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

Small Cap Consumer Research

Equity research on small cap consumer names.

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 and $22.50 price target and raising our 2025 revenue projection, but becoming more conservative on margins and introducing 2026 projections after Betterware de Mexico announced 4Q24 results which demonstrated material top line upside, driven by JAFRA Mexico's over 20% YoY revenue growth.</li><li>That said, 4Q24 EBITDA and EPS were below Street expectations, as JAFRA Mexico margins slightly weakened YoY and the company was impacted by supply chain issues and FX.</li><li>Further, initial 2025 guidance continued the trends with top line guide above and EBITDA below Street consensus.</li></ul>

We are reiterating our Buy rating and $22.50 price target and raising our 2025 revenue projection, but becoming more conservative on margins and introducing 2026 projections after Betterware de Mexico announced 4Q24 results which demonstrated material top line upside, driven by JAFRA Mexico's over 20% YoY revenue growth.That said, 4Q24 EBITDA and EPS were below Street expectations, as JAFRA Mexico margins slightly weakened YoY and the company was impacted by supply chain issues and FX.Further, initial 2025 guidance continued the trends with top line guide above and EBITDA below Street consensus.

BWMX; 4Q Review: Remaining Focused in Uncertain Times; Reiterate Buy, PT