Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | BETTERWARE DE MEXICO, S.A.P.I. DE C.V |
Trading Symbol | BWMX |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 37,316,546 |
Amendment Flag | false |
Entity Central Index Key | 0001788257 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39251 |
Entity Incorporation, State or Country Code | 2P |
Contact Personnel Name | Luis Campos |
Entity Address, Address Line One | Luis Enrique Williams 549 |
Entity Address, City or Town | Zapopan |
Entity Address, Postal Zip Code | 45145 |
Title of 12(b) Security | Ordinary Shares, no par value per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Name | Deloitte Touche Tohmatsu Limited |
Auditor Firm ID | 1153 |
Auditor Location | Guadalajara, Jalisco, Mexico |
Entity Address, Country | MX |
Business Contact | |
Document Information Line Items | |
Contact Personnel Name | Luis Campos |
City Area Code | (33) |
Local Phone Number | 3836-0500 |
Entity Address, Address Line One | Luis Enrique Williams 549 |
Entity Address, City or Town | Zapopan |
Entity Address, Postal Zip Code | 45145 |
Entity Address, Country | MX |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 815,644 | $ 1,175,198 | $ 649,820 |
Trade accounts receivable, net | 971,063 | 745,593 | 735,026 |
Accounts receivable from related parties | 61 | 24 | |
Inventories | 2,122,670 | 1,286,155 | 1,284,672 |
Prepaid expenses | 52,562 | 35,596 | 52,581 |
Derivative financial instruments | 28,193 | ||
Income tax recoverable | 204,860 | ||
Other assets | 188,266 | 81,988 | 130,417 |
Total current assets | 4,355,126 | 3,352,747 | 2,852,516 |
Non-current assets: | |||
Property, plant and equipment, net | 2,973,374 | 1,069,492 | 791,127 |
Right-of-use assets, net | 293,565 | 17,384 | 24,882 |
Deferred income tax | 319,157 | 17,605 | |
Investment in subsidiaries | 1,236 | 497 | |
Intangible assets, net | 1,743,882 | 369,760 | 319,361 |
Goodwill | 1,599,718 | 371,075 | 348,441 |
Other assets | 46,675 | 4,274 | 5,774 |
Total non-current assets | 6,977,607 | 1,832,482 | 1,507,190 |
Total assets | 11,332,733 | 5,185,229 | 4,359,706 |
Current liabilities: | |||
Short term debt and borrowings | 230,419 | 28,124 | 105,910 |
Accounts payable to suppliers | 1,371,778 | 1,984,932 | 2,078,628 |
Accounts payable to related parties | 96,859 | ||
Accrued expenses | 305,588 | 159,354 | 109,767 |
Provisions | 793,412 | 118,468 | 153,978 |
Income tax payable | 97,634 | 85,221 | |
Value added tax payable | 89,142 | 26,703 | |
Employee profit sharing payable | 135,298 | 55,305 | 7,354 |
Lease liability | 85,399 | 6,102 | 7,691 |
Derivative financial instruments | 15,329 | 295,115 | |
Total current liabilities | 3,123,224 | 2,449,919 | 2,870,367 |
Non-current liabilities: | |||
Statutory employee benefits | 153,907 | 2,093 | 1,678 |
Derivative financial instruments | 25,179 | ||
Deferred income tax | 833,557 | 38,975 | 39,852 |
Lease liability | 206,509 | 11,778 | 16,687 |
Long term debt and borrowings | 5,918,256 | 1,482,261 | 523,967 |
Total non-current liabilities | 7,112,229 | 1,535,107 | 607,363 |
Total liabilities | 10,235,453 | 3,985,026 | 3,477,730 |
Stockholder’s equity | |||
Common stock | 321,312 | 321,312 | 308,035 |
Share premium account | (12,671) | 6,659 | 909,428 |
Retained earnings (deficit) | 779,941 | 856,994 | (334,769) |
Other comprehensive income | 7,515 | 583 | (718) |
Equity attributable to owners of the Group | 1,096,097 | 1,185,548 | 881,976 |
Non-controlling interest | 1,183 | 14,655 | |
Total stockholders’ equity | 1,097,280 | 1,200,203 | 881,976 |
Total liabilities and stockholders’ equity | $ 11,332,733 | $ 5,185,229 | $ 4,359,706 |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss and Other Comprehensive Income $ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 MXN ($) $ / shares | Dec. 31, 2021 MXN ($) $ / shares | Dec. 31, 2020 MXN ($) $ / shares | |
Profit or loss [abstract] | |||
Net revenue | $ 11,507,549 | $ 10,067,683 | $ 7,237,628 |
Cost of sales | 3,579,093 | 4,498,008 | 3,280,348 |
Gross profit | 7,928,456 | 5,569,675 | 3,957,280 |
Administrative expenses | 2,596,642 | 1,247,742 | 667,647 |
Selling expenses | 2,808,030 | 1,256,289 | 895,275 |
Distribution expenses | 473,516 | 463,779 | 331,023 |
Total operating expense | 5,878,188 | 2,967,810 | 1,893,945 |
Divestment of subsidiaries | (21,862) | ||
Operating income | 2,028,406 | 2,601,865 | 2,063,335 |
Financing income (cost): | |||
Interest expense | (543,321) | (75,818) | (80,253) |
Interest income | 28,689 | 25,872 | 10,930 |
Unrealized (loss) gain in valuation of derivative financial instruments | (43,522) | 330,315 | (287,985) |
Changes in fair value of warrants | (851,520) | ||
Foreign exchange loss, net | (83,368) | (319,739) | (30,402) |
Total financing income (cost) | (641,522) | (39,370) | (1,239,230) |
Income before income taxes | 1,386,884 | 2,562,495 | 824,105 |
Income taxes: | |||
Current | 533,522 | 791,856 | 576,834 |
Deferred | (16,602) | 22,700 | (51,173) |
Net income for the year | 869,964 | 1,747,939 | 298,444 |
Net income for the year attributable to: | |||
Owners of the Group | 872,557 | 1,751,645 | 298,444 |
Non-controlling interest | (2,593) | (3,706) | |
Total net income for the year | 869,964 | 1,747,939 | 298,444 |
Items that are or may be reclassified subsequently to profit or loss: | |||
Currency effects | (8,653) | ||
Items that will not be reclassified subsequently to profit or loss: | |||
Remeasurement of defined benefit obligation, net of taxes | 15,585 | 83 | (839) |
Total comprehensive income for the year | 876,896 | 1,748,022 | 297,605 |
Comprehensive income for the year attributable to: | |||
Owners of the Group | 879,489 | 1,751,728 | 297,605 |
Non-controlling interest | (2,593) | (3,706) | |
Total comprehensive income for the year | $ 876,896 | $ 1,748,022 | $ 297,605 |
Basic earnings per common share (pesos) (in Pesos per share) | (per share) | $ 23.42 | $ 47.38 | $ 8.76 |
Diluted earnings per common share (pesos) (in Pesos per share) | (per share) | $ 23.41 | $ 46.91 | $ 8.68 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - MXN ($) $ in Thousands | Common stock | Share premium account | Retained earnings (deficit) | Other comprehensive income | Non- controlling interest | Total |
Balance at Dec. 31, 2019 | $ 55,985 | $ 218,376 | $ 121 | $ 274,482 | ||
Capital increase | 225,737 | 909,428 | 1,135,165 | |||
Other capital movements | 26,313 | (26,313) | ||||
Effects of merger with related party | 4,724 | 4,724 | ||||
Dividends paid | (830,000) | (830,000) | ||||
Total comprehensive income for the year | 298,444 | (839) | 297,605 | |||
Balance at Jan. 03, 2020 | 308,035 | 909,428 | (334,769) | (718) | 881,976 | |
Balance at Dec. 31, 2019 | 55,985 | 218,376 | 121 | 274,482 | ||
Total comprehensive income for the year | 297,605 | |||||
Balance at Dec. 31, 2020 | 308,035 | 909,428 | (371,169) | (718) | 845,576 | |
Balance at Jan. 03, 2020 | 308,035 | 909,428 | (334,769) | (718) | 881,976 | |
Balance at Dec. 31, 2020 | 308,035 | 909,428 | (371,169) | (718) | 845,576 | |
Accounting effects from changing reporting period | (36,400) | (36,400) | ||||
Other capital movements | 13,277 | (26,251) | 1,218 | (11,756) | ||
Dividends paid | (1,400,000) | (1,400,000) | ||||
Effect of acquisition of subsidiaries | 18,361 | 18,361 | ||||
Total comprehensive income for the year | 1,751,645 | 83 | (3,706) | 1,748,022 | ||
Balance at Dec. 31, 2021 | 321,312 | 6,659 | 856,994 | 583 | 14,655 | 1,200,203 |
Reclassification of share premium to retained earnings | (876,518) | 876,518 | ||||
Other capital movements | (19,330) | (19,330) | ||||
Movements in non-controlling interest | (10,879) | (10,879) | ||||
Dividends paid | (949,610) | (949,610) | ||||
Total comprehensive income for the year | 872,557 | 6,932 | (2,593) | 876,896 | ||
Balance at Dec. 31, 2022 | $ 321,312 | $ (12,671) | $ 779,941 | $ 7,515 | $ 1,183 | $ 1,097,280 |
Consolidated and combined state
Consolidated and combined statements of cash flows - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income for the year | $ 869,964 | $ 1,747,939 | $ 298,444 |
Adjustments for: | |||
Income tax expense | 516,920 | 814,556 | 525,661 |
Depreciation and amortization | 287,702 | 82,122 | 43,688 |
Accounting effects from changing reporting period | (36,400) | ||
Interest expense | 543,321 | 75,818 | 80,253 |
Interest income | (28,689) | (25,872) | (10,930) |
Loss (gain) on disposal of non-current assets | 4,758 | (478) | 9,216 |
Share-based payment expense | 5,991 | 32,910 | |
Divestment of subsidiaries | 10,983 | ||
Others | (8,653) | (12,974) | |
Changes in fair value of warrants | 851,520 | ||
Unrealized (gain) loss in valuation of derivative financial instruments | 43,522 | (330,315) | 287,985 |
Total adjustments | 2,245,819 | 2,314,396 | 2,118,747 |
(Increase) decrease in: | |||
Trade accounts receivable | 266,640 | (21,347) | (487,938) |
Trade accounts receivable from related parties | 30,246 | (24) | 610 |
Inventory | 171,260 | 4,893 | (939,118) |
Prepaid expenses and other assets | (48,383) | 22,894 | (53,611) |
Accounts payable to suppliers and accrued expenses | (940,039) | (64,699) | 1,604,589 |
Trade accounts payable to related parties | 97,029 | ||
Provisions | (24,640) | (35,537) | 107,289 |
Value-added tax payable | 110,231 | (26,703) | (3,596) |
Statutory employee profit sharing | 22,798 | 47,951 | 2,348 |
Employee benefits | 21,268 | 1,722 | (743) |
Income taxes paid | (542,527) | (777,949) | (526,321) |
Net cash provided by operating activities | 1,409,702 | 1,465,597 | 1,822,256 |
Investing activities: | |||
Payment of business acquisition net of cash acquired | (4,698,463) | ||
Other investment in subsidiaries | (1,886) | 50 | |
Payments of fixed and intangible assets | (175,653) | (401,736) | (617,686) |
Proceeds from disposal of fixed assets | 22,091 | 12,521 | 18,270 |
Interest received | 28,689 | 25,872 | 10,930 |
Restricted cash | 42,915 | (42,915) | |
Net cash used in investing activities | (4,825,222) | (320,378) | (631,401) |
Financing activities: | |||
Proceeds from borrowings | 5,818,705 | 1,520,000 | 1,712,207 |
Repayment of borrowings | (1,120,025) | (646,716) | (1,757,112) |
Repayment of derivative financial instruments | (18,172) | ||
Bond issuance costs | (88,722) | (18,931) | |
Interest paid on borrowings | (502,847) | (49,123) | (121,297) |
Lease payments | (76,214) | (6,899) | (8,825) |
Cash received for issuance of shares | 250,295 | ||
Share repurchases | (25,321) | ||
Dividends paid | (949,610) | (1,400,000) | (830,000) |
Net cash generated by (used in) financing activities | 3,055,966 | (619,841) | (754,732) |
(Decrease) increase in cash and cash equivalents | (359,554) | 525,378 | 436,123 |
Cash and cash equivalents at the beginning of year | 1,175,198 | 649,820 | 213,697 |
Cash and cash equivalents at the end of year | $ 815,644 | $ 1,175,198 | $ 649,820 |
Nature of business and signific
Nature of business and significant events | 12 Months Ended |
Dec. 31, 2022 | |
Nature of business and significant events [Abstract] | |
Nature of business and significant events | 1. Nature of business and significant events Betterware de México, S.A. P.I. de C.V. (formerly Betterware de México, S.A.B. de C.V.) (“Betterware”) and subsidiaries, hereinafter jointly referred to as the “Group” or the “Company”. The Group’s object is the direct-to-consumer selling, which operates through two business segments: the home organization products (“Betterware segment” or “BWM segment”) and the beauty and personal care products (B&PC) (“JAFRA segment”). The Betterware’s segment is divided in six categories of the home organization: (i) Kitchen and food preservation, (ii) Home solutions, (iii) Bedroom, (iv) Bathroom, (v) Laundry & Cleaning and (vi) Tech & mobility. The JAFRA’s segment is divided in four categories of the beauty and personal care: (i) fragrance, (ii) color, (iii) skin care and (iv) toiletries. The Group’s business segments products are sold in twelve catalogs published throughout the year. The Group operates mainly in Mexico and the United States. The Group’s address, registered as its office and primary place of business, is Gdl-Ameca-Huaxtla Km-5, El Arenal, Jalisco, México, and Zip Code 45350. Betterware’s controlling shareholder is Campalier, S.A. de C.V. (“Campalier”). Significant events and transactions – 2022 a) On January 18, 2022, the Company entered into an agreement to acquire 100% of JAFRA in Mexico and the United States, jointly its registered brans “JAFRA”, for a total cash consideration of Ps.5,044,371 (see note 11). JAFRA is a leading global brand in direct sales in the Beauty and Personal Care (B&PC) industry with a strong presence in Mexico and the United States with independent leaders and consultants who sell its unique products. In addition, JAFRA provides the opportunity to the Company to expand its geographic presence in the United States, enhancing its international focus on the North American market. On March 24, 2022, the Federal Economic Competition Commission (“COFECE”) approved the transaction of JAFRA’s Acquisition, which was concluded on April 7, 2022. The necessary funds to pay the purchase price under the JAFRA Acquisition were obtained from a long-term loan of Ps.4,498,695 (see note 16), plus the available cash resources from the Company. b) On March 28, 2022, the Ordinary General Assembly of Shareholders of GurúComm, S.A.P.I. approved the retirement of Betterware as a shareholder. Consequently, we reimbursed 55,514 subscribed and paid shares, and we canceled 37,693 subscribed and unpaid shares. Betterware withdrawn its investment because the business was not growing according to the shareholders’ expectations, and the investment return would take more years than anticipated. The effect on profit and loss of this transaction was a loss of Ps.16,610. c) On November 18, 2022, the Ordinary General Assembly of Shareholders of Innova Catálogos, S.A. de C.V. approved the retirement of Betterware as a shareholder. Consequently, we reimbursed and canceled 238 subscribed and paid shares. Betterware withdrawn its investment because the business was not growing according to shareholder’s expectations, and the return on investment would take more years than anticipated. The effect on profit and loss of this transaction was a loss of Ps.5,252. 2021 d) On July 1 st e) Betterware’s legal form was changed to Sociedad Anónima Promotora de Inversión (S.A.P.I.) de Capital Variable, f) On August 30, 2021, Betterware successfully concluded the offering of a two-tranche sustainability bond issuance for a total of Ps.1,500,000, with maturities across 4 and 7 years, offered in the Mexican Market (see note 16). 2020 g) As a result of the coronavirus (COVID-19) outbreak and its global spread in a large number of countries, the World Health Organization classified the viral outbreak as a pandemic on March 11, 2020. Public health measures were taken in Mexico to limit the spread of this virus, including but not limited to, social isolation and the closure of educational centers (schools and universities), commercial establishments and non-essential businesses. Betterware’s operations were not interrupted as a result of the COVID-19 pandemic, as its product lines include hygiene and cleaning solutions, which qualified as an essential activity in Mexico. Betterware’s gross margin was negatively affected by the depreciation of the Mexican peso compared to the US dollar, due to 90% of its prod ucts sold are in US dollars. To mitigate this risk, Betterware entered into forwards contracts to fix the exchange rate for future purchases in US dollars, which allowed it to partially reduce the effects of the exchange rate due to the COVID-19 pandemic. Betterware implemented a proven track record of performance and a clear and executable growth plan, which includes expansion in current geographies and categories, as well as the addition of new markets and product extensions, all supported by a strong infrastructure deeply rooted in business intelligence. Betterware maintained sufficient liquidity to comply with its contractual obligations as a result of having financing sources, in addition, the payment conditions of its clients are maintained between 14 and 28 days, while the payment conditions to its suppliers are 120 days. h) On March 10, 2020, Betterware’s legal name changed from Betterware de México, S.A. de C.V. to Betterware de México, S.A.P.I. de C.V. On August 5, 2019, Betterware and DD3 Acquisition Corp. (“DD3”, a public listed entity in the US and whose shares were trading on the Nasdaq Capital Market (“Nasdaq”)), announced they had entered into a business combination agreement. As part of this transaction, DD3 merged into Betterware through an exchange of shares with their respective shareholders and Betterware survived as the acquiror. BLSM became in a wholly-owned subsidiary of Betterware. The transaction closed on March 13, 2020, and as a result, all Betterware shares that were issued and outstanding immediately prior to the closing date were canceled and new shares were issued. This transaction was accounted as a capital reorganization, whereby Betterware issued shares to the DD3 shareholders and obtained US$22,767 (Ps.498,445) in cash through the acquisition of DD3 and, simultaneously settled liabilities and related transaction costs on that date, for net cash earnings of US$7,519 (Ps.181,734) on such date. In addition, Betterware assumed the obligation of the warrants issued by DD3 (see description below), a liability inherent to the transaction, equivalent to the fair value of Ps.55,810 of the warrants. No other assets or liabilities were transferred as part of the transaction that required adjustment to fair value as a result of the acquisition. On the same date, 2,040,000 Betterware shares, that were offered for subscription and payment under its initial public offering on Nasdaq, were subscribed and paid for by different investors. As of the closing date of the transaction, BLSM became in a fully-owned subsidiary of Betterware. The acquisition by Betterware of BLSM was considered a common control transaction and accounted for as a pooling of interests, whereby the historical values of BLSM’s assets and liabilities where the same before and after. As a result of the transaction, Betterware’s original shareholders held 87.7% of the total outstanding shares; DD3 shareholders obtained a 6.4% stake, and investors under the Nasdaq listing, a 5.9% shake. After the closing date, Betterware had 34,451,020 issued and outstanding shares. i) On March 10, 2020 and as a result of the aforementioned transaction, the warrants that DD3 had issued were automatically converted into warrants for the purchase of a total of 5,804,125 Betterware shares. Such warrants were exercised in accordance with the terms of the warrant agreement governing those securities, which also considered the option to purchase 250,000 units that automatically became an option to issue 250,000 Betterware shares and warrants to buy 250,000 additional Betterware shares. This purchase option of units resulted in the issuance of 214,020 Betterware shares, which were exercised on a cashless basis. Warrants could be exercised starting on April 12, 2020 and expired on November 9, 2020 (see note 1.m). The exercise price of the warrants was US$11.50 per share, adjusted by dividends paid that exceeded US$0.50 per share within a year, resulting in an exercise price of US$11.44. As warrants and securities purchase options (and underlying securities) were exercised in the 53-week period ended January 3, 2021, additional Betterware shares were issued, resulting in a dilution for Betterware shareholders and increasing the number of Betterware shares eligible for resale in the public market. j) On July 30, 2020, Betterware modified the long-term share-based incentive plan with the Executive Chairman of the Board, certain officers and directors (“Incentive Plan”), granted on August 15, 2019. The purpose of the Incentive Plan was and remains being to provide to the Executive Chairman of the Board, eligible officers and directors with the opportunity to receive share-based incentives to encourage them to contribute significantly to the growth of the Group and to align the economic interests of those individuals with those of the shareholders. The delivery of certain shares to the executives and directors was agreed and approved by the Board of Directors. The Incentive Plan is aligned with the shareholders’ interest in terms of the management capacity to obtain operating results that potentially benefit the share price; if the established results are achieved, it will cause a gradual delivery of shares over a period of 4 to 5 years (see note 23. k) On July 14, 2020, Betterware’s legal name changed from Betterware de México, S.A.P.I. de C.V. to Betterware de México, S.A.B. de C.V. l) On August 28, 2020, Betterware filed a Registration Statement on Form F-1 with the SEC in order to (i) register the warrants that were protected under the Registration Rights Agreement, and (ii) modify the Registration Declaration on Form F-4 that had been filed with the SEC on January 22, 2020. In the terms established in the Registration Declaration, it was effective on September 11, 2020. The registration of Form F-1 triggered the investors rights to exercise their warrants on a cash basis. m) On October 8, 2020, Betterware announced that, based on the agreements reached at the Ordinary General Shareholders’ meeting held on October 2, 2020, it would carry out the redemption of all outstanding warrants for the purchase of shares of Betterware. As a result of the redemption, a “cashless” exercise of the warrants was considered for an exercise price of US$11.44 per share, expiring on November 9, 2020, with which the warrant holders would receive 0.37 shares of Betterware for each warrant that was redeemed n) On December 14, 2020, Betterware and Promotora Forteza, S.A. de C.V. (“Forteza”, and one of Betterware’s shareholder), entered into a merger agreement pursuant to which Forteza agreed to merge with and into Betterware, surviving Betterware as the acquiror. On December 16, 2020, the merger was completed. Consequently, considering that Forteza was a Betterware shareholder, the number of Betterware shares were delivered to Forteza’s shareholders in proportion to their shareholding in Betterware, without implying an increase in Betterware’s share capital or in the total number of outstanding shares of Betterware. The net effects of the merger was an increase in equity of Ps.4,724. