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Betterware de México, S.A.P.I. de C.V.: 3 Key Takeaways for Long-Term Investors

The Motley Fool·11/03/2026 21:20:07
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Key Points

  • Consolidated revenue increased 43.1% year over year to MXN 4,832 million.

  • Tupperware direct selling revenue in Mexico grew 23% year over year.

  • Free cash flow reached MXN 1,059 million in the third quarter.

On its third quarter of 2026 earnings call, held on Oct. 22, 2026, Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) reported a 43% revenue jump driven by its Tupperware acquisition. The deal expands the company's footprint across Latin America while adding new product categories.

Three key takeaways stand out for long-term investors.

1. Tupperware Integration Revives Core Direct Selling Growth

Adding Tupperware expanded the sales network to nearly 1.5 million associates and broadened geographic reach into Brazil. Early integration efforts are turning around direct selling performance in key markets.

In Mexico, direct selling revenue grew 23% year-over-year, while in Brazil, the decline moderated to 3.3%, a substantial improvement from the 10% to 15% decline experienced before the acquisition.
-- Andres Campos, President and Chief Executive Officer

2. Ocean Freight Costs Pressured Betterware Margins

Unlike Tupperware, which manufactures locally in Latin America, Betterware sources primarily from China. Persistent ocean freight spikes created gross margin pressure that management plans to offset through strategic pricing.

So freight prices have gone up and have stayed higher than we expected for a longer period of time because of the whole supply chain issues in Hormuz, et cetera.
-- Andres Campos, President and Chief Executive Officer

3. Executive Leadership Steps In Directing Jafra Mexico Rebound

Weak commercial execution and summer distractions caused sales at Jafra Mexico to slip. To restore operational discipline and accelerate technology rollouts, the chief executive officer took direct control of the unit.

Following several quarters of inconsistent growth, I have taken on the role of interim Managing Director of Jafra Mexico for the short term.
-- Andres Campos, President and Chief Executive Officer

Looking Ahead

Cash generation remains resilient across all three business units, funding capital expenditures (capex), dividend payouts, and debt reduction. Management leverages proprietary mobile apps, catalog design, and local manufacturing plants to protect its market position.

All of our 3 businesses are cash generative. All of them are performing well. And as you can see, we are generating enough cash to invest in expansion, invest in capex, and at the same time continue paying dividends and deleveraging.
-- Raul Del Villar, Chief Financial Officer

A broader brand portfolio lowers reliance on any single region while unlocking cross-selling channels.

We believe BeFra is stronger, more diversified, and better positioned than ever.
-- Andres Campos, President and Chief Executive Officer

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.