Betterware de Mexico S.A.B. de C.V. Aktie

Thank you, and welcome to BeFra's First Quarter 2026 Earnings Conference Call. Before BeFra's management begins their prepared remarks, please note the disclaimer regarding forward-looking statements on Slide 2. To remind participants that this call may contain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Please consider these statements alongside the cautionary language and safe harbor statement in today's earnings release as well as the risk factors outlined in BeFra's SEC filings.

BeFra undertakes no obligation to update any forward-looking statements. A reconciliation of and other information regarding non-GAAP financial measures discussed on this call can be found in the earnings release published earlier today as well as the Investors section of the company's website. Present on today's call are BeFra's President and Chief Executive Officer, Andres Campos; and Chief Financial Officer, Raul Del Villar Zanella.

Now I would like to turn the call over to Mr. Campos. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. Thank you for joining our call today. First, I'd like to introduce Raul Del Villar Zanella, our new CFO. Raul brings more than 30 years of experience in senior finance roles within multinational consumer companies, playing strategic roles in expanding their brand portfolios and entering new geographic markets, both of which are integral to BeFra's own growth strategy. His experience and leadership will be instrumental in supporting our growth objectives.

Turning to key highlights on Slide 4. We delivered slight revenue growth of 0.3% year-over-year and EBITDA growth of 14% year-over-year, expanding our EBITDA margin from 15.3% to 17.4%, supported by improving profitability across all of our business units. Net income and free cash flow remained strong and reflect a more normalized quarter without the extraordinary effects seen last year. Turning to Slide 5. We continue to diversify our revenue mix in terms of brands and geographies. We expect this trend to accelerate once we receive regulatory approval of the Tupperware transaction, which we expect to happen in Q2.

In addition to significantly diversifying our revenue and giving us entry into the Brazilian market, this new brand will be immediately earnings accretive, contributing an estimated 40% to earnings per share. Looking at revenue on a quarter-on-quarter basis, I'd like to highlight the early success of Betterware's expansion into Ecuador and its improving performance in Guatemala. The contributions of which increased from 0.1% to 0.7% of total revenue over the past year. We expect this share to continue growing as the business scales in the region.

Now I will hand the call over to Raul, so he can explain BeFra's key financials in detail.

Thank you, Andres. Very excited to be part of the team. Let's turn to Slide 6. Contributing to the 0.3% year-over-year increase in revenue was Betterware, which grew 2.6% despite one less week in the quarter and which benefited from its geographic expansion. Improving trends at Jafra U.S. also contributed to BeFra's top line growth, which was partially offset by lower sales at Jafra Mexico. Looking at the associate base, we are beginning to see the impact of targeted initiatives with Betterware's base returning to growth.

Although Jafra Mexico's associate base declined as a result of our focus on productivity, we are now shifting towards initiatives aimed at attraction and retention, which we expect to begin showing results in Q2. Overall, these trends demonstrate improving momentum across both businesses and position us well for sustained growth. On Slide 7, EBITDA performance reflects a clear improvement in profitability across our business units, with margin expanding 211 basis points to 17.4%. It is important to note that extraordinary expenses related to Tupperware transaction impacted the margin. Without these expenses, margin would have been approximately 18.4%.

On the right-hand side of the slide, net income accelerated, nearly doubling year-over-year, reflecting a return to more normalized profitability levels following the extraordinary expenses recorded in the prior year as well as lower interest expenses. Overall, BeFra's improving profitability embodies our fifth strategic pillar of maintaining financial discipline. Turning to the next slide. Free cash flow normalized during the quarter, converting 58% of EBITDA into cash, supported by stronger underlying profitability and continued discipline in working capital management, particularly with respect to inventory. This will enable us to pay our 25th consecutive quarterly dividend since going public, which the Board has proposed at MXN 200 million, subject to shareholder approval.

Dividend payments remained aligned with our disciplined capital allocation framework, maintaining a 33% trailing 12-month dividend-to-EBITDA ratio, while also using the cash we generate to further reduce debt leverage and continue investing in geographic expansion. Slide 9 summarizes BeFra's financial strength. Total debt continued falling with net debt-to-EBITDA improving to 1.5x. Following the completion of the Tupperware transaction, we expect our leverage ratio to increase to approximately 1.9x with the aim of maintaining healthy leverage levels. As you can see in the chart at the left of the slide, we successfully reduced leverage from 2.4x at the end of 2022 and 3.1x at the time of the Jafra acquisition to current levels.

Our asset-light model remains a key source of resilience with ROTA improving to 22.7%, demonstrating greater capital efficiency and stronger profitability. On the right-hand side, you can see that returns have also strengthened versus last year's quarter with ROIC increasing to 27% and EPS reaching MXN 31.9 on a trailing basis, reflecting a stronger earnings profile. Overall, we are not only improving profitability, but also translating these gains into stronger results, a healthier balance sheet and high returns on capital while enabling us to continue funding initiatives across our 5 strategic pillars. I will now pass the call back to Andres, who will talk more about each brand's performance as well as provide an update on the strategic pillars.

Thank you, Raul. Turning to Slide 10. As in previous quarters, we continue advancing across our 5 strategic pillars, which define the next stage of BeFra's evolution. First, strengthen our leadership in Mexico with our Betterware and Jafra brands; second, continue our regional expansion, driving Jafra's growth in the U.S. and selectively expanding across LatAm. Third, develop or acquire new brands and/or product categories; fourth, further advance our digital transformation; and finally, maintain strict financial discipline, prioritizing profitability, cash generation and a strong balance sheet as the foundation of sustainable long-term growth. These pillars remain the framework guiding our strategic decisions and capital allocation going forward.

On Slide 11 is the first pillar, strengthening our leadership in the Mexican market. Starting with Betterware on the next slide. The business delivered a solid start to the year with improving commercial momentum. We are seeing a clear inflection point in the associate base, which has returned to growth and is beginning to rebuild scale. This represents an important milestone as it supports the recovery in revenue and reinforces the strength of our commercial model going forward. It is important to note that the quarter had one fewer week compared to last year, which affected reported growth.

On a comparable basis, revenue growth would have been approximately 3.3%. Additionally, although Latin America currently represents only 1.7% of Betterware total revenue, it is expected to continue expanding as we further scale our regional operations. On the right-hand side of the slide, EBITDA margin improved significantly by 190 basis points to 20.5%, with EBITDA increasing 12.9% year-over-year, driven by disciplined cost management and solid execution. Gross margin remained stable despite external pressures. On Slide 13, we highlight the progress we are making against the strategic initiatives outlined for 2026. As a reminder, our key priorities for 2026 include innovation, catalog redesign, enhanced associate service, new technology capabilities and the new payment system.

Starting with innovation, we are seeing strong performance from our new fast consumption product line called Better Klin Tabs as we continue to expand into higher frequency consumption categories. On catalog redesign, our new catalog format is progressing well and is set to launch in the second half of the year. In terms of associate service, we are currently piloting a new segmentation within our incentive program aimed at enhancing engagement and driving activity with a broader rollout expected in the third quarter.

On the technology front, we have introduced new analytical capabilities and are advancing the development of new Betterware Plus app features alongside the implementation of our Salesforce CRM expected to launch in Q2. Finally, regarding our payment system, we are in the pilot phase with ongoing testing and analysis as we prepare for a full rollout during the second half of the year. Overall, we are making solid progress in executing our 2026 priorities, reinforcing the foundations for sustainable growth. On Slide 14, Jafra Mexico's quarter reflects a temporary moderation in revenue growth. This was mainly driven by a shift in focus towards productivity of the existing consultant base, which ended up undermining base expansion.

We recently implemented initiatives to rebalance our focus on capturing associate growth, which we expect to see results during the second quarter. It is important to mention that according to the latest market report for 2025, we have reached the #2 position in the beauty market in Mexico within the direct selling channel, up from #4 at the time of Jafra's acquisition in 2022. Additionally, we now rank #7 in the overall beauty market in Mexico across all distribution channels. On the profitability side, the business delivered strong improvement, increasing EBITDA margin by 165 basis points to 17%, supported by better cost management, benefits of restructuring initiatives implemented last year and lower extraordinary expenses.

Moving on to the next slide. Jafra Mexico is also making solid progress in executing its 2026 priorities. Starting with innovation, we returned from renovation to innovation, highlighted by the launch of the new Stitch sun block through our partnership with Disney, among other innovations as we continue to expand our portfolio and refresh key categories. On sample trial initiatives, we have introduced increasing quantities of sensorial sampling, enhancing the product experience for consultants and customers.

Regarding subscription models, we launched our new subscription plan in March, which is already showing early traction and supporting retention. In terms of associate incentives, we are advancing our segmentation strategy with new structures designed to better address different associate profiles with further rollout expected in Q3. Finally, on the Jafra Plus platform, we are progressing with the implementation of our new CRM expected in Q2 and the Jafra Plus app, which is set to launch in Q3. Overall, these actions position Jafra Mexico to transition into its next phase of growth. On Slide 16, we highlight our second strategic pillar, which is regional expansion.

Turning to Slide 17. The business continues to show significant progress in the U.S. with net revenue in U.S. dollars increasing 8.6%, supported by an expanding associate base, growing 3.4% year-on-year and improved productivity. At the same time, profitability improved meaningfully, driven by disciplined cost management. Importantly, excluding extraordinary legal expenses, EBITDA would have been positive with a margin of approximately 2.6%, showcasing the increasing strength and independence of our Jafra U.S. business. Turning to Slide 18. We are pleased to announce the launch of Betterware Colombia. This marks an important milestone in our regional expansion strategy, further strengthening our presence in the Andean region, building on the success we have seen in Ecuador.