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies a. Basis of preparation The Group’s consolidated financial statements for 2022 include the financial statements of Betterware de México, S.A.P.I. de C.V., and subsidiaries as described in note 2d (the “consolidated financial statements”). The preparation of the consolidated financial statements in accordance with International Financial Reporting Standards requires the use of critical accounting estimates. In addition, it requires Management to exercise judgment in the process of applying the Group’s accounting policies. The areas that involve a high level of judgment or complexity, as well as areas where the judgments and estimates are significant to the consolidated financial statements are disclosed in note 4. Until 2020, Betterware’s financial year was a 52- or 53-weeks period ending on the Sunday nearest to December 31, however, due to the fact that in 2021 Betterware placed debt on the Mexican Stock Exchange, the financial period must be presented in compliance with the Mexican General Corporate Law, which must coincide with the calendar year, therefore the financial information of 2022 and 2021 is presented as of December 31, 2022 (the “2022 period”) and as of December 31, 2021 (the “2021 period”) and for the years then ended. The financial year of 2020 consisted of 53 weeks ended on January 3, 2021 (the “2020 period”), which were not adjusted to calendar year because the effect of the change is not significant. b. Basis of accounting & correction of immaterial errors The Group’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) or and the interpretations issued by IFRS Interpretations Committee (“IFRIC”) applicable to companies that report under IFRS. The financial statements comply with IFRS issued by the International Accounting Standards Board (“IASB”). The Group made a correction of immaterial errors related to its December 31, 2021 and January 3, 2021 consolidated financial statements as summarized below. The Group performed a materiality evaluation in accordance with the Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, and concluded that the misstatement was immaterial to its previously issued financial statements. However, as the impact of correcting the cumulative misstatement during 2022 would have been material to net earnings, the Company revised its previously issued financial statements as of and for the years ended December 31, 2021 and January 3, 2021: Consolidated Statement of Financial Position as of December 31, 2021 Assets Adjusted Previously Presented Difference Reference Current assets: Trade accounts receivable, net $ 745,593 778,054 (32,461 ) a Inventories 1,286,155 1,339,378 (53,223 ) a, b Prepaid expenses 35,596 69,224 (33,628 ) c Total current assets 3,352,747 3,472,059 (119,312 ) Total assets $ 5,185,229 5,304,541 (119,312 ) Liabilities and stockholders’ equity Current liabilities: Accrued expenses $ 159,354 142,169 17,185 b Provisions 118,468 115,192 3,276 d Income tax payable 97,634 88,679 8,955 f Total current liabilities $ 2,449,919 2,420,503 29,416 Non-current liabilities: Deferred income tax $ 38,975 80,907 (41,932 ) a, b, c, d Total non-current liabilities 1,535,107 1,577,039 (41,932 ) Total liabilities $ 3,985,026 3,997,542 (12,516 ) Stockholder’s equity Capital stock $ 321,312 294,999 26,313 e Retained earnings (deficit) 856,994 990,103 (133,109 ) a, b, c, d, e, f Equity attributable to owners of the Group 1,185,548 1,292,344 (106,796 ) Total stockholders’ equity 1,200,203 1,306,999 (106,796 ) Total liabilities and stockholders’ equity $ 5,185,229 5,304,541 (119,312 ) Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended December 31, 2021 Adjusted Previously Presented Difference Reference Net revenue $ 10,067,683 10,039,668 28,015 a Cost of sales 4,498,008 4,399,164 98,844 a, b Gross profit 5,569,675 5,640,504 (70,829 ) Administrative expenses 1,247,742 1,247,436 306 d Selling expenses 1,256,289 1,264,581 (8,292 ) c Distribution expenses 463,779 463,779 - 2,967,810 2,975,796 (7,986 ) Operating income 2,601,865 2,664,708 (62,843 ) Income before income taxes 2,562,495 2,625,338 (62,843 ) Current income tax 791,856 782,901 8,955 f Deferred income tax 22,700 41,553 (18,853 ) a,b,c,d Net income for the year $ 1,747,939 1,800,884 (52,945 ) Consolidated Statement of Financial Position as of January 3, 2021 Assets Adjusted Previously Presented Difference Reference Current assets: Trade accounts receivable, net $ 735,026 757,806 (22,780 ) a Inventories, net 1,284,672 1,274,026 10,646 a Prepaid expenses 52,581 94,501 (41,920 ) c Total current assets 2,852,516 2,906,570 (54,054 ) Total assets $ 4,359,706 4,413,760 (54,054 ) Liabilities and stockholders’ equity Current liabilities: Provisions 153,978 151,008 2,970 d Total current liabilities $ 2,870,367 2,867,397 2,970 Non-current liabilities: Deferred income tax $ 39,852 56,959 (17,107 ) a, b, c, d Total non-current liabilities 607,363 624,470 (17,107 ) Total liabilities $ 3,477,730 3,491,867 (14,137 ) Stockholder’s equity Capital stock 308,035 281,722 26,313 Retained earnings (deficit) $ (334,769 ) (268,539 ) (66,230 ) a, b, c, d, e Equity attributable to owners of the Group 881,976 921,893 (39,917 ) Total stockholders’ equity 881,976 921,893 (39,917 ) Total liabilities and stockholders’ equity $ 4,359,706 4,413,760 (54,054 ) Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended January 3, 2021. Adjusted Previously Presented Difference Reference Net revenue $ 7,237,628 7,260,408 (22,780 ) a Cost of sales 3,280,348 3,290,994 (10,646 ) a Gross profit 3,957,280 3,969,414 (12,134 ) Administrative expenses 667,647 664,677 2,970 d Selling expenses 895,275 853,355 41,920 c Distribution expenses 331,023 331,023 - 1,893,945 1,849,055 44,890 Operating income 2,063,335 2,120,359 (57,024 ) Income before income taxes 824,105 881,129 (57,024 ) Deferred income tax (51,173 ) (34,066 ) (17,107 ) Net income for the year $ 298,444 338,361 (39,917 ) The adjustments relate to the following matters: (a) Cut-off for revenue where control was not transferred to the customer. (b) Cost of inventory overstated on the international freight standard cost assumption; offset by overstated accruals liabilities on import expenses. (c) Cost of catalogues that had a non-GAAP treatment as prepaids and were expensed at the same time the revenues were realized; instead of when catalogues were received as IFRS states. (d) Immaterial provisions for labor matters. (e) Reclassification between capital stock and retained earnings for combination instead of consolidation of capital in 2020. (f) Accrual for the tax contingency explained in note 28 was not recorded previously. c. Basis of measurement The Group’s consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments measured at fair value. Functional and presentation currency These consolidated financial statements are presented in Mexican pesos (“Ps or $”), which is the Group presentation currency. The amounts included in the consolidated financial statements of each of the Group’s subsidiaries must be measured using the currency of the primary economic environment in which the entity operates (“functional currency”). All financial information presented in Mexican pesos has been rounded to the nearest thousand (except where otherwise specified). When referring to U.S. dollars (“US$”), means thousands of United States dollars. Consolidated statement of profit or loss and other comprehensive income The Group opted to present a single consolidated statement of profit or loss and comprehensive income, consolidating the presentation of profit and loss, including an operating profit line item, and comprehensive income in the same statement. Due to the commercial activities of the Group, costs and expenses presented in the consolidated statements of profit or loss and other comprehensive income were classified according to their function. Accordingly, cost of sales and operating expenses were presented separately. d. Basis of consolidation The Group’s consolidated financial statements, incorporate the financial statements of the entities controlled by Betterware. Control is achieved when the Group: ● Has the power over the investee ● Is exposed, or has rights, to variable returns from its involvement with the investee ● Has the ability to use its power to affect its returns The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Group has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances an assessing whether or not the Group´s voting rights in an investee are sufficient to give power, including: ● The size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; ● Potential voting rights held by the Group, other vote holders or other parties; ● Rights arising from other contractual arrangements; and ● Any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the Group gains control until the date when the Group ceases to control the subsidiary. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated on consolidation. Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. Those interests of non-controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Profit or loss and each component of other comprehensive income are attributed to the owners of the Group and to the non-controlling interests. Total comprehensive income of the subsidiaries is attributed to the owners of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Group. When the Group loses control of a subsidiary, the gain or loss on disposal recognized in profit or loss is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as required/permitted by applicable IFRS Standards). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IFRS 9, Financial Instruments Betterware, has control over its subsidiaries due to the shares and voting rights acquired, which generate rights over the variable returns from the subsidiaries, and has the ability to influence those returns through his power over them. As of December 31, 2022, 2021 and 2020 the percentage of participation that it maintains over its subsidiaries are the following: Operating Functional % Participation The Group’s companies: Country currency 2022 2021 2020 Home organization (“Betterware”): Betterware de México, S.A.P.I. de C.V. Mexico Peso 100 % 100 % 100 % BLSM Latino América Servicios, S.A. de C.V. Mexico Peso 99 % 99 % 99 % Betterware de Guatemala, S.A. Guatemala Quetzal 70 % 70 % - Programa Lazos, S.A. de C.V. Mexico Peso 70 % 70 % - GurúComm, S.A.P.I. de C.V. (1) Mexico Peso - 60 % - Innova Catálogos, S.A. de C.V. (2) Mexico Peso - 70 % - Betterware Ningbo Trading Co, LTD. China Yuan 100 % 100 % - Finayo, S.A.P.I. de C.V. SOFOM ENR Mexico Peso 100 % - - Beauty and personal care (B&PC) (“JAFRA”): Jafra México Holding Company, B.V. Holanda Euro 100 % - - Distribuidora Comercial JAFRA, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics International, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics, S.A. de C.V. Mexico Peso 100 % - - Serviday, S.A. de C.V. Mexico Peso 100 % - - Jafrafin, S.A. de C.V. Mexico Peso 100 % - - Distribuidora Venus, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics International, Inc. United States Dollar 100 % - - (1) GurúComm was part of the Group until March 28, 2022. (2) Innova Catálogos was part of the Group until November 18, 2022. As of December 31, 2022, 2021 and January 3, 2021, there are no significant restrictions for investment in shares of the subsidiary companies previously mentioned. e. Cash and cash equivalents and restricted cash Cash and cash equivalents consist mainly of bank deposits and short-term investments in securities, highly liquid and easily convertible into cash with original maturities of three months or less and that are subject to insignificant risks of changes in value. Cash is stated at nominal value and cash equivalents are valued at fair value. Any cash or cash equivalent that cannot be disposed of in less than three months is classified as restricted cash. In cases where the definition of cash and cash equivalents is not met due to restrictions, the amounts are presented in a separate line in the consolidated statements of financial position and is excluded from cash and cash equivalents in the consolidated statements of cash flows. f. Financial instruments Financial assets and financial liabilities are recognized in the Group’s consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. g. Financial assets All recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value, depending on the classification of the financial assets. Classification of financial assets Debt instruments that meet the following conditions are measured subsequently at amortized cost: ● the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and ● the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI): ● the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and ● the contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI on the principal amount outstanding. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL). Despite the foregoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset: ● the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income if certain criteria are met; and ● the Group may irrevocably designate a debt investment that meets the amortized cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. Amortized cost and effective interest method The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortized cost of a financial asset before adjusting for any loss allowance. Foreign exchange gains and losses The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated at the closing exchange rate of each reporting period. Specifically, for financial assets measured at amortized cost that are not part of a designated hedging relationship, exchange differences are recognized in profit or loss. Impairment of financial assets The Group always recognizes lifetime expected credit losses (“ECL”) for trade receivables. The expected credit losses on these financial assets are estimated using the simplified approach by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. For financial assets that are not subject to the simplified approach, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. Write-off policy The Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, i.e., when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognized in profit or loss. h. Financial liabilities All financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL. ● Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognized in profit or loss to the extent that they are not part of a designated hedging relationship. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. Financial liabilities and equity Classification as debt or equity ● Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. Financial liabilities measured subsequently at amortized cost Financial liabilities that are not (i) contingent consideration of an acquirer in a business condensation combination and consolidation, (ii) held-for-trading, or (iii) designated as at FVTPL, are measured subsequently at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortized cost of a financial liability. Foreign exchange gains and losses For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments. These foreign exchange gains and losses are recognized in the ‘Foreign exchange (loss) gain, net’ line item in the consolidated statements of profit or loss and other comprehensive income for financial liabilities that are not part of a designated hedging relationship. The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the closing exchange rate of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognized in profit or loss for financial liabilities that are not part of a designated hedging relationship. Derecognition of financial liabilities The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, canceled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between (1) the carrying amount of the liability before the modification; and (2) the present value of the cash flows after modification should be recognized in profit or loss as the modification gain or loss within other gains and losses. i. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts and interest rate swaps.Further details of derivative financial instruments are disclosed in note 19. Derivatives are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivatives are not offset in the consolidated financial statements unless the Group has both legal right and intention to offset. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities. Warrants The warrants meet the definition of a derivative financial instrument as they represent a written put option that gives the holders of the warrants the right to exchange them for the Group’s shares at a fixed price. Although the warrants will be exchanged for the Group’s shares based on the terms of the warrant agreement, the warrants were classified as a derivative financial liability measured at FVTPL, and not as an equity instrument, given that the functional currency of the Company (MXN) differs from the strike-price of the warrants, which is fixed in USD. Changes in the fair value of the financial liability are presented in the consolidated statements of profit or loss under the heading “Loss in valuation of warrants”. For purposes of the Group’s adjusted EBITDA, the changes in the fair value of the liability are excluded as they represent non-cash charges. The exchange of warrants for the Group’s shares give rise to the settlement of the obligation associated with the liability with a corresponding increase in equity. The redemption of warrants will result in a net impact in equity resulting from the increase in their fair value is recorded in profit or loss (reducing retained earnings), offset by the equivalent increase in equity as a result of the issuance of shares. j. Inventories and cost of sales Inventories are measured at the lower of cost and net realizable value. The costs comprise direct materials, direct labor, and an appropriate proportion of variable and fixed overhead costs, the latter being allocated on the basis of normal operating capacity. The cost of inventories is based on standard cost method. The net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in administration (marketing), selling and distribution. k. Prepaid expenses Prepaid expenses are mainly comprised of advanced payments for printed catalogs, advanced payments for events, as well as, advanced payments for the purchase of inventories that are received after the date of the consolidated statement of financial position and during the normal course of business, and they are presented in current assets in accordance with the classification of the destination item. l. Other assets Other assets mainly include inventory of rewards related to the rewards program offered to our distributors, associates, leaders and consultants, recoverable taxes and rent security deposits. They are presented in current or non-current assets in accordance with the classification of the destination item. The inventory for the rewards program (see Note 2.v) is acquired based on exchange estimates from distributors, associates, leaders and consultants; and is reduced at the time the points are redeemed and the reward is sent. Rewards inventory is recognized at acquisition cost. Rewards program for distributors, associates, leaders and independent consultants: The Group has a reward program, which is offered through its business segments, to distributors and associates in Betterware, and to consultants, including leaders, in JAFRA. Its objective is to promote the fulfillment of specific objectives in the development of commercial activities of the business but considered separate and distinct services from sales. In the case of Distributor and Associate Rewards, Betterware rewards its Distributors for enrolling new Associates and appointing new Distributors, while Associates receive such rewards for referring new Associates and staying active. In the case of rewards to Consultants, including JAFRA leaders, they are awarded for sponsorship when they manage to hire a new direct sponsor or based on the commercial activities carried out by the group or lineage to which they are related. In this way, the members of this independent sales force help expand the organization and sales channels, and at the same time commit to developing their network of contacts and vendors. These rewards can be in: a) Points redeemable for products that the Group purchases from other suppliers. Points expire according to the commercial terms established by the Group, and can be modified at management’s discretion; and b) cards with a cash balance preload redeemable with certain providers, specifically in the JAFRA segment, both for consultants and leaders depending on the business activities carried out by the group or lineage to which they are related. The Group evaluates the performance of distributors, associates, and consultants, including leaders, at each reporting date based on an estimate of compliance with the established program objectives, and records the corresponding expense, presenting it as sales expenses and a provision. in return. The provision is reduced when the points are exchanged for the available products (rewards). The value of the rewards program and the corresponding expense are determined based on the fair value of the services received considering the analyzes carried out by the administration for similar services in the market. m. Property, plant and equipment, net Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. If significant parts of an item have different useful lives, then they are accounted for as separate items (major components). Depreciation is recognized using the straight-line method. The estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The following useful lives, considering separately each of the asset’s components, are used in the calculation of depreciation: Buildings 5 – 50 years Molds and machinery 3 – 15 years Vehicles 4 years Computers and equipment 3 – 10 years Leasehold improvements 3 – 5 years Property, plant and equipment is derec |
Changes in significant accounti
Changes in significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Changes in significant accounting policies [Abstract] | |
Changes in significant accounting policies | 3. Changes in significant accounting policies a. Application of new and revised International Financing Reporting Standards (“IFRSs” or “IAS”) that are mandatorily effective for the current year In the current year, the Group has applied a number of new and amended IFRS and interpretations issued by the International Accounting Standards Board (“IASB”) that are mandatorily effective for an accounting period that begins on or after January 1, 2022. The conclusions related to their adoption are described as follows: New and amended IFRS Standards that are effective for the current year The Group adopted the following amendments, which did not have any effects on the financial statements in the current year: ● Amendments to IFRS 3, Business Combination – Reference to the conceptual framework ● Amendments to IAS 16, Property, Plant and Equipment - Economic benefits before intended use ● Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets – Onerous Contracts - Costs to complete a contract ● Annual improvements to IFRS 2018-2021 New and revised IFRS Standards in issue but not yet effective At the issuance date of these financial statements, the Group has not applied the following new and revised IFRS that have been issued but are not yet effective. Based on management’s analysis, the Group does not expect that the adoption of the following standards will have a material impact on the financial statements in future periods: ● IFRS 17, Insurance contracts (1) ● Amendments to IAS 1, Classification of liabilities as current or non-current (1) ● Amendments to IAS 1, and Statement of practice 2 – Disclosure of accounting policies (1) ● Amendments to IAS 8, Disclosure of accounting estimates (1) ● Amendments to IAS 12, Deferred tax related to assets and liabilities arising from a single transaction (1) ● Amendments to IAS 1, Classification of debt with covenants (2) ● Amendments to IFRS 16 - Lease liability in a sale with leaseback (3) (1) Effective for annual reporting periods beginning on January 1, 2023 (2) Effective for annual reporting periods beginning on January 1,2024 (3) Effective date yet to be defined by the IASB |
Critical accounting judgments a
Critical accounting judgments and key sources of estimation uncertainty | 12 Months Ended |
Dec. 31, 2022 | |
Critical Accounting Judgments and Key Sources of Estimation Uncertainty [Abstract] | |
Critical accounting judgments and key sources of estimation uncertainty | 4. Critical accounting judgments and key sources of estimation uncertainty In the application of the Group’s accounting policies, which are described in note 2, management of the Group is required to make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The judgments, estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The significant estimates impacting the Group’s consolidated financial statements are as follows: - Key assumptions used in impairment testing on long-lived assets The Group performs annual impairment testing on long-lived assets, for which key assumptions are used in the calculation of the recoverable amount (see note 12). For impairment testing, goodwill is allocated to the cash-generating unit (“CGU”) from which the Group has considered that economic and operational synergies of business combinations are generated. The recoverable amounts of the CGU have been determined based on the calculations of their value in use, which require the use of estimates. The most significant of these estimates are as follows: ● Discount rate based on the weighted average cost of capital (WACC) of the CGU. ● Terminal value growth rates. ● EBITDA margin (earnings before interest, taxes, depreciation and amortization), in accordance with the historical performance and the expectations of the CGU industry. - Estimation of probability of default and recovery rate to apply the model of expected losses in the impairment of financials assets The Group assigns to the debtors with whom it maintains an account receivable at each reporting date, either individually or as a group, an estimate of the probability of default in the payment of accounts receivable and the estimated recovery rate, in order to reflect the cash flows that are expected to be received from the current assets on that date (see note 6 and 21). - Critical estimation on the determination of fair values in business combinations by “JAFRA’s Acquisition” When business combinations are completed, it is required to apply the acquisition method to recognize the identifiable net assets acquired at fair value, on the acquisition date; Any excess of the consideration paid over the identified net assets is recognized as goodwill. For its part, any excess of the net assets identified over the consideration paid is recognized as a gain within the result of the year. In estimating the fair values of identifiable assets acquired and liabilities assumed, the Company uses observable market data available. When input data is not available, the Company engages a qualified independent appraiser to perform the valuation. Management works closely with the independent qualified appraiser to establish the appropriate valuation techniques, assumptions, input data and criteria to be used in the valuation models. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cash And Cash Equivalents Text Block Abstract | |
Cash and cash equivalents | 5. Cash and cash equivalents 2022 2021 2020 Cash on hand in banks Ps. 367,076 951,092 629,146 Time deposits 448,568 224,106 20,674 Ps. 815,644 1,175,198 649,820 As of December 31, 2022 and 2021 the Group did not maintain restricted cash. As of January 3, 2021, cash and cash equivalents balance excluded an amount of Ps.42,915 of restricted cash derived from the guarantee of some forwards which were due between May and August 2021, which was presented as a current asset in the consolidated statement of financial position, since it did not complied with the characteristics of readily convertible to cash (see note 9) and under investing activities in the consolidated statements of cash flows. |
Trade account receivables
Trade account receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade account receivables [Abstract] | |
