We are reiterating our Buy rating, projections, and $30 price target for Betterware de Mexico after reviewing the April catalog. Released a little bit earlier than expected (to potentially provide Easter driven buying), the April catalog reflects the trends we have seen throughout 4Q25 and 2026: 1) lower SKUs (down 6% YoY); 2) lower levels of new products (down 16% YoY and the lowest SKU level since 2023); 3) lower discount levels (down 260 bp YoY) and 4) lower average price points (down 6% YoY). As such, we believe management continues to focus on overall returns for the Betterware division, with the potential for lower sales and a stabilization of the distributor base; we have projected a 1Q26 2% YoY revenue decline for the Betterware division and a 20 bp gross margin improvement; we believe both of these projections are still achievable.
