Betterware de Mexico S.A.P.I. de C.V. released its fourth quarter and full year 2022 financial results, revealing a significant increase in net revenue of $174 million in the quarter, a 48% increase over the previous year’s quarter. The company attributes this jump in large part to its acquisition of Jafra Mexico and Jafra USA last year, which accounted for 47% and 10% of consolidated net revenue respectively. When only considering Betterware, the company’s fourth quarter net revenue actually decreased by 37.1% year over year.
Inventory count rose by 58% after the incorporation of Jafra and due to excess Betterware inventory that resulted from lower revenues than expected, but the company plans to reduce inventory in the coming year to better align with sales growth. In full year 2022, the company’s operational cash flow decreased 13.6%. On a comparable basis, that number declined even further (31.6%).
“During the year, the market size for home goods contracted significantly relative to 2021,” the company wrote in a statement. “Betterware’s net revenue decreased, but relative to the market, our decline was less steep. This allowed us to increase our market share from 4% in 2019 to 8% in 2022 market share and consolidate our position as market leaders with 70% of the direct selling channel in our categories, achieving sales more than 100% above our pre-pandemic comparable sales (2019).”
Consolidated net revenue for full year 2022 increased by 14.5% while comparable net revenue during this period fell by 36.9%. Consolidated EBITDA for the fourth quarter increased by 53.6% to $30 million, again as a result of the Jafra acquisitions, and partially offset by an EBITDA decline for Betterware. For the full year 2022, consolidated EBITDA decreased by 19.4% to $119 million.
Net debt in 2022 was $311.6 million, of which the Jafra acquisition represented 70% of total debt. Full year guidance for 2023 now includes net revenue between $714.8 million and $768.9 million with an EBITDA between $140.7 million and $151.6 million.