Trade account receivables | 6. Trade account receivables 2022 2021 2020 Trade account receivables Ps. 1,092,855 835,757 744,109 Expected credit loss (121,792 ) (90,164 ) (9,083 ) Ps. 971,063 745,593 735,026 The trade accounts receivable detailed above are measured at their amortized cost. The average, with respect to Betterware´s the turnover of accounts receivable, is from 14 to 28 days as of December 31, 2022, 2021 and January 3, 2021; and JAFRA´s the turnover of accounts receivable, is from 30 to 120 days as of December 31, 2022. No interest is charged on outstanding accounts receivable. The Group measures the loss reserve for commercial accounts receivable in an amount equal to the expected lifetime credit loss. Expected credit losses in accounts receivable are estimated using a provisions matrix with reference to the debtor’s previous default history and an analysis of the debtor’s current financial situation, adjusted for factors specific to the debtors and the general economic conditions of the industry in which the debtors operate, and assessing both current and predicted conditions as of the reporting date. The Group’s significant growth in recent years have caused volatility in collections. Because of this, management has applied significant estimation to determine the estimated expected credit losses as of December 31, 2022 and 2021; where the weighting of the historical behavior was analyzed, given what happened due to the extraordinary events of the COVID-19 pandemic, thus normalizing the expectation of future credit losses for the year 2023. The Group cancels an account receivable when there is information that indicates that the debtor is experiencing serious financial difficulties and there is no realistic prospect of recovery, e.g. when the debtor has been placed in liquidation or has entered bankruptcy proceedings, or when a commercial account receivable is more than one year old, whichever occurs first. For the periods ended December 31, 2022, 2021 and January 3, 2021 Ps.237,928, Ps.117,414 and Ps.62,184 have been canceled, respectively. The following table shows the expected lifetime credit loss recognized for accounts receivable in accordance with the simplified approach established in IFRS 9. Trade receivables – days past due Betterware de México JAFRA in Mexico and United States As of December 31, 2022 Not past 14-21 21-28 >28 Not past >30-59 >60-120 >120 Total Expected credit loss rate 1 % 18 % 39 % 41 % 1 % 7 % 21 % 61 % Estimated total gross carrying amount at default Ps. 365,978 24,198 15,592 161,204 374,039 77,509 31,366 42,969 1,092,855 Expected credit loss Ps. 3,561 4,337 6,142 66,126 3,589 5,130 6,735 26,172 121,792 Trade receivables – days past due As of December 31, 2021 Not past 14-21 21 – 28 >28 Total Expected credit loss rate 1 % 27 % 60 % 28 % Estimated total gross carrying amount at default Ps. 560,642 31,439 22,463 221,213 835,757 Expected credit loss Ps. 6,814 8,338 13,386 61,626 90,164 Trade receivables – days past due As of January 3, 2021 Not past 14-21 21 – 28 >28 Total Expected credit loss rate 2 % 30 % 62 % 33 % Estimated total gross carrying amount at default Ps. 640,675 31,918 17,772 53,744 744,109 Expected credit loss Ps. 8,163 9,588 10,946 17,563 46,260 The following table shows the movement in lifetime expected credit loss that has been recognized for trade account receivables in accordance with the simplified approach set out in IFRS 9. Total Balance as of January 1, 2020 Ps. (13,640 ) Expected credit loss (46,260 ) Specific credit loss (11,367 ) Amounts written off 62,184 Balance as of January 3, 2021 (9,083 ) Expected credit loss (198,495 ) Amounts written off 117,414 Balance as of December 31, 2021 (90,164 ) Expected credit loss (269,595 ) Amounts written off 237,928 Foreign currency translation 39 Balance as of December 31, 2022 Ps. (121,792 ) |
Inventories and cost of sales
Inventories and cost of sales | 12 Months Ended |
Dec. 31, 2022 | |
Inventories and cost of sales [Abstract] | |
Inventories and cost of sales | 7. Inventories and cost of sales 2022 2021 2020 Finished goods Ps. 1,568,459 787,135 915,645 Packing material 262,480 35,718 26,029 Raw materials 109,681 - - 1,940,620 822,853 941,674 Merchandise in transit 182,050 463,302 342,998 Ps. 2,122,670 1,286,155 1,284,672 The cost of sales recognized in the consolidated statements of profit or loss and other comprehensive income within cost of sales of the year was Ps.3,579,093, Ps.4,498,008, and Ps.3,280,348 for the periods of 2022, 2021 and 2020, respectively. The cost of inventories recognized as an expense includes Ps.72,988, Ps.43,645 and Ps.24,438, for the periods 2022, 2021 and 2020, respectively, in respect of write-downs of inventory to net realizable value. Such write-downs have been recognized to account for obsolete inventories. |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid expenses [Abstract] | |
Prepaid expenses | 8. Prepaid expenses 2022 2021 2020 Premiums paid in advance for insurance Ps. 16,238 16,961 10,061 Advances to suppliers 12,891 1,320 2,689 Other 23,433 17,315 39,831 Ps. 52,562 35,596 52,581 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other assets | 9. Other assets 2022 2021 2020 Inventory of rewards Ps. 153,168 54,247 28,804 Employees and consultors 42,878 - - Rewards catalogs 13,009 12,067 10,492 Security deposit 8,654 4,274 5,774 Recoverable taxes 2,133 10,725 44,618 Restricted cash - - 42,915 Other receivables 15,099 4,949 3,588 234,941 86,262 136,191 Current 188,266 81,988 130,417 Non-current 46,675 4,274 5,774 Ps. 234,941 86,262 136,191 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, plant and equipment, net | 10. Property, plant and equipment, net 2022 2021 2020 Acquisition cost Ps. 3,190,297 1,231,794 905,840 Accumulated depreciation (216,923 ) (162,302 ) (114,713 ) Ps. 2,973,374 1,069,492 791,127 Acquisition cost: As of Additions Disposals As of Land Ps. 47,124 2,132 - 49,256 Molds and machinery 41,269 85,049 (22 ) 126,296 Vehicles 1,602 28,740 (17,235 ) 13,107 Computers and equipment 66,823 3,273 (2,056 ) 68,040 Leasehold improvements 29,882 4,426 - 34,308 Buildings - 326,644 - 326,644 Construction in progress 119,174 169,015 - 288,189 Ps. 305,874 619,279 (19,313 ) 905,840 Accumulated depreciation: As of Depreciation expense Disposals As of Molds and machinery Ps. (25,648 ) (3,636 ) - (29,284 ) Vehicles (1,505 ) (633 ) - (2,138 ) Computers and equipment (48,003 ) (9,837 ) 1,043 (56,797 ) Leasehold improvements (23,368 ) (1,856 ) - (25,224 ) Buildings - (1,270 ) - (1,270 ) Ps. (98,524 ) (17,232 ) 1,043 (114,713 ) Acquisition cost: As of Subsidiaries’ Additions Disposals Transfers As of Land Ps. 49,256 - - - - 49,256 Molds and machinery 126,296 - 82,457 (2,334 ) 63,729 270,148 Vehicles 13,107 - 6,046 (1,439 ) - 17,714 Computers and equipment 68,040 13,473 709 (19,764 ) 18,521 80,979 Leasehold improvements 34,308 539 119 (831 ) 3,980 38,115 Buildings 326,644 - - - 351,654 678,298 Construction in progress 288,189 - 246,979 - (437,884 ) 97,284 Ps. 905,840 14,012 336,310 (24,368 ) - 1,231,794 Accumulated depreciation: As of Depreciation Disposals As of Molds and machinery Ps. (29,284 ) (20,236 ) 759 (48,761 ) Vehicles (2,138 ) (3,162 ) 17 (5,283 ) Computers and equipment (56,797 ) (9,374 ) 11,983 (54,188 ) Leasehold improvements (25,224 ) (4,915 ) 203 (29,936 ) Buildings (1,270 ) (22,864 ) - (24,134 ) Ps. (114,713 ) (60,551 ) 12,962 (162,302 ) Acquisition cost: As of Subsidiaries’ Additions Disposals Transfers Foreign currency translation As of Land Ps. 49,256 1,253,237 - - - - 1,302,493 Molds and machinery 270,148 237,818 1,081 (18,319 ) 67,299 - 558,027 Vehicles 17,714 - 6,183 (2,124 ) - - 21,773 Computers and equipment 80,979 101,512 9,605 (99,640 ) 32,544 (2,498 ) 122,502 Leasehold improvements 38,115 1,430 479 - 3,214 - 43,238 Buildings 678,298 321,994 - - 31,740 - 1,032,032 Construction in progress 97,284 41,790 107,260 (1,302 ) (134,797 ) (3 ) 110,232 Ps. 1,231,794 1,957,781 124,608 (121,385 ) - (2,501 ) 3,190,297 Accumulated depreciation: As of Depreciation Disposals Foreign currency translation As of Molds and machinery Ps. (48,761 ) (60,965 ) 6,459 - (103,267 ) Vehicles (5,283 ) (3,992 ) 180 - (9,095 ) Computers and equipment (54,188 ) (40,738 ) 84,523 2,406 (7,997 ) Leasehold improvements (29,936 ) (1,134 ) 4 - (31,066 ) Buildings (24,134 ) (41,364 ) - - (65,498 ) Ps. (162,302 ) (148,193 ) 91,166 2,406 (216,923 ) Depreciation expense is included in administrative expenses line in the consolidated statement of profit or loss and other comprehensive income. No impairment losses have been determined. The Group built a distribution center, which was completed in the first quarter of 2021. As of December 31, 2022, 2021 and January 3, 2021, the total payments related to this construction amounted to Ps.37,500 Ps.397,000 and Ps.508,958, respectively. The total investment amounted to Ps.1,108,458. For the period of 2020, the Group capitalized borrowing costs in the amount of Ps.33,460, directly related to the distribution center that was under construction. In 2022 and 2021 the Group didn’t capitalized borrowing costs related to the distribution center that was under construction. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination [Abstract] | |
Business combination | 11. Business combination On January 18, 2022, the Company entered into an agreement to acquire 100% of JAFRA in Mexico and the United States, along with its “JAFRA” trademarks. JAFRA is a leading global brand in direct sales in the Beauty and Personal Care (B&PC) industry with a strong presence in Mexico and the United States with independent leaders and consultants who sell unique products. In addition to entering the beauty and personal care industry, the JAFRA acquisition provides a unique opportunity for the Company to expand its geographic presence into the United States, enhancing its international focus on the North American. On March 24, 2022, the Federal Economic Competition Commission (“COFECE”) approved the transaction, which was concluded on April 7, 2022. The JAFRA’s acquisition led the Group to enter in the Beauty and Personal Care (B&PC) industry market. The assets acquired and liabilities assumed from the acquisition are as follows: Assets and liabilities to fair value Current assets and others non-current assets Ps. 2,885,952 Property, plant and equipment, net 1,957,784 Intangible assets 1,394,424 Current liabilities and non-current liabilities (1,630,260 ) Deferred income tax (813,661 ) Total identifiable assets acquired and liabilities assumed 3,794,239 Goodwill 1,250,132 Total assets acquired, net Ps . 5,044,371 Goodwill is attributable to the profitability of the acquired business. It will not be deductible for tax purposes. Current assets and other non-current assets include accounts receivable with a contractual value of Ps.736,063 and an expected loss estimate of Ps.243,954; therefore, the fair value of accounts receivable is Ps.492,109. The funds necessary to pay the purchase price under the JAFRA Acquisition were obtained from a long-term bank loan “Syndicated Loan” of Ps.4,498,695, (see note 16), plus the available cash of Betterware in dollars of US$30,000. The total cash paid in pesos for the JAFRA Acquisition was Ps.5,044,371. Net cash outflow arising on acquisition: Cash out Ps. 5,044,371 Less cash and cash equivalent balances acquired from JAFRA (345,908 ) Net cash used (investing activities) Ps. 4,698,463 The revenues contributed by JAFRA included in the consolidated statement of profit or loss from the effective acquisition date to December 31, 2022 were Ps.5,164,205 and net income of Ps.493,062. If the acquisition had been made on January 1, 2022, the net revenues in the consolidated statement of income for the year ended December 31, 2022 would have been Ps.13,377,529 and net income of Ps.1,097,092. No contingent liability has arisen from this acquisition that must be recorded, nor are there contingent consideration agreements. Additionally, acquisition costs were not significant. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill | 12. Goodwill As of Additions Disposals As of Cost Ps. 348,441 - - 348,441 As of Additions Disposals As of Cost Ps. 348,441 22,634 - 371,075 As of Additions Disposals As of Cost Ps. 371,075 1,251,277 (22,634 ) 1,599,718 The goodwill as of December 31, 2020, correspond to the resulting excess between the consideration given and the fair values of the net assets acquired on the acquisition date by Betterware Latinoamerica Holding México, S.A. de C.V. (BLHM) and Strevo Holding, S.A. de C.V. On March 12, 2021, Betterware entered into an agreement to acquire 60% of GurúComm for Ps.45,000. GurúComm is a Mobile Virtual Network Operator and communications software developer. Moreover, on July 22, 2021, Betterware entered into an agreement more to acquire 70% of Innova Catálogos, S.A. de C.V., for Ps.5,000. Innova Catálogos is a company dedicated to the purchase and sale of clothing, footwear and accessories. The goodwill addition of Ps.22,634 is the result between the consideration paid and the fair values of the net assets acquired from both companies. During the 2022 period, GuruComm and Innova Catálogos ceased to belong to the Group in the months of March and November, respectively, therefore, the goodwill is shown as disposals for Ps.22,634 for the year. On March 25, 2022, Betterware and Programa Lazos, S.A. de C.V., acquired 2% and 98%, respectively, of the participation in shares of Finayo, S.A.P.I. de C.V. SOFOM ENR. The Group recorded a goodwill of Ps.1,145 corresponding to the excess for the consideration paid and the fair values of the net assets acquired for the acquisition of 100% of Finayo. On April 7, 2022, Betterware acquired 100% of JAFRA in Mexico and the United States, along with its trademarks “JAFRA”; the total cash agreed amounted to Ps.5,044,371 (see note 1a and 11). The addition to goodwill for Ps.1,250,132 corresponds to the excess for the consideration paid and the fair values of the net assets acquired for the acquisition of 100% of Jafra Cosmetics International S.A. de C.V., Jafra México Holding B.V. and Jafra Cosmetics International Inc. The goodwill balances of Group’s companies are described below: As of As of As of Betterware Ps. 348,441 348,441 348,441 JAFRA Mexico 1,250,132 - - Finayo 1,145 - - GurúComm - 17,372 - Innova Catálogos - 5,262 - Total Ps. 1,599,718 371,075 348,441 For impairment testing purposes, goodwill is allocated to CGUs that do not exceed operating segments. The recoverable value of the CGU was based on the fair value minus disposal costs, estimated using discounted cash flows. The fair value measurement was classified as a Level 3 fair value based on the inputs in the valuation technique used. The values assigned to the key assumptions represent the administration’s assessment of future trends in relevant industries and are based on historical data from external and internal sources. As of December 31, 2022, 2021 and January 3, 2021, the estimated recoverable amount of the CGU exceeded its carrying amount. The key assumptions used in the estimation of the recoverable amount are set out below: 2022 2021 2020 In percentages Betterware JAFRA Betterware Betterware Discount rate 10.0 9.1 12.8 11.2 Terminal value growth rate 0.0 2.0 3.0 3.0 EBITDA margin (earnings before interest, taxes, depreciation and amortization) 30.0 15.3 30.0 38.0 The discount rate was based on the historical industry average, weighted-average cost of capital and a market interest rate for Betterware of 11.8%, 5.7% and 7.3% as of December 31, 2022, 2021 and January 3, 2021, respectively, and for JAFRA of 9.1% as of December 31, 2022. The cash flow projections included specific estimates for 5 years and a terminal growth rate thereafter. The terminal growth rate was determined based on management’s estimate of the long-term compound annual EBITDA growth rate, consistent with the assumptions that a market participant would make. For Betterware, a terminal growth rate of 0.0 was used to corroborate that even then there would be no impairment of the assets. Budgeted EBITDA was estimated taking into account past experience and a revenue growth rate projected taking into account the average growth levels experienced over the past 5 years and the estimated sales volume and price growth for the next five years. It was assumed that the sales price would increase in line with forecast inflation over the next five years. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets, net [Abstract] | |
Intangible assets, net | 13. Intangible assets, net Acquisition cost: As Additions Disposals As of Brand Ps. 253,000 - - 253,000 Customer relationships 64,000 - - 64,000 Software 21,651 24,333 - 45,984 Brands and logo rights 7,608 276 (2,491 ) 5,393 Ps. 346,259 24,609 (2,491 ) 368,377 Accumulated amortization: As of Amortization Disposals As of Customer relationships Ps. (30,933 ) (6,400 ) - (37,333 ) Software (421 ) (6,675 ) - (7,096 ) Brands and logo rights (3,940 ) (647 ) - (4,587 ) Ps. (35,294 ) (13,722 ) - (49,016 ) Acquisition cost: As of Additions Disposals As of Brand Ps. 253,000 - - 253,000 Customer relationships 64,000 - - 64,000 Software 45,984 65,356 - 111,340 Brands and logo rights 5,393 70 - 5,463 Ps. 368,377 65,426 - 433,803 Accumulated amortization: As of Amortization Disposals As of Customer relationships Ps. (37,333 ) (6,400 ) - (43,733 ) Software (7,096 ) (8,377 ) - (15,473 ) Brands and logo rights (4,587 ) (250 ) - (4,837 ) Ps. (49,016 ) (15,027 ) - (64,043 ) Acquisition cost: As of Subsidiaries’ Additions Disposals Foreign As of Brand Ps. 253,000 840,616 9,493 - (1,003 ) 1,102,106 Customer relationships 64,000 553,808 - - - 617,808 Software 111,340 - 41,443 - - 152,783 Brands and logo rights 5,463 - 109 - - 5,572 Ps. 433,803 1,394,424 51,045 - (1,003 ) 1,878,269 Accumulated amortization: As of Amortization Disposals Foreign As of Customer relationships Ps. (43,733 ) (40,412 ) - - (84,145 ) Software (15,473 ) (29,686 ) - - (45,159 ) Brands and logo rights (4,837 ) (246 ) - - (5,083 ) Ps. (64,043 ) (70,344 ) - - (134,387 ) Brands: ● The “Betterware” brand is an intangible asset with an indefinite useful life and a carrying amount of Ps.253,000, which is presented in the consolidated statements of financial position. This brand was transmitted to the Group through a merger carried out on July 28, 2017 with Strevo Holding, S.A. de C.V. (a related party under common control). Strevo obtained such brand when acquiring the majority of the Betterware’s shares in March 2015. ● The “JAFRA” brands are intangible assets with an indefinite useful life and a carrying amount of Ps.849,106, which is presented in the consolidated statements of financial position. Since the business combination with the Group on the date of on April 7, 2022, the JAFRA brands were valued at their fair value. Customer relationships: ● The intangible for the relationship with customers of Betterware was transferred to the Group through a merger with Strevo carried out on July 28, 2017, this intangible asset has a useful life of ten years and are amortized using the straight-line method. ● The intangible for the relationship with customers of JAFRA arose from the valuation of assets acquired and liabilities assumed by business combination dated April 7, 2022 this intangible asset has a useful life of twelve years and are amortized using the straight-line method. The calculation comprised the revenues attributable of Jafra Mexico and the total number of consultants as of the valuation date. In addition, future revenues, growth rate and desertion were projected. The customers relationships balances of the Group are described below: As of As of As of Betterware Ps. 13,867 20,267 26,667 JAFRA Mexico 519,796 - - Total of customers relationships Ps. 533,663 20,267 26,667 Brands and logo rights ● Betterware has incurred expenses related to the registration trademarks and logos rights with intellectual property authorities, which have a defined life, are amortized linearly over their estimated useful life, which ranges from 10 to 30 years. As of December 31, 2022, 2021 and January 3, 2021, intangible assets for brands and logo rights are presented in the consolidated statement of financial position for a total of Ps.489, Ps.626 and Ps.806, respectively. At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. As of December 31, 2022, 2021 and January 3, 2021, the Group have been not identified indications of impairment. In relation to impairment of intangible assets with indefinite useful life (brand), the Group estimates the recoverable amount of the intangible asset which is based on fair value less costs of disposal, estimated using discounted cash flows. The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used (see note 12). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 14. Leases Right-of-use assets, net The Group leases a fleet of cars for its sales staff and qualified employees with different contract expiration dates, as well as computers, servers. printers, real estate (JAFRA distribution center and commercial venues) with different expiration date, being the latest expiration date in 2028. Those leases were recorded as right of use assets as follows: As of Additions Disposals As of Cost Ps. 36,909 20,531 (17,861 ) 39,579 As of Depreciation Disposals As of Accumulated depreciation Ps. (13,098 ) (12,734 ) 11,135 (14,697 ) As of Additions Disposals As of Cost Ps. 39,579 1,388 (3,275 ) 37,692 As of Depreciation Disposals As of Accumulated depreciation Ps. (14,697 ) (6,544 ) 933 (20,308 ) As of Subsidiaries’ Additions Disposals Foreign As of Vehicles Ps. 623 59,657 48,433 (1,171 ) - 107,542 Buildings - 7,049 88,051 (484 ) - 94,616 Warehouses 17,101 53,575 49,227 - - 119,903 Office furniture and equipment - 2,697 5,454 - - 8,151 Computer equipment 19,968 27,803 3,856 (15 ) - 51,612 Cost Ps. 37,692 150,781 195,021 (1,670 ) - 381,824 As of Additions Disposals Foreign As of Vehicles Ps. (147) (21,795 ) 1,024 - (20,918 ) Buildings - (12,947 ) - - (12,947 ) Warehouses (17,101 ) (18,658 ) 484 - (35,275 ) Office furniture and equipment - (1,346 ) - - (1,346 ) Computer equipment (3,060 ) (14,419 ) 1 (295 ) (17,773 ) Cost Ps. (20,308 ) (69,165 ) 1,509 (295 ) 88,259 The right-of-use asset depreciation expense for the periods of 2022, 2021 and 2020 amounted to Ps.69,165, Ps.6,544 and Ps.12,666, respectively, and is included within administrative expenses in the consolidated statement of profit or loss and other comprehensive income. As of December 31, 2022, 2021 and January 3, 2021, Betterware has master lease contracts for computers, servers and cars and for the year 2022 with the JAFRA’ Acquisition, lease contracts were added for the JAFRA distribution center, equipment office (printers), cars and premises in different regions. As of December 31, 2022 and 2021, Betterware leased warehouses, offices, commercial locals, and equipment, used in normal operations of the Group’s companies, to which the short-term exemption was applied, considering that the lease term was for less than one year. The rental expense for the years ended December 31, 2022 and 2021, amounted to Ps.31,003 and Ps.52,660, respectively. As of January 3, 2021, the Betterware leased warehouses and an administrative office space that expired on January 3, 2021, and that were renewed during the first three months of 2021 in order to relocate the operations to the new distribution center. Rental expense for the period of 2020 was Ps.15,703. Lease liability The lease liabilities as of December 31, 2022, 2021 and January 3, 2021 are described below. Lease liability Balance as of January 1, 2020 Ps. 24,584 Lease additions (1) 20,531 Lease disposals (1) (13,966 ) Rent payments (2) (8,825 ) Interest expense (1) 2,054 Balance as of January 3, 2021 24,378 Lease additions (1) 1,388 Lease disposals (1) (1,704 ) Rent payments (2) (6,899 ) Interest expense (1) 717 Balance as of December 31, 2021 17,880 Subsidiaries’ Acquisitions (1) 146,187 Lease additions (1) 193,856 Lease disposals (1) (195 ) Rent payments (2) (76,214 ) Foreign currency translation (1) (1,172 ) Interest expense (1) 11,566 Balance as of December 31, 2022 Ps. 291,908 (1) Changes that do not represent cash flow (2) Changes that represent cash flow The maturity analysis of total future minimum lease payments, including non-accrued interest, is as follows: Year Amount 2023 Ps 92,341 2024 99,715 2025 101,315 2026 93,946 2027 98,812 Ps 486,129 |
Accounts payable to suppliers
Accounts payable to suppliers | 12 Months Ended |
Dec. 31, 2022 | |
Accounts payable to suppliers [Abstract] | |
Accounts payable to suppliers | 15. Accounts payable to suppliers Trade accounts payables to the Group’s suppliers principally comprise amounts outstanding for trade purchases, raw material and ongoing costs. The average payment period to Betterware’s suppliers is 4 months mainly for its commercial purchases and to the JAFRA’s suppliers is 30 days for the commercial area and 90 days for the manufacturing area, without interest for all Group. The Group has financial risk management policies (see note 21) to ensure that all accounts payable are paid within the previously agreed credit terms. The Company has established financing factoring for suppliers, through which they can discount their documents with different financial institutions (paying out the financial cost). Factoring payable balance is recognized within the suppliers account in the consolidated statement of financial position. The payable balance discounted by suppliers as of December 31, 2022, 2021 and 2020 amounted to Ps.584,872, Ps.1,237,913 and Ps.1,315,744, respectively. |
Debt and borrowings
Debt and borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [Abstract] | |
