Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, $30 price target and projections for Betterware de Mexico as we review the recent release of proforma 1H26 results and review the company’s valuation on multiple cases: 1) as a direct selling entity; 2) as a personal care and housewares company and 3) as a bellwether Mexican publicly traded equity.</li><li> The 1H26 proforma results, confirm the conservative nature of our H26 and 2027 projections; in fact, on a proforma basis we project Betterware will achieve only a 7.3% revenue growth, 2.9% EBITDA increase and virtually no EPS expansion in 2027.</li><li> Even more so now, we view our 2027 projections as conservative.</li></ul>

We are reiterating our Buy rating, $30 price target and projections for Betterware de Mexico as we review the recent release of proforma 1H26 results and review the company’s valuation on multiple cases: 1) as a direct selling entity; 2) as a personal care and housewares company and 3) as a bellwether Mexican publicly traded equity. The 1H26 proforma results, confirm the conservative nature of our H26 and 2027 projections; in fact, on a proforma basis we project Betterware will achieve only a 7.3% revenue growth, 2.9% EBITDA increase and virtually no EPS expansion in 2027. Even more so now, we view our 2027 projections as conservative.

BWMX: Looking at Comps, Proforma 1H; Valuation Highly Compelling

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

<div><ul><li>At the WTR Insights Conference, we hosted a fireside chat with CEO Andrés Campos and CFO Raúl del Villar.</li><li>We discussed the durability of the direct selling model, the recent Tupperware acquisition, BeFra’s “portfolio of powerhouse brands” strategy, the Jafra turnaround, opportunities for geographic expansion, and capital allocation priorities.</li><li>BeFra is more like Procter (PG) or Unilever (UL) than Walmart (WMT) or Amazon (AMZN). BeFra views itself as a house of brands more than as a retailer. </li></ul></div>

At the WTR Insights Conference, we hosted a fireside chat with CEO Andrés Campos and CFO Raúl del Villar.We discussed the durability of the direct selling model, the recent Tupperware acquisition, BeFra’s “portfolio of powerhouse brands” strategy, the Jafra turnaround, opportunities for geographic expansion, and capital allocation priorities.BeFra is more like Procter (PG) or Unilever (UL) than Walmart (WMT) or Amazon (AMZN). BeFra views itself as a house of brands more than as a retailer. 

BWMX: WTR Insights Conference - Tupperware Deal Opens Up New Organic Growth Opportunities

<ul><li>We are reiterating our Buy rating, $30 price target and projections after attending the JAFRA National Convention and meeting with Betterware management.</li><li> We remain impressed with the ability of the JAFRA model to empower their selling base to be “Unstoppable” and believe even, as JAFRA celebrates its 70th anniversary, there remains material growth opportunities in both the United States and Mexico and, eventually, South America.</li><li> Further, we were highly impressed with the continued focus at JAFRA on compelling products that utilize science (and strong marketing) to add material value for the buyers of JAFRA products.</li></ul>

We are reiterating our Buy rating, $30 price target and projections after attending the JAFRA National Convention and meeting with Betterware management. We remain impressed with the ability of the JAFRA model to empower their selling base to be “Unstoppable” and believe even, as JAFRA celebrates its 70th anniversary, there remains material growth opportunities in both the United States and Mexico and, eventually, South America. Further, we were highly impressed with the continued focus at JAFRA on compelling products that utilize science (and strong marketing) to add material value for the buyers of JAFRA products.

