We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May catalog. While May did not register any material new campaigns, and historically is a key transition month, the catalog continued the key tenets of the 2025 focus: 1) more product: SKUs rose YoY 4.6%, the fourth consecutive month of YoY SKU increases; 2) more newness: new product offerings increases YoY, with kitchen the key driver; 3) higher pricing: the average pricing for May was the highest the last four years and up 9.3% YoY and 4) more bargains: May also had a higher level of product discounts YoY, as the Mexican consumer remains focused on bargains; that said, May price cuts were the lowest level in 2025. We believe the May catalog reflected a somewhat resolute Betterware management, focused on driving returns in a tough Mexican economy. We continue to view Betterware as well positioned to capture a greater share of their consumer's spending and reiterate our Buy rating and $22.50 price target.