Turning to Slide 19. Our operations in the Andean region and Central America continued to show strong momentum. Both the Andean region and Guatemala remain on a sustained growth trajectory, supported by continued expansion of the associate base. In the Andean region, we have reached approximately 14,000 associates, reflecting solid progress in building scale in a relatively short period of time. In Guatemala, the associate base has also continued to expand, reaching approximately 2,200 associates, demonstrating strong traction and growing engagement in the market. While these markets continue to scale rapidly, they still represent a small portion of total revenue, accounting for 0.7% of the group's revenue and 1.7% of the Betterware brand.

Turning to Slide 20. We continue advancing on our strategy of incorporating new brands and categories that complement our portfolio. We announced the acquisition of Tupperware on January 19, and we continue to await approval from the antitrust authority in Mexico, which we expect during the second quarter of 2026. We see significant potential in the Tupperware transaction as it is highly accretive and strategically positions us to penetrate the far larger Brazilian market, while this iconic brand provides additional expansion opportunities across the region. Turning to Slide 21. Our digital transformation continues to be a strategic imperative and a key enabler across all our strategic growth pillars.

Our main objective on this front remains accelerating growth through a digital platform that maximizes the sales opportunity of every person-to-person interaction. On Slide 22, we outline our digital transformation across three main pillars. First, growing the business for our distributors and associates. We are focused on enhancing our associates and distributors' digital capabilities with the first phase of trials underway to equip them to better leverage digital tools and drive performance with the use of our platforms. Second, digitizing BeFra's core operations. This includes customer service automation and end-to-end automation of commercial processes by implementing a CRM with Salesforce and a new artificial intelligence committee.

And third, leveraging our data with initiatives like our new Betterware Plus analytics platform, which helps us improve all of our digital tools. Finally, our fifth pillar, financial discipline and control, which remains the backbone of our strategy. It continues to guide how we allocate capital and operate across the organization, enabling us to grow while preserving the strength of our balance sheet even in volatile operating environments. We remain firmly focused on tight cost management, efficient inventory control and working capital execution and on maintaining a prudent leverage profile. Financial discipline is not just a pillar of our strategy. It is embedded in how we operate every day.

We are sure that with Raul's leadership and experience, we will continue to maintain and improve our strong financial discipline. With this in mind, we began 2026 with a solid performance, reflecting improving momentum across our business units and continued progress in strengthening our commercial and operational execution. While revenue growth at the group level remained modest due to a temporary slowdown in Jafra, Mexico, all other business units delivered strong momentum. Additionally, profitability improved meaningfully, supported by better operating efficiencies and disciplined cost management with all business units contributing to this improvement. At the same time, our expansion strategy continues to gain traction with renewed momentum at Jafra U.S. and sustained growth across our Andean and Central America operations, including the successful launch of Betterware Colombia.

Looking ahead, we continue to advance on the Tupperware transaction, actively preparing for its integration and achieving the value creation opportunities it represents while we await regulatory approval. BeFra today stands as a stronger, more diversified and well-positioned group with a clear road map for long-term value creation and the start of 2026 reflects a solid footstep into that future.

With that, I will pass the call back to our operator for any questions you may have. Thank you.

[Operator Instructions] Our first question is from Eric Beder with SCC Research.

Can we talk a little bit about the state of the Mexican consumer? I know that Q1 last year was a bit of a shock to them. And kind of how are you seeing and what are they kind of looking out for right now in terms of their purchases going forward?

Sorry, Eric, we had a little bit of problem there. Can you repeat the question really quickly? The Mexican consumer...

Sure. So what is the state of the Mexican consumer right now? I know last Q1, it was affected by tariffs. What are we seeing now and what the Mexican consumer is looking for and how you guys are changing and shifting for that?

Yes. Thank you, Eric. That was clear. So yes, we are seeing a slight rebound in consumption in the first quarter. Consumption growth had been decreasing for the past, as you know, 3 or 4 years, and we hit the lowest growth last year with about a 1.1% growth in consumption. And this year, the expectation is 1.6%, so it's a little rebound. And we are seeing in private consumption up to January and February, a slight rebound. So it's not a huge rebound. It's a slight rebound, but this helps to change the trajectory in the Mexican consumer and consumption in general. So we think this is a good news, and we hope to continue seeing this trajectory in the quarters to come.

You did a great job again with inventory down a significant level, materially higher than the revenue change. How -- when do you start to anniversary that? And what will be the goal after you kind of get there?

Do you mean in inventory?

Yes.

Yes. We -- as we mentioned before, in inventory, we had already lowered it up to the fourth quarter of last year. It remained pretty stable in those levels at the end of this quarter. We do expect a slight decrease throughout the year. We were talking about MXN 100 million more of decrease. But we don't see inventory declining much further after that. We think that we've reached our -- nearly our optimal levels and think it can remain stable going there.

Okay. Last question. So -- you announced the acquisition of Tupperware Latin America. I know in the last few months, you've met with a lot of people in that company. Are you more excited, less excited? How are you feeling about this acquisition now that it's been announced and you've gone out and kind of gone to the field and talk to people? And kind of how do you look at the near and longer-term opportunities here?

Yes. Thank you, Eric. We are very excited about this acquisition. As we've mentioned before, we're still pending on approval from the antitrust agency in Mexico, which we expect to happen during this second quarter. But we are excited about this acquisition. We think that -- there are -- as we've mentioned before, Tupperware is a very well-positioned brand in customers' minds in all of Latin America. It's not only well positioned but very valued brand throughout the years. So there's a lot to do in terms of product innovation of replicating BeFra's model in Tupperware in terms of merchandising, innovation and many things that we can really leverage on such a great brand.

So we are very excited, and we're very excited to tap into LatAm's biggest market, Brazil, with a strong foothold when we start. It's already an almost $100 million revenue company there. So it's a strong foothold to really take off in the Brazilian market. So we are very, very excited and hope we get that approval in the coming weeks during this quarter and then take off from there.

[Operator Instructions] Our next question is from Cristina Fernandez with Telsey Advisory Group.

I have a question on Jafra Mexico. When you look at the performance this past quarter and we also started to see a little bit of a slowdown the quarter before. How much of that do you think is a slowdown in the broader beauty market? Or is it just specific to Jafra Mexico and some of the points you talked about as it relates to the consultant recruiting and the innovation.

Yes. Thank you. Cristina. Yes, so we definitely think it's more internal than external. We see the beauty market continue to grow, continue to expand in Mexico. And it's still a category that has a great tailwind as a category, and we expect that to continue. The reality is that the internal factors that we think impacted the fourth quarter and the first quarter were mainly two factors. One is that last year, we focused more on line renovations than on real innovation. So when you are renovating your lines, there's not as much impact as when you're actually innovating into new categories, new concepts and new lines.

So we think that, that had an effect. Now as we said, last year, we finished all our renovations. And this year, we are focusing again on real innovation. We are strengthening our partnership with Disney. We launched the Stitch sun block, which has been a great success. We launched many different products with Disney, and we're also launching new innovations that are going to impact positively this year. So that's one part, a refocus into innovation. And the second part is that while we were trying to incentivize more productivity from our associate base, we think that, that affected a little bit of bringing in new associates and also keeping our small unproductive associate base active.

So that helped -- that -- sorry, that was an internal factor that made the associate base decrease, and we were not able to compensate with the productivity. So growth slowed down. We've already detected everything there, reversed it starting in March and more so in April. And pretty much in April, we're back to where we need to be. So we do expect a rebound throughout the year, and we do expect that rebound to start in the second quarter to get an inflection point and then strengthen growth again throughout the year. So we think it's a temporary internal situation that should reach its inflection point in second -- 2Q and start strengthening growth again going forward.

And we think with that, we're very happy with our results in terms of profitability. We think as a group, we've -- and even in Jafra Mexico, we strengthened profitability. So across all our business, profitability is strengthening, free cash flow is strengthening. Our balance sheet is improving. So all of our other business units are growing. So once this issue with Jafra Mexico that we expect to reverse comes back, we think we will have a very strong results for the group coming forward.

Yes. And perhaps a follow-up based on what the shape of the year you were talking about because you kept your revenue growth guidance for the year, 4% to 8%, even though the first quarter came in a little bit lower. So if I'm understanding what you're saying, you expect the second quarter to be better from a growth perspective than the first quarter and then the back half to be the strongest of the year. Is that correct?

Yes, definitely. We expect Betterware Mexico's growth to strengthen. We started the year at 2.6%. On a same week basis, it was 3.3%, but we expect that growth of Betterware to keep strengthening. Betterware Mexico rebounding last year -- in the second half of last year started rebounding and now we're seeing its incremental revenue versus previous year. Then at the same time, we expect all of the LatAm expansion of Betterware to continue contributing to growth.

And we also -- we expect Jafra U.S. to continue delivering great results. As you saw, we grew 8.6% in dollars, and we expect that to continue strengthening. And then with this inflection of Jafra Mexico, we think as a group, we're going to start seeing a growing -- a strengthening in growth. So we are positive about that. And that's why we're keeping our guidance as well.

And the last question I had is, I mean, you did a really good job of managing expenses this quarter. Are you seeing any pressure or do you expect any pressure as the year progresses, either in freight, meaning like supply chain or transportation costs as a result of the kind of volatility in oil prices? Or are you contracted out for the year at stable rates?