BWMX: Unstoppable: Notes from the JAFRA Conference; Reiterate Buy, $30 PT

<div><ul><li>BeFra reported 2Q26 results that included Tupperware Latin America for the first time, with consolidated revenue up 16.8% to Ps 4,161.4 million and EBITDA up 15.0% to Ps 780.4 million.</li><li>Excluding Tupperware, organic revenue at Betterware and Jafra grew 4.1% Y/Y and accelerated 5.7% sequentially, evidence that the recovery seen earlier in the year is broadening across the legacy business rather than fading.</li><li>Both legacy brands showed improving momentum. Betterware extended its recovery with revenue up 3.6% in the quarter, supported by continued double-digit growth in Guatemala and the Andean region, while Jafra returned to Y/Y growth, up 4.5%, as consultant base expansion and innovation initiatives introduced last quarter began to take hold. </li></ul></div>

BeFra reported 2Q26 results that included Tupperware Latin America for the first time, with consolidated revenue up 16.8% to Ps 4,161.4 million and EBITDA up 15.0% to Ps 780.4 million.Excluding Tupperware, organic revenue at Betterware and Jafra grew 4.1% Y/Y and accelerated 5.7% sequentially, evidence that the recovery seen earlier in the year is broadening across the legacy business rather than fading.Both legacy brands showed improving momentum. Betterware extended its recovery with revenue up 3.6% in the quarter, supported by continued double-digit growth in Guatemala and the Andean region, while Jafra returned to Y/Y growth, up 4.5%, as consultant base expansion and innovation initiatives introduced last quarter began to take hold. 

BWMX: 2Q26 Results; Organic Recovery Broadens as Tupperware Exceeds Expectations

<ul><li>We are reiterating our Buy rating and $30 price target for Betterware de Mexico after the company announced strong, above consensus, 2Q26 (June) results, which included both Betterware and JAFRA registering YoY top line growth and the first month of newly acquired Tupperware LatAm operations materially exceeding expectations.</li><li> Further, management materially increased the quarterly dividend payout, signalling strong confidence going forward.</li><li> We believe new, post-acquisition guidance remains achievable (and in our view conservative) and we believe Betterware is now positioned to register strong organic (and Tupperware LatAm driven) growth.</li></ul>

We are reiterating our Buy rating and $30 price target for Betterware de Mexico after the company announced strong, above consensus, 2Q26 (June) results, which included both Betterware and JAFRA registering YoY top line growth and the first month of newly acquired Tupperware LatAm operations materially exceeding expectations. Further, management materially increased the quarterly dividend payout, signalling strong confidence going forward. We believe new, post-acquisition guidance remains achievable (and in our view conservative) and we believe Betterware is now positioned to register strong organic (and Tupperware LatAm driven) growth.

BWMX: 2Q Review: Momentum (& Dividend) Rising; Reiterate Buy, $30 PT

Mexico

Betterware de Mexico SAB de CV sells household products. The Company offers furniture, sink, electronics, utensils, laundry equipment, cleaners, bath accessories, personal care, and other goods. Betterware de Mexico serves customers in Mexico.

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Betterware de Mexico Sab de CV (BWMX US)

BWMX: Looking at Comps, Proforma 1H; Valuation Highly Compelling

We are reiterating our Buy rating, $30 price target and projections for Betterware de Mexico as we review the recent release of proforma 1H26...

Small Cap Consumer Research

BWMX: WTR Insights Conference - Tupperware Deal Opens Up New Organic Growth Opportunities

We discussed the durability of the direct selling model, the recent Tupperware acquisition, BeFra’s “portfolio of powerhouse brands” strategy, the...

Water Tower Research

BWMX: Unstoppable: Notes from the JAFRA Conference; Reiterate Buy, $30 PT

We are reiterating our Buy rating, $30 price target and projections after attending the JAFRA National Convention and meeting with Betterware...

Small Cap Consumer Research

BWMX: 2Q26 Results; Organic Recovery Broadens as Tupperware Exceeds Expectations

BeFra reported 2Q26 results that included Tupperware Latin America for the first time, with consolidated revenue up 16.8% to Ps 4,161.4 million and...

Water Tower Research

BWMX: 2Q Review: Momentum (& Dividend) Rising; Reiterate Buy, $30 PT

We are reiterating our Buy rating and $30 price target for Betterware de Mexico after the company announced strong, above consensus, 2Q26 (June)...

Small Cap Consumer Research

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