BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI de CV has demonstrated a strong financial performance, highlighted by a robust 9.7% increase in revenue to Ps. 245.96 million in 3Q25, marking the highest recorded sales since the catalog's inception in 2021. The company has maintained significant operational efficiency, with EBITDA margins for the JAFRA segment reaching 23.8%, an increase of 425 basis points, alongside enhanced gross margins driven by effective cost control and a strategic reduction in inventory. Furthermore, the positive pricing power is evident, as September exhibited an 11.1% increase year-over-year, well above the prevailing Mexican inflation rate of 3.51%, indicating strong demand for its products in the challenging market environment.

Betterware de Mexico SAPI de CV has experienced a significant deterioration in its revenue outlook, with management now projecting only 1% to 5% growth for 4Q, a notable decrease from earlier expectations of 6% to 9%. The company's Betterware segment saw a revenue decline of 5.3% year-over-year in 3Q25, marking its third consecutive quarterly decrease, which reflects the ongoing struggles of the Mexican consumer market. Additionally, both the Associate and Distributor bases contracted year-over-year, alongside a drop in Distributor monthly orders, indicating a weakening distribution network that may exacerbate the company’s financial challenges moving forward.