Filing Overview
Betterware de México, S.A.P.I. de C.V. filed this Form 6-K on April 23, 2020. The filing addresses the delayed filing of the company’s Form 20-F annual report for the year ended December 31, 2019.
Business Context and Reporting Period
The company operates in the retail industry and reported that the COVID-19 pandemic disrupted travel, transportation, access to company facilities, and staff availability. These disruptions delayed completion of the audit and preparation of the 2019 Form 20-F.
Financial Metrics and Liquidity
This Form 6-K does not provide revenue, profit, cash flow, margins, debt, liquidity, balance sheet, or other financial metrics. The filing does not provide a clear quantitative estimate of COVID-19’s effect on future results, cash flows, or financial condition.
Material Changes and Unusual Items
- The company will rely on SEC Release No. 34-88465, issued in connection with COVID-19, to delay its annual filing.
- The original Form 20-F filing deadline was April 30, 2020.
- The company expected to file the Form 20-F no later than June 14, 2020, representing a 45-day delay.
- The company stated that COVID-19 had disrupted operations of certain distributors and suppliers and increased costs in the retail industry.
Outlook, Risks, and Management Commentary
The company planned to include a COVID-19 risk factor in its 2019 annual report. It warned that quarantines, travel restrictions, business shutdowns, supply-chain disruptions, increased industry costs, and reduced consumer discretionary spending could negatively affect operations and results.
Management stated that the duration and severity of the pandemic and related protective measures were uncertain and that the company could not reasonably estimate the impact on future operations, cash flows, or financial condition. The filing also cautions that forward-looking statements may differ materially from actual results and that the company does not undertake to update them except as required by law.
Investor Verification Checklist
- Verify whether the Form 20-F was filed by the expected June 14, 2020 deadline.
- Review the 2019 Form 20-F for actual financial results, audit conclusions, liquidity, debt, and COVID-19 disclosures.
- Assess the extent of disruption to distributors, suppliers, facilities, and consumer demand.
- Evaluate whether COVID-19-related costs, supply constraints, or reduced discretionary spending materially affected subsequent periods.
- Review any later filings for changes to the company’s outlook, financial condition, and pandemic-related contingencies.