Betterware’s Tupperware Bet Pays Off Early — and the Direct-Selling Focus Tightens
Acquisition adds a third brand and Brazil exposure while core brands return to growth; leverage stays manageable.
BWMX · Earnings Call · 2026-07-23
A Transformative Quarter
The second quarter of 2026 will go down as the quarter Betterware de México (BWMX) stopped being a two-brand story. With the incorporation of Tupperware completed and its first month of results consolidated, management wasted no time declaring success. “We delivered strong organic growth during the quarter with revenue increasing 4.1% compared to the second quarter of last year” — Andres Chevallier, CEO · 2026-07-23 and total revenue jumped 16.8% with the new brand included. This is a defining milestone, as CEO Andres Chevallier put it: “We are adding this new Tupperware brand, which we're sure will be another transformative era for BeFra.” — Andres Chevallier, CEO · 2026-07-23 The company's own momentum in the keyword trajectory shows "incorporation of Tupperware" as the top keyword for Q2 2026, a clear sign that investors and analysts are fixated on the integration. The deal was financed with $35 million of newly issued shares and $213 million of long-term debt. Crucially, even with only one month of Tupperware EBITDA on the books, reported net debt to trailing twelve-month EBITDA sits at 2.6x, but on a pro forma basis including full-year Tupperware EBITDA, it drops to 1.6x — the same as pre-acquisition. That's a comfortable position, allowing management to increase the quarterly dividend to MXN 250 million.The Tupperware Integration: Early Wins
The early numbers from Tupperware are encouraging. In its first month under BeFra, direct selling revenue across Mexico and Brazil grew nearly 30% year-over-year, excluding extraordinary non-direct channel sales from last year. Brazil, the largest direct-selling market in Latin America, declined only 7% in June versus a prior trend of 10-15% quarterly declines, suggesting a rebound to growth is underway. “Tupperware has gained more momentum than we expected” — Andres Chevallier, CEO · 2026-07-23 is a telling comment from management. Perhaps more important is the strategic choice to focus exclusively on the direct selling channel. As CEO Andres Chevallier stated in Q&A: “we're going to focus solely in the direct selling channel.” — Andres Chevallier, CEO · 2026-07-23 This means abandoning non-direct sales that were historically around 'second to third quarter' heavy, simplifying the business model and aligning Tupperware with BeFra's existing strengths. The manufacturing footprint adds another layer. The Mexican plant is at 60% utilization and the Brazilian plant at 40%, providing room to absorb growth and potentially produce Betterware products in-house later.Organic Momentum and Strategic Focus
While Tupperware grabs the headlines, the core business is also accelerating. Organic revenue grew 4.1% year-over-year, up from 0.3% in the prior quarter, with Betterware Mexico on a three-quarter growth streak and Jafra Mexico returning to growth after a deliberate promotional investment. Jafra US achieved positive EBITDA margin for the quarter, a significant milestone. Management had flagged these issues in prior calls; for example, on the April 2026 call, they said “We are very excited about this acquisition. As we have mentioned before, we are still pending approval from the antitrust agency in Mexico” — Andres Campos, Executive, likely CEO or senior management · 2026-04-23 — now that approval has come, the integration is delivering. The company's Tupperware acquisition also expands its geographic footprint, adding an immediate presence in the Brazilian market, which now accounts for a meaningful slice of revenue. This reduces exposure to the Mexican market and aligns with the "regional expansion" pillar that has been a recurring theme. Financially, organic EBITDA margin was 19.3% excluding one-time Tupperware costs, and the company expects gross margin normalization in Q3-Q4. Free cash flow conversion exceeded 70% of EBITDA in the quarter, and working capital management remains strong.Bottom Line
What changed at Betterware de México? The company transformed from a two-brand Mexican operator into a three-brand, multi-national platform with a strong foothold in Brazil. The early Tupperware results are encouraging, leverage is manageable, and the strategic pivot to a pure direct-selling model for Tupperware should streamline operations. With all three brands back to growth, management's confidence is palpable, as they closed the call:We are very glad to report this strong quarter where all of our brands are coming back to growth, and we are adding this new Tupperware brand, which we're sure will be another transformative era for BeFra.