Yes. Thank you, Cristina. So definitely, the volatility that has been happening from -- in oil prices from the whole situation with the Hormuz Strait and all of that is definitely something we are not only having an eye on, but we are taking actions. We have seen some slight increases, temporary increases in freight costs from China because of the petroleum. But at the moment, we have not received too much pressure from our suppliers in terms of raw material costs. We are vigilant to what happens if this becomes a temporary thing or a more sustained issue. And we are preparing tactics and strategies as we've done before, when things like this happen, we are preparing strategies and tactics to counter this effect.

We feel confident that we can react to any sustained pressures from this. And not -- and I'm not talking in price, in product price, but more strategies to negotiations or redesigns or strategies that can contain any cost increases. So we will -- I mean -- but we will be pending. It's still early to tell, and we're ready to tackle any counter effects if this becomes a more long-term pattern.

That does conclude our question-and-answer portion of today's conference call. I would like to turn the call back over to management for closing remarks.

Well, thank you, everyone, once again for your trust and continued support, and we look forward to updating you on the next quarter. Thank you once again. Goodbye.

Ladies and gentlemen, this concludes BeFra's First Quarter 2026 Earnings Conference Call. We would like to thank you again for your participation. You may now disconnect.

Thank you, and welcome to BeFra's Fourth Quarter 2025 Earnings Conference Call. Before BeFra's management begins their prepared remarks, please note the disclaimer regarding forward-looking statements on Slide 2. To remind participants that this call may contain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Please consider these statements alongside the cautionary language and safe harbor statement in today's earnings release, as well as the risk factors outlined in BeFra's SEC filings. BeFra undertakes no obligation to update any forward-looking statements.

A reconciliation of and other information regarding non-GAAP financial measures discussed on this call can also be found on the earnings release published earlier today as well as the Investors section of the company's website. Present on today's call are BeFra's President and Chief Executive Officer, Andres Campos; and Chief Financial Officer, Rodrigo Muñoz.

I will now turn the call over to Mr. Campos. Please go ahead.

Thank you, operator, and good afternoon, everyone. Thank you for joining our call today. Having closed the fourth quarter and full year 2025, we reflect on a year marked by growth and resilience despite a complex year in the face of macroeconomic volatility, sociopolitical uncertainty, and softer consumption trends across our core markets. While net sales increased for both the quarter and the full year, the recovery across our business units continued after a difficult first quarter. Jafra Mexico continued to grow. Betterware Mexico progressively narrowed sales decline, and Jafra U.S. delivered its first back-to-growth quarter in Q4 following several periods of recovery.

Turning to Slide 4. Fourth quarter revenue grew 1.2% year-over-year in the quarter. Our EBITDA margin remained strong at 19%, although below last year due to temporary gross margin impacts. Importantly, free cash flow more than doubled versus the prior year, thanks to consistent profitability and strategic activities to improve our investments in working capital, specifically inventories.

Looking at the full year on Slide 5, revenue grew 1.2% despite a difficult first quarter and soft consumption levels in our core markets throughout the year. EBITDA margin closed at 18.7%, primarily impacted by the abnormal contraction in Q1. Cash generation was one of the highlights of the year, with more than 83% of EBITDA converted into free cash flow, thanks to inventory optimization, which released MXN 459 million in cash. Additionally, we reduced total debt by MXN 700 million throughout the year, decreasing our leverage multiple from 1.75x to 1.56x. This combination of disciplined execution and strengthening of our balance sheet positions us well for 2026.

On Slide 6, as we close another year, we want to reflect on BeFra's evolution over the years, which provides important context about our ability to grow. Since 2018, revenue has grown more than 6x from MXN 2.3 billion to MXN 14.3 billion, representing approximately 30% CAGR. What began as a single-brand company has become a diversified multi-brand platform with Jafra now representing a significant portion of our revenue mix and profitability while strengthening BeFra's geographic and category exposure. While 2025 was a complex year, more so for discretionary items like in betterwear, we see a great opportunity to ignite more growth going forward.

On profitability, EBITDA expanded over 4x from MXN 574 million to approximately MXN 2.7 billion. Margins normalized after the pandemic peak and now reflect a more balanced portfolio and resilient foundation. Jafra's weight on the total revenue, decreased margins starting in 2022, and Betterware's difficult years of profitability have also weighted in a lower margin, although we expect more stable and even increasing margins going forward.

Turning to Slide 7. As in previous quarters, we continue advancing to our 5 strategic pillars, which define the next stage of BeFra's evolution. First, we will strengthen our leadership in Mexico. Second, we will continue our regional expansion, driving growth in the U.S. and selectively expanding across LatAm. Third, we will develop new brands and/or categories. Fourth, we will activate our digital P2P model. And finally, we will maintain strict financial discipline, prioritizing profitability, cash generation, and strong balance sheet as the foundation of sustainable long-term growth. These pillars remain the framework guiding our decisions on capital allocation going forward.

On Slide 8 is the first pillar, strengthening our leadership in the Mexican market. Turning to Slide 9. We can see how in the fourth quarter, Betterware delivered its strongest quarterly sales performance of 2025. While full-year growth was constrained by weaker results in the first quarter, commercial momentum progressively improved as the year advanced. It is important to point out that this is the first year since COVID that, throughout the year, there was an increase in Betterware SEO base, establishing the right momentum going into 2026. Betterware's fourth quarter EBITDA margin was mainly affected by temporary FX-related impacts on gross margin. When excluding these effects, fourth quarter EBITDA margin would have been approximately 22%, similar to that of last year's quarter.

To summarize Betterware's performance, it finished the year with improving commercial momentum, a healthier balance sheet, and a more efficient operating structure. On Slide 10, we summarize Betterware Mexico's main achievements in 2025, and we also lay out our main strategic initiatives for 2026. In terms of achievements, number one, we revamped our core categories like home organization and continued igniting new categories like home wellness. We also improved our incentive programs, laying out new rewards such as online education, health, and travel. We improved our Betterware + app with new features like the new product idea function, where salesforce can handle their ideas for products. We also improved our field management system, refining our tracking systems based on associate and distributor life cycle stage.

For 2026, among other initiatives, we will revamp our innovation levers, expanding licensing beyond Disney and Mattel, strengthening fast consumption products, and launching a World Cup special edition line. We will also revamp our catalog design after almost 3 years with the same catalog design line. Third, we intend to segment our incentive program even better with direct-to-associate product delivery and a new better fan plan that we will lay out in the quarters to come. We will also continue enhancing our technology with more features on our Betterware + app and lay out a new CRM with Salesforce. Finally, we plan to launch a new payment system in partnership with Broxel, a prominent fintech in Mexico.

On the next slide, you see that Jafra Mexico delivered yet another strong quarter. Despite a challenging consumption environment, the beauty market remained resilient. And together with relevant internal actions, Jafra achieved record-high sales in the quarter. The slight decline in Jafra's sales force was driven by aggressive productivity-focused promotions. Going forward, we are rebalancing our commercial strategy to focus on both potential growth and productivity growth. Adjusted EBITDA recovered significantly from the weak first quarter and returned to growth for the year, while the margin remained within a healthy range despite deliberate investments in select gross margin initiatives.

Turning to Slide 12. We summarize Jafra Mexico's solid operational progress and achievements of 2025 and also highlight some 2026 selected strategic initiatives. For 2025, we redesigned our most prominent core lines like Royal Jelly, Nature, and Navigo. We launched strengthened productivity incentives that we have spoken about. We improved our field management operations with less expenditure in nonproductive fronts and changing our gears to real and impactful field work. We also redesigned the catalogs in September 2024 and lap the benefits of that redesign throughout all of 2025. Finally, we launched our new Shopify + platform for Jafra Mexico, enabling personalized social selling links for our leaders and consultants.

Looking into 2026, we will refocus now on innovation, expanding Disney, Mattel, and other licenses, and launching new skin care lines and entering hair care category by the second semester of 2026. We will also strengthen our sample trial initiatives to help consultants show real product experience together with catalog demonstration. Third, we will begin new subscription initiatives to drive retention and overall experience and satisfaction. Fourth, we will segment associate incentives to better cater different needs. And fifth and very important, we will launch our Jafra + platform and the new CRM with Salesforce for servicing our consultants and leaders of Jafra.

As shown on Slide 13, our second pillar is regional expansion, which we are executing by replicating BeFra's successful business model in the U.S. and Latin American markets. Moving to the next slide. Revenue at Jafra U.S. again showed significant improvement, maintaining quarter-over-quarter growth since the first quarter, while Q4 marked Jafra's first quarter of year-over-year growth, supported by stronger consultant productivity and sharper commercial focus. EBITDA also improved meaningfully. Although the full-year comparison still reflects a decline, underlying performance strengthened following the organizational restructuring carried out at Jafra U.S. in 2025. In addition, ongoing legal expenses impacted on reported profitability. When excluding these expenses, full-year EBITDA would have been approximately $869,000, marking a positive profitability for the company.

Turning to Slide 15. I would also like to highlight the main achievements and plans for 2026. In terms of 2025, we redesigned our most prominent core lines like we have done so in Jafra Mexico. And we introduced these new redesigns to the U.S. market. We also launched our new incentive program, completely revamping it to further focus on expansion. This included a totally new rewards section. And number three, we benefited from our new Shopify platform, which we launched by year-end 2024, improving user experience and attracting younger audiences.

For 2026, we plan to refocus on innovation as we're doing in Jafra Mexico, and we're also proud to announce that we have reached a deal to launch Disneyland licensed products in the U.S. Second, we will also strengthen our sample trial. Third, we will strengthen our merchandising techniques, leveraging the knowledge that we have in Betterware and Jafra Mexico. And fourth, we will launch a new payment terms methodology so that new associates don't have to invest in working capital when they start with us, similar to what we have in other countries.

