May 12, 2020 - PRESS RELEASE - BETTERWARE REPORTS AN INCREASE OF 27.5% IN NET SALES AND 17.2% IN EBITDA VS Q1 2019 - 6-K: Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments | Betterware de Mexico, S.A.P.I. de C.V. (BWMX)

Exhibit 99.1

Q1 2020 Earnings Release

BETTERWARE REPORTS AN INCREASE OF 27.5% IN NET SALES AND 17.2% IN EBITDA VS Q1 2019

Guadalajara, Jalisco, Mexico, May 11, 2020. - Betterware de Mexico S.A.P.I. de C.V. (“Betterware” or the “Company”), announced today its consolidated financial results for the first quarter 2020. The figures presented in this report are expressed in nominal Mexican Pesos (Ps.) unless otherwise noted, are un-audited, prepared in accordance with IFRS and may include minor differences due to rounding.

Message from the Executive Chairman

It is a pleasure to share our financial and operating highlights for Q1 2020 (our first quarterly earnings release) which follows the achievement of a paramount milestone in our operating history, during mid-March, we became the first Mexican company to be directly listed on Nasdaq. The proceeds obtained from the listing will contribute to bolster our business platform, in order to pursue our long-term goals.

In this regard, the incremental commercial outreach provided by our solid distribution network comprised of more than 25,000 distributors and 475,000 associates, together with the inherent benefits from the deployment of cutting-edge technologies, constant product innovation and data analysis, allowed us to reinforce our leadership in the home solutions sector in Mexico.

We have reviewed our commercial strategy for the rest of 2020 and have made the necessary adjustments considering the possible adverse impacts derived from the COVID-19 contingency. We revised our fixed and variable expenses and capex, to focus on expenses and investments related to maintaining the expected sales growth.

Finally, we will continue strengthening our logistics and commercial outreach, including the opening of our new distribution center planned for the fourth quarter of 2020, which will utilize new technologies and automation to improve our operating efficiencies. The economic benefits from these initiatives will be reflected in our 2021 results and future periods.

Luis Campos

Executive Chairman

Message from the CEO

The results obtained during Q1 2020 were the outcome of the growth in distributors (+36.1% vs Q1 2019) and associates (+31.4% vs Q1 2019), which propelled the Company's net sales to reach Ps. $967.9 million, representing an increase of 27.5% compared to the same period of the previous year. Additionally, EBITDA for Q1 2020 amounted to Ps. $238.4 million (+17.2% vs Q1 2019) and Net Income to Ps. $145.5 million (+21.6% vs Q1 2019).

Our results in Q1 2020 were adversely affected during the last two weeks of March due to the COVID-19 pandemic. Our sales estimates were not achieved by Ps. 13.0 million, amount which reduced 0.7pp the expected sales growth for the quarter. Additionally, the Mexican Peso devaluation against the US Dollar impacted our expected gross margin for the quarter, reducing it by 1.8 pp, resulting in a gross margin of 56.1%, and our expected EBITDA margin of 28.5% was also reduced by 3.5 pp resulting in a 25.0% EBITDA margin.

Regarding our financial position, as of March 31, 2020, our net debt to EBITDA ratio remained at healthy levels of 0.2x; while a strong generation of cash led to a 25.9% increase in the Adjusted Levered Free Cash Flow, thus boosting our liquidity.

Andres Campos

CEO & Board Member

Q1 2020 Earnings Release

Betterware de Mexico, S.A.P.I. de C.V.

Consolidated Statements of Financial Position

As of March 31, 2020 and 2019

(In Thousands of Mexican Pesos)

	Mar-31 2020			Mar-31 2019
Assets
Cash and cash equivalents		277,858			132,723
Trade accounts receivable, net		337,004			281,103
Accounts receivable from related parties		1,010			420
Inventories		319,423			352,316
Prepaid expenses		37,915			49,255
Other assets		26,565			17,611
Derivative financial instruments		65,501			-
Total current assets		1,065,276			833,428
Property, plant and equipment, net		243,503			94,611
Right of use assets, net		21,305			33,634
Deferred income tax		5,082			-
Intangible assets, net		307,088			314,537
Goodwill		348,441			348,441
Other assets		3,688			24,632
Total non-current assets		929,107			815,855
Total assets		1,994,383			1,649,283

Liabilities and Stockholders’ Equity
Borrowings		125,921			148,581
Accounts payable to suppliers		681,215			453,430
Accrued expenses		81,367			67,386
Provisions		54,404			37,318
Income tax payable		37,431			45,259
Value added tax payable		41,496			24,827
Statutory employee profit sharing		6,364			3,780
Lease liability		16,985			26,814
Derivative financial instruments		3,142			8,509
Total current liabilities		1,048,325			815,904
Employee benefits		1,189			1,211
Derivative financial instruments		23,789			8,120
Deferred income tax		78,501			69,347
Lease liability		4,989			7,876
Borrowings		322,568			546,925
Total non-current liabilities		431,036			633,479
Total liabilities		1,479,361			1,449,383

Stockholders’ Equity
Capital stock		220,981			55,985
Retained earnings		293,876			143,870
Other comprehensive income		168			45
Non-controlling interest		(3	)		-
Total Stockholders’ Equity		515,022			199,900
Total Liabilities and Stockholders’ Equity		1,994,383			1,649,283

Q1 2020 Earnings Release

Betterware de Mexico, S.A.P.I. de C.V.

Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the three-months ended March 31, 2020 and 2019

(In Thousands of Mexican Pesos)

	Q1 2020			Q1 2019			∆%
Net revenue		952,685			747,175			27.5	%
Cost of sales		418,069			303,902			37.6	%
Gross profit		534,616			443,273			20.6	%

Administrative expenses		129,612			103,990			24.6	%
Selling expenses		135,095			113,192			19.4	%
Distribution expenses		40,473			31,398			28.9	%
Total expenses		305,180			248,580			22.8	%
Operating income		229,436			194,693			17.8	%

Interest expense*		(40,399	)		(22,559	)		79.1	%
Interest income		2,710			1,709			58.6	%
Unrealized gain in valuation of financial derivative instruments		70,879			-			100.0	%
Foreign exchange loss, net		(51,837	)		(521	)		9849.5	%
Financing cost, net		(18,647	)		(21,371	)		-12.7	%

Income before income taxes		210,789			173,322			21.6	%

Income taxes		65,289			53,686			21.6	%

Net income		145,500			119,636			21.6	%

Interest expense in 1Q 2020 include a prepayment commission of Ps. 20,700 for the early amortization of an outstanding loan

EBITDA breakdown (Ps. $238.4 million)

Concept	Q1 2020			Q1 2019			∆%
Net income		145,500			119,636			21.6	%
(+) Income taxes		65,289			53,686			21.6	%
(+) Financing cost, net		18,647			21,371			-12.7	%
(+) Depreciation and amortization		8,970			8,654			3.7	%
EBITDA		238,406			203,347			17.2	%
EBITDA margin		25.0	%		27.2	%		-2.2	pp

Q1 2020 Earnings Release

Betterware de Mexico, S.A.P.I. de C.V.

Consolidated Statements of Cash Flows

For the three-months ended March 31, 2020 and 2019

(In Thousands of Mexican Pesos)

	Q1 2020			Q1 2019
Cash flows from operating activities:
Net income for the period		145,500			119,636

Adjustments for:
Income tax expense		65,289			53,686
Depreciation and amortization of non-current assets and right of use assets		8,970			8,654
Interest income recognized in profit or loss		(2,710	)		(1,709	)
Interest expense recognized in profit or loss		19,699			22,559
Unrealized gain in valuation of financial derivative instruments		(70,879	)		-

Movements in working capital:
Trade accounts receivable		(89,917	)		(82,327	)
Accounts receivable from related parties		(400	)		(420	)
Inventory		26,131			(50,110	)
Prepaid expenses and other assets		18,961			(15,381	)
Accounts payable to suppliers and accrued expenses		178,778			38,869
Provisions		7,715			(1,668	)
Value added tax payable		11,197			7,203
Statutory employee profit sharing		1,358			1,064
Income taxes paid		(62,567	)		(38,723	)
Employee benefits		(441	)		(144	)
Net cash provided by operating activities		256,684			61,189

Cash flows from investing activities:
Payments for property, plant and equipment		(39,998	)		(60,981	)
Interest received		1,402			619
Net cash used in investing activities		(38,596	)		(60,362	)

Cash flows from financing activities:
Repayment of borrowings		(300,000	)		(54,173	)
Proceeds from borrowings		74,000			98,243
Interest paid		(22,923	)		(24,602	)
Dividends and Capital stock increase, net		94,996			(64,955	)
Net cash used in financing activities		(153,927	)		(45,487	)
Net increase (decrease) in cash and cash equivalents		64,161			(44,660	)
Cash and cash equivalents at the beginning of the period		213,697			177,383
Cash and cash equivalents at the end of the period		277,858			132,723

Q1 2020 Earnings Release

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “plan”, “predict”, “potential”, “seem”, “seek,” “future,” “outlook”, and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The reader should understand that the results obtained may differ from the projections contained in this document, as past results in no way offer any guarantee of future performance. For this reason, the Company assumes no responsibility for any indirect factors or elements beyond its control that might occur inside Mexico or abroad and which might affect the outcome of these projections.

Q1 2020 Earnings Release

Q1 2020 Conference Call

Management will hold a conference call with investors on May 12^th, 2020 at 9am Central Standard Time (CST)/10am Eastern Time (EST). For anyone who wishes to join live, the dial-in information is:

Toll Free: 1-877-451-6152

Toll/International: 1-201-389-0879

Conference ID: 13703480

If you wish to listen to the replay of the conference call, please see instructions below:

Toll Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Pin Number: 13703480

Form: 6-K

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