Debt and borrowings | 16. Debt and borrowings 2022 2021 2020 Simple credit line with Banamex, HSBC, BBVA, Bajío, BanCoppel and Scotiabank, up to Ps.4,498,695, with interest (28-day TIIE published in BANXICO) plus the applicable margin, such ordinary interest will be calculated by the number of days effectively elapsed over the base of a year 360 days, in addition, in case of default, interest will be paid at the ordinary interest rate multiplied by 2.0pp between the 360 days and the result of using the unpaid and past-due balances. Ps. 4,432,711 - - Two-tranche sustainability bond, with maturities across 4 and 7 years, offered in the Mexican Market through the Bolsa Mexicana de Valores; the first offer of Ps.500,000 started paying interest at 5.15% plus 0.40% and for the monthly subsequent payments, the rate will be based on the 29-day TIIE rate issued by BANXICO plus 0.40%; the second offer of Ps.1,000,000 will pay interest semi-annually at a fixed rate of 8.35%, during the sustainability bond term. 1,485,545 1,482,261 - Credit line with Banamex, with interest rate at TIIE (28 days published in BANXICO) plus 110 basis points, the line considers payments of drawdowns in no more than a 12-month term. This short-term line of credit, which is available and paid in a term of no more than 12 months. 200,000 - - Innova Catalogos has a loan for financial support or “Emerging Plan for the protection of employment and income of people”; the loan was acquired at the beginning of 2021, for the amount of Ps.40, with maturity across 18 months, and monthly payments of Ps.2.2, this loan does not accrue interest, however in case of default, it will accrue interest at the rate of 24% on unpaid balances. - 15 - Secured credit line with Banamex, for up to Ps.400,000, bearing interest at the TIIE rate plus 260 basis points. Withdrawals from this secured credit line can be made during a 10-month period starting December 15, 2018, and are payable on a quarterly basis from December 17, 2019 up to December 18, 2025. This secured credit line was prepaid on August 31, 2021 with the proceeds from the sustainability bond. - - 373,333 Secured credit line with Banamex for up to Ps.195,000, bearing interest at the TIIE rate plus 295 basis points, payable on a quarterly basis from October 30, 2020 to December 30, 2025. This secured credit line was prepaid on August 31, 2021 with the proceeds from the sustainability bond. - - 188,500 Credit line with BBVA for up to Ps.75,000 bearing interest at 7.5%, payable monthly from September 20, 2020 to August 31, 2023. This credit line was prepaid on August 31, 2021 with the proceeds from the sustainability bond. - - 64,721 Interest payable Ps. 30,419 28,109 3,323 Total debt 6,148,675 1,510,385 629,877 Less: Current portion 230,419 28,124 105,910 Long term debt and borrowings Ps. 5,918,256 1,482,261 523,967 Long term debt- Syndicated Credit Line ● On March 31, 2022, Betterware entered into a credit agreement with Banamex, HSBC, BBVA, BanBajio, BanCoppel, and Scotiabank, as syndicated lenders, for a credit line of up to Ps .4,498,695 Long term debt- Offering of bonds in Securities Commission and to the Mexican Stock Exchange (“BMV”, for its acronym in Spanish) ● On August 30, 2021, Betterware successfully concluded the offering of a two-tranche sustainability bond issuance for a total of Ps.1,500,000, with maturities across 4 and 7 years, offered in the Mexican Market and issued at favorable conditions for the Company. The first offer of sustainability bonds for Ps.500,000 started paying interest at 5.15% rate plus 0.40% and for the subsequent monthly payments, the rate will be based on the 29-day TIIE rate issued by Banxico plus 0.40%, and the second offer of Ps.1,000,000 will pay interest semi-annually at a fixed rate of 8.35% during the sustainability bond term. Capital payments are at the end of every bond maturity. ● On August 31, 2021, Ps .588,300 .521,449 .18,172 .48,679 Banamex- Unsecured credit line ● Betterware has an unsecured credit line with Banamex up to Ps.400,000, amounted to TIIE plus 110 basis points. As of December 31, 2019, the interest rate was TIIE plus 275 basis points. As of December 31, 2022, Betterware has used Ps .250,000 .50,000 Banamex- Secured credit line ● On December 2018, the Group obtained a secured credit line with Banamex for an amount of Ps .400,000 ● On July 30, 2020, a total amount of Ps .195,000 ● During the first seven months of 2021, Betterware made payments to secured credit line with Banamex, for Ps.46,167, and as of August 31, 2021, this secured credit line was liquidated totality for Ps .521,449 BBVA-Simple credit line ● On September 20, 2020, the Group entered into a credit line with BBVA for up to Ps.75,000 bearing interest at 7.5%, payable monthly. The credit line had racks in the Group’s distribution center pledged as collateral for an amount of Ps .80,901 ● During the first seven months of 2021, Betterware made payments to credit line with BBVA, for Ps.16,325 and as of August 31, 2021, this credit line was liquidated totality for Ps .48,679 BBVA-Credit line ● On April 5, 2022, the Group entered into a credit line with BBVA for up to Ps .400,000 .800,000 HSBC-Credit line ● On March 10, 2020, Betterware entered into a current account credit line agreement with HSBC México, S.A., for an amount of Ps.50,000, with provisions by means of promissory notes specifying payment of principal and interest. BLSM is jointly liable for this credit. On May 4, 2020, the first amendment agreement was signed, in which the amount of the credit line was increased to Ps.150,000. The maturity date of this credit line is March 10, 2022, and it bears interest at the TIIE rate plus 200 basis points. During 2022, 2021 and 2020, the Group utilized Ps.620,000, Ps.20,000 and Ps.115,000, respectively, of which as of December 31, 2022, 2021, and January 3, 2021, the entire amounts have been repaid. CreditSuisse-Credit line ● On March 27, 2020, the Group made a prepayment to the credit line with MCRF P, S.A. de C.V. SOFOM, E.N.R of Ps .258,750 As of December 31, 2022, 2021 and January 3, 2021, the fair value of the debt in 2022, 2021 and 2020 amounted to Ps .6,489,926 .1,499,867 .634,992 Interest expenses related to the borrowings presented above are included in the interest expense item in the consolidated statement of earnings and other comprehensive income. Reconciliation of movements of liabilities to cash flows arising from financing activities The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from financing activities. Long-term debt and Interest Derivative Balances as of January 1, 2020 Ps. 666,806 10,907 32,309 Changes that represent cash flows - Loans obtained 1,712,207 - - Restricted cash (1) (42,915 ) - - Payments (1,757,112 ) (121,297 ) - Changes that do not represent cash flows: Interest expense - 80,253 - Borrowing costs capitalized on property, plant and equipment - 33,460 - Valuation effects of derivative financial instruments - - 287,985 Amortization of commissions and debt issuance cost 4,653 - - Balances as of January 3, 2021 Ps. 583,639 3,323 320,294 Changes that represent cash flows - Loans obtained 1,520,000 - - Restricted cash 42,915 - - Payments (646,716 ) (49,123 ) (18,172 ) Bond issuance costs (18,931 ) Changes that do not represent cash flows: Interest expense - 73,909 - Control obtained over subsidiaries 177 - - Amortization of bond issuance cost 1,192 - - Valuation effects of derivative financial instruments - - (330,315 ) Balances as of December 31, 2021 1,482,276 28,109 (28,193 ) Changes that represent cash flows - Loans obtained 5,818,705 - - Payments (1,120,025 ) (502,847 ) - Bond issuance costs (88,722 ) - - Changes that do not represent cash flows: Interest expense - 505,157 - Control obtained over subsidiaries Amortization of bond issuance cost 3,285 - - Amortization of Long-term debt- Syndicated Credit Line 22,737 - - Valuation effects of derivative financial instruments - - 43,522 Balances as of December 31, 2022 6,118,256 30,419 15,329 (1) Balances in column “Long-term debt” in the table above, are netted with restricted cash balances on 2020 period. The Group’s long-term debt and interest maturities as of December 31, 2022, including non-accrued interest, are as follows: Year Amount 2023 Ps. 853,401 2024 899,275 2025 2,087,221 2026 1,698,045 2027-2028 2,778,621 Ps. 8,316,563 The long-term debt of the syndicated credit line contains the following financial obligations: a) A leverage ratio equal to or less than 3.00. b) A debt service coverage ratio equal to or greater than 1.25. c) A minimum stockholders’ equity equivalent to 90% of stockholders’ equity at the close of the last immediately preceding fiscal year. The long-term debt of the bond issue has the following financial covenants: a) Pay interest: The first offer of sustainability bonds for Ps.500,000 started paying interest at 5.15% plus 0.40% and for the subsequent monthly payments, the rate will be based on the 29-day TIIE rate issued by Banxico plus 0.40% and the second offer of Ps.1,000,000 will pay interest semi-annually at a fixed rate of 8.35% during the sustainability bond term. b) Use the resources derived from the placement of the Stock Certificates for initiatives with positive environmental and social impacts. c) Compliance with the general provisions applicable to securities issuers and other participants; Among them, the delivery of quarterly financial information and an annual report to the Banking Commission (CNBV, for its acronym in Spanish) and BMV. d) Compliance with the general provisions applicable to entities and issuers supervised by the CNBV that hire external audit services. The Group was in compliance with all covenants as of December 31, 2022, December 31, 2021 and January 3, 2021, with the exception of subsection “c” of the syndicated loan’s financial obligations, however, we obtained a waiver from the agent bank before December 31, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Income Tax Text Block Abstract | |
Income Taxes | 17. Income taxes The subsidiaries of the Group in México and abroad are individually subject to the payment of income taxes. These taxes are not determined based on the consolidates figures of the Group, but are calculated individually at the level of each company declaration and each of these presents its taxes separately. According to the specific requirements of each country, the statutory rates for 2022, 2021 and 2020 periods, were 30% for México, 25% for Guatemala and 21% for United States, and will continue as such in future periods. Income tax recognized in profit or loss for the periods of 2022, 2021 and 2020 was comprised of the following: 2022 2021 2020 Current tax Ps. 533,522 791,856 576,834 Deferred tax (benefit) expense (16,602 ) 22,700 (51,173 ) Ps. 516,920 814,556 525,661 Income tax expense recognized at the effective ISR rate differs from income tax expense at the statutory tax rate. Reconciliation of income tax expense recognized from statutory to effective ISR rate is as follows: 2022 2021 2020 Profit before income tax Ps. 1,386,884 2,542,495 824,105 Tax rate 30 % 30 % 30 % Income tax expense calculated at 30% statutory tax rate 416,065 768,749 247,232 Inflation effects, net 3,536 25,039 8,333 Non-deductible expenses (1) 148,569 5,790 5,493 Loss on valuation of warrants - - 255,456 Share-based payments 1,780 1,744 8,275 Other items, net (53,030 ) 13,234 872 516,920 814,556 525,661 Ps. 37 % 32 % 64 % (1) Includes (i) certain payroll expenses which are partially deductible as grocery vouchers, help for transportation, life and major medical expenses insurance, among others; and (ii) certain cost of sales expenses as samples and obsolescence items. Realization of deferred tax assets depends on the future generation of taxable income during the period in which the temporary differences will be deductible. Management considers the reversal of deferred tax liabilities and projections of future taxable income to make its assessment on the realization of deferred tax assets. Based on the results obtained in previous years and in future profit and tax projections, management has concluded that it is probable the deferred tax assets will be realized. Composition of the deferred tax asset (liabilities) as well as the reconciliation of changes in deferred taxes balances as of December 31, 2022, December 31, 2021 and January 3, 2021 is presented below: Temporary differences As of Recognized in profit or loss Recognized in other comprehensive income As of Deferred tax assets: Expected credit loss Ps. 5,217 3,102 - 8,319 Accruals and provisions 25,937 43,232 360 69,529 Derivative financial instruments - 35,886 - 35,886 Property, plant and equipment 4,579 (4,579 ) - - Deferred tax liabilities: Intangible assets (85,820 ) 1,920 - (83,900 ) Inventories (9,353 ) (24,881 ) - (34,234 ) Derivative financial instruments (89 ) 89 - - Property, plant and equipment - (10,888 ) - (10,888 ) Other assets and prepaid expenses (13,891 ) 6,932 - (6,959 ) Net deferred tax liability Ps. (73,420 ) 50,813 360 (22,247 ) Temporary differences As of Accounting Recognized Recognized in As of Deferred tax assets: Expected credit loss Ps. 8,319 11,309 12,799 - 32,427 Accruals and provisions 69,529 - (31,422 ) - 38,107 Derivative financial instruments 35,886 - (35,886 ) - - Property, plant and equipment - - 5,538 - 5,538 Deferred tax liabilities: Intangible assets (83,900 ) - 1,920 - (81,980 ) Inventories (34,234 ) (5,337 ) 30,483 - (9,088 ) Derivative financial instruments - - (7,380 ) - (7,380 ) Property, plant and equipment (10,888 ) - 10,888 - - Other assets and prepaid expenses (6,959 ) - (9,640 ) - (16,599 ) Net deferred tax liability Ps. (22,247 ) 5,972 (22,700 ) - (38,975 ) Temporary differences As of Liability Recognized Recognized in As of Deferred tax assets: Expected credit loss Ps. 32,427 - (3,085 ) - 29,342 Accruals and provisions 38,107 256,433 99,556 - 394,096 Prepaid expenses - 4,752 351 - 5,103 Property, plant and equipment 5,538 - (5,538 ) - - Deferred tax liabilities: Intangible assets (81,980 ) (418,327 ) 1,920 - (498,387 ) Inventories (9,088 ) - (18,656 ) - (27,744 ) Derivative financial instruments (7,380 ) 4,936 (1,471 ) - (3,915 ) Property, plant and equipment - (350,521 ) (38,200 ) - (388,721 ) Other assets and prepaid expenses (16,599 ) 10,700 (18,275 ) - (24,174 ) Net deferred tax liability Ps. (38,975 ) (492,027 ) 16,602 - (514,400 ) Unrecognized deferred tax assets: As of December 31, 2022, derived from the acquisition of JAFRA, the Group did not recognize deferred tax assets in the consolidated statement of financial position with respect to the following items of the subsidiaries: Originated loss’ year Life year Jafra Cosmetics Jafrafin, S.A. 2019 2029 Ps. 27,861 - 2020 2030 3,376 - 2021 2031 - 2,659 Ps. 31,237 2,659 The Group does not recognize taxes for deferred assets with respect to tax loss carryforwards to be amortized, on which it is not probable that future taxable profits will be generated against which the Group can use tax loss carryforwards. As of December 31, 2021 and January 3, 2021, the Group had no tax loss carryforwards. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Provisions Text Block Abstract | |
Provisions | 18. Provisions Commissions, Bonuses and Professional Other Total As of January 1, 2020 Ps. 32,779 13,356 554 - 46,689 Increases 1,272,651 54,223 16,947 - 1,343,821 Payments (1,198,284 ) (21,039 ) (17,209 ) - (1,236,532 ) As of January 3, 2021 Ps. 107,146 46,540 292 - 153,978 Increases 2,054,420 140,436 17,541 - 2,212,397 Payments (2,048,135 ) (182,439 ) (17,333 ) - (2,247,907 ) As of December 31, 2021 Ps. 113,431 4,537 500 - 118,468 Additions for subsidiaries’ acquisition 360,280 - 62,990 276,314 699,584 Increases 4,030,497 74,764 48,292 412,645 4,566,198 Payments (4,012,720 ) (52,898 ) (54,490 ) (469,674 ) (4,589,782 ) Foreign currency translation (135 ) - - (921 ) (1,056 ) As of December 31, 2022 Ps. 491,353 26,403 57,292 218,364 793,412 Commissions, promotions and other Commissions, promotions, and other includes commissions payable to the sales force of distributors, associates, leaders and consultants on the last week of the period, which are paid in the first week of the year or of the following period. In addition, it includes the provision of reward points and loyalty program obtained by distributors, associates, leaders and consultants. See notes 2.v and 2.x Bonuses and other employee benefits Bonuses and other employee benefits include annual performance bonuses as well as vacation provisions, vacation bonuses, savings funds, among others. Fees for professional services Fees for professional services includes fees for services such as external audits, legal services, internal audits, among others. Other general provisions General provisions are related to year-end expenses, plant services and center services which are pending to be paid. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Derivative Financial Instruments Text Block Abstract | |
Derivative financial instruments | 19. Derivative financial instruments 19.1 Interest rate and exchange rate derivatives The Group in order to reduce the risks related to fluctuations in the exchange rate of the US dollar uses derivative financial instruments such as forwards to mitigate foreign currency exposure resulting from inventory purchases made in US dollars. For 2021 and 2020 periods, in relation with the secured credit line for up to Ps.400,000 contracted with Banamex, and in order to mitigate the risk of future increases in interest rates, the Group entered into a derivatives contract with Banamex, which consists of an interest rate swap. By using this interest rate swap, the Group converts its variable interest rates into fixed rates. On August 31, 2021, the SWAP with Banamex, was cancelled as the secured credit line was prepaid. A cancellation fee of Ps.18,172 was paid, as mentioned in note 16. The details of the derivative financial instrument contracts entered into by the Group as of December 31, 2022, December 31, 2021 and January 3, 2021, are as follows: As of December 31, 2022 Instrument Notional Fair Value Average Maturity date Forwards US Dollar / Mexican Peso US$ 41,750 Ps. 15,329 20.31 Weekly, through August 2023 Total Liabilities Ps. 15,329 As of December 31, 2021 Instrument Notional Fair Value Average Maturity date Forwards US Dollar / Mexican Peso US$ 134,050 Ps. 28,193 20.66 Weekly, through October 2022 Total Assets Ps. 28,193 As of January 3, 2021 Instrument Notional Fair Value Contract Maturity Rate received Rate paid Liabilities: Interest rate swap Ps. 353,333 Ps. 32,842 11/15/2018 12/15/2023 TIIE 28 days (1) 8.33 % Average Maturity date Forwards US Dollar / Mexican Peso US$ 140,325 Ps. 287,452 22.36 Weekly, through October 2021 Total Liabilities Ps. 320,294 Non-current liability Ps. 25,179 Total current liability Ps. 295,115 (1) As of January 3, 2021, the 28-day TIIE rate was 4.49% The impacts in profit or (loss) of the derivative financial instruments for the periods of 2022, 2021 and 2020 amounted to (loss) / gain of Ps.(43,522), Ps.330,315 and Ps.(287,985), respectively, which is included in the consolidated statements of comprehensive income in the line item of “unrealized (loss) gain in valuation of derivative financial instruments.” 19.2 Warrants As part of the merger with DD3 as disclosed in note 1.h, during 2020, Betterware assumed an obligation that allowed existing warrant holders to purchase (i) a total of 5,804,125 Betterware shares subject to exercise as of April 12, 2020 at a price of is US$ 11.50 per share that would expire on or before March 25, 2025 at the time of redemption or settlement, and (ii) the option to purchase 250,000 units that automatically became an option to issue 250,000 Betterware shares and warrants to buy 250,000 additional Betterware shares. Betterware registered the warrants to be traded on OTC Markets, which had an observable fair value. During July and August 2020, the Group repurchased 1,573,88 th During September 2020, the purchase option of units was exercised by their holders on a cashless basis, which resulted in the issuance of 214,020 Betterware shares. In addition, on October 8, 2020 and as part of the terms of the warrant agreement, Betterware issued a notice requiring all of its outstanding public warrants to be redeemed by its holders given that the condition to exercise the redemption was complied. Such condition required that the share price reached US$ 18.00 during a period of at least 20 days. The redemption of warrants was exercised on a cashless basis by exchanging 3,087,022 warrants for 1,142,325 of Betterware’s shares. 8,493 public warrants were not exercised by their holders during the redemption period that expired on November 9, 2020, and they were paid by Betterware for a price of US$ 0.01 per warrant. Finally on December 23, 2020, 239,125 private warrants were exercised on a cashless basis by their holders and exchanged for 156,505 of Betterware’s shares. As of January 3, 2021, the warrant holders had redeemed all of the outstanding warrants and purchase option of units and Betterware recognized a loss for the increase in the fair value of the warrants of Ps.851,520, which is recognized under the heading “Loss in valuation of warrants” in the consolidated statement of profit or loss. |
Retirement Benefits _ Defined B
Retirement Benefits – Defined Benefit Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefits [Abstract] | |
Retirement benefits – Defined benefit obligations | 20. Retirement benefits – Defined benefit obligations The Group recognizes the liability and corresponding impacts to profit and loss as well as comprehensive income regarding to the seniority premiums to be paid to its employees. This benefit is determined considering the years of service and the compensation from the employees. The components of the defined benefit liability for the periods of 2022, 2021 and 2020, are as follows: a) Movement in defined liability The following table shows a reconciliation from the opening balances to the closing balances for the defined benefit liability and its components: 2022 2021 2020 Balance at January 1 Ps. 2,093 1,678 1,630 Additions for subsidiaries’ acquisition 149,243 - - Included in profit or loss: Current service cost 13,322 614 425 Interest cost 9,461 101 114 Net cost of the period 22,783 715 539 Included in other comprehensive income: Actuarial (gain) loss (15,585 ) (83 ) 1,199 Income tax effect - - (360 ) Other: Benefits paid (4,627 ) (217 ) (1,330 ) Balance as of December 31 Ps. 153,907 2,093 1,678 b) Actuarial assumptions The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages): 2022 2021 2020 Betterware JAFRA Betterware Betterware Financial: Future salary growth 6.5 % 5.5 % 5.0 % 4.0 % Discount rate 9.2 % 9.5 % 7.6 % 6.1 % Demographic: Number of employees 901 1,276 1,272 1,294 Age average 34 años 38 años 32 years 31 years Longevity average 3 años 7 años 2 years 2 years c) Sensitivity analysis Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation considering a change of ±0.50% in the discount rate. Effects as of Effects as of Effects as of Betterware JAFRA Betterware Betterware Increase / decrease in the discount rate + 0.50% Ps. 361 146 156 126 - 0.50% (174 ) (151 ) (174 ) (141 ) |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Financial Instruments Text Block Abstract | |
Financial instruments | 21. Financial instruments Below is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Group as of December 31, 2022, December 31, 2021 and January 3, 2021, as well as the indication of fair value hierarchy level, when applicable: Accounting classification and fair values As of December 31, 2022 Amortized cost Fair value through profit or loss Fair value hierarchy Financial assets - Trade account receivables, net Ps. 971,063 - Trade account receivables from related parties 61 - Total 971,124 - Financial liabilities - Accounts payable to suppliers 1,371,778 - Lease liability 291,908 - Long term debt and borrowings 6,148,675 - Derivative financial instruments - 15,329 2 Total Ps. 7,812,361 15,329 As of December 31, 2021 Amortized cost Fair value through profit or loss Fair value hierarchy level Financial assets - Trade account receivables, net Ps. 745,593 - Trade account receivables from related parties 24 - Derivative financial instruments - 28,193 2 Total 745,617 28,193 Financial liabilities - Accounts payable to suppliers 1,984,932 - Lease liability 17,880 - Long term debt 1,510,385 - Total Ps. 3,513,197 - As of January 3, 2021 Amortized cost Fair value through profit or loss Fair value hierarchy Financial assets - Trade account receivables, net Ps. 735,026 - Total 735,026 - Financial liabilities - Long term debt and borrowings 629,877 - Accounts payable to suppliers 2,078,628 - Lease liability 24,378 - Derivative financial instruments - 320,294 2 Total Ps. 2,732,883 320,294 Measurements of fair values Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable: ● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and ● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). As previously disclosed, some of the Group’s financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial liabilities are determined (in particular, the valuation technique(s) and inputs used). Financial assets/financial liabilities Valuation technique(s) and key input(s) Significant unobservable Relationship and sensitivity of unobservable inputs to fair value Foreign currency forward contracts and interest rate swaps (see note 19) Discounted cash flows. N/A N/A There were no transfers between levels during the current or prior year. Financial risk management The Group’s Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk, and price risk), credit risk, liquidity risk. The Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Market risk The Group’s activities expose it primarily to the financial risks of changes in exchange rates and interest rates (see below). The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency risk, including: ● In order to reduce the risks related to fluctuations in the exchange rate of foreign currency, the Group uses derivative financial instruments such as forwards to adjust exposures resulting from foreign exchange currency. ● In addition, the Group occasionally used interest rate swaps to adjust its exposure to the variability of the interest rates or to reduce their financing costs. The Group’s practices vary from time to time depending on judgments about the level of risk, expectations of change in the movements of interest rates and the costs of using derivatives. See note 19 for disclosure of the derivative financial instruments entered into for the periods of 2022, 2021 and 2020. Exchange risk management The Group undertakes transactions denominated in foreign currencies, mainly U.S. dollars; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts. The carrying amounts of the Group’s U.S. dollars, U.E. euro and India rupee and denominated financial assets and financial liabilities at the reporting date are as follows: 2022 2021 2020 US$ €$ Rp$ US$ US$ Assets 13,006 105 60,340 10,686 29,559 Liabilities (23,142 ) (78 ) - (35,148 ) (49,570 ) Net position (10,136 ) 27 60,340 (24,462 ) (20,011 ) Closing exchange rate of the year 19.3615 20.7693 0.0013 20.5157 19.9352 Exchange rate sensitivity analysis The Group is mainly exposed to variations in the Mexican Peso / the U.S. Dollar exchange rate. For sensitivity analysis purposes, the Group has determined a 10 percent increase and decrease in Ps. currency units against the U.S. dollar (“relevant currency”). The 10 percent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated financial assets/liabilities and adjusts their translation at the year-end for a 10 percent change in foreign currency rates. Given that the foreign exchange currency net position results in a liability, a positive number below indicates an increase in profit where currency units strengthen 10 percent against the relevant currency. For a 10 percent weakening of currency units against the relevant currency, there would be a comparable impact on the net income, and the balances below would be negative. 