On Slide 15, we map out our regional expansion plan. The Andean and Central American direct selling market represents approximately $6.1 billion in total addressable market. Ecuador's expansion enables us to grow into Colombia and Peru. We are confident that our scalable business model and proven playbook will enable us to replicate our success in these new markets, representing another significant source of growth for the group in the years to come.

As shown on Slide 17, our geographic expansion strategies continues gaining traction. Ecuador surpassed 11,500 associates and 730 distributors at year-end, representing a more than sevenfold increase since our launch there. Revenue also grew substantially using Ecuador as an initial beachhead in the Andean region. We plan to launch operations in Colombia next week, on March 2. On the right of the slide, you see that Guatemala sales increased 50% since the beginning of 2025, with significant associate base growth as well.

Turning to Slide 18. We continue exploring new brands and categories that complement our portfolio as we did when we acquired Jafra in 2022. Our objective is to identify opportunities that leverage our scalable platform, enhance profitability, and expand into adjacent brands and categories aligned with our person-to-person model. On Slide 19, we summarize the acquisition of 100% of Tupperware's Latin American business for $250 million. $215 million in debt-funded cash and $35 million in BeFra shares. As previously communicated, the transaction includes Tupperware's operations in Mexico and Brazil, including 2 production facilities in these key markets, as well as a perpetual royalty-free license for the brand across Latin America. The closing of the transaction is expected in the second quarter of 2026, subject to customary regulatory approvals. Strategically, this transaction unlocks meaningful potential across the region.

Tupperware remains a highly recognized brand in food and drink containers, and we see clear opportunities to enhance revenue and profitability through innovation, technology, and our proven commercial model. It also provides a strong entry into Brazil, a country with a population of over 200 million, with an established operation that creates a platform to introduce better work and capture cross-market synergies. At the same time, the manufacturing footprint in Mexico and Brazil strengthens our sourcing flexibility, enabling us to leverage excess capacity, localize production, and optimize costs. At an implied multiple of 3.1x enterprise value to EBITDA, we consider this a highly attractive as well as accretive acquisition with an estimated 40% earnings per share accretion based on our purchase price assumptions.

Overall, this transaction reinforces our strategy of scaling strong brands with a proven, disciplined value-creating platform. Moving to Slide 20. We outline what's next with Tupperware. In the short term, we're waiting for transaction approval from the antitrust agency in Mexico, expected in the second quarter of 2026. In the medium term, we will focus on 3 main objectives: First, return Tupperware to growth in its current markets through innovation, technology, pricing, and other commercial initiatives. Second, extend the brand to new countries by leveraging our current footprint. And third, fully integrate Tupperware into BeFra to capture operational synergies, such as leveraging the manufacturing capacity of Tupperware's plants to produce certain Betterware products. In the long term, we plan to fully integrate Tupperware into BeFra to capture additional operational synergies as well as leverage Tupperware's Brazil operation to introduce and scale Betterware in that massive, untapped market.

Turning to Slide 21. Our digital transformation remains a strategic imperative and an enabler for each of our other pillars. Our objective is to accelerate growth through a digital platform that maximizes the sales opportunity of every person-to-person interaction. Slide 22 outlines our digital transformation across 3 main pillars. First, growing the business for our distributors and associates. We are enhancing our platform to simplify operations, expand social selling, and embed agentic capabilities to improve productivity and conversion. Second, digitizing BeFra's core operations. This includes customer service automation, personal seller enablement and end-to-end automation of commercial processes to drive efficiency and scalability. And third, leveraging our data. We are strengthening analytics, deepening insights into product and customer behavior and building the foundations to become fully AI-ready.

Finally, on Slide 23, we come to our fifth pillar, which is the foundation that supports every strategic decision we make, financial strength, discipline, and control. This principle has consistently defined our company over the years. It enables us to pursue growth while safeguarding the long-term health of the organization and has proven especially critical during periods of volatility in our markets. We remain focused on rigorous cost oversight, inventory control, disciplined working capital management, and maintaining prudent leverage levels. Financial discipline is not simply an element of our strategic framework. It is embedded in the way we operate every day.

With that overview, I will now hand the call over to Rodrigo, our Chief Financial Officer, who will review the fifth pillar in more detail.

Thank you, Andres, and good afternoon, everyone. On Slide 24, quarterly EBITDA margin reached 19% despite temporary gross margin impact. Full year EBITDA margin was 18.7%, mainly affected by Q1 contraction and prior year derivative FX effect. Adjusted net income comparison was affected by approximately MXN 200 million positive mark-to-market derivative effects recorded. On the following slide is free cash flow, which increased 106% year-over-year in 4Q '25 and closed the year with a 24.6% increase, mainly driven by inventory reduction at Better World Mexico totaling MXN 459 million. We are also proud to note that this will be the 24th consecutive quarter of paying dividends since the IPO.

Dividend payments remain aligned with our disciplined capital allocation framework, maintaining a 32% trailing 12-month dividend to EBITDA ratio, while using cash to reduce leverage and continue investing in geographic expansion.

On Slide 26, we can see how total debt declined significantly, with net debt-to-EBITDA improving from 3.1x in 2022 to 1.56x at the end of 2025. A total of MXN 700 million of debt was repaid during the year. In summary, our balance sheet is stronger, our leverage profile healthier, and our liquidity position robust, making BeFra even more resilient and enabling us to continue funding growth initiatives across our 5 strategic pillars.

I will now pass the word back to Andres for some final comments.

Thank you, Rodrigo. Before we open the line for questions, let me conclude with a few remarks on Slide 27. 2025 demonstrated the resilience of our great brands, One Essence strategic platform translated into our 5 strategic pillars for our 2025, 2030 strategy. We strengthened profitability after a difficult start to the year. We generated strong cash flow. We reduced leverage. We significantly advanced our regional expansion strategy. We accelerated BeFra's digital transformation, and we paved the way to welcome a new promising brand at the start of 2026. This way, we have entered 2026 with improving momentum, and we remain excited about our long-term value creation capacity. BeFra today stands as a stronger, more diverse, and well-positioned group with great brands, highly committed teams, and a clear road map for long-term growth.

I will now pass the call back to our operator for any questions you may have. Thank you.

[Operator Instructions] And our first question will come from Eric Beder with SCC Research.

How should we be thinking about the Mexican consumer? I know that last year, especially Q1, was difficult. And I guess Q1 is having its own interesting issues right now, too. How are they looking at the world? And how do you look this year in terms of getting a bigger share of their wallet?

Yes. Thank you, Rick. And thank you for your question. We think the Mexican consumer had a slight contraction or this acceleration last year. And we believe this year should be more stable throughout the year. We believe the growth adjustment was last year, and we believe this year, it should be more stable. There are some positive factors, economic factors like decreasing interest rates that should help Mexican consumer, a more stable inflation. And I think with these factors, together with general economic factors, Mexican consumer should be more stable going forward.

How -- you guys did an incredible job with the inventories. Obviously, you generated a lot of free cash flow in Q4, and you've reduced, I guess, a lot of some of the overhangs you have. How should we be thinking about inventory growth in 2026? How should we be thinking about that in terms of the -- a, the opportunities; and b, what levels should be coming forward?

Yes. So if you can see, we started off the year with MXN 2,500 million in inventory, approximately, and we've reduced to MXN 2,000 million by the end of this year. I think we are very close to optimal inventory levels, and we should not necessarily expect any relevant inventory decrease or extraordinary inventory decrease like we did this year. There's still a little bit to go, probably MXN 100 million or MXN 200 million, but not much more than that.

So we should see more basically growth within kind of top-line growth going forward, am I think about it?

Yes. In terms of cash flow, cash flow should come more in our normal levels derived from top-line growth and profitability.

Last question on Jafra. So I saw that you had a decline in the level of distributors and other associates. And you talked about gross margin and cleaning out some of the inventories. Is kind of Q4 when you look at it kind of a blip here? Or is that -- or should we be thinking about growth continuing for Jafra now to somewhat more normalized levels as the rest of the company?

Are you asking specifically about gross margin levels?

Actually -- so yes, and also top line, too. Yes.

I think we should expect -- Jafra has continued to grow revenue versus previous quarters. And consequentially, it has continued to grow. The fourth quarter delivered the highest revenue mark that we have had in history. We should expect this to continue. In 2025, we focused a lot of our innovation team into renovating the core lines of products, so it was a lot of renovation and not that much innovation. And now that we have redesigned all those products, now 2026 is going to start seeing again a lot of innovation. So I think this is going to start igniting growth again and continue our expansion. There is still -- I mean, obviously, Jafra is a big business, and we plan to keep growing it. But I think there's still a lot of things we -- as we mentioned in the presentation, there's a lot of things that we plan to do within our model in terms of innovation, in terms of laying out new technology, among other things that we plan to do to continue growing Jafra Mexico.

[Operator Instructions] And our next question comes from Cristina Fernandez with Telsey Advisory Group.

I wanted to follow up on Eric's question about growth next year. But thinking overall about the company, the 4% to 8% growth that you guided to. I guess what gives you confidence in that outlook? I mean you talked earlier about a stable consumer, but it is a pretty big acceleration from the 1% growth in 2025. So what's underpinning that? And how do you expect Betterware to grow versus Jafra in 2026?

