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
53rd week and compares to a 52 week year in fiscal
2019. The 53rd week was included in the
Company's 2020 fourth quarter and added Ps. $160 million in net revenue and Ps. $63 million in EBITDA.
Executive
Summary
|
Q4 2020 vs.
Prior-Year Quarter ($ in Pesos)
|
|
Q4 2020
Revenue
|
Ps. $2,601
million
|
229% increase over Q4
2019
including additional
week in Q4 2020
|
Q4 2020 Comparable
Revenue
|
Ps. $2,441
million
|
209% increase over Q4
2019
|
Q4 2020
EBITDA
|
Ps. $807 million
or
up 220 basis points
to 31.0% of Revenue
|
254% increase over Q4
2019
including additional
week in Q4 2020
|
Q4 2020 Comparable
EBITDA
|
Ps. $744
million
|
226% increase over Q4
2019
|
Q4 2020
EPS
|
$1.49
|
Includes non-cash
expenses.
|
Q4 2020 Adjusted
EPS
|
$18.64
|
448% increase over Q4
2019
|
Q4 2020
Distributors
|
59.7
thousand
|
187% increase over Q4
2019
|
Q4 2020
Associates
|
1.23
million
|
195% increase over Q4
2019
|
|
FY 2020 vs. FY
2019 ($ in Pesos)
|
|
2020
Revenue
|
Ps. $7,260
million
|
135% increase over
2019
including additional
week in 2020
|
2020 Comparable
Revenue
|
Ps. $7,100
million
|
130% increase over
2019
|
2020
EBITDA
|
Ps. $2,164 million
or
up 222 basis points
to 29.8% of Revenue
|
154% increase over
2019
including additional
week in 2020
|
2020 Comparable
EBITDA
|
Ps. $2,101
million
|
147% increase over Q4
2019
|
2020 EPS
|
$9.93
|
Includes non-cash
expenses.
|
2020 Adjusted
EPS
|
$43.36
|
203% increase over
2019
|
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. $650
million in cash and cash equivalents;
- December growth of 301% in sales and 417% growth in EBITDA,
proving sustainability of company´s growth trend.
Q4 2020
Year-Over-Year Operating Results ($ in Pesos)
|
|
Q4 2020
Revenue
|
Ps. $2,601
million
|
229% increase over Q4
2019
|
Q4 2020 Gross
Profit
|
Ps. $1,454
million
|
221% increase over Q4
2019
|
Q4 2020 Gross
Margin
|
55.9%
|
133 bps decrease over
Q4 2019
|
Q4 2020 Selling
Expenses
|
Ps. $293
million
|
99% increase over Q4
2019
|
Q4 2020 Operating
Margin
|
30.4%
|
310 bps increase over
Q4 2019
|
Q4 2020 Interest
Income
|
Ps. $1.3
million
|
5% decrease over Q4
2019
|
|
2020
Year-Over-Year Operating Results ($ in Pesos)
|
|
2020
Revenue
|
Ps. $7,260
million
|
135% increase over
2019
|
2020 Gross
Profit
|
Ps. $3,969
million
|
120% increase over
2019
|
2020 Gross
Margin
|
54.7%
|
380 bps decrease over
2019
|
2020 Selling
Expenses
|
Ps. $853
million
|
55% increase over
2019
|
2020 Operating
Margin
|
29.2%
|
290 bps increase over
2019
|
2020 Interest
Income
|
Ps. $10.9
million
|
56% increase over
2019
|
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.
Full-Year 2021
Outlook
|
|
|
FY
2021
|
Net
Revenue
|
Ps. $10,100M to
$11,100M
|
EBITDA
|
Ps. $3,000M to
$3,300M
|
EBITDA
Margin
|
29.7%
|
CAPEX
|
Ps. $460M
|
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.