2022 Impact on net income Ps. 19,490 Foreign exchange forward contracts It is the policy of the Group to enter into foreign exchange forward contracts to manage the foreign currency risk associated with anticipated purchase transactions up to 12 months. See note 19 with details on foreign currency forward contracts outstanding at the end of the reporting period. Foreign currency forward contract assets and liabilities are presented in the line ‘Derivative financial instruments’ within the consolidated statement of financial position. The Group has entered into contracts to purchase raw materials from suppliers in China, with such purchases denominated in U.S. dollars. The Group has entered into foreign exchange forward contracts to hedge the exchange rate risk arising from these anticipated future purchases. Interest rate risk management During 2020, the Group was exposed to interest rate risk from the borrowings at a variable interest rates. The risk is managed by the Group by maintaining an appropriate balance between fixed and variable rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite; ensuring the most cost-effective hedging strategies are applied. The Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note. As of December 31, 2022 and 2021, the Group does not have any SWAP contracted. Interest rate sensitivity analysis The sensitivity analyses determined in 2020, ware based on the exposure to interest rates on the reporting date. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the reporting date was outstanding during the year. A one per cent increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been one per cent higher/lower and all other variables would have held constant, the Group’s net income as of January 3, 2021, would decrease/increase by Ps 6,266. This is attributable to the Group’s exposure to interest rates on its borrowings which were prepaid as of December 31, 2021 as described in note 16. Interest rate swap contracts During the first months of 2021 and prior periods, under interest rate swap contracts, the Group agreed to exchange the difference between fixed and variable rate interest amounts calculated on agreed notional principal amounts. Such contracts enabled the Group to mitigate the risk of changing interest rates on the cash flow exposures on the issued variable rate debt held. The fair value of interest rate swaps in 2020 was determined by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract and was disclosed in note 19. The average interest rate was based on the outstanding balances at the end of the financial period. Credit risk management The Group’s exposure to credit risk concentration is not significant as no customer represents more than 10% of sales and receivables. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated, spread across diverse geographical areas. Credit policy has been implemented for each customer establishing purchase limits. Customers who do not satisfy the credit references set out by the Group, can only carry out transactions with the Group through prepayment. See note 6 for further details on trade account receivables and the expected credit loss estimate. Collateral held as security and other credit enhancements The Group does not hold any collateral or other credit enhancements to cover its credit risks associated with its financial assets. Overview of the Group’s exposure to credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss/gain to the Group. As of December 31, 2022, the Group’s maximum exposure to credit risk without taking into account any collateral held or other credit enhancements, which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties and financial guarantees provided by the Group, arises from the carrying amount of the respective recognized financial assets as stated in the consolidated statement of financial position. For trade receivables, the Group has applied the simplified approach to measure the loss allowance at lifetime instruments. The Group determines the expected credit losses on these items by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, determined by the last 3 years plus the current period adjusted as appropriate to reflect current conditions and estimates of future economic conditions. Accordingly, the credit risk profile of these assets is presented based on their past due status in terms of the provision matrix. The note 6, includes further details on the loss allowance for these assets. Liquidity risk management The ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities, and reserve borrowing facilities, by continuously monitoring the forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Details of additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk are set out below. Liquidity maturity analysis The Group manages its liquidity risk by maintaining adequate reserves of cash and bank credit lines available and consistently monitoring its projected and actual cash flows. The maturity analysis of lease liabilities is presented in note 14 and long-term debt maturities effectives in 2022, 2021 and 2020 are presented in note 16. The Group has access to financing facilities as described below. The Group expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets. Bank credit lines and long term debt 2022 2021 2020 Amount used Ps. 6,198,695 1,500,000 626,554 Amount not used 1,380,000 250,000 297,828 Total credit lines and long term debt Ps. 7,578,695 1,750,000 924,382 Capital risk management The Group manages its capital to ensure it will be able to continue as a going concern, while it maximizes returns for its shareholders through the optimization of its capital structure. The Group’s management reviews the capital structure when presenting its financial projections to the Board of Directors and stockholders as part of the annual business plan. When performing its review, the Board of Directors considers the cost of equity and its associated risks. The capital structure of the Group consists of net debt (debt and borrowings disclosed in note 16 after deducting cash and bank balances) and stockholders’ equity of the Group. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders’ Equity [Abstract] | |
Stockholders’ equity | 22. Stockholders’ equity Stockholders’ equity as of December 31, 2022, December 31, 2021 and January 3, 2021 by number of shares, is as follows: Betterware de México, S.A.P.I. de C.V. As of As of As of Fixed capital 10,000 10,000 10,000 Variable capital 37,306,546 37,306,546 36,574,968 37,316,546 37,316,546 36,584,968 The capital stock is represented by fully subscribed and paid common shares with no par value, with the exception of fixed capital, for which the par value per share is Ps.10. The variable capital stock is unlimited. As of December 31, 2022, December 31, 2021 and January 3, 2021 the Group had 356,029, 283,403 and 1,015,072 treasury shares. 2022 In 2022, during the months of February to March, the Group repurchased 72,626 shares equivalent to Ps.25,321 according to the program approved on September 10, 2021 by the Board of Directors, where up to US$50,000 may be repurchased, until December 31, 2022. 2021 During the Ordinary Shareholders’ Meeting held on February 18, 2021, a reclassification of Ps.876,518 from share premium account to retained earnings was approved. On June 21, 2021, the Group issued 731,669 treasury shares in favor to Campalier, related to the long term incentive plan based on shares with the Executive Chairman of the Board, agreed between Shareholders on August 15, 2019 and modified on June 30, 2020. 2020 On March 10, 2020, DD3 was merged into Betterware. Due to the merger, which resulted in Betterware increased its variable capital by issuing shares to the previous shareholders of DD3 by Ps.181,865, less issuance costs of Ps.16,736. On the same date, a liability of Ps.55,810 for the fair value of the assumed warrants obligation was recognized. On October 2, 2020, the Ordinary Shareholders’ Meeting approved an increase in Betterware’s variable capital by an amount of Ps.89,235, due to the cash exercise of 352,256 warrants, equivalent to 352,256 shares. On November 9, 2020, the Ordinary Shareholders’ Meeting approved an increase in Betterware’s variable capital by an amount of Ps.27,183, due to the cash exercise of 109,874 warrants, equivalent to 109,874 shares. On November 9, 2020, the Ordinary Shareholders’ Meeting approved an increase in Betterware’s share premium by an amount of Ps.860,571, due to the cashless exercise of 3,520,489 warrants as of such date and as part of the redemption (see note 1.m), equivalent to 1,301,293 shares. On December 14, 2020, the Ordinary Shareholders’ Meeting approved the merger of Promotora Forteza (a commonly controlled entity) into Betterware. As part of the merger stockholders’ equity increased Ps.4,724. As of January 3, 2021, and as a result of the exercise of the purchase option of units by its holders (see note 19.2) and the share-based payments granted to certain directors and executives (see note 23), the total capital increase in share premium amounted Ps.909,428. Dividends 2022 On February 11, 2022, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.350,000, which were paid in cash on March 3, 2022. Part of this amount (Ps.183,812) was paid to Campalier based on its shareholding. The dividend per share was Ps.9.38. On April 29, 2022, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.350,000, which were paid in cash on June 22, 2022. Part of this amount (Ps.183,812) was paid to Campalier based on its shareholding. The dividend per share was Ps.9.38. On August 19, 2022, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.200,000, of which the amount of Ps.199,610 was paid in cash on September 8, 2022. Part of this amount (Ps.105,035) was paid to Campalier based on its shareholding. The dividend per share was Ps.5.36. On October 28, 2022, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.50,000, which were paid in cash on December 28, 2022 Part of this amount (Ps.26,259) was paid to Campalier based on its shareholding. The dividend per share was Ps.1.34. 2021 On February 18, 2021, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.350,000, which were paid in cash on March 4, 2021. Part of this amount (Ps.180,489) was paid to Campalier based on its shareholding. The dividend per share was Ps.9.57. On May 12, 2021, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.350,000, which were paid in cash on May 20, 2021. Part of this amount (Ps.180,489) was paid to Campalier based on its shareholding. The dividend per share was Ps.9.57. On August 13, 2021, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.350,000, which were paid in cash on August 19, 2021. Part of this amount (Ps.183,812) was paid to Campalier based on its shareholding. The dividend per share was Ps.9.38. On October 29, 2021, the General Shareholders’ Meeting approved a payment of dividends in the amount of Ps.350,000, which were paid in cash on November 4, 2021. Part of this amount (Ps.183,812) was paid to Campalier based on its shareholding. The dividend per share was Ps.9.38. 2020 On January 10, 2020, the General Shareholders’ Meeting approved a payment of dividends from retained earnings in the amount of Ps.70,000, which were paid in cash on January 10, 2020. Part of this amount (Ps.42,739) was paid to Campalier based on its shareholding. The dividend per share was Ps.2.32. On May 8, 2020, the General Shareholders’ Meeting approved a payment of dividends on account of the profits to be generated in the fiscal year 2020 in the amount of Ps.100,000, which were paid in cash on May 28, 2020. Part of this amount (Ps.53,522) was paid to Campalier based on its shareholding. The dividend per share was Ps.2.90. On August 17, 2020, the Ordinary General Shareholders’ Meeting approved a payment of dividends on account of the profits to be generated in fiscal year 2020 in the amount of Ps.330,000, which were paid in cash on August 20, 2020. Part of this amount (Ps.176,621) was paid to Campalier based on their shareholding. The dividend per share was Ps.9.27. On November 9, 2020, the Ordinary General Shareholders’ Meeting approved a payment of dividends on account of the profits to be generated in the fiscal year 2020 in the amount of Ps.330,000, which were paid in cash on November 19, 2020. Part of this amount (Ps.168,136) was paid to Campalier based on their shareholding. The dividend per share was Ps.9.11. Legal reserve Retained earnings include the statutory legal reserve. The Mexican General Corporate Law requires that at least 5% of net income of the year be transferred to the legal reserve until the reserve equals 20% of common stock at par value (historical pesos). The legal reserve may be capitalized but may not be distributed unless the Group is dissolved. The legal reserve must be replenished if it is reduced for any reason. As of December 31, 2022, December 31, 2021 and January 3, 2021, the legal reserve, in pesos, was Ps.10,679 and it is included in retained earnings. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payments [Abstract] | |
Share-based payments | 23. Share-based payments As disclosed in notes 1.j and 2.y, the Group grants a compensation plan based on Betterware’s shares to Executive Chairman of the Board, certain officers and directors. The plans were granted at the Board of Directors’ Meeting on August 15, 2019, and modified July 30, 2020, in which it was established that to obtain the rights to the corresponding shares of Beñtterware, there should be a performance metric based on EBITDA (Earnings before interest, taxes, depreciation and amortization) and their continuance at the Group, which will be delivered based on the particular compensation plans of each individual. The effects associated with the award of share-based payments were recognized in the consolidated statement of income and other comprehensive income, with the corresponding effect in stockholders’ equity. In May 2021, the conditions of the share-based compensation plan for the Executive Chairman of the Board were met, so in June 2021, the Betterware’s shares equivalent to 2% were delivered to Campalier. The plan as of December 31, 2022 and 2021 only includes certain Directors and key executives. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Earnings Per Share Text Block Abstract | |
Earnings per share | 24. Earnings per share The amount of basic earnings per share is calculated by dividing the net income for the period attributable to shareholders of the Group’s ordinary shares by the weighted average of the ordinary shares outstanding during the period. The amount of diluted earnings per share is calculated by dividing the net income attributable to shareholders of the Group’s common shares (after adjusting it due to changes in the fair value of warrants recognized at FVTPL in accordance with IFRS 9, if applicable) by the weighted average of the common shares outstanding during the period plus the weighted average number of ordinary shares that would have been issued at the time of converting all diluted potential ordinary shares into ordinary shares. The following events affected the outstanding common shares for the 2022, 2021 and 2020 periods: 2022 ● In 2022, during the months of February to March, the Group repurchased 72,626 shares at US$17.03 each share or the equivalent of a total of Ps.25,321, according to the program approved on September 10, 2021 by the Board of Directors, where it was stipulated to repurchase them for up to US$50,000, until December 31, 2022. 2021 ● For the year 2021, the share-based payment incentive plans with the Executive Chairman of the Board, certain officers and directors, issued by the Group (see note 22) qualified as a potentially dilutive event, resulting in 20,680 potentially dilutive shares, corresponding to the share-based incentive plan for directors and key executives. The Group issued 731,669 treasury shares during the year related to the share-based incentive plan of the Executive Chairman of the Board; such shares were considered from January 1, 2021, within the calculation of diluted earnings per share for the year ended December 31, 2021. 2020 ● The warrants that DD3 had issued and that were automatically converted into warrants to purchase a total of 5,804,125 shares, exercised by its holders through a cash and cashless basis. The cash exercises resulted in th ● The unit purchase option subject to the warrant contract to issue 250,000 Betterware shares and warrants to buy 250,000 additional Betterware shares (see note 1.e). The purchase option resulted in the issuance of 214,020 Betterware shares, which were exercised on a cashless basis. ● The effect of warrants and unit purchase options throughout the 2020 and while not exercised in the period qualified as antidilutive events. In accordance with IAS 33, antidilutive potential ordinary shares are disregarded in the calculation of diluted earnings per share. ● On 2020, the merger transaction was, which closed on March 13, 2020, between Betterware and DD3 and the subscription and payment of Betterware shares on Nasdaq, were considered on the operation, moreover all Betterware shares issued and outstanding immediately prior to the closing date were canceled and new shares were issued. Additionally, IFRS requires that the calculation of basic and diluted earnings per share (“EPS”) for all periods presented be adjusted retrospectively when the number of ordinary shares or potential ordinary shares outstanding increases as a result of a capitalization, bond issue, or share split, or decreases as a result of a reverse share split, EPS calculations for the reporting period and the comparative period should be based on the new number of shares. As of December 31, 2022, December 31, 2021 and January 3, 2021, Betterware had 37,316,546, 37,316,546, and 36,584,968 outstanding shares, respectively. The following table shows the income and share data used in the calculation of basic and diluted earnings per share for the periods of 2022, 2021 and 2020: 2022 2021 2020 Net income (in thousands of pesos) Attributable to Owners of the Group Ps. 872,557 1,751,645 298,444 Shares (in thousands of shares) Weighted average of outstanding shares Basic 37,256 36,974 34,083 Diluted 37,277 37,337 34,383 Basic and diluted earnings per share: Basic earnings per share (pesos per share) Ps. 23.42 47.38 8.76 Diluted earnings per share (pesos per share) 23.41 46.91 8.68 |
Related party balances and tran
Related party balances and transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related parties balances and transactions [Abstract] | |
Related party balances and transactions | 25. Related party balances and transactions The following balances were outstanding as of December 31, 2022, December 31, 2021 and January 3: Trade account receivables from related parties 2022 2021 2020 Fundación Betterware., A.C. Ps. 61 24 - Trade account payables to related parties 2022 2021 2020 Campalier, S.A. de C.V. Ps. 96,859 - - On June 23, 2022, our subsidiary Programa Lazos, S.A. de C.V., signed an agreement for a loan up to Ps.150 million with Campalier, S.A de C.V. (“Campalier”). As of December 31, 2022, Lazos received a disbursement of Ps.120 million, bearing monthly variable interest rate of TIIE plus 349 basis points, without specific maturity. Trading transactions – Revenues / expensess to Betterware with: 2022 2021 Lease income Donation expenses Lease income Donation expenses Fundación Betterware., A.C. Ps. 63 3,350 42 920 2022 Expenses/ to Lazos with: Interest expenses Campalier, S.A. de C.V. Ps. 7,479 Remuneration of key management personnel – Key management personnel compensation comprised short-term employee benefits of Ps.47,265, Ps.42,170 and Ps.37,713 as of December 31, 2022, December 31, 2021 and January 3, 2021, respectively. Compensation of the Group’s key management personnel includes salaries and non-cash benefits. No long-term employee benefits were paid to key management personnel during 2022, 2021 and 2020. |
Revenue and Operating Expenses
Revenue and Operating Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Revenue and Operating Expenses [Abstract] | |
Revenue and operating expenses | 26. Revenue and operating expenses Revenue – Revenue recognized in the 2022 was generated in Mexico and the United States, while the revenue recognized 2021 and 2020 was generated in Mexico. A disaggregation revenue per product segments is as follows: 2022 2021 2020 Revenue by home organization products: Kitchen and food preservation Ps. 2,163,684 3,283,421 2,524,475 Home solutions 1,272,272 2,319,156 1,452,096 Bedroom 854,323 1,608,424 824,370 Bathroom 749,161 1,217,927 840,080 Laundry & Cleaning 691,272 826,188 825,874 Tech & mobility 553,977 769,767 770,733 Others 58,655 42,800 - Total revenue by home organization products 6,343,344 10,067,683 7,237,628 Revenue by beauty and personal care products: Fragrance 3,472,919 - - Color 642,876 - - Skin care 611,905 - - Toiletries 321,806 - - Others 114,699 - - Total revenue of beauty and personal care products 5,164,205 - - Total revenue of the Group Ps. 11,507,549 10,067,683 7,237,628 As of December 31, 2022, December 31, 2021 and January 3, 2021, the Group did not identify significant costs to obtain/fulfill a contract that are required to be capitalized as an asset. Consequently, the Group did not perform any analysis in order to identify possible impairment losses. See note 6 about the expected credit loss model applicable to all financial assets measured at amortized cost. Operating expenses – Operating expenses by nature, for the periods of 2022, 2021 and 2020 are as follows: 2022 2021 2020 Promotions for the sales force Ps. 1,743,961 503,291 172,177 Cost of personnel services and other employee benefits 1,502,030 621,519 564,213 Distribution costs 473,516 463,762 331,023 Sales catalog 445,753 417,522 289,170 Depreciation and amortization 287,702 82,122 43,688 Impairment loss on trade accounts receivables 269,595 198,495 57,627 Commissions and professional fees 217,384 69,954 61,403 Events, marketing and advertising 199,771 109,822 19,237 Packing materials 161,095 201,006 112,512 Rent expense 96,729 52,660 22,451 Travel expenses 33,223 11,258 13,522 Bank fees 25,853 34,335 23,965 Market research 12,031 9,550 8,495 Other 409,545 192,514 174,462 Ps. 5,878,188 2,967,810 1,893,945 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2022 | |
Segment [Abstract] | |
Segment information | 27. Segment information The information by operating segments is presented consistent with the information included in the internal reports provided to the highest authority in making operating decisions (Chief Operating Decision Maker or “CODM”). The Board of Directors is who evaluates the financial performance, the situation of the Group and makes strategic decisions. It has been identified as the highest authority in operating decision-making, and it is integrated by seven independent members, two members and the Executive Board Chairman. As discussed in note 1, the Group has identified the reportable business segments as follow: ● Home organization segment (Betterware segment or BWM’ segment): Some of the categories through which Betterware offers its product line include kitchen and food preservation, home solutions, bathroom, laundry & cleaning, tech and mobility and bedroom (see note 26). BWM’s products are sold through catalogues and are distributed to the end customer by its network of distributors and associates in Mexico. As of December 31, 2022, the net income corresponding to this reportable segment represented 55.1%. ● Beauty and Personal Care (B&PC) segment (JAFRA segment), formed by four main categories: fragrance, color (cosmetics), skin care and toiletries. JAFRA’s products are sold through 12 promotional catalogues published on a monthly basis and are distributed to the end customer by its network of leaders and consultants in its operative segments located in Mexico (JAFRA Mexico) and the United States (JAFRA US). As of December 31, 2022, the net income corresponding to this reportable segment represented 44.9%. The segment information of the Group is detailed in the following table: As of December 31, 2022 As of As of The Group’s companies BWM´s segment JAFRA´s segment Eliminations (1) Total BWM´s segment BWM´s segment EBITDA 1,514,227 801,881 - 2,316,108 2,683,987 2,107,023 Depreciation and amortization 109,055 178,647 - 287,702 82,122 43,688 Operating income 1,405,172 623,234 - 2,028,406 2,601,865 2,063,335 Interest income 10,607 32,777 (14,695 ) 28,689 25,872 10,930 Interest expense (546,977 ) (11,039 ) 14,695 (543,321 ) (75,818 ) (80,253 ) Unrealized (loss) gain in valuation of DFI (43,522 ) - - (43,522 ) 330,315 (287,985 ) Changes in fair value of warrants - - - - - (851,520 ) Foreign exchange loss, net (81,212 ) (2,156 ) - (83,368 ) (319,739 ) (30,402 ) Income before income taxes 744,068 642,816 - 1,386,884 2,562,495 824,105 Income taxes 367,166 149,754 - 516,920 814,556 525,661 Income for the year 376,902 493,062 - 869,964 1,747,939 298,444 Net revenue Ps. 6,343,344 5,166,545 (2,340 ) 11,507,549 10,067,683 7,237,628 Divestment in subsidiaries Ps. (21,862 ) - - (21,862 ) - - Total assets Ps. 8,958,162 8,154,942 (5,780,371 ) 11,332,733 5,185,229 4,359,706 Total liabilities Ps. (8,363,605 ) (2,592,037 ) 720,189 (10,235,453 ) (3,985,026 ) (3,477,730 ) Fixed assets additions Ps. 77,899 50,201 (3,492 ) 124,608 336,310 619,279 (1) The column of eliminations corresponds to the transactions between the Group’s subsidiaries for the concepts of loans, interest income (expenses), expenses for corporate services, sales of fixed assets, initial investment in subsidiary, among the most important. The income recognized during the year 2022, 2021 and 2020, national and foreign, is shown below: 2022 2021 2020 Revenue in Mexico Ps. 10,531,505 10,059,285 7,237,628 Revenue in United States (2) 966,085 - - Revenue in Guatemala 9,959 8,398 - Total revenue of the Group Ps. 11,507,549 10,067,683 7,237,628 (2) The main concentration of JAFRA’s income is in Mexico, however, there is an entity in the United States which represents a smaller percentage 8% of the Group’s total income. The Group considers that there are no concentration risks given the nature of the business and the sale of its products through a significant number of distributors, leaders and consultants. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Contingencies [Abstract] | |