Yes. Thank you, Christina. This is Andres again. So yes, we -- as you mentioned, the first thing that we expect is a more stable consumption. What happened last year is that last year, we had declining figures in consumption and a very sluggish consumption figures in the economy. which affected all our businesses in Mexico. And specifically, it affected Betterware more because they are discretionary products. In 2026, we do expect a more stable consumption. We are actually seeing some positive figures in the first months in January and beginning of February, we're starting to see general better consumption trends in the country. And we think that with this, we can -- is the main factor that we can use to get back to the level of growth we had before, more in the 4% to 8% range.

Now it's not only about the external factory of consumption being steady. It's also about many internal strategies that we have in place to regain that growth. For us, the 1.2% that we had last year is abnormally low growth, and we plan to come back to more regular levels of growth that we have seen in the past of 4% to 8%, with all the strategies we have to implement. First of all, obviously, is Mexico, both Betterware and Jafra. We laid out in the presentation some of the key initiatives that we're having out with, I would say, very strong innovation in both brands. On the other hand, we're laying out a lot of technology in Jafra that we have not done before. And we're also attacking different initiatives in both brands that we are confident that, together with a stable consumption, can take us to those levels that we have seen in the past for our brands.

So now that's on the Mexico side. Now if you add to that the fact that in Jafra U.S., we have been able to not only stabilize the company, but start to tilt the curve upwards in terms of revenue. And then you add the entrance into Colombia and Ecuador, and the weight that that will start having, I think it's -- I mean, it's not the main part. The main part is Mexico, but it will start adding additional growth points to the group. So I hope I was clear on the buildup of that growth.

That's helpful. And then I had also on Jafra. You mentioned in your comments and on the press release that the beauty market has been having some challenges. Can you talk about what those are? Or how is Jafra positioned, whether it's by product category, to overcome those challenges?

I think we talked about some challenges in consumption in general in Mexico, not specifically challenges in the beauty market. We think that the beauty market is still has -- if you compare a beauty category versus house, home groups category in Betterware, the beauty category still has more tailwinds. I mean both suffered some of the consumption effects -- the general consumption effects of Mexico, but we think that the beauty category has more tailwinds within that context. So we think it's still going to be a very resilient and growing category, and we are optimistic about the evolution of the category as a whole.

And then the last question I had was on the EBITDA guidance, the 19%. Any color by segment you can give? I mean it's sort of flattish, right, slightly up versus 2025, but any of the, I guess, businesses expected to have any material variance versus 2025?

No, I think in general, we see the balance there in that 19% or above '19 margin. We do think definitely that we do believe that, that's our floor and baseline margin that we can deliver. But it all comes -- there's many different factors going into that margin, including the investment outside and including investments -- extraordinary investments in the Tupperware operation and different factors. So we prefer to leave it as a group from '19 up as EBITDA margin.

And that concludes the question-and-answer portion of today's conference call. I would like to turn it back over to management for closing remarks.

Thank you once again, everyone, for your trust and continued support. We look forward to updating you on the next quarter in April. Thank you.

Ladies and gentlemen, this concludes BeFra's Fourth Quarter 2025 Earnings Conference Call. We would like to thank you again for your participation. You may now disconnect.

Good afternoon. Thank you for joining us, and welcome to BeFra's Third Quarter 2025 Earnings Conference Call.

Before we begin, the company would like to remind participants that this call may contain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Please consider these statements alongside the cautionary language and safe harbor statement in today's earnings release as well as the risk factors outlined in BeFra's SEC filings. BeFra undertakes no obligation to update any forward-looking statements. A reconciliation of and other information regarding non-GAAP financial measures discussed on the call can also be found in the earnings release as well as the Investors section of the company's website.

Present on today's call are BeFra's President and Chief Executive Officer, Andres Campos; and Chief Financial Officer, Rodrigo Muñoz.

I would now like to turn the call over to BeFra's President and CEO, Andres Campos.

Thank you, operator, and good afternoon, everyone. I am pleased to share our results for the third quarter of 2025, a quarter that once again demonstrates the strength, resilience and agility of our business model.

Before we begin our review, I would like to note that we are conducting today's webcast with a slide presentation to help better convey the relevant information that we want to share with you in our quarterly results conferences.

Turning to Slide 4. Let me begin by sharing some overall highlights for the quarter. Despite a softer consumer environment in Mexico and the U.S., we delivered another quarter of growth, solid profitability and strong cash generation. Our operations continue to be executed with discipline, focus and passion while driving efficiency and reinforcing the foundations of our long-term strategy.

During the quarter, revenue grew 1.4% year-over-year and EBITDA grew 22%, with the margin expanding 362 basis points to 21.4% EBITDA. Our free cash flow conversion remained strong at 77% of EBITDA, reflecting our continued financial discipline and healthy balance sheet. These results were driven by strong execution across the group.

Betterware Mexico maintained solid profitability. Jafra Mexico continued to lead growth. Jafra U.S. delivered sequential improvement and our start-up operations in Ecuador and Guatemala exceeded expectations.

It is important to highlight that we have continued to decrease inventories, freeing up space for future innovation, and our net leverage ratio decreased sequentially from 1.97x to 1.8x. All of this confirms that our strategy is on the right track. We have built a strong and diverse business group, one that is not only positioned to capture long-term opportunities, but also resilient in the face of short-term challenges.

To talk about our results and progress on Slide 5, I am very excited to share with you what we have defined as BeFra's five strategic pillars, which will guide our growth and transformation over the next years. As you know, in the past four years, we have transformed the BeFra Group from being one single company in one country to becoming a diverse group of companies with multiple brands and categories and a diverse geographic footprint. Accordingly, these five pillars represent the next stage of BeFra's evolution through which we will capitalize on opportunities that lay ahead of us. For today's call and future ones, we will discuss our results in this context to explain the progress that we are making across these pillars.

On Slide 6, the first pillar is strengthening our leadership in the Mexican market. It is important to remember that both Betterware and Jafra hold around 4% market share in each of the home solutions and beauty markets, which means there is still substantial room for growth.

Turning to Slide 7. Third quarter 2025 sales at Betterware decreased 5.3% year-over-year as Mexico's softer demand has had a more significant impact on discretionary items in particular. That said, we remain focused on fine-tuning our internal strategies to mitigate these effects and to get Betterware back on track to consistent growth. Our focus this quarter was on optimizing pricing, reducing inventories, which fell 17% versus last year's quarter and refreshing our catalog merchandising techniques. These actions are strengthening the commercial fundamentals and set the stage for future volume recovery.

On Slide 8, we showcased some of Betterware's most relevant innovations during the third quarter 2025. Innovation remains an important driver for our success, and this slide provides just a few examples. This quarter, we continued to advance product innovation across all of our major categories, ensuring our portfolio remains at the forefront of evolving customer needs, including stellar new innovations such as the limited edition Barbie Katrina we launched during the quarter with Mattel, which sold out in just two weeks.

On Slide 9, Behind Betterware's revenue and profitability strength, we'd also like to point out three actions implemented during the quarter that showcase our continuous advancements. First, we reconfigured our catalog, decreasing our total SKU count to 370, including decreasing the products in our promotional portfolio. This move seeks to make our SKUs more productive and our products more visible with direct improvements in revenue, margins and inventory management. Second, Betterware has launched a new VIP program for its associates, which segments them according to their performance level. The new program better motivates associates by rewarding top sellers with more benefits. Finally, we launched an idea section in our proprietary Betterware Plus app, which all associates and distributors can now use to send us product ideas or reviews. We expect this new feature to have a significant impact on ongoing innovation at Betterware.

Turning to Slide 10. The Jafra Mexico business continues to be one of our key growth engines. Revenue increased 8% year-over-year and EBITDA grew 31%, reaching a margin of 24%. Although we expect a run rate margin of 20% to 21%, this reflects our ability to strengthen profitability while driving growth. Our consultant base expanded 2% quarter-over-quarter, while the average order increased by roughly 10%. We continue to show how our business model proves highly effective when applied to new brands and product categories. Almost four years since its acquisition, Jafra is set to close the year with almost 50% higher revenues than the year before we had acquired it, which is particularly relevant when compared to its almost 15 previous years without growth.

Turning to Slide 11. We highlight several of Jafra's most relevant product innovations for the third quarter. We launched our first collaboration with Disney, the Evil Queen's flash collection, which delivered outstanding consumer engagement and strong sales performance. We also continued to expand our successful new BioLab dermo-cosmetic brand with the introduction of our first dark spot removing product line, which performed exceptionally well from the outset. In additional, we completed the revamp of our Royal Body line, featuring updated packaging and a refreshed brand image, resulting in a more than 50% increase in volume compared to prior versions. Importantly, by year-end, we expect to have revamped approximately 80% of Jafra's portfolio under the new brand image with full completion anticipated by the first half of 2026.

Finally, on Slide 12, we would like to highlight two relevant operational advancements for Jafra, mainly the success of the new printed Purple guide for Mexico, which explains Jafra's incentive program in a much simpler way than it used to. Jafra also adopted Betterware's outbound messaging system to associates, which we use to remind them of specific actions they can take to win more customers and orders according to their individual context. We continue to make other advancements to Jafra's model to make it more modern and effective.

Please see Slide 13. Our second pillar is regional expansion, which we are executing by having BeFra's successful business model replicated across the U.S. and Latin American markets.

On the following slide, starting with the U.S., Jafra achieved a quarter of stability versus last year. After a couple of quarters of decline, we see the trajectory of Jafra U.S. continues to improve each quarter. While the third quarter usually has a seasonal decline in revenue versus second quarter, this year, it remains stable, demonstrating the strength of the trajectory. It is important to highlight that in September, the business recorded its strongest month in the last three years, including 30% year-over-year growth in revenue. With regard to profitability, Jafra U.S.' losses reflect extraordinary legal expenses related to cases and issues that had begun before we acquired the company. Without those expenses, the company operates at a breakeven point and is getting close to generating profits.

