Betterware Announces Record Fourth Quarter Fiscal Year 2020 Financial Results

GUADALAJARA, Mexico, Feb. 18, 2021 /PRNewswire/ -- Betterware de Mexico S.A.B. de C.V. (NASDAQ:BWMX) has released its financial results for the fourth quarter fiscal year 2020 ended December 31, 2020, and posted a letter to its shareholders on its investor relations website at https://ri.betterware.com.mx. The fiscal 2020 year included a 53^rd week and compares to a 52 week year in fiscal 2019.  The 53^rd week was included in the Company's 2020 fourth quarter and added Ps. $160 million in net revenue and Ps. $63 million in EBITDA. 

Luis G. Campos, Executive Chairman of the Board, stated, "We had an outstanding finish to a strong year of growth for our Company.  We generated record sales and earnings for both the fourth quarter and fiscal year, exceeding the increased guidance we provided last November. The year marked significant milestones including growing revenues over 135% to $7.3 billion pesos and achieving record annual EBITDA margin of 29.8%. Equally exciting for our Company is that we entered the public markets on March 13, 2020 and began trading on the Nasdaq exchange. The operational achievements made in 2020 from expanding our distributor and associate base by nearly 200% to the launch of our new web marketing platform, the development of additional categories and geographies and continued generation of ongoing benefits from business intelligence, position us well as we begin fiscal 2021. We look forward to continuing our successful expansion and making new milestones in the year ahead."

Additional Fourth Quarter Highlights, Betterware:

• Introduces 98 new products in the 3 catalogues launched during the period;
• Shows strong results in its new e-commerce platform since it was launched at the beginning of December;
• Ends the year 2020 with Ps. $650 million in cash and cash equivalents;
• December growth of 301% in sales and 417% growth in EBITDA, proving sustainability of company´s growth trend.

Balance Sheet Highlights
As of December, 31, 2020, the Company had Ps. $650 million in cash and cash equivalents. Accounts payable increased 293% to Ps. $2,079 million and inventory increased 269% to Ps. $1,274 million from December 31, 2019.  The Company noted that payment terms for accounts payable are 120 days, which contributed to this growth above the rate of inventory growth.  The Company also noted that it increased its level of inventory to support future growth.

Progress on 2021 Strategic Pillars

1.     Market Penetration

• Increased its household penetration due to its increase in distributors and associates network.

2.     Category Expansion

• In the 3 catalogues launched during the period, Betterware introduced 98 new products.
• Targeting launch of new categories, including Home Renovation, by the second quarter of 2021.

3.     Business Intelligence and Technology Investments

• The new e-commerce platform, www.betterware.com, successfully launched in December 2020. The transactional site allows greater accessibility and ease of purchase to consumers by connecting them directly with Betterware distributors and associates.
• Successful implementation of new software, Power BI, to monitor day to day operations.
• Targeting the launch of its improved App for distributors and associates, Betternet 3.0.

4.     Geographic Expansion

• After a successful pilot test in Guatemala, the Company is targeting its international expansion to Colombia and Peru.

Andres Campos, Chief Executive Officer, concluded, "We enter 2021 from a position of strength and remain confident in our ability to drive double digit sales and profit growth. Our priorities are focused on executing against our four growth pillars, while also continuing to invest in key areas of the business, and returning value to shareholders through our quarterly dividend program. Similar to 2020, we will continue take a strategic approach to expand our household penetration as we focus on further strengthening our market positioning in 2021 and beyond."

Quarterly Dividend
The Company announced that its Board of Directors has proposed the payment of a cash dividend in the amount of Ps. $1,400 million to shareholders during 2021, to be paid to investors in four instalments of Ps. $350 million per quarter. The quarterly dividend is subject to approval on the next Ordinary General Shareholders' Meeting to be held later today, February 18, 2021.

Conference Call and Webcast Information
The Betterware management team will host a conference call with the investment community on February 19, 2021, at 9 a.m. (ET). The U.S. toll free dial-in for the conference call is 1-877-451-6152 and the international dial-in number is 1-201-389-0879.  Those wishing to access the webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company's website at https://ri.betterware.com.mx/financiera/reportes-trimestrales. A replay of the webcast will be available at the same URL.

Please visit the Betterware investor relations website at https://ri.betterware.com.mx/financiera/reportes-trimestrales to view the financial results included in the letter to shareholders. The Company intends to continue to make future announcements of material financial and other information through its investor relations website. The Company will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.

About Betterware de Mexico S.A.B. de C.V.
Founded in 1995, Betterware de Mexico is a leading direct-to-consumer selling company in Mexico, whose CAGR 2003-2019 was 20%. Focused on the home organization and solutions segment, Betterware's wide product portfolio includes home organization, kitchen preparation, food containers, smart furniture, technology and mobility, as well as other minor categories.

Supported by its top-class business intelligence and data analytics units, which provides daily monitoring of key metrics and product intelligence, Betterware has been able to achieve sustainable double-digit growth rates by successfully expanding its market penetration driven by its almost 60,000 distributors and 1.25 million associates network.

Its state-of-the-art infrastructure allows it to safely and timely deliver its products to every part of the country, backed by the strategic location of its distribution center.

Forward-Looking Statements
This  press  release  includes  certain  statements  that  are  not  historical  facts  but  are  forward-looking statements  for  purposes  of  the  safe  harbor  provisions  under  the  United  States  Private  Securities  Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe,"  "may,"  "will",  "estimate",  "continue",  "anticipate",  "intend",  "expect",  "should",  "would",  "plan", "predict", "potential", "seem", "seek," "future," "outlook", and similar expressions that predict or indicate  future  events  or  trends  or  that  are  not  statements  of  historical  matters.  The reader should understand that the results obtained may differ from the projections contained in this document, as past results in no way offer any guarantee of future performance. For this reason, the Company assumes no responsibility  for  any  indirect  factors  or  elements  beyond  its  control  that  might  occur  inside  Mexico  or  abroad and which might affect the outcome of these projections.

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SOURCE Betterware de México, S.A.B. de C.V.