Contingencies | 28. Contingencies The Group is a subject to various legal actions in the normal course of its business. The Group is not involved in or threatened by proceedings for which the Group believes it is not adequately insured or indemnified or which, if determined adversely, would have a material adverse effect on its consolidated financial position, results of operations and cash flows. Additional taxes payable could arise in transactions with related parties if the tax authority, during a review, believes that prices and amounts used by the Group are not similar to those used with or between independent parties in comparable transactions. In accordance with the current tax legislation, the authorities have the power to review up to five fiscal years prior to the last income tax return filed. On August 12, 2014, the International Inspection Administration “4” (“AFI”, for its acronym in Spanish), under the Central Administration of International Control, in relation to the General Administration of Large Taxpayers of the Tax Administration Service (“SAT” for its acronym in Spanish), requested information regarding the Group’s 2010 income tax filing, which was provided at that time. On February 20, 2017, the final agreement was signed with the Taxpayer Advocacy Office (“PRODECON”, for its acronym in Spanish) regarding the SAT’s review. On March 2, 2017, the SAT notified the Group about certain issues on which an agreement was not reached. As a result, the Group filed a lawsuit for annulment before the SAT’s resolution. On January 31, 2023, the Group desisted on the lawsuit for annulment and ratified it on February 8, 2023. The tax credit by an amount of Ps.5,331 (historical) plus updates and surcharges, which was part of the provisions balance as of December 31, 2022, was paid on April 26, 2023. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events [Abstract] | |
Subsequent events | 29. Subsequent events In the preparation of the consolidated financial statements, the Group has evaluated the events and transactions for their recognition or disclosure subsequent to December 31, 2022 and until May 15, 2023 (date of issuance of the consolidated financial statements), and except as noted below, has not identified subsequent significant events: On March 8, 2023, the Ordinary General Shareholders’ Meeting approved a dividend payment of Ps .100,000 .99,806 .52,518 On March 31, 2023, the Group made an advance payment of Ps .1,000,000 .3,498,695 |
Authorization to issue the cons
Authorization to issue the consolidated and combined financial statements | 12 Months Ended |
Dec. 31, 2022 | |
Authorization to issue the consolidated and combined financial statements [Abstract] | |
Authorization to issue the consolidated and combined financial statements | 30. Authorization to issue the consolidated financial statements On May 15, 2023, the issuance of the Group’s consolidated financial statements was authorized by Andrés Campos, Chief Executive Officer, and Alejandro Ulloa, Chief Corporate Financial Officer. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of preparation | a. Basis of preparation The Group’s consolidated financial statements for 2022 include the financial statements of Betterware de México, S.A.P.I. de C.V., and subsidiaries as described in note 2d (the “consolidated financial statements”). The preparation of the consolidated financial statements in accordance with International Financial Reporting Standards requires the use of critical accounting estimates. In addition, it requires Management to exercise judgment in the process of applying the Group’s accounting policies. The areas that involve a high level of judgment or complexity, as well as areas where the judgments and estimates are significant to the consolidated financial statements are disclosed in note 4. Until 2020, Betterware’s financial year was a 52- or 53-weeks period ending on the Sunday nearest to December 31, however, due to the fact that in 2021 Betterware placed debt on the Mexican Stock Exchange, the financial period must be presented in compliance with the Mexican General Corporate Law, which must coincide with the calendar year, therefore the financial information of 2022 and 2021 is presented as of December 31, 2022 (the “2022 period”) and as of December 31, 2021 (the “2021 period”) and for the years then ended. The financial year of 2020 consisted of 53 weeks ended on January 3, 2021 (the “2020 period”), which were not adjusted to calendar year because the effect of the change is not significant. |
Basis of accounting & correction of immaterial errors | b. Basis of accounting & correction of immaterial errors The Group’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) or and the interpretations issued by IFRS Interpretations Committee (“IFRIC”) applicable to companies that report under IFRS. The financial statements comply with IFRS issued by the International Accounting Standards Board (“IASB”). The Group made a correction of immaterial errors related to its December 31, 2021 and January 3, 2021 consolidated financial statements as summarized below. The Group performed a materiality evaluation in accordance with the Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, and concluded that the misstatement was immaterial to its previously issued financial statements. However, as the impact of correcting the cumulative misstatement during 2022 would have been material to net earnings, the Company revised its previously issued financial statements as of and for the years ended December 31, 2021 and January 3, 2021: Consolidated Statement of Financial Position as of December 31, 2021 Assets Adjusted Previously Presented Difference Reference Current assets: Trade accounts receivable, net $ 745,593 778,054 (32,461 ) a Inventories 1,286,155 1,339,378 (53,223 ) a, b Prepaid expenses 35,596 69,224 (33,628 ) c Total current assets 3,352,747 3,472,059 (119,312 ) Total assets $ 5,185,229 5,304,541 (119,312 ) Liabilities and stockholders’ equity Current liabilities: Accrued expenses $ 159,354 142,169 17,185 b Provisions 118,468 115,192 3,276 d Income tax payable 97,634 88,679 8,955 f Total current liabilities $ 2,449,919 2,420,503 29,416 Non-current liabilities: Deferred income tax $ 38,975 80,907 (41,932 ) a, b, c, d Total non-current liabilities 1,535,107 1,577,039 (41,932 ) Total liabilities $ 3,985,026 3,997,542 (12,516 ) Stockholder’s equity Capital stock $ 321,312 294,999 26,313 e Retained earnings (deficit) 856,994 990,103 (133,109 ) a, b, c, d, e, f Equity attributable to owners of the Group 1,185,548 1,292,344 (106,796 ) Total stockholders’ equity 1,200,203 1,306,999 (106,796 ) Total liabilities and stockholders’ equity $ 5,185,229 5,304,541 (119,312 ) Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended December 31, 2021 Adjusted Previously Presented Difference Reference Net revenue $ 10,067,683 10,039,668 28,015 a Cost of sales 4,498,008 4,399,164 98,844 a, b Gross profit 5,569,675 5,640,504 (70,829 ) Administrative expenses 1,247,742 1,247,436 306 d Selling expenses 1,256,289 1,264,581 (8,292 ) c Distribution expenses 463,779 463,779 - 2,967,810 2,975,796 (7,986 ) Operating income 2,601,865 2,664,708 (62,843 ) Income before income taxes 2,562,495 2,625,338 (62,843 ) Current income tax 791,856 782,901 8,955 f Deferred income tax 22,700 41,553 (18,853 ) a,b,c,d Net income for the year $ 1,747,939 1,800,884 (52,945 ) Consolidated Statement of Financial Position as of January 3, 2021 Assets Adjusted Previously Presented Difference Reference Current assets: Trade accounts receivable, net $ 735,026 757,806 (22,780 ) a Inventories, net 1,284,672 1,274,026 10,646 a Prepaid expenses 52,581 94,501 (41,920 ) c Total current assets 2,852,516 2,906,570 (54,054 ) Total assets $ 4,359,706 4,413,760 (54,054 ) Liabilities and stockholders’ equity Current liabilities: Provisions 153,978 151,008 2,970 d Total current liabilities $ 2,870,367 2,867,397 2,970 Non-current liabilities: Deferred income tax $ 39,852 56,959 (17,107 ) a, b, c, d Total non-current liabilities 607,363 624,470 (17,107 ) Total liabilities $ 3,477,730 3,491,867 (14,137 ) Stockholder’s equity Capital stock 308,035 281,722 26,313 Retained earnings (deficit) $ (334,769 ) (268,539 ) (66,230 ) a, b, c, d, e Equity attributable to owners of the Group 881,976 921,893 (39,917 ) Total stockholders’ equity 881,976 921,893 (39,917 ) Total liabilities and stockholders’ equity $ 4,359,706 4,413,760 (54,054 ) Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended January 3, 2021. Adjusted Previously Presented Difference Reference Net revenue $ 7,237,628 7,260,408 (22,780 ) a Cost of sales 3,280,348 3,290,994 (10,646 ) a Gross profit 3,957,280 3,969,414 (12,134 ) Administrative expenses 667,647 664,677 2,970 d Selling expenses 895,275 853,355 41,920 c Distribution expenses 331,023 331,023 - 1,893,945 1,849,055 44,890 Operating income 2,063,335 2,120,359 (57,024 ) Income before income taxes 824,105 881,129 (57,024 ) Deferred income tax (51,173 ) (34,066 ) (17,107 ) Net income for the year $ 298,444 338,361 (39,917 ) The adjustments relate to the following matters: (a) Cut-off for revenue where control was not transferred to the customer. (b) Cost of inventory overstated on the international freight standard cost assumption; offset by overstated accruals liabilities on import expenses. (c) Cost of catalogues that had a non-GAAP treatment as prepaids and were expensed at the same time the revenues were realized; instead of when catalogues were received as IFRS states. (d) Immaterial provisions for labor matters. (e) Reclassification between capital stock and retained earnings for combination instead of consolidation of capital in 2020. (f) Accrual for the tax contingency explained in note 28 was not recorded previously. |
Basis of measurement | c. Basis of measurement The Group’s consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments measured at fair value. Functional and presentation currency These consolidated financial statements are presented in Mexican pesos (“Ps or $”), which is the Group presentation currency. The amounts included in the consolidated financial statements of each of the Group’s subsidiaries must be measured using the currency of the primary economic environment in which the entity operates (“functional currency”). All financial information presented in Mexican pesos has been rounded to the nearest thousand (except where otherwise specified). When referring to U.S. dollars (“US$”), means thousands of United States dollars. Consolidated statement of profit or loss and other comprehensive income The Group opted to present a single consolidated statement of profit or loss and comprehensive income, consolidating the presentation of profit and loss, including an operating profit line item, and comprehensive income in the same statement. Due to the commercial activities of the Group, costs and expenses presented in the consolidated statements of profit or loss and other comprehensive income were classified according to their function. Accordingly, cost of sales and operating expenses were presented separately. |
Basis of consolidation | d. Basis of consolidation The Group’s consolidated financial statements, incorporate the financial statements of the entities controlled by Betterware. Control is achieved when the Group: ● Has the power over the investee ● Is exposed, or has rights, to variable returns from its involvement with the investee ● Has the ability to use its power to affect its returns The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Group has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances an assessing whether or not the Group´s voting rights in an investee are sufficient to give power, including: ● The size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; ● Potential voting rights held by the Group, other vote holders or other parties; ● Rights arising from other contractual arrangements; and ● Any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the Group gains control until the date when the Group ceases to control the subsidiary. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated on consolidation. Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. Those interests of non-controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Profit or loss and each component of other comprehensive income are attributed to the owners of the Group and to the non-controlling interests. Total comprehensive income of the subsidiaries is attributed to the owners of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Group. When the Group loses control of a subsidiary, the gain or loss on disposal recognized in profit or loss is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as required/permitted by applicable IFRS Standards). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IFRS 9, Financial Instruments Betterware, has control over its subsidiaries due to the shares and voting rights acquired, which generate rights over the variable returns from the subsidiaries, and has the ability to influence those returns through his power over them. As of December 31, 2022, 2021 and 2020 the percentage of participation that it maintains over its subsidiaries are the following: Operating Functional % Participation The Group’s companies: Country currency 2022 2021 2020 Home organization (“Betterware”): Betterware de México, S.A.P.I. de C.V. Mexico Peso 100 % 100 % 100 % BLSM Latino América Servicios, S.A. de C.V. Mexico Peso 99 % 99 % 99 % Betterware de Guatemala, S.A. Guatemala Quetzal 70 % 70 % - Programa Lazos, S.A. de C.V. Mexico Peso 70 % 70 % - GurúComm, S.A.P.I. de C.V. (1) Mexico Peso - 60 % - Innova Catálogos, S.A. de C.V. (2) Mexico Peso - 70 % - Betterware Ningbo Trading Co, LTD. China Yuan 100 % 100 % - Finayo, S.A.P.I. de C.V. SOFOM ENR Mexico Peso 100 % - - Beauty and personal care (B&PC) (“JAFRA”): Jafra México Holding Company, B.V. Holanda Euro 100 % - - Distribuidora Comercial JAFRA, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics International, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics, S.A. de C.V. Mexico Peso 100 % - - Serviday, S.A. de C.V. Mexico Peso 100 % - - Jafrafin, S.A. de C.V. Mexico Peso 100 % - - Distribuidora Venus, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics International, Inc. United States Dollar 100 % - - (1) GurúComm was part of the Group until March 28, 2022. (2) Innova Catálogos was part of the Group until November 18, 2022. As of December 31, 2022, 2021 and January 3, 2021, there are no significant restrictions for investment in shares of the subsidiary companies previously mentioned. |
Cash and cash equivalents and restricted cash | e. Cash and cash equivalents and restricted cash Cash and cash equivalents consist mainly of bank deposits and short-term investments in securities, highly liquid and easily convertible into cash with original maturities of three months or less and that are subject to insignificant risks of changes in value. Cash is stated at nominal value and cash equivalents are valued at fair value. Any cash or cash equivalent that cannot be disposed of in less than three months is classified as restricted cash. In cases where the definition of cash and cash equivalents is not met due to restrictions, the amounts are presented in a separate line in the consolidated statements of financial position and is excluded from cash and cash equivalents in the consolidated statements of cash flows. |
Financial instruments | f. Financial instruments Financial assets and financial liabilities are recognized in the Group’s consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. |
Financial assets | g. Financial assets All recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value, depending on the classification of the financial assets. Classification of financial assets Debt instruments that meet the following conditions are measured subsequently at amortized cost: ● the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and ● the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI): ● the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and ● the contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI on the principal amount outstanding. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL). Despite the foregoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset: ● the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income if certain criteria are met; and ● the Group may irrevocably designate a debt investment that meets the amortized cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. Amortized cost and effective interest method The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortized cost of a financial asset before adjusting for any loss allowance. Foreign exchange gains and losses The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated at the closing exchange rate of each reporting period. Specifically, for financial assets measured at amortized cost that are not part of a designated hedging relationship, exchange differences are recognized in profit or loss. Impairment of financial assets The Group always recognizes lifetime expected credit losses (“ECL”) for trade receivables. The expected credit losses on these financial assets are estimated using the simplified approach by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. For financial assets that are not subject to the simplified approach, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. Write-off policy The Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, i.e., when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognized in profit or loss. |
Financial liabilities | h. Financial liabilities All financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL. ● Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognized in profit or loss to the extent that they are not part of a designated hedging relationship. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. Financial liabilities and equity Classification as debt or equity ● Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. As of December 31, 2022, 2021 and January 3, 2021, the Group does not have this type of instruments. Financial liabilities measured subsequently at amortized cost Financial liabilities that are not (i) contingent consideration of an acquirer in a business condensation combination and consolidation, (ii) held-for-trading, or (iii) designated as at FVTPL, are measured subsequently at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortized cost of a financial liability. Foreign exchange gains and losses For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of the instruments. These foreign exchange gains and losses are recognized in the ‘Foreign exchange (loss) gain, net’ line item in the consolidated statements of profit or loss and other comprehensive income for financial liabilities that are not part of a designated hedging relationship. The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the closing exchange rate of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognized in profit or loss for financial liabilities that are not part of a designated hedging relationship. Derecognition of financial liabilities The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, canceled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between (1) the carrying amount of the liability before the modification; and (2) the present value of the cash flows after modification should be recognized in profit or loss as the modification gain or loss within other gains and losses. |
Derivative financial instruments | i. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts and interest rate swaps.Further details of derivative financial instruments are disclosed in note 19. Derivatives are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivatives are not offset in the consolidated financial statements unless the Group has both legal right and intention to offset. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities. Warrants The warrants meet the definition of a derivative financial instrument as they represent a written put option that gives the holders of the warrants the right to exchange them for the Group’s shares at a fixed price. Although the warrants will be exchanged for the Group’s shares based on the terms of the warrant agreement, the warrants were classified as a derivative financial liability measured at FVTPL, and not as an equity instrument, given that the functional currency of the Company (MXN) differs from the strike-price of the warrants, which is fixed in USD. Changes in the fair value of the financial liability are presented in the consolidated statements of profit or loss under the heading “Loss in valuation of warrants”. For purposes of the Group’s adjusted EBITDA, the changes in the fair value of the liability are excluded as they represent non-cash charges. The exchange of warrants for the Group’s shares give rise to the settlement of the obligation associated with the liability with a corresponding increase in equity. The redemption of warrants will result in a net impact in equity resulting from the increase in their fair value is recorded in profit or loss (reducing retained earnings), offset by the equivalent increase in equity as a result of the issuance of shares. |
Inventories and cost of sales | j. Inventories and cost of sales Inventories are measured at the lower of cost and net realizable value. The costs comprise direct materials, direct labor, and an appropriate proportion of variable and fixed overhead costs, the latter being allocated on the basis of normal operating capacity. The cost of inventories is based on standard cost method. The net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in administration (marketing), selling and distribution. |
Prepaid expenses | k. Prepaid expenses Prepaid expenses are mainly comprised of advanced payments for printed catalogs, advanced payments for events, as well as, advanced payments for the purchase of inventories that are received after the date of the consolidated statement of financial position and during the normal course of business, and they are presented in current assets in accordance with the classification of the destination item. |
Other assets | l. Other assets Other assets mainly include inventory of rewards related to the rewards program offered to our distributors, associates, leaders and consultants, recoverable taxes and rent security deposits. They are presented in current or non-current assets in accordance with the classification of the destination item. The inventory for the rewards program (see Note 2.v) is acquired based on exchange estimates from distributors, associates, leaders and consultants; and is reduced at the time the points are redeemed and the reward is sent. Rewards inventory is recognized at acquisition cost. Rewards program for distributors, associates, leaders and independent consultants: The Group has a reward program, which is offered through its business segments, to distributors and associates in Betterware, and to consultants, including leaders, in JAFRA. Its objective is to promote the fulfillment of specific objectives in the development of commercial activities of the business but considered separate and distinct services from sales. In the case of Distributor and Associate Rewards, Betterware rewards its Distributors for enrolling new Associates and appointing new Distributors, while Associates receive such rewards for referring new Associates and staying active. In the case of rewards to Consultants, including JAFRA leaders, they are awarded for sponsorship when they manage to hire a new direct sponsor or based on the commercial activities carried out by the group or lineage to which they are related. In this way, the members of this independent sales force help expand the organization and sales channels, and at the same time commit to developing their network of contacts and vendors. These rewards can be in: a) Points redeemable for products that the Group purchases from other suppliers. Points expire according to the commercial terms established by the Group, and can be modified at management’s discretion; and b) cards with a cash balance preload redeemable with certain providers, specifically in the JAFRA segment, both for consultants and leaders depending on the business activities carried out by the group or lineage to which they are related. The Group evaluates the performance of distributors, associates, and consultants, including leaders, at each reporting date based on an estimate of compliance with the established program objectives, and records the corresponding expense, presenting it as sales expenses and a provision. in return. The provision is reduced when the points are exchanged for the available products (rewards). The value of the rewards program and the corresponding expense are determined based on the fair value of the services received considering the analyzes carried out by the administration for similar services in the market. |
