Betterware de México, S.A.P.I. de C.V. (NASDAQ:BWMX) Q3 2023 Earnings Call Transcript

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Luis Campos: Yes. What I can tell you is that, the welcome to this rebranding in Jafra has an overwhelmed welcome by our salesforce. I mean, they are really excited. This is a more contemporary, this is a more young and attractive brand name. And they even say, this new branding represents unlimited possibilities for us, okay. Then it has been very, very welcome by our salesforce. Now, we are working and will begin working in the fourth quarter on the brand — new brand architecture, okay. And it will take easily three, four quarters to complete this architecture of our new brand, but it’s going to be really, really good. Yes, that’s what I could tell you.

Cristina Fernandez: Thank you.

Operator: Thank you. Our next question comes from Andres Lomeli with LCA Capital. Please proceed.

Andres Lomeli: Hello, and thank you for taking my call. I wanted to know two questions. What is the reasoning behind removing the associate base and the key salesforce metrics from the quarterly report? And the second question is regarding new projects and investments going forward, such as these new market expansions. How will this translate to the expected CapEx for the upcoming years? If you could provide some color on that, it would be very helpful. Thank you very much.

Luis Campos: Yes, this is Luis. If you notice, we are trying to make our report more concise and objective. We had a recommendation from several investors because it was too long and sometimes they used to miss the key issues in the report. Then we are trying to make a more concise, objective report. And in these chapters, I mean, there was a lot of detail, okay. I think the key issue is to grow the salesforce, okay. There’s always a combination between recruiting and churn rate, but there’s too much detail. I mean, the key issue is how much we are growing our sales force, okay. And this is basically our objective from now on, okay, to keep you on the loop of the relevant issues in the business — in each business.

Andres Lomeli: Perfect. And with regards to the second question…

Luis Campos: Read the second question, please.

Andres Lomeli: Yes. It was regarding expected CapEx for the upcoming years with all these new projects and expansions going forward.

Luis Campos: Yes. We are going to have that. We will define that. In the month of November, beginning of December, we are working on that. And our investments committee of the Board of Directors are working on that with our Corporate CFO. Then, we will give you more light in our next report, okay. But generally speaking, we are going to invest in our expansion to the U.S. In the case of Betterware, we will begin investing some money next year in our expansion to Peru. And on the other hand, we will have our normal CapEx, okay. The only additional CapEx is going to be in our new headquarters of Jafra Mexico in Mexico City, okay. But I think we will be basically at normal levels, generally speaking, in our CapEx for next year.

Andres Lomeli: Perfect. Thank you very much.

Operator: Thank you. At this time there are no further questions. I would like to turn the call back to management for closing comments.

Luis Campos: Well. I would like to thank all of you for attending this conference call, and look forward to see you in our next one, when we report our year 2023 and fourth quarter results. Thank you and have a good day.

Operator: Thank you. This does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

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