BWMX Earnings Prediction
The chart below shows how BWMX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BWMX sees a -1.91% change in stock price 10 days leading up to the earnings, and a +2.35% change 10 days following the report. On the earnings day itself, the stock moves by +0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
BWMX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.33B
6.62%
-1.74%
Gross Margin
71.20%
1.41%
-1.44%
Operating Margin
14.84%
5.77%
-9.84%
Net Margin
-3.47%
-155.08%
-139.12%
EPS
-3.10
-158.71%
-138.46%
No Data Available
BWMX Earnings Analysis
Betterware de Mexico, S.A.P.I. de C.V. Corporation (BWMX.O) Earnings Conference Call
Positive
Q3 Revenue Increase: 1. Revenue Growth: BeFra reported a 6.6% year-over-year increase in net revenues for Q3 2024, with a 7.4% growth over the first nine months of the year.
Adjusted EBITDA Growth: 2. Strong Adjusted EBITDA: Adjusted EBITDA grew by 11.7% year-over-year, reaching MXN 592 million, with an EBITDA margin expansion of 81 basis points to 17.8%.
Consistent Revenue Growth: 3. Consistent Performance Across Business Units: Betterware Mexico achieved a 3.2% revenue growth in Q3 and 5.7% year-to-date, marking its fourth consecutive quarter of growth, driven by higher associate productivity.
Product Innovation Impact: 4. Successful Product Innovations: Jafra Mexico's revenue increased by 9.2% in Q3, supported by successful product innovations, including the new Biolab skincare line, which contributed to higher productivity among associates.
Financial Stability Improvement: 5. Strong Financial Position: BeFra maintained a strong financial position with a 4.7% year-over-year reduction in net debt and an improved net debt-to-EBITDA ratio of 1.76 times, enhancing its ability to navigate macroeconomic challenges.
Negative
Adjusted Net Income Decline: 1. Decline in Adjusted Net Income: Adjusted net income for Q3 2024 was MXN 180.5 million, an 8.4% decrease compared to the same quarter in 2023, primarily due to increased tax provisions.
Gross Margin Decline: 2. Gross Margin Pressure: Betterware's gross margin fell to 54.8% in Q3 2024 from 56.2% in Q3 2023, impacted by a 9.9% depreciation of the Mexican peso and a 200% increase in freight costs.
Non-Cash Accounting Loss: 3. Significant Non-Cash Loss: The sale of Jafra's former headquarters resulted in a non-cash accounting loss of MXN 435 million, reflecting a substantial drop from its book value of MXN 811 million to a sale price of MXN 385.7 million.
Financing Cost Challenges: 4. Increased Financing Costs: Comprehensive financing costs were negatively affected by foreign exchange hedges, which, if accounted for, would have shown a gross margin of only 56.4% in Q3 2024, indicating financial strain.
Stock-Outs Affecting Revenue: 5. Stock-Outs Impacting Revenue: Betterware Mexico faced stock-outs in Q2 2024, which contributed to lower revenue expectations and gross margin pressure in Q3, highlighting operational challenges.
BWMX FAQs
How does BWMX typically perform around its earnings report dates?
Is Betterware de México, S.A.P.I. de C.V. (BWMX) Q3 2024 Earnings Call Summary positive or negative?
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BWMX Earning Call Sentiment
Betterware de México, S.A.P.I. de C.V. (BWMX) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
BWMX.O
3.61%Positive
The earnings call summary presents a mixed picture. Financial performance shows year-over-year revenue and EBITDA growth, but gross margin declines due to external factors like currency depreciation and freight cost increases. The dividend payment and shareholder return commitment are positive, but risks from macroeconomic factors and competitive markets are concerning. The Q&A section revealed some uncertainties, particularly regarding U.S. expansion. Overall, the mixed financial results and external pressures suggest a neutral stock price movement in the short term.