Property, plant and equipment, net | m. Property, plant and equipment, net Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. If significant parts of an item have different useful lives, then they are accounted for as separate items (major components). Depreciation is recognized using the straight-line method. The estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The following useful lives, considering separately each of the asset’s components, are used in the calculation of depreciation: Buildings 5 – 50 years Molds and machinery 3 – 15 years Vehicles 4 years Computers and equipment 3 – 10 years Leasehold improvements 3 – 5 years Property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. Borrowing costs directly attributable to the acquisition or construction of qualifying assets (designated asset), which are assets that necessarily take a substantial period of time before they are available for their intended use, are added to the cost of those assets, until such time as the assets are available for their intended use. If any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred. |
Intangible assets | n. Intangible assets Intangible assets are used when they meet the following characteristics: they are identifiable, they obtain future economic benefits, and there is control over said benefits. Intangible assets are classified as follows: Indefinite useful life: ● These intangible assets are not amortized and are subject to annual impairment tests. As of December 31, 2022, 2021 and January 3, 2021, no factors have been identified that limit the useful life of these intangible assets. The only intangible asset with an indefinite useful life that the Group owns are the Brands, which have been defined with indefinite useful life because they will generate revenues for an indefinite period based on their position in the market. Defined useful life: ● These are recognized at cost less accumulated amortization and recognized impairment losses. They are amortized in a straight line according to the estimate of their useful life, which is determined based on the expectation of generating future economic benefits, and they are subject to impairment tests when signs of impairment are identified. The estimated useful lives of intangible assets with a defined useful life are summarized as follows: Intangibles: Betterware JAFRA Customer relationships 10 years 12 years Software 3 years - Brands and logo rights 10 – 30 years - Derecognition of Group’s intangible assets An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. |
Impairment of tangible and intangible assets other than goodwill | o. Impairment of tangible and intangible assets other than goodwill At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise, they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. For impairment testing purposes, assets are grouped at the lowest levels for which there are separately identifiable cash flows that are largely independent of the cash flows of other assets or Groups of assets (cash generating units). If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Any impairment is recognized immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of an impairment loss is recognized immediately in profit or loss unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
Goodwill | p. Goodwill Goodwill represents the excess of the acquisition cost of a subsidiary over the Group´s interest in the fair values of the net assets acquired determined at the date of acquisition and is not subject to amortization. Goodwill is not amortized but is tested annually for impairment. Goodwill arising from a business combination is allocated to the cash generating unit (“CGU”) receiving a benefit from the synergies of the combination. An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other long-lived assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. |
Business combinations | q. Business combinations Businesses acquisitions are accounted by using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated by the sum of the assets transfer fair values by the Company, less the liabilities incurred by the Company to the previous owners of the acquiree entity and equity shares issued by the Company in exchange for control over the acquiree equity. The cost related to the acquisition are generally recognized in profit or loss as incurred. At the acquisition date, the identifiable assets’ acquired and the liabilities assumed are recognized at their fair value, except for: ● Deferred tax assets or liabilities and assets or liabilities related to employee benefit, which are recognized and measured in accordance with IAS 12 “Income tax” and IAS 19 “Employee Benefits”, respectively; Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree (if any), and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net amounts of the identifiable assets acquired and the liabilities assumed at the acquisition date. If at the acquisition date the net of the amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Non-controlling interests that are equity interests and that give to their holders a proportionate share of the Company’s net assets in the event of liquidation, may initially be measured at either fair value or at the value of the non-controlling interest’s proportionate interest in the recognized amounts of the identifiable net assets of the acquired company. The measurement base is made on every transaction. Other types of non-controlling interest are measured at fair value, or where applicable, based on what other IFRS specifies. When the consideration transferred by the Group in a business combination includes contingent assets and liabilities resulted from a consideration arrangement, the contingent consideration is measured at its fair value as of the acquisition date and included as part of the consideration transferred in a business combination. Changes in fair value of the contingent consideration that qualify as an adjustment in the measurement period are adjusted retrospectively with corresponding adjustments against goodwill. Adjustments of the measurement period are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The accounting treatment for changes in the fair value of the contingent consideration that do not qualify as an adjustment in the measurement period depends on how the contingent consideration is classified. Contingent consideration classified as equity will not be remeasured at subsequent reporting dates and its subsequent settlement is accounted in equity. Other contingent consideration is remeasured to fair value at subsequent reporting dates with changes in fair value recognized in profit or loss. When a business combination is achieved in stages, the Company’s previously held interests in the acquired entity are remeasured to fair value at the acquisition date and the gain or loss resulted, if any, is recognized in profit or loss. The amounts arising from interests in the acquiree entity prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified in profit or loss where this treatment would be appropriate if that interest is eliminated. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above) or additional assets or liabilities are recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. |
Leases | r. Leases The Group as lessee The Group evaluates whether a contract is or contains a lease agreement at inception of a contract. A lease is defined as an agreement or part of an agreement that conveys the right to control the use of an identified asset for a period of time in exchange for a consideration. The Group recognizes an asset for right-of-use and the corresponding lease liability, for all lease agreements in which it acts as lessee, except in the following cases: short-term leases (defined as leases with a lease term of less than 12 months); leases of low-value assets (defined as leases of assets with an individual market value of less than US$5,000 (five thousand dollars)); and, lease agreements whose payments are variable (without any contractually defined fixed payment). For these agreements, which exempt the recognition of an asset for right-of-use and a lease liability, the Group recognizes the rent payments as an operating expense in a straight-line method over the lease period. The right-of-use asset comprises all lease payments discounted at present value; the direct costs to obtain a lease; the advance lease payments; and the obligations of dismantling or removal of assets. The Group depreciates the right-of-use asset over the shorter of the lease term or the useful life of the underlying asset; therefore, when the lessee will exercise a purchase option, the lessee shall depreciate the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Depreciation begins on the lease commencement date. The lease liability is initially measured at the present value of the future minimum lease payments that have not been paid at that date, using a discount rate that reflects the cost of obtaining funds for an amount similar to the value of the lease payments, for the acquisition of the underlying asset, in the same currency and for a similar period to the corresponding contract (incremental borrowing rate). To determine the lease term, the Group considers the non-cancellable period, including the probability to exercise any right to extend and/or terminate the agreement. Subsequently, the lease liability is measured increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and reducing the carrying amount to reflect the lease payments made. When there is a modification in future lease payments resulting from changes in an index or a rate used to determine those payments, the Group remeasures the lease liability when the adjustment to the lease payments takes effect, without reassessing the discount rate. However, if the modifications are related to the lease term or exercising a purchase option, the Group reassesses the discount rate during the liability’s remeasurement. Any increase or decrease in the value of the lease liability subsequent to this remeasurement is recognized as an adjustment to the right-of-use asset to the same extent. Finally, the lease liability is derecognized when the Group fulfills all lease payments. When the Group determines that it is probable that it will exercise an early termination of the contract that leads to a cash disbursement, such disbursement is accounted as part of the liability’s remeasurement mentioned in the previous paragraph; however, in cases in which the early termination does not involve a cash disbursement, the Group cancels the lease liability and the corresponding right-of-use asset, recognizing the difference immediately in the consolidated statement of profit or loss and other comprehensive income. The Group as lessor During 2022 and 2021, Betterware leased a space on its offices at the “Betterware Campus” to a related party. As of and for the year ended January 3, 2021, the Group did not maintain any leases as lessor. |
Foreign currency | s. Foreign currency In preparing the consolidated financial statements, transactions in currencies other than the Mexican Peso, which is the functional currency of the consolidated entities (see table in note 2d), those are recognized at the exchange rates as of the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of transaction. Exchange differences on monetary items are recognized in profit or loss in the period in which they arise. For the purpose of presenting consolidated financial statements, the assets and liabilities in foreign currency are translated in mexican pesos, using the exchange rates prevailing at the end of the period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates are used at the date of transactions. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in a foreign exchange translation reserve (attributed to non-controlling interests as appropriate). The adjustments related to goodwill and to the fair value of the identifiable assets’ acquired and the liabilities assumed generated in a foreign transaction, are recognized as assets and liabilities, they are considered as assets and liabilities of the operation mentioned, and they are converted at the exchange rate at the end of the reporting period. Exchange differences arising are recognized in other comprehensive income. |
Employee benefits | t. Employee benefits Retirement benefits – Defined benefit obligations The Group’s defined benefit obligations cover seniority premiums which consist of a lump sum payment of 12 day’s wage for each year worked, calculated using the most recent salary, not to exceed twice the legal minimum wage established by law. The related liability and annual cost of such benefits are calculated with the assistance of an independent actuary on the basis of formulas defined in the plans using the projected unit credit method at the end of each annual reporting period. The Group’s net obligation with respect to the defined-benefit plan are calculated separately for each plan, estimating the amount of future benefit accrued by employees in return for their services in ongoing and past periods; that benefit is discounted to determine its present value, and the costs for the services that have not been recognized and the fair value of the plan assets are deducted. The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using discount rates in accordance with IAS 19 that are denominated in the currency in which the benefits will be paid, and that have maturities that approximate to the terms of the pension liability. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows: ● Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements); ● Net interest expense or income; and ● Remeasurements. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if applicable), are recognized immediately in the liability against other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is never reclassified to profit or loss. Past service cost is recognized in profit or loss in the period in which a plan amendment or curtailment occurs, or when the Group recognizes the related restructuring costs or termination benefits, if earlier. Short-term and other long-term employee benefits and statutory employee profit sharing (“PTU”) A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service. Likewise, a liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognized in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to the reporting date. Statutory employee profit sharing (“PTU”) PTU is recorded in the results of the year in which it is incurred and is presented in operating expenses line item in the consolidated statement of profit or loss and other comprehensive income. As a result of the 2014 Income Tax Law, PTU is determined based on taxable income, according to Section I of Article 9 of the that Law. Termination benefits Termination benefits are recognized as an expense when the Group’s commitment can be evidenced, without real possibility of reversing, with a detailed formal plan either to terminate employment before the normal retirement date, or else, to provide benefits for termination as a result of an offer that is made to encourage voluntary retirement. If the benefits are payable no later than 12 months after the reporting period, then they are discounted at present value. |
Income taxes | u. Income taxes Income tax expense represents the sum of the tax currently payable and deferred tax. ● Current tax Current income tax (“ISR”) is recognized in the results of the year in which is incurred. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. A provision is recognized for those matters for which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. The assessment is based on the judgment of tax professionals within the Group supported by previous experience in respect of such activities. ● Deferred income tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. ● Current and deferred tax for the year Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Deferred income tax assets and tax liabilities are offset when there is the legal right to offset current tax assets and current tax liabilities, and when deferred income tax balances are related to the same tax authority. Current tax assets and tax liabilities are offset when the entity has the legal right to offset and intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. |
Provisions | v. Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions mainly include benefits incentives granted to distributors, associates, leaders and consultants in the form of reward points, discounts and others such as compensations to employees (bonuses) not paid at the reporting date, professional services fees, among others. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Loyalty program (Group points system): The Group operates a “points system” loyalty program, through which Betterware distributors and associates, as well as JAFRA leaders and consultants, accumulate points on the sale of products that entitle them to exchange the points for products (rewards) that the Group acquires from different suppliers. Since these points provide a benefit to Betterware distributors and associates and JAFRA leaders and consultants that they would not receive without purchasing the Group’s products, this loyalty program and points system represent a separate performance obligation. Therefore, the transaction price is allocated between the product and the points on a separate sales price basis. The standalone sale price per point is estimated based on the fair value of the product that will be awarded when members redeem the points and the probability of redemption, as demonstrated by the Group’s historical experience. In addition, a contractual liability is recognized for the revenue related to the points acquired at the time of the initial sale transaction, reducing the revenue recognized on the initial sale of the goods. Revenue from loyalty points is recognized when the points are redeemed by the customer and exchanged for related products. Revenues from points that are not expected to be exchanged are recognized in proportion to the historical performance of rights exercised by customers. Warranties When the Group grants assurance-type warranties in contracts with customers, those rights to the customer are recognized in profit or loss in the cost of sales line item against a provision in the statement of financial position; however, when the Group provides its customers with service-type warranties, those are treated under the revenue recognition model as a performance obligation. The Group has not granted any service-type warranties to its customers. |
Accrued expenses | w. Accrued expenses The Group’s accrued expenses mainly comprise outstanding payment amounts (retention of income taxes and VAT) and social securities contributions (IMSS, SAR and INFONAVIT) expenses among other accrued expenses. |
Revenue recognition | x. Revenue recognition Revenues comprise the fair value of the consideration received or to receive for the sale of goods and services in the ordinary course of the transactions, and are presented in the consolidated statement of profit or loss, net of the amount of variable considerations (discounts and product returns). To recognize revenues from contracts with its customers, the Group applies a comprehensive model, which is based on a five-step approach consisting of the following: (1) identify the contract (verbal or written); (2) identify performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when the Group satisfies a performance obligation. The Group recognizes revenue at a point in time, when it transfers control over a product to a customer, which occurs when the customers take delivery of the products and formally accepts them. The Group invoices its customers at the shipment date with payment terms between 15 and 30 days; customers are allowed to request for a product return only if the product has quality, technical issues, or physical damages. However, this right qualifies as an assurance-type warranty (and not a performance obligation) related to the functionality of the products sold. Betterware’s discounts to distributors and associates are included in the invoice price and are presented in the net sales line item from the moment in which the customer acquires control of the products sold; thus, management does not perform estimates over discounts to be taken by the customers. JAFRA ’s discounts to leaders and consultants are not included in the invoice price. Loyalty program (The Group’s reward points program): The Group operates a loyalty program (Reward points program) through Betterware’s distributors and associates, and JAFRA’s leaders and consultants accumulate points on sales of goods that entitle them to exchange the points for products the Group acquires from different suppliers. Since these points provide a benefit to distributors and associates that they would not receive without purchasing the the Group products, this loyalty program represents a separate performance obligation. Therefore, the transaction price is allocated between the product and the points on a relative stand-alone selling price basis. The stand-alone selling price per point is estimated based on the fair value of the product to be given when the points are redeemed by the distributors and associates and the likelihood of redemption, as evidenced by the Group’s historical experience. Additionally, a contract liability is recognized for revenue relating to the loyalty points at the time of the initial sales transaction, reducing the revenue recognized upon the initial sale of the goods. Revenue from the loyalty points is recognized when the points are redeemed by the customer and exchanged for the related products. Revenue for points that are not expected to be redeemed is recognized in proportion to the pattern of rights exercised by customers. Variable considerations The Group adjusts the transaction price according to the estimations that may result in a variable consideration. These estimates are determined according to the terms and conditions of the contracts with the customer, the history or the customer’s performance. Contract costs The Group capitalizes incremental costs to obtain a contract with a customer if it expects to recover those costs. However, the Group does not capitalize incremental costs if the amortization period for the asset is one year or less. For any other costs related to the fulfillment of a contract with a customer, that is not part of the revenue recognition, it is considered as an asset including all the costs incurred, only if such costs are directly related to an existing contract or specific anticipated contract and if those costs generate or enhance resources that will be used to satisfy performance obligations in the future and are expected to be recovered. The Group amortizes the asset recognized for the costs to obtain and/or fulfill a contract on a systematic basis, consistent with the pattern of transfer of the good to which the asset relates. |
Share-based payments | y. Share-based payments The share-based compensation plans to eligible executives and directors settled by providing Betterware shares are measured at their fair value as of the grant date and are subject to compliance with certain business performance metrics of the business and their continuance at the Company for an established period. The fair value determined at the grant date is recorded as an expense based on the vesting period and the intrinsic value method, which consists of recognizing the expense from the grant date over the period the executives or directors render the service and earn the benefits stipulated according to the plan, with a corresponding increase in equity. At the end of each period, the Company reviews its estimates of the number of equity instruments that are expected to be awarded. |
Financing income and cost | z. Financing income and cost Financing income (cost) are comprised of interest income, interest expense, the foreign currency gain (loss) on financial assets and financial liabilities; and gain (loss) in valuation of financial derivative instruments. Those are recognized in the consolidated statement of profit or loss and other comprehensive income when accrued. |
Contingencies | aa. Contingencies Significant obligations or losses related to contingencies are recognized when it is probable that their effects will materialize and there are reasonable elements for their quantification. If these reasonable elements do not exist, their disclosure is included qualitatively in the notes to the consolidated financial statements. Income, profits or contingent assets are recognized until such time as there is certainty of their realization. |
Segments Information | bb. Segments Information The information by operating segments is presented consistent with the information included in the internal reports provided to the highest authority in making operating decisions (Chief Operating Decision Maker or “CODM”). The Board of Directors is who evaluates the financial performance, the situation of the Group and makes strategic decisions. It has been identified as the highest authority in operating decision-making, and it is integrated by seven independent members, two members and the Executive Board Chairman. |
Social capital | cc. Social capital The Group’s capital stock is integrated by ordinary shares, registered, single series and without par value expression. The minimum fixed capital and without the right to withdraw is Ps.50 and it is represented by 10,000 shares. The variable capital is unlimited. When any entity of the Group purchases shares issued by the company (treasury shares), the consideration paid, including the costs directly attributable to said acquisition (net of taxes), they are recognized as a decrease in the Group’s capital until the shares are canceled or reissued. When these shares are reissued, the consideration received, including incremental costs directly attributable to the transaction (net of tax) is recognized in the Group’s capital. |
Significant accounting polici_2
