Betterware Reports YoY Growth Of 82.1% And 94.3% In Net Sales And EBITDA During 2Q20 And Raise Its 2020 EBITDA Guidance In +38.7%

GUADALAJARA, Mexico, Aug. 3, 2020 /PRNewswire/ -- Betterware de Mexico S.A. de C.V. ("Betterware" or the "Company"), a leading direct-to-consumer company, with focus on the home organization and solutions segment in Mexico, announced its 2Q20 Results, posting outstanding growth rates at its quarterly P&L (Net Revenues:+82.1% YoY / EBITDA: +94.3% YoY / Net Income: +132.9% YoY), drawing from the strengthening of its distribution network (Distributors: +108% YoY / Associates: +94% YoY), despite the current economic downturn.

Following the review of its commercial strategy and leveraging from the support of its technological edge, the Company managed to overcome the challenging environment of COVID-19, which proved the unique resilience and adaptable business model of Betterware, thus posting a solid growth in 2Q20.

Due to the outstanding results of 2Q20 and outlook for 2H20, the Company opted to: i) propose a dividend payment[1] for the 2Q20, of Ps.330 million, which represents a ~17.9% annualized dividend yield,; and, ii) upwardly revised its 2020 EBITDA and EBITDA Margin Guidance, from Ps.1,045 million to Ps.1,450 million (+38.7%), and from 26.7% to 28.3%, respectively.

Likewise, the Company is at the final stage of the construction process of its new Distribution Center (Campus Betterware), which will count on new technologies and automation processes to improve operating efficiencies.

At the light of these developments, Mr. Luis Campos, Executive Chairman, stated: "the remarkable results of 2Q20 followed the solid increase of our distribution network, which at quarter-end was comprised of 42,000 distributors and over 740,000 associates; and, it is also important to highlight the support of our cutting-edge technology platform that allowed the commercial network of Betterware Mexico to operate virtually from home."

Finally, Mr. Andres Campos, CEO, stated: "these remarkable results were possible thanks to the agile adjustment of our offer to the prevailing demand and operating leverage of fixed costs. Separately, it is very important to note the health of the Company's financial position, as Net Debt / EBITDA ratio is in negative zone, at -0.1X; and, strong generation of cash led to a 59.7% increase in Adjusted Levered Free Cash Flow, thus boosting liquidity."

About Betterware

Founded in 1995, Betterware is a direct-to-consumer company in Mexico. Betterware is focused on the home solutions and organization segment, with a wide product portfolio for daily solutions including organization, kitchen and food preservation containers, hygiene, cleaning, smart furniture, among others.

Betterware has a distribution network of over 782,000 active distributors and associates, who serve approximately 4 million households in more than 1,000 communities throughout Mexico and Guatemala. Its main distribution center is located in Guadalajara, Jalisco.

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.

¹ Subject to the approval of its next Ordinary General Shareholders Meeting, to be hold on August the 17^th.

For further information, please visit:  https://ri.betterware.com.mx/reportes-trimestrales.html

SOURCE Betterware de Mexico S.A. de C.V.