。所以，是的，我認為隨著第一季的進展，我們確實看到消費出現疲軟，不，很難說在本季度的某些星期內我們究竟處於什麼位置，但我們確實看到了一些進展。

We believe there it's still early to talk about the second quarter, I would say and we do believe that, the Mexican economy and Mexican consumption, we do not expect it to rebound or to be strong but we do believe that there could be a factor that That the decrease stops and that it becomes a little bit more stable. During, consumer confidence has been softening. We could see it stabilize; we don't expect it to rebound. Many consumption trends and even the economy yesterday, the IMF published a decrease in the Mexican, GDP growth. So, it's still not stable at the moment and we do have to wait and see in the coming weeks to see how it progresses there.

我們認為現在談論第二季度還為時過早，我想說，我們確實相信，墨西哥經濟和墨西哥消費，我們預計它不會反彈或強勁，但我們確實相信可能有一個因素可以阻止下降並變得更加穩定。在此期間，消費者信心一直在減弱。我們可以看到它趨於穩定；但我們預計它不會反彈。昨天，國際貨幣基金組織公佈了墨西哥GDP成長下降的數據，這影響了墨西哥的消費趨勢甚至經濟。所以，目前它仍然不穩定，我們必須在接下來的幾週內拭目以待，看看它如何進展。

Mexico has strong fundamentals in general. I think that the government and the Mexico as an economy has strong fundamentals, but obviously the world volatility and especially US tensions about at the beginning of the year talking about terrorists to Mexico immigration policies and these kinds of things have I think Hit the Mexican economy.

墨西哥整體而言具有強勁的基本面。我認為墨西哥政府和經濟基本面強勁，但顯然世界動盪，特別是年初美國關於恐怖分子對墨西哥移民政策的緊張局勢等事件，我認為對墨西哥經濟造成了打擊。

And kind of post investment and post many things that were that need to get on track with more with a more certain environment. I believe that if the world environment and the US policy environment becomes a little bit more stable and obviously with more certainty, Mexico has a lot of potential to come back and fundamentals.

後期投資和後期很多事情都需要在更確定的環境下才能順利進行。我相信，如果世界環境和美國政策環境變得更加穩定，顯然更加確定，墨西哥有很大的潛力和基本面復甦。

That's helpful. So, and then following up on that I mean in light of the first quarter performance and what you're seeing obviously I understand there's a lot of uncertainty, but what I guess what keeps you confidence to hold the guidance, coming out of the first quarter I guess what are some of the company specific like initiatives you have that perhaps can help you overcome some of the economic challenges and get back to growth as we move to the next couple of quarters.

這很有幫助。那麼，接下來我想說的是，鑑於第一季的表現以及您所看到的情況，我顯然知道存在很多不確定性，但我想是什麼讓您有信心在第一季度保持指導，我想您採取了哪些公司特定的舉措，也許可以幫助您克服一些經濟挑戰，並在接下來的幾個季度恢復增長。

Yes, so, we have very strong internal fundamentals in our strategy in the actions that we're taking, and we also have as we've mentioned before a lot of room to grow in market share in both brands in Mexico. So, with strong internal fundamentals and a big opportunity to for more household penetration and market share.

是的，我們所採取的策略和行動有著非常強大的內部基礎，而且正如我們之前提到的，我們在墨西哥的兩個品牌的市場份額都有很大的成長空間。因此，擁有強大的內部基本面和更大的家庭滲透率和市場份額的巨大機會。

We believe that we can find growth if things stabilize macroeconomically, and so we do believe we did not want to change our guidance because we do believe that there is a possibility that things macroeconomically stabilize, I'm not saying rebound positively, I'm just saying stabilize and that could help us to, with our internal strategies to deliver a high growth well a strong growth in the coming quarters and be able to achieve our yearly guidance. So, there's still a case where this happens. Obviously if macroeconomic factors like consumption, GDP, etc in Mexico specifically keep declining or keep softening. It, we do have to say that it will be hard to achieve it, but if it stabilizes and stops declining, I think we have the internal fundamentals to seize the opportunities and achieve growth.

我們相信，如果宏觀經濟穩定，我們就能實現成長，因此我們確實認為我們不想改變我們的指導方針，因為我們確實相信宏觀經濟有可能穩定下來，我不是說積極反彈，我只是說穩定，這可以幫助我們通過內部戰略在未來幾個季度實現高增長、強勁增長，並能夠實現我們的年度指導方針。所以，這種情況仍然存在。顯然，如果墨西哥的消費、GDP 等宏觀經濟因素持續下降或持續疲軟。我們必須承認，實現這一目標將會很困難，但如果經濟穩定並停止下滑，我認為我們就有抓住機會、實現成長的內在基本面。

That, that's helpful. That helps explain it and then the last question I had was is the more I verification on the letter you talk about pausing the expansion into the US. So, I just wanted to understand what you mean by that is it kind of leave business as is or at least temporarily like shut down the US business and maybe revisit it at a later date.