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Schedule of consolidated statement of financial position | Assets Adjusted Previously Presented Difference Reference Current assets: Trade accounts receivable, net $ 745,593 778,054 (32,461 ) a Inventories 1,286,155 1,339,378 (53,223 ) a, b Prepaid expenses 35,596 69,224 (33,628 ) c Total current assets 3,352,747 3,472,059 (119,312 ) Total assets $ 5,185,229 5,304,541 (119,312 ) Liabilities and stockholders’ equity Current liabilities: Accrued expenses $ 159,354 142,169 17,185 b Provisions 118,468 115,192 3,276 d Income tax payable 97,634 88,679 8,955 f Total current liabilities $ 2,449,919 2,420,503 29,416 Non-current liabilities: Deferred income tax $ 38,975 80,907 (41,932 ) a, b, c, d Total non-current liabilities 1,535,107 1,577,039 (41,932 ) Total liabilities $ 3,985,026 3,997,542 (12,516 ) Stockholder’s equity Capital stock $ 321,312 294,999 26,313 e Retained earnings (deficit) 856,994 990,103 (133,109 ) a, b, c, d, e, f Equity attributable to owners of the Group 1,185,548 1,292,344 (106,796 ) Total stockholders’ equity 1,200,203 1,306,999 (106,796 ) Total liabilities and stockholders’ equity $ 5,185,229 5,304,541 (119,312 ) Assets Adjusted Previously Presented Difference Reference Current assets: Trade accounts receivable, net $ 735,026 757,806 (22,780 ) a Inventories, net 1,284,672 1,274,026 10,646 a Prepaid expenses 52,581 94,501 (41,920 ) c Total current assets 2,852,516 2,906,570 (54,054 ) Total assets $ 4,359,706 4,413,760 (54,054 ) Liabilities and stockholders’ equity Current liabilities: Provisions 153,978 151,008 2,970 d Total current liabilities $ 2,870,367 2,867,397 2,970 Non-current liabilities: Deferred income tax $ 39,852 56,959 (17,107 ) a, b, c, d Total non-current liabilities 607,363 624,470 (17,107 ) Total liabilities $ 3,477,730 3,491,867 (14,137 ) Stockholder’s equity Capital stock 308,035 281,722 26,313 Retained earnings (deficit) $ (334,769 ) (268,539 ) (66,230 ) a, b, c, d, e Equity attributable to owners of the Group 881,976 921,893 (39,917 ) Total stockholders’ equity 881,976 921,893 (39,917 ) Total liabilities and stockholders’ equity $ 4,359,706 4,413,760 (54,054 ) |
Schedule of consolidated statement of profit or loss and other comprehensive income | Adjusted Previously Presented Difference Reference Net revenue $ 10,067,683 10,039,668 28,015 a Cost of sales 4,498,008 4,399,164 98,844 a, b Gross profit 5,569,675 5,640,504 (70,829 ) Administrative expenses 1,247,742 1,247,436 306 d Selling expenses 1,256,289 1,264,581 (8,292 ) c Distribution expenses 463,779 463,779 - 2,967,810 2,975,796 (7,986 ) Operating income 2,601,865 2,664,708 (62,843 ) Income before income taxes 2,562,495 2,625,338 (62,843 ) Current income tax 791,856 782,901 8,955 f Deferred income tax 22,700 41,553 (18,853 ) a,b,c,d Net income for the year $ 1,747,939 1,800,884 (52,945 ) Adjusted Previously Presented Difference Reference Net revenue $ 7,237,628 7,260,408 (22,780 ) a Cost of sales 3,280,348 3,290,994 (10,646 ) a Gross profit 3,957,280 3,969,414 (12,134 ) Administrative expenses 667,647 664,677 2,970 d Selling expenses 895,275 853,355 41,920 c Distribution expenses 331,023 331,023 - 1,893,945 1,849,055 44,890 Operating income 2,063,335 2,120,359 (57,024 ) Income before income taxes 824,105 881,129 (57,024 ) Deferred income tax (51,173 ) (34,066 ) (17,107 ) Net income for the year $ 298,444 338,361 (39,917 ) |
Schedule of percentage of participation | Operating Functional % Participation The Group’s companies: Country currency 2022 2021 2020 Home organization (“Betterware”): Betterware de México, S.A.P.I. de C.V. Mexico Peso 100 % 100 % 100 % BLSM Latino América Servicios, S.A. de C.V. Mexico Peso 99 % 99 % 99 % Betterware de Guatemala, S.A. Guatemala Quetzal 70 % 70 % - Programa Lazos, S.A. de C.V. Mexico Peso 70 % 70 % - GurúComm, S.A.P.I. de C.V. (1) Mexico Peso - 60 % - Innova Catálogos, S.A. de C.V. (2) Mexico Peso - 70 % - Betterware Ningbo Trading Co, LTD. China Yuan 100 % 100 % - Finayo, S.A.P.I. de C.V. SOFOM ENR Mexico Peso 100 % - - Beauty and personal care (B&PC) (“JAFRA”): Jafra México Holding Company, B.V. Holanda Euro 100 % - - Distribuidora Comercial JAFRA, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics International, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics, S.A. de C.V. Mexico Peso 100 % - - Serviday, S.A. de C.V. Mexico Peso 100 % - - Jafrafin, S.A. de C.V. Mexico Peso 100 % - - Distribuidora Venus, S.A. de C.V. Mexico Peso 100 % - - Jafra Cosmetics International, Inc. United States Dollar 100 % - - (1) GurúComm was part of the Group until March 28, 2022. (2) Innova Catálogos was part of the Group until November 18, 2022. |
Schedule of useful lives are used in the calculation of depreciation | Buildings 5 – 50 years Molds and machinery 3 – 15 years Vehicles 4 years Computers and equipment 3 – 10 years Leasehold improvements 3 – 5 years |
Schedule of lives of intangible assets with a defined useful life | Intangibles: Betterware JAFRA Customer relationships 10 years 12 years Software 3 years - Brands and logo rights 10 – 30 years - |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cash And Cash Equivalents Text Block Abstract | |
Schedule of cash and cash equivalents | 2022 2021 2020 Cash on hand in banks Ps. 367,076 951,092 629,146 Time deposits 448,568 224,106 20,674 Ps. 815,644 1,175,198 649,820 |
Trade account receivables (Tabl
Trade account receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade account receivables [Abstract] | |
Schedule of trade account receivables | 2022 2021 2020 Trade account receivables Ps. 1,092,855 835,757 744,109 Expected credit loss (121,792 ) (90,164 ) (9,083 ) Ps. 971,063 745,593 735,026 |
Schedule of accounts receivable | Trade receivables – days past due Betterware de México JAFRA in Mexico and United States As of December 31, 2022 Not past 14-21 21-28 >28 Not past >30-59 >60-120 >120 Total Expected credit loss rate 1 % 18 % 39 % 41 % 1 % 7 % 21 % 61 % Estimated total gross carrying amount at default Ps. 365,978 24,198 15,592 161,204 374,039 77,509 31,366 42,969 1,092,855 Expected credit loss Ps. 3,561 4,337 6,142 66,126 3,589 5,130 6,735 26,172 121,792 Trade receivables – days past due As of December 31, 2021 Not past 14-21 21 – 28 >28 Total Expected credit loss rate 1 % 27 % 60 % 28 % Estimated total gross carrying amount at default Ps. 560,642 31,439 22,463 221,213 835,757 Expected credit loss Ps. 6,814 8,338 13,386 61,626 90,164 Trade receivables – days past due As of January 3, 2021 Not past 14-21 21 – 28 >28 Total Expected credit loss rate 2 % 30 % 62 % 33 % Estimated total gross carrying amount at default Ps. 640,675 31,918 17,772 53,744 744,109 Expected credit loss Ps. 8,163 9,588 10,946 17,563 46,260 |
Schedule of expected credit loss | Total Balance as of January 1, 2020 Ps. (13,640 ) Expected credit loss (46,260 ) Specific credit loss (11,367 ) Amounts written off 62,184 Balance as of January 3, 2021 (9,083 ) Expected credit loss (198,495 ) Amounts written off 117,414 Balance as of December 31, 2021 (90,164 ) Expected credit loss (269,595 ) Amounts written off 237,928 Foreign currency translation 39 Balance as of December 31, 2022 Ps. (121,792 ) |
Inventories and cost of sales (
Inventories and cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories and cost of sales [Abstract] | |
Schedule of inventories and cost of sales | 2022 2021 2020 Finished goods Ps. 1,568,459 787,135 915,645 Packing material 262,480 35,718 26,029 Raw materials 109,681 - - 1,940,620 822,853 941,674 Merchandise in transit 182,050 463,302 342,998 Ps. 2,122,670 1,286,155 1,284,672 |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid expenses [Abstract] | |
Schedule of prepaid expenses | 2022 2021 2020 Premiums paid in advance for insurance Ps. 16,238 16,961 10,061 Advances to suppliers 12,891 1,320 2,689 Other 23,433 17,315 39,831 Ps. 52,562 35,596 52,581 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of other assets [Abstract] | |
Schedule of other assets | 2022 2021 2020 Inventory of rewards Ps. 153,168 54,247 28,804 Employees and consultors 42,878 - - Rewards catalogs 13,009 12,067 10,492 Security deposit 8,654 4,274 5,774 Recoverable taxes 2,133 10,725 44,618 Restricted cash - - 42,915 Other receivables 15,099 4,949 3,588 234,941 86,262 136,191 Current 188,266 81,988 130,417 Non-current 46,675 4,274 5,774 Ps. 234,941 86,262 136,191 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment, net [Abstract] | |
Schedule of property, plant and equipment, net | 2022 2021 2020 Acquisition cost Ps. 3,190,297 1,231,794 905,840 Accumulated depreciation (216,923 ) (162,302 ) (114,713 ) Ps. 2,973,374 1,069,492 791,127 |
Schedule of property, plant and equipment, net acquisition cost | Acquisition cost: As of Additions Disposals As of Land Ps. 47,124 2,132 - 49,256 Molds and machinery 41,269 85,049 (22 ) 126,296 Vehicles 1,602 28,740 (17,235 ) 13,107 Computers and equipment 66,823 3,273 (2,056 ) 68,040 Leasehold improvements 29,882 4,426 - 34,308 Buildings - 326,644 - 326,644 Construction in progress 119,174 169,015 - 288,189 Ps. 305,874 619,279 (19,313 ) 905,840 Acquisition cost: As of Subsidiaries’ Additions Disposals Transfers As of Land Ps. 49,256 - - - - 49,256 Molds and machinery 126,296 - 82,457 (2,334 ) 63,729 270,148 Vehicles 13,107 - 6,046 (1,439 ) - 17,714 Computers and equipment 68,040 13,473 709 (19,764 ) 18,521 80,979 Leasehold improvements 34,308 539 119 (831 ) 3,980 38,115 Buildings 326,644 - - - 351,654 678,298 Construction in progress 288,189 - 246,979 - (437,884 ) 97,284 Ps. 905,840 14,012 336,310 (24,368 ) - 1,231,794 Acquisition cost: As of Subsidiaries’ Additions Disposals Transfers Foreign currency translation As of Land Ps. 49,256 1,253,237 - - - - 1,302,493 Molds and machinery 270,148 237,818 1,081 (18,319 ) 67,299 - 558,027 Vehicles 17,714 - 6,183 (2,124 ) - - 21,773 Computers and equipment 80,979 101,512 9,605 (99,640 ) 32,544 (2,498 ) 122,502 Leasehold improvements 38,115 1,430 479 - 3,214 - 43,238 Buildings 678,298 321,994 - - 31,740 - 1,032,032 Construction in progress 97,284 41,790 107,260 (1,302 ) (134,797 ) (3 ) 110,232 Ps. 1,231,794 1,957,781 124,608 (121,385 ) - (2,501 ) 3,190,297 |
Schedule of property, plant and equipment accumulated depreciation | Accumulated depreciation: As of Depreciation expense Disposals As of Molds and machinery Ps. (25,648 ) (3,636 ) - (29,284 ) Vehicles (1,505 ) (633 ) - (2,138 ) Computers and equipment (48,003 ) (9,837 ) 1,043 (56,797 ) Leasehold improvements (23,368 ) (1,856 ) - (25,224 ) Buildings - (1,270 ) - (1,270 ) Ps. (98,524 ) (17,232 ) 1,043 (114,713 ) Accumulated depreciation: As of Depreciation Disposals As of Molds and machinery Ps. (29,284 ) (20,236 ) 759 (48,761 ) Vehicles (2,138 ) (3,162 ) 17 (5,283 ) Computers and equipment (56,797 ) (9,374 ) 11,983 (54,188 ) Leasehold improvements (25,224 ) (4,915 ) 203 (29,936 ) Buildings (1,270 ) (22,864 ) - (24,134 ) Ps. (114,713 ) (60,551 ) 12,962 (162,302 ) Accumulated depreciation: As of Depreciation Disposals Foreign currency translation As of Molds and machinery Ps. (48,761 ) (60,965 ) 6,459 - (103,267 ) Vehicles (5,283 ) (3,992 ) 180 - (9,095 ) Computers and equipment (54,188 ) (40,738 ) 84,523 2,406 (7,997 ) Leasehold improvements (29,936 ) (1,134 ) 4 - (31,066 ) Buildings (24,134 ) (41,364 ) - - (65,498 ) Ps. (162,302 ) (148,193 ) 91,166 2,406 (216,923 ) |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Assets Acquired and Liabilities Assumed [Abstract] | |
Schedule of assets acquired and liabilities assumed | Assets and liabilities to fair value Current assets and others non-current assets Ps. 2,885,952 Property, plant and equipment, net 1,957,784 Intangible assets 1,394,424 Current liabilities and non-current liabilities (1,630,260 ) Deferred income tax (813,661 ) Total identifiable assets acquired and liabilities assumed 3,794,239 Goodwill 1,250,132 Total assets acquired, net Ps . 5,044,371 |
Schedule of assets acquired and liabilities assumed | Net cash outflow arising on acquisition: Cash out Ps. 5,044,371 Less cash and cash equivalent balances acquired from JAFRA (345,908 ) Net cash used (investing activities) Ps. 4,698,463 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Schedule of goodwill | As of Additions Disposals As of Cost Ps. 348,441 - - 348,441 As of Additions Disposals As of Cost Ps. 348,441 22,634 - 371,075 As of Additions Disposals As of Cost Ps. 371,075 1,251,277 (22,634 ) 1,599,718 |
Schedule of goodwill balances of Group’s companies | As of As of As of Betterware Ps. 348,441 348,441 348,441 JAFRA Mexico 1,250,132 - - Finayo 1,145 - - GurúComm - 17,372 - Innova Catálogos - 5,262 - Total Ps. 1,599,718 371,075 348,441 |
Schedule of values assigned to the key assumptions used in the estimation of the recoverable amount | 2022 2021 2020 In percentages Betterware JAFRA Betterware Betterware Discount rate 10.0 9.1 12.8 11.2 Terminal value growth rate 0.0 2.0 3.0 3.0 EBITDA margin (earnings before interest, taxes, depreciation and amortization) 30.0 15.3 30.0 38.0 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets, net [Abstract] | |
Schedule of intangible assets | Acquisition cost: As Additions Disposals As of Brand Ps. 253,000 - - 253,000 Customer relationships 64,000 - - 64,000 Software 21,651 24,333 - 45,984 Brands and logo rights 7,608 276 (2,491 ) 5,393 Ps. 346,259 24,609 (2,491 ) 368,377 Accumulated amortization: As of Amortization Disposals As of Customer relationships Ps. (30,933 ) (6,400 ) - (37,333 ) Software (421 ) (6,675 ) - (7,096 ) Brands and logo rights (3,940 ) (647 ) - (4,587 ) Ps. (35,294 ) (13,722 ) - (49,016 ) Acquisition cost: As of Additions Disposals As of Brand Ps. 253,000 - - 253,000 Customer relationships 64,000 - - 64,000 Software 45,984 65,356 - 111,340 Brands and logo rights 5,393 70 - 5,463 Ps. 368,377 65,426 - 433,803 Accumulated amortization: As of Amortization Disposals As of Customer relationships Ps. (37,333 ) (6,400 ) - (43,733 ) Software (7,096 ) (8,377 ) - (15,473 ) Brands and logo rights (4,587 ) (250 ) - (4,837 ) Ps. (49,016 ) (15,027 ) - (64,043 ) |
Schedule acquisition cost | Acquisition cost: As of Subsidiaries’ Additions Disposals Foreign As of Brand Ps. 253,000 840,616 9,493 - (1,003 ) 1,102,106 Customer relationships 64,000 553,808 - - - 617,808 Software 111,340 - 41,443 - - 152,783 Brands and logo rights 5,463 - 109 - - 5,572 Ps. 433,803 1,394,424 51,045 - (1,003 ) 1,878,269 Accumulated amortization: As of Amortization Disposals Foreign As of Customer relationships Ps. (43,733 ) (40,412 ) - - (84,145 ) Software (15,473 ) (29,686 ) - - (45,159 ) Brands and logo rights (4,837 ) (246 ) - - (5,083 ) Ps. (64,043 ) (70,344 ) - - (134,387 ) |
Schedule of customers relationships balances | As of As of As of Betterware Ps. 13,867 20,267 26,667 JAFRA Mexico 519,796 - - Total of customers relationships Ps. 533,663 20,267 26,667 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of right of use assets | As of Additions Disposals As of Cost Ps. 36,909 20,531 (17,861 ) 39,579 As of Depreciation Disposals As of Accumulated depreciation Ps. (13,098 ) (12,734 ) 11,135 (14,697 ) As of Additions Disposals As of Cost Ps. 39,579 1,388 (3,275 ) 37,692 As of Depreciation Disposals As of Accumulated depreciation Ps. (14,697 ) (6,544 ) 933 (20,308 ) |
Schedule of depreciation expense | As of Subsidiaries’ Additions Disposals Foreign As of Vehicles Ps. 623 59,657 48,433 (1,171 ) - 107,542 Buildings - 7,049 88,051 (484 ) - 94,616 Warehouses 17,101 53,575 49,227 - - 119,903 Office furniture and equipment - 2,697 5,454 - - 8,151 Computer equipment 19,968 27,803 3,856 (15 ) - 51,612 Cost Ps. 37,692 150,781 195,021 (1,670 ) - 381,824 As of Additions Disposals Foreign As of Vehicles Ps. (147) (21,795 ) 1,024 - (20,918 ) Buildings - (12,947 ) - - (12,947 ) Warehouses (17,101 ) (18,658 ) 484 - (35,275 ) Office furniture and equipment - (1,346 ) - - (1,346 ) Computer equipment (3,060 ) (14,419 ) 1 (295 ) (17,773 ) Cost Ps. (20,308 ) (69,165 ) 1,509 (295 ) 88,259 |
Schedule of lease liabilities | Lease liability Balance as of January 1, 2020 Ps. 24,584 Lease additions (1) 20,531 Lease disposals (1) (13,966 ) Rent payments (2) (8,825 ) Interest expense (1) 2,054 Balance as of January 3, 2021 24,378 Lease additions (1) 1,388 Lease disposals (1) (1,704 ) Rent payments (2) (6,899 ) Interest expense (1) 717 Balance as of December 31, 2021 17,880 Subsidiaries’ Acquisitions (1) 146,187 Lease additions (1) 193,856 Lease disposals (1) (195 ) Rent payments (2) (76,214 ) Foreign currency translation (1) (1,172 ) Interest expense (1) 11,566 Balance as of December 31, 2022 Ps. 291,908 (1) Changes that do not represent cash flow (2) Changes that represent cash flow |
Schedule of total future minimum lease payments | Year Amount 2023 Ps 92,341 2024 99,715 2025 101,315 2026 93,946 2027 98,812 Ps 486,129 |
Debt and borrowings (Tables)
Debt and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of other assets [Abstract] | |
Schedule of long-term debt | 2022 2021 2020 Simple credit line with Banamex, HSBC, BBVA, Bajío, BanCoppel and Scotiabank, up to Ps.4,498,695, with interest (28-day TIIE published in BANXICO) plus the applicable margin, such ordinary interest will be calculated by the number of days effectively elapsed over the base of a year 360 days, in addition, in case of default, interest will be paid at the ordinary interest rate multiplied by 2.0pp between the 360 days and the result of using the unpaid and past-due balances. Ps. 4,432,711 - - Two-tranche sustainability bond, with maturities across 4 and 7 years, offered in the Mexican Market through the Bolsa Mexicana de Valores; the first offer of Ps.500,000 started paying interest at 5.15% plus 0.40% and for the monthly subsequent payments, the rate will be based on the 29-day TIIE rate issued by BANXICO plus 0.40%; the second offer of Ps.1,000,000 will pay interest semi-annually at a fixed rate of 8.35%, during the sustainability bond term. 1,485,545 1,482,261 - Credit line with Banamex, with interest rate at TIIE (28 days published in BANXICO) plus 110 basis points, the line considers payments of drawdowns in no more than a 12-month term. This short-term line of credit, which is available and paid in a term of no more than 12 months. 200,000 - - Innova Catalogos has a loan for financial support or “Emerging Plan for the protection of employment and income of people”; the loan was acquired at the beginning of 2021, for the amount of Ps.40, with maturity across 18 months, and monthly payments of Ps.2.2, this loan does not accrue interest, however in case of default, it will accrue interest at the rate of 24% on unpaid balances. - 15 - Secured credit line with Banamex, for up to Ps.400,000, bearing interest at the TIIE rate plus 260 basis points. Withdrawals from this secured credit line can be made during a 10-month period starting December 15, 2018, and are payable on a quarterly basis from December 17, 2019 up to December 18, 2025. This secured credit line was prepaid on August 31, 2021 with the proceeds from the sustainability bond. - - 373,333 Secured credit line with Banamex for up to Ps.195,000, bearing interest at the TIIE rate plus 295 basis points, payable on a quarterly basis from October 30, 2020 to December 30, 2025. This secured credit line was prepaid on August 31, 2021 with the proceeds from the sustainability bond. - - 188,500 Credit line with BBVA for up to Ps.75,000 bearing interest at 7.5%, payable monthly from September 20, 2020 to August 31, 2023. This credit line was prepaid on August 31, 2021 with the proceeds from the sustainability bond. - - 64,721 Interest payable Ps. 30,419 28,109 3,323 Total debt 6,148,675 1,510,385 629,877 Less: Current portion 230,419 28,124 105,910 Long term debt and borrowings Ps. 5,918,256 1,482,261 523,967 |
Schedule of cash flows arising from financing activities | Long-term debt and Interest Derivative Balances as of January 1, 2020 Ps. 666,806 10,907 32,309 Changes that represent cash flows - Loans obtained 1,712,207 - - Restricted cash (1) (42,915 ) - - Payments (1,757,112 ) (121,297 ) - Changes that do not represent cash flows: Interest expense - 80,253 - Borrowing costs capitalized on property, plant and equipment - 33,460 - Valuation effects of derivative financial instruments - - 287,985 Amortization of commissions and debt issuance cost 4,653 - - Balances as of January 3, 2021 Ps. 583,639 3,323 320,294 Changes that represent cash flows - Loans obtained 1,520,000 - - Restricted cash 42,915 - - Payments (646,716 ) (49,123 ) (18,172 ) Bond issuance costs (18,931 ) Changes that do not represent cash flows: Interest expense - 73,909 - Control obtained over subsidiaries 177 - - Amortization of bond issuance cost 1,192 - - Valuation effects of derivative financial instruments - - (330,315 ) Balances as of December 31, 2021 1,482,276 28,109 (28,193 ) Changes that represent cash flows - Loans obtained 5,818,705 - - Payments (1,120,025 ) (502,847 ) - Bond issuance costs (88,722 ) - - Changes that do not represent cash flows: Interest expense - 505,157 - Control obtained over subsidiaries Amortization of bond issuance cost 3,285 - - Amortization of Long-term debt- Syndicated Credit Line 22,737 - - Valuation effects of derivative financial instruments - - 43,522 Balances as of December 31, 2022 6,118,256 30,419 15,329 (1) Balances in column “Long-term debt” in the table above, are netted with restricted cash balances on 2020 period. |
Schedule of long-term debt maturities | Year Amount 2023 Ps. 853,401 2024 899,275 2025 2,087,221 2026 1,698,045 2027-2028 2,778,621 Ps. 8,316,563 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Income Tax Text Block Abstract | |
Schedule of income tax recognized in profit or loss | 2022 2021 2020 Current tax Ps. 533,522 791,856 576,834 Deferred tax (benefit) expense (16,602 ) 22,700 (51,173 ) Ps. 516,920 814,556 525,661 |
Schedule of reconciliation of income tax expense recognized from statutory to effective ISR rate | 2022 2021 2020 Profit before income tax Ps. 1,386,884 2,542,495 824,105 Tax rate 30 % 30 % 30 % Income tax expense calculated at 30% statutory tax rate 416,065 768,749 247,232 Inflation effects, net 3,536 25,039 8,333 Non-deductible expenses (1) 148,569 5,790 5,493 Loss on valuation of warrants - - 255,456 Share-based payments 1,780 1,744 8,275 Other items, net (53,030 ) 13,234 872 516,920 814,556 525,661 Ps. 37 % 32 % 64 % (1) Includes (i) certain payroll expenses which are partially deductible as grocery vouchers, help for transportation, life and major medical expenses insurance, among others; and (ii) certain cost of sales expenses as samples and obsolescence items. |
Schedule of deferred tax asset (liabilities) reconciliation of changes in deferred taxes balances | Temporary differences As of Recognized in profit or loss Recognized in other comprehensive income As of Deferred tax assets: Expected credit loss Ps. 5,217 3,102 - 8,319 Accruals and provisions 25,937 43,232 360 69,529 Derivative financial instruments - 35,886 - 35,886 Property, plant and equipment 4,579 (4,579 ) - - Deferred tax liabilities: Intangible assets (85,820 ) 1,920 - (83,900 ) Inventories (9,353 ) (24,881 ) - (34,234 ) Derivative financial instruments (89 ) 89 - - Property, plant and equipment - (10,888 ) - (10,888 ) Other assets and prepaid expenses (13,891 ) 6,932 - (6,959 ) Net deferred tax liability Ps. (73,420 ) 50,813 360 (22,247 ) Temporary differences As of Accounting Recognized Recognized in As of Deferred tax assets: Expected credit loss Ps. 8,319 11,309 12,799 - 32,427 Accruals and provisions 69,529 - (31,422 ) - 38,107 Derivative financial instruments 35,886 - (35,886 ) - - Property, plant and equipment - - 5,538 - 5,538 Deferred tax liabilities: Intangible assets (83,900 ) - 1,920 - (81,980 ) Inventories (34,234 ) (5,337 ) 30,483 - (9,088 ) Derivative financial instruments - - (7,380 ) - (7,380 ) Property, plant and equipment (10,888 ) - 10,888 - - Other assets and prepaid expenses (6,959 ) - (9,640 ) - (16,599 ) Net deferred tax liability Ps. (22,247 ) 5,972 (22,700 ) - (38,975 ) Temporary differences As of Liability Recognized Recognized in As of Deferred tax assets: Expected credit loss Ps. 32,427 - (3,085 ) - 29,342 Accruals and provisions 38,107 256,433 99,556 - 394,096 Prepaid expenses - 4,752 351 - 5,103 Property, plant and equipment 5,538 - (5,538 ) - - Deferred tax liabilities: Intangible assets (81,980 ) (418,327 ) 1,920 - (498,387 ) Inventories (9,088 ) - (18,656 ) - (27,744 ) Derivative financial instruments (7,380 ) 4,936 (1,471 ) - (3,915 ) Property, plant and equipment - (350,521 ) (38,200 ) - (388,721 ) Other assets and prepaid expenses (16,599 ) 10,700 (18,275 ) - (24,174 ) Net deferred tax liability Ps. (38,975 ) (492,027 ) 16,602 - (514,400 ) |
Schedule of unrecognized deferred tax assets | Originated loss’ year Life year Jafra Cosmetics Jafrafin, S.A. 2019 2029 Ps. 27,861 - 2020 2030 3,376 - 2021 2031 - 2,659 Ps. 31,237 2,659 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Provisions Text Block Abstract | |
Schedule of provisions | Commissions, Bonuses and Professional Other Total As of January 1, 2020 Ps. 32,779 13,356 554 - 46,689 Increases 1,272,651 54,223 16,947 - 1,343,821 Payments (1,198,284 ) (21,039 ) (17,209 ) - (1,236,532 ) As of January 3, 2021 Ps. 107,146 46,540 292 - 153,978 Increases 2,054,420 140,436 17,541 - 2,212,397 Payments (2,048,135 ) (182,439 ) (17,333 ) - (2,247,907 ) As of December 31, 2021 Ps. 113,431 4,537 500 - 118,468 Additions for subsidiaries’ acquisition 360,280 - 62,990 276,314 699,584 Increases 4,030,497 74,764 48,292 412,645 4,566,198 Payments (4,012,720 ) (52,898 ) (54,490 ) (469,674 ) (4,589,782 ) Foreign currency translation (135 ) - - (921 ) (1,056 ) As of December 31, 2022 Ps. 491,353 26,403 57,292 218,364 793,412 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Derivative Financial Instruments Text Block Abstract | |
Schedule of derivative financial instrument contracts | Instrument Notional Fair Value Average Maturity date Forwards US Dollar / Mexican Peso US$ 41,750 Ps. 15,329 20.31 Weekly, through August 2023 Total Liabilities Ps. 15,329 Instrument Notional Fair Value Average Maturity date Forwards US Dollar / Mexican Peso US$ 134,050 Ps. 28,193 20.66 Weekly, through October 2022 Total Assets Ps. 28,193 Instrument Notional Fair Value