On Slide 15, as we've mentioned before, we have implemented three main measures to achieve Jafra's U.S.'s positive trajectory. First, the adoption of Shopify Plus platform, which is now complete and an important source of growth for all associates and distributors. In addition, we implemented a profound change in Jafra U.S.' incentive program, now called the Purple Guide, which we launched in May and which has started to kick in with good results.

Finally, on Slide 16, we redesigned the product catalog to make it more attractive and yield higher sales conversion rates.

On the next slide, you will note that since its launch in May, Betterware Ecuador has exceeded expectations, reaching almost 6,000 active associates, 380 distributors and revenue growing around 20% month-over-month. In Betterware Guatemala, sales grew 32% year-over-year, following the appointment of a new management team that has been in place since September of last year. Encouraged by the promising results in both countries, we are moving forward with plans to launch Betterware in Colombia in the beginning of 2026 with the aim of strengthening our presence across Latin America. We thought it'd be important to clarify the opportunity that Latin America represents for BeFra.

On Slide 18, you'll note that the Andean and Central American direct selling markets are an estimated $4.5 billion in total size, which is almost as big as Mexico's market. We are confident that our scalable business model and proven playbook will enable us to replicate our success in these markets, representing another significant lever of growth for the group in the years to come.

Now I'd like to jump into our third pillar, new brands and categories. While we will not showcase any specific progress in this quarter, I would like to mention that this pillar will be a major avenue for growth going forward. We are actively looking for potential acquisitions of new brands that can strengthen BeFra's position in our markets and enable us to expand into new product categories. With the huge success of Jafra's acquisition, which has demonstrated our ability to positively impact acquired brands, we are ready for possible new ones in the future. Within this same pillar, we are also assessing new categories that could fall under the Betterware and Jafra brand umbrellas. This includes analyzing opportunities that would strategically broaden our brand portfolio in the coming quarters.

Moving to Slide 20, our fourth pillar, activating digital person-to-person selling, I am very pleased to announce that last month, we formed a new digital transformation team, which will help us adapt more quickly to emerging consumer trends and digital capabilities. Led by LatAm digital commerce expert, Maria Fernanda Hill, who reports directly to me, the digital transformation team will be crucial in adopting new technologies such as generative AI and agentic AI to further boost our successful person-to-person model. More to come on this front in the quarters ahead.

Lastly, on the following slide, our fifth and final pillar, which is one that underpins everything we do, financial strength, discipline and control. This has been a hallmark of our company throughout the years. It enables us to grow without compromising company health and has also made us resilient in challenging times. We continue to operate with tight cost management, efficient working capital and healthy leverage ratios. Financial discipline isn't just part of our strategy. It's part of our DNA.

With that strategic overview, I'll now turn the call over to Rodrigo, our CFO, who will walk you through the consolidated financial results for the quarter.

Thank you, Andres, and good afternoon, everyone. For starters, all figures I'll be referring to are in Mexican pesos, and all comparisons are year-over-year unless otherwise stated. Additional details are available in our earnings release published earlier in our Investor Relations website.

Starting on Slide 22, in terms of net revenue, we saw growth of 1.4% year-over-year, which means that despite softer consumer trends, our business model and strategies remain strong and efficient. For EBITDA, we had a great Q3, which saw an increase of over 22% versus last year's Q3. While year-to-date EBITDA is still below last year's level due to a difficult first quarter in '25, we are recovering strongly and expect to achieve 1% to 5% growth over the year.

On the next slide, it is also important to highlight that while maintaining a strong focus on profitability and continuous improvement across both Betterware and Jafra, we have continued to invest in our international expansion strategy. Thanks to the solid performance and financial strength of our home market in Mexico, we are in a good position to fund these investments. As Andres mentioned earlier, our international strategy represents a significant growth opportunity for the future and a key pillar in BeFra's long-term vision.

Turning to Slide 24. Our adjusted net income increased 71% versus third quarter 2024. This was mainly due to higher operating profit, but there was also a positive impact from lower net interest expenses resulting from lower interest rates in Mexico as well as lower provisional income tax for the quarter. Our income was negatively impacted by FX effects due to the fact that FX this year is recognized in our gross margin under new hedge accounting guidelines. While last year, we had positive financial effects from our hedge positions, which used to be recognized under the EBITDA.

On Slide 25, you'll note that our free cash flow increased 32.6% year-over-year and is expected to reach an annual rate of 60% free cash flow to EBITDA by the end of the year. We also remain consistent in our commitment to generating value for our shareholders through dividends. And the Board proposed a MXN 200 million dividend that was approved at our General Stockholders' Meeting held on October 21. This represents our 23rd consecutive quarter of paying dividends since we became public in 2020. I'd like to highlight that the 2021 and 2022 dividends were positively impacted by the pandemic demand surge in relation to Betterware, and 2023 was negatively impacted following the post-pandemic decline as well as the 2022 Jafra acquisition. As you can see in the last two years, the 2024 and 2025 dividends have resumed, representing between 30% to 40% of EBITDA.

On the following slide, you will see our total debt and our net debt-to-EBITDA ratio demonstrates our ability to manage debt for growth initiatives. It is important to highlight that BeFra normally operates without debt as was the case before we invested in the new campus and in the Jafra acquisition. Since our debt peaked in beginning of 2022, we have reduced total debt from MXN 6,700 million to MXN 5,200 million at the end of third quarter 2025. During the same period, the net debt-to-EBITDA ratio fell from 3.1x to 1.8x. We expect to continue to drive down debt as quarters progress, including an estimate to close the year at around 1.6x. I will now pass the word back to Andres for final comments.

I will now pass the word back to Andres for final comments.

Thank you, Rodrigo. Before we open the line for questions, let me conclude with a few remarks on Slide 27. While the external environment, particularly in Mexico and the U.S. remains challenging, our results this quarter confirm the resilience and viability of BeFra's business model. We are growing profitably, generating cash, expanding our footprint in the U.S. and Latin America and strengthening our brands. We are executing our strategy with discipline and focus and the momentum we're building gives us great confidence as we prepare to close 2025 and enter 2026. BeFra today stands as a stronger, more diverse and well-positioned group with great brands, committed teams and a clear road map for long-term growth.

I will now pass the call to our operator regarding any questions you may have. Thank you.

[Operator Instructions] Our first question is from Eric Beder with SCC Research.

I want to talk about inventory. You've reduced the inventory by almost, I believe, about 8% year-over-year and the revenue went up, which is a great combination even despite the fact that tariffs probably raised some of the cost of goods sold there. How should we be thinking about the potential inventory targets going forward? And will that provide extra free cash flow here to help drive expansion and paying down more debt?

Yes. Thank you, Eric. So, I will pass that question to Rodrigo so that he can give you our projection for year-end on inventory, how it looks like.

Eric, nice to hear from you. Remember that in Q3 last year, we were up in inventories in Betterware, and we are aiming through the year to get it down. We do believe that expectation to close 2025 will be around MXN 2,100 million to MXN 2,200 in inventory from the MXN 2,500 that we initiated the year. So that would be the aim and the future for inventories in the company.

And just to clarify the exact number, it's MXN 2,100 million where we aim to finish.

Okay. Well, that would be impressive. When you look at the better catalog, I guess there's two things here. One is, how are you taking advantage of the stronger peso in terms of ordering and being able to maximize margins? Obviously, you've already done part of that. And what should we be thinking about is a more -- what we see now kind of the focus on returns, lower inventories kind of what we're going to see going forward? How should we be thinking about the ability to drive potentially top line growth from the Betterware catalog?

Thank you, Eric. That is a very good question. As you say, we are benefiting now from a strong peso at around MXN 18.50 to MXN 19 per dollar. And then at the same time also, the freight costs have come down again near the lowest levels that we have seen. So this is coming together to benefit Betterware Mexico. And we are -- obviously, our first line of attack is to pass these benefits on to the consumer to drive more demand. Obviously, all while protecting the profitability that we aim for. But it obviously allows us to be a bit more aggressive with consumer prices. At these moments where consumption is sluggish in Mexico to have this benefit is very good, so we can be more aggressive in prices.

And you mentioned -- I guess one more question about Jafra. So you've talked about moving the business into new areas where the consumer is continually buying them, skin care, you mentioned dark spot remover, and that takes time. And it also has taken some of the changes you've done there. Where kind of are we in that kind of movement there in terms of that?

And in terms of expansion, is there a preference to do it as direct ownership, joint venture? How should we be thinking about the new expansion like Colombia and the other potential countries in South America as how you want to structure that?

Yes. Thank you, Eric. So, on your first question from the Jafra side, still fragrances for Jafra Mexico, fragrances is still the main category. But in the last year and the years to come, the other categories will -- we expect the other categories to start growing at a faster pace than fragrances and start building on that mix of the revenue.

Now on the second question about expansion, we are doing the expansion directly ourselves, 100% owned by us. And we are hiring management, professional management on site that has experience in the country or the region that lives in the region, and we're bringing them on board to manage the expansion to those regions. But it's by the moment, for the foreseeable future, 100% owned by us.

[Operator Instructions] Our next question is from Cristina Fernández with Telsey Advisory Group.

A couple of questions. I wanted to see if you can talk more about what you're seeing with the Mexican consumer in your categories. It's been a pretty volatile year with a soft first quarter, but then the second quarter, it seemed like the consumer was spending more and now back track. So I guess, what do you think is driving that? And how much outperformance you're seeing in your businesses versus the overall market?