這很有幫助。這有助於解釋這一點，然後我的最後一個問題是，我對您提到的暫停向美國擴張的信進行了更多的核實。所以，我只是想了解你的意思，也就是說，讓業務維持現狀，或至少暫時關閉美國業務，也許以後再重新審視。

Yes, this I want to mention that this refers specifically to Betterware US Not Jafra US or Jafra US, we will continue to, operate and invest in growth and we see a great future for Jafra US, but specifically for Better World US with the 145% tariff on Chinese manufactured products, we just believe it was not a good investment to continue to put money into this project, especially also with the uncertainty because every day we don't know if there will be even more tariffs or if they will, there will be other things, so there's a lot of uncertainty around the US China relationship, so, it was still a small business it was still only starting to grow, but it was taking a lot of cash investments, and I think we mentioned we mentioned something around there that we Expect to save between $2 million and $3 million that we will not invest for the rest of the year for that business's growth.

是的，我想提一下，這特別指 Betterware US，不是 Jafra US 或 Jafra US，我們將繼續營運並投資於成長，我們看到 Jafra US 的美好未來，但具體到 Better World US，由於對中國製造的產品徵收 145%的關稅，我們認為繼續將資金投入到這個項目中並不是一個好的投資，尤其是在存在不確定性的情況下，因為我們每天都不知道是否會有更多的關稅，或者如果會，還會有其他事情，所以美中關係存在很多不確定性，所以，它仍然是一個小企業，它才剛剛開始增長，但它需要大量的現金投資，我們想我們預計將為此節省 200 萬美元

Now what will happen is that you will see the website still running and we do have inventory in the US that we will continue to sell to whomever comes in and buys, but we are going to stop investing in customer acquisition programs, I mean, advertising programs and everything to grow. So, we will stop investing growth we'll just leave the website there, with minimum expenses to continue to service the customers who are already there. And with that, we will wait and see what happens and if at some point there's more certainty, and more stability, we may come back and start investing again to expand the Better World US brand.

現在的情況是，你會看到網站仍在運行，我們在美國確實有庫存，我們將繼續向任何進來購買的人出售，但我們將停止對客戶獲取計劃（我的意思是廣告計劃和一切增長計劃）的投資。因此，我們將停止投資成長，我們只會保留該網站，以最低的費用繼續為已有客戶提供服務。有了這些，我們將拭​​目以待，看看會發生什麼，如果在某個時候有更多的確定性和穩定性，我們可能會回來並再次開始投資，以擴大 Better World US 品牌。

Thank you, Andres.

謝謝你，安德烈斯。

Thank you, Cristina.

謝謝你，克里斯蒂娜。

This concludes the question answer session. I'd like to turn the floor back to management for closing comments.

問答環節到此結束。我想將發言權交還給管理階層，請他們發表最後評論。

Thank you, operator. So, to close, we recognize that the current macroeconomic environment marked by weaker consumer demands, ethics volatility, and global, and political uncertainty has impacted our short-term results. These are real challenges, but we are as always addressing them head on.

謝謝您，接線生。最後，我們認識到，當前的宏觀經濟環境以消費者需求減弱、道德波動以及全球和政治不確定性為特徵，已經影響了我們的短期績效。這些都是真正的挑戰，但我們一如既往地迎難而上。

We're taking swift strategic action across both businesses our focus is to continue growing and protecting profitability while setting the stage for recovery. Long term fundamentals remain strong for our businesses with two solid brands in resilient categories and a proven commercial model. We are well positioned to capitalize on future opportunities as macroeconomic factors stabilize. We're building for lasting growth, and we remain confident in BeFra's ability to emerge stronger from this period of uncertainty.

我們正在對兩個業務採取迅速的策略行動，我們的重點是繼續成長並保護獲利能力，同時為復甦奠定基礎。我們的業務長期基本面依然強勁，擁有兩個穩健的品牌和成熟的商業模式。隨著宏觀經濟因素的穩定，我們已準備好抓住未來的機會。我們正在為持久的成長而努力，我們仍然相信 BeFra 有能力走出這段不確定的時期，變得更強大。

Thank you and look forward to talking to you in the next quarter. Thank you.

謝謝您，期待下個季度與您交談。謝謝。

This concludes today's teleconference. You may disconnect your lines at this time.

今天的電話會議到此結束。現在您可以斷開線路。

Thank you again for your participation.

再次感謝您的參與。