Betterware De M Xico S A P I De C V's Comment on Supply Chain
Betterware manufactures a range of products in China using raw materials such as plastics, textiles, and small appliances. Jafra's raw materials include glass, fragrance oils, plastics, folding boxes, and alcohol, with glass comprising 27% of input purchases, plastics 25%, fragrance oils 21%, folding boxes 11%, and alcohol 3%. Jafra experienced a 6% increase in glass prices in 2025 compared to 2024 and anticipates a 4.5% increase in 2026 due to geopolitical tensions. The company has implemented cost-saving measures and sourcing efficiency improvements but does not guarantee full offset of future cost pressures. Import tariffs and wage increases have affected costs, with tariffs impacting gross margin by less than 0.6%. Geopolitical developments in Iran have temporarily raised fuel and input costs, including freight and resins, though these impacts have been limited. Approximately 30% of raw materials are priced in US dollars, exposing the company to currency fluctuation risks, which are managed through hedging contracts. Demand variability also influences product costs, and the company is working to enhance demand forecasting accuracy.
Betterware De M Xico S A P I De C V's Comment on Supply Chain
Betterware manufactures a range of products in China using raw materials such as plastics, textiles, and small appliances. Jafra's raw materials include glass, fragrance oils, plastics, folding boxes, and alcohol, with glass comprising 27% of input purchases, plastics 25%, fragrance oils 21%, folding boxes 11%, and alcohol 3%. Jafra experienced a 6% increase in glass prices in 2025 compared to 2024 and anticipates a 4.5% increase in 2026 due to geopolitical tensions. The company has implemented cost-saving measures and sourcing efficiency improvements but does not guarantee full offset of future cost pressures. Import tariffs and wage increases have affected costs, with tariffs impacting gross margin by less than 0.6%. Geopolitical developments in Iran have temporarily raised fuel and input costs, including freight and resins, though these impacts have been limited. Approximately 30% of raw materials are priced in US dollars, exposing the company to currency fluctuation risks, which are managed through hedging contracts. Demand variability also influences product costs, and the company is working to enhance demand forecasting accuracy.
Sources:
Betterware De M Xico S A P I De C V's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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