Yes. Thank you, Cristina. Andres here. So, yes, I mean, the Mexican consumer has been pretty sluggish, I would say. We're seeing consumption growth lessen, and we're seeing consumption trends to come down. As you said exactly now, we saw a pretty rough first quarter, then it picked up again in the second. And then by the end of August, beginning of September, it came down again. So very volatile, what we're seeing with the Mexican consumer, and it's obviously not easy to operate in these conditions.

We believe that this may be temporary as the Mexican economy as a whole, we think stands strong. But obviously, these are very uncertain moments, and we try to operate in these moments with, I would say, two things in mind. One is maintain strong profitability and cash flow. When we attack difficult times, we try to make sure that our cash flow and profitability is very well positioned and that we remain as a healthy company. And the second one, obviously, is keep attacking growth and keep trying to gain market share even in these tough times. So this will be how we will maintain our mindset in the coming months and quarters.

And then another question I had was on the profitability, the pretty strong EBITDA margin we saw this quarter. You mentioned a couple of factors like FX and lower transportation costs that might be sustainable and continue to see those benefits going forward. But I guess, how should we think about this level? I mean, is this a level you want to stay or you want to reinvest back in the business to drive growth? And were there any onetime benefits that skewed this quarter higher?

Yes. So no, there's no relevant like onetime benefits. Nevertheless, we obviously saw a pretty strong gross margin, especially in Jafra. Mexico, we saw pretty like a 76% plus gross margin in Jafra Mexico, which is not the normal margin we have in Jafra Mexico. The normal gross margin we shoot for is like 74.5% to 75%. So we did have a little bit of a high margin in Jafra Mexico, which we do not expect to sustain, but reinvest that to continue driving Jafra's growth. So more or less, that's where I would say, our mindset would be at.

And then the last question I had was on the -- on the technology transformation that you call out, as you look across the businesses, where do you see the most opportunity to embed greater technology or make it more efficient as you look out over the next couple of years?

Yes. It's a very good question. As you know, we have been investing in technology and in technology advancement for quite a while. It's one of our pillars of growth. And today, we are at a, I would say, a pretty good spot with our own proprietary app and the new Shopify Plus platform that we launched in all of our businesses and all of that.

But technology continues going. So we see going forward with the whole surge of generative AI, agentic AI, there will be a lot of transformation that we can use. And we want to be at the forefront of these technological advancements. So this department, one of the things that's going to be working at is our evolution within AI.

We're also looking at the fact that person-to-person selling is also evolving towards a more and more digital landscape where you see platforms such as social selling starting to explode, live shopping starting to explode in the U.S. with TikTok Shop or with other. So all these spaces, we need to move very fast and be at the forefront of all these technological advancements.

So those are some of the ones I would mention. And it's become so relevant and so important that that's why we decided to make a specific department of this and bring a specialist to help us drive everything we do with the commercial technologies in order to evolve our channel.

With no further questions, I would like to turn the conference back over to Andres for closing remarks.

Thank you, operator, and thank you, everyone, once again for your trust and continued support. We look forward to updating you on the next quarter. Thank you.

Thank you. This does conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Thank you. Welcome to BeFra's Second Quarter 2025 Earnings Conference Call. Speaking on today's call are BeFra's President and Chief Executive Officer, Andres Campos, and Chief Financial Officer, Rodrigo Muñoz.

Before we begin, the company would like to remind participants that this call may contain forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially than expectations. Please consider these statements alongside the cautionary language and safe harbor statement in today's earnings release as well as the risk factors outlined at BeFra's SEC filings. BeFra undertakes no obligation to update any forward-looking statement.

A reconciliation of and other information regarding non-GAAP financial measures discussed on the call can also be found in the earnings release as well as in the Investor Relations section of the company's website.

I would now turn the call over to BeFra's President and CEO, Andres Campos. Please proceed, Mr. Campos.

Thank you, operator, and good afternoon, everyone. I'm pleased to share our results for the second quarter of 2025, a quarter that highlights the resilience and agility of our business.

Following a challenging first quarter, we returned to top line and EBITDA growth, along with a strong quarter-over-quarter rebound and a positive free cash flow generation. These results are a clear signal of our ability to effectively navigate economic uncertainty, respond with agility and build momentum across our businesses towards our long-term goals.

BeFra's consolidated revenue grew 5.1% year-over-year and 1.8% quarter-on-quarter, driven by all of our business units. Importantly, we expanded our associate base from 1.12 million at the end of Q1 2025 to 1.13 million by the end of Q2 2025, a 0.5% Q-on-Q growth, also driven by growth across all business units.

Betterware Mexico returned to sequential growth with revenue up 4% quarter-over-quarter, a strong recovery from the 9.8% year-over-year decline in Q1, narrowing that gap to a negative 1.1% versus last year in the quarter. The sequential improvement was not simply due to a modest consumption rebound in Mexico, but rather the result of aggressive pricing strategies and product investments that achieved the following in the quarter: First, affordability and accessibility. We revised the pricing of our line products, the core of our average orders, making them more competitive without relying heavily on promotions that cut into margins. These made our most popular items more attractive, boosting seller engagement as well as sales. We also simplified some products as another way to increase affordability.

Second, a return to associate-based growth. As a result of a new incentive program launched at the beginning of the year, we achieved net associate growth for the first time since Q1 2021, expanding from 649,000 to 670,000 associates, a 3.3% growth quarter-on-quarter. Our distributor base also grew, increasing 3.5%. This is important as distributors are key drivers of team activity, retention and growth. A more attractive points program also attracted more associates to Betterware during the quarter. In addition, we have rolled out a new personal tagging system, enabling more targeted sales support and initiatives that help increase associate productivity, retention and ticket size.

Third, innovation. New product launches in our home solutions and kitchen categories led Betterware sales growth this quarter with seasonality concepts such as heat, insect and rain control outperforming the previous year.

And fourth, technology. We improved the functionality of our sales app, improving the back order process and making digital payments much easier. Betterware Mexico also achieved a strong profitability with an EBITDA margin of 19.9% and contributed to generating strong cash flow for the quarter.

Now turning to our Beauty and Personal Care business. Jafra Mexico started delivering double-digit growth again and returned to profitability with its revenue up 10.9% year-on-year and its EBITDA margin expanding to 21.2%. Three key drivers behind this performance were: First, category strength. Our main source of category growth this quarter came from our rebranding efforts, which are the highlight of 2025. Fragrance rebranding led growth, boosted by the success of Navigo and Double Nature, while skin care was also positively impacted with the revitalization of Royal Jelly, our main franchise in that category.

The branding efforts gave these products a modern look and also incorporated new sizes to make them more attractive to the consumer. Looking forward, we are particularly excited about the rebranding of our Royal body brand in the third quarter as well as the upcoming launch of a new spot remover under our higher-end BioLab skin care brand.

Second, sales force productivity. Jafra's associate base increased 2.3%, while the average monthly ticket rose more than 9%. This was driven by a revamped leadership program compelling incentives and a refreshing brand identity that is resonating strongly with our seller community.

And third, margin investments. Like Betterware, we also adjusted pricing to drive volume and increase competitiveness. While this slightly impacted margins in the short term, we expect the mid- to long-term benefits to include higher household penetration and an improved sales mix comprising more higher-margin products.

Now turning into Jafra US. While revenue decreased 8.9% year-on-year in U.S. dollars, we delivered a 15.6% rebound quarter-over-quarter versus the first quarter of 2025. At the same time, the associate base grew 8.5% sequentially, while engagement improved significantly. We are excited about this progress and look forward to more sequential growth going forward.

Given the enormous opportunity of the American market for Jafra US and after some years of understanding the business and the market, we have undergone deep transformation activities aimed to achieve constant growth. This includes, first, a compensation plan revamp. In April and May, we rolled out our new incentive plan, which fosters growth and activity and includes a new loyalty program as well. We believe this new compensation plan will be key for growth in the coming quarters and years.

Second, U.S. market-specific innovations. We will begin launching innovations targeting the U.S. market starting in Q3 2025, namely our Around the World fragrance collection. We continue working with our innovation team to bring newness that caters for U.S. market niches more directly. And third, a new catalog design which we will launch in September of this year.

Turning briefly to geographic expansion, one of BeFra's growth pillars, we are pleased to announce that we successfully launched Betterware Ecuador in May, surpassing our second Q goal by reaching 2,500 active associates. This early success stems from replicating our proven Mexico playbook.

At Betterware Guatemala, our new management team is already showing better results with Q2 sales returning to positive growth. These developments reinforce our conviction on Central America and the Andean region of Latin America as important markets, which should add growth to the group in the midterm. They represent a total addressable market equal to Mexico's. Accordingly, we are currently assessing the Colombian market for entry in 2026.

With that, I'll turn it over to Rodrigo to go over the financials in more detail.

Thank you, Andres, and good afternoon, everyone. I will now get into some of other key figures of the quarter. Please have in mind that all figures that I'll be referencing are in Mexican pesos, our functional and reporting currency. And that all period comparisons are year-over-year unless otherwise stated. Additional details are available in our earnings release published earlier on our Investor Relations website.

Our consolidated gross margin was 67.1%, mainly in line with last year's results and reflecting our commercial investments in proactive pricing strategies at Betterware and Jafra Mexico. Betterware Mexico gross margin was 55.2%, down 127 basis points year-over-year due to proactive pricing strategies that Andres explained before, but we expect to see a continuation of the shift in consumer purchases towards a higher mix of line items and fewer promotional ones, which is projected to further improve margins in the second half of the year.

Jafra Mexico gross margin was 75.3% and down 167 basis points versus last year quarter due to pricing changes made to support underweighted categories such as skin care and cosmetics, which were not priced competitive before. It is important to mention that last year's gross margin showed nonrecurring effect and the level achieved in the second quarter of 2025 are in line with our expectations and above historical gross margins.

Jafra US gross margin improved to 76%, supported by a more favorable mix of higher-margin products and procurement savings. Consolidated EBITDA increased 3.5% year-over-year to MXN 679 million with a margin of 19.1%, experiencing a strong quarter-over-quarter rebound after temporary effects seen in Q1 2025 and returning to our normal profitability levels of 19%.

Betterware Mexico EBITDA margin remains healthy. Despite the gross margin in commercial investments, thanks to higher SG&A efficiencies and improved supply chain management.

Jafra Mexico EBITDA increased 14.2% year-over-year, driven by revenue growth and disciplined expense control, while the EBITDA loss of the U.S. business is narrowed. A continued improvement in the top line paired with disciplined cost controls is expected to bring Jafra US to the breakeven point by year-end.

Free cash flow rose to MXN 592 million in this quarter, bringing year-to-date conversion to 44.2% of EBITDA and 87% conversion for the second quarter. After a challenging first quarter, we expect this trend to continue aiming to reach our historical conversion level of around 60% of EBITDA to free cash flow in total year 2025.

Consolidated EPS grew 7.7% year-over-year, supported by the increases in revenue and EBITDA, lower financial costs in Mexico and a MXN 45 million decrease in income tax as a result of a positive adjustment related to the tax audit report of 2024.

Debt leverage improved with our net debt-to-EBITDA ratio at 1.97x, down from 2.08x in Q1 2025, but still higher than the level reported in Q2 2024 of 1.8x. Increase was mainly due to undertaking incremental short-term debt in Q1 in response to lower operating cash flow from nonrecurring events explained before.

In light of the quarter's free cash flow and considering current and expected market conditions, our Board of Directors is proposing a MXN 200 million dividend from Q2 2025, subject to ratification at the Ordinary General Shareholders' Meeting on July 31. This would mark our 22nd consecutive dividend since our IPO in 2024, underscoring our unwavering commitment to delivering sustainable, long-term shareholder value.

We remain committed and are maintaining our full year guidance for 2025. As always, we will continue to closely monitor our approach.

I will now pass the call to the operator for any questions you may have.

[Operator Instructions] Our first question is from Cristina Fernández with Telsey Advisory Group.

I have a couple of questions. First, I wanted to see if taking a step back and looking at the quarter, the sequential improvement versus 1Q, how much should you attribute to a better macro and consumer environment versus the company-specific initiatives that you discussed on the call?

This is Andres. So I think that we have seen, in general, a drop in consumption, I would say, in the fourth quarter of last year a little bit and more so in the first quarter of this year. And we saw slight stabilization or slight rebound in consumption in the second quarter. So that's a reality. It was -- but it was just a slight stabilization or recovery. So we believe that while this helped, we also took internal measures, which is what weighs more in our results. We have always said that with a stable consumption trend, we can really deliver growth as we have done before and outperform the markets. So we do attribute more to our internal strategies.

As we spoke in both Jafra and Betterware Mexico, we worked very hard on our merchandising techniques, on our pricing techniques, promotion techniques and even on our product techniques to make our portfolio more accessible to the consumer and to perfect some of our strategies in terms of pricing, products, all our commercial strategies. And we think that this really kicked in and helped to deliver such a strong result for Q2.

And following up on that commentary, you kept your guidance for the year, 6% to 9% revenue and EBITDA growth. It implies an acceleration from what you saw in the first half. So what -- I guess, what are the key drivers to get to that number for the full year?

Yes, Andres, again. I think that in the macroeconomic environment and consumption, we do expect stability, not necessarily a rebound in consumption, but we do predict stability in consumption trends. And then second, we were able to see in the second quarter that with this stability, we can really achieve growth in our revenues.

It is very important to state that Q2 was the first Q since 2021 that we grew in associates in Betterware Mexico. We also grew in associates for Jafra Mexico. We also grew in associates at Jafra US versus Q1. So seeing this ability to not only grow our revenue, but also grow our associate base is a positive sign of what we can achieve in the coming quarters.

I want to state that, obviously, we still -- there's still some uncertainty in the macro environment. Obviously, there's still some room of uncertainty. And if the macro environment gets worse, that will not help and it will be more challenging. But stating again, with a stable macro environment, we can achieve this growth going forward.

Yes. Understood. The last question I had was on the Betterware segment. On the latter, you talked about finding efficiencies to return to a 23% to 24% EBITDA margin. What areas are there more efficiencies to get back to those figures?

Yes. So the first part where we expect an improvement is in the gross margin. There's 2 -- well, there's actually 3 factors behind us expecting this. The first factor is a strong peso against the dollar that you have seen. I think today, it was close to MXN 18.50.

The second one is lower freight costs. Freight costs have come down. Even now in peak season, they're at low rates, and we expect this to continue at lower and more stable rates at that point.

And the third point is that our internal strategy of making our line items more accessible and relying less on promotional activity that cuts into our margin is going to help us to -- in the mix of our revenue, have a higher margin mix and those help margins. So with these 3 things in mind, the first thing that we are expecting is for margin improvement.

Now the second thing that we're working on, it's also expense reduction and expense efficiencies. We -- this is something that we do continuously. And obviously, it's not like we're seeing a big factor or a special factor. It's just a matter of constantly looking to productivity in our expenses, into efficiency in our expenses. And we think we can continue to find these different efficiencies. So together with both, we believe we can drive our EBITDA margin up and have a strong EBITDA margin in the second half of this year.

[Operator Instructions] Our next question is from Eric Beder with Small Cap Consumer Research.

Let's talk a little bit about some of these other things. Obviously, you're still a major player in the Chinese market in terms of getting your product. How -- what opportunities are you seeing there given some of the shifts in the U.S. in terms of how their production from China and other pieces in terms of you being able to kind of fill some of those gaps maybe and get better economic terms?

Yes. I think that we are seeing opportunities to work more profoundly with our suppliers, work more profoundly with the factories that we work with to improve design of the products or find ways to make our products more efficient. I think we are not seeing yet like -- I think the right word is like a cataclysmic change that opens up a very relevant opportunity. But we are seeing opportunities, and this is helping us to improve our products, to improve our costs. And I think that's something that is helping, helping both from the cost side of the products and also from our innovation capabilities that we're being able to innovate faster and better every day.

Great. And when you look at inventory, I saw that you've made material progress, and you mentioned it in the remarks on the piece. How should we think about the opportunities here in terms of turns and other pieces for the inventory and where should it be going for the rest of the year, let's say, and going into 2026 in terms of productivity and be able to improve the productivity on the inventories?

Eric, this is Rodrigo. So again, we're looking at very good assumptions for the inventory. If you see actually quarter-to-quarter this year, we're actually getting down again to the same rates that we had on 2024. As you may remember, we had an up on inventory on the last quarter of year 2024. But that's already coming down as we speak. We right now are about MXN 200 million lower than we started the year. And it will continue to decline as part of our strategy is to still push the products that we have on inventory and try to reduce on our purchases, so we can get back to our normal position in inventories.

Okay. Betterware catalog. So we've seen in the last few months that you started to really ramp up on this 30th anniversary celebration. How should we be thinking about that as a potential nice driver here? It seems to be a new section, unless you kind of expand out in terms of some of the products. How should we be thinking about that going forward as an opportunity?

Yes, Eric, this is Andres, again. I think that the main drivers for revenue growth this year are the ones we spoke about in the earnings release and talking about our price strategies, our promotion strategies, everything...

I'm hearing some voices there. I don't know -- Okay. Very good.

Sorry, Eric, I just heard some voices in the background. As I was saying, pricing strategies, product strategies, our incentive program strategy are the main drivers behind it. But we definitely think that celebrating our 30-year anniversary has given us the chance to reinforce trust and certainty with our sales force, with our associates, with our distributors. And this brings a lot of confidence and trust to them to continue working with us and to have more solid trust on the -- not only in the past, but on the future of the company, which builds upon all these strategies to help with growth. So we are taking advantage of this being such an important anniversary that reinforces the trust in our associates and distributors going forward.

Congrats on the quarter and good luck for the rest of the year.

Thank you, Eric.

There are no further questions at this time. I would like to turn the floor back over to management for closing remarks.

Thank you, operator. While the external environment, particularly in Mexico and in the U.S. remains challenging, I want to emphasize that this is not a reflection of BeFra's fundamentals. On the contrary, we remain a highly financial disciplined group and our 2Q results demonstrate a strong rebound against the first quarter, showing the resilience and flexibility of our commercial model.

Our revenue is growing. Our sales force is expanding. Our profitability recovered strongly and remains robust. Our international footprint is growing. We're generating cash. And our brands continue to build consumer trust. Strong fundamentals, along with a solid foundation supported by BeFra's strategic pillars give us a good starting point to achieve a positive second half of the year.

We would also like to invite you to explore our new corporate presentation now available on our Investor Relations website, where we provide further detail on our business model, our strategy and the key levers that drive our performance.

Thank you again for your trust and continued support. We look forward to updating you on the next quarter. Have a great evening, everyone.

Ladies and gentlemen, this concludes BeFra's Second Quarter 2025 Earnings Conference Call. We would like to thank you again for your participation. You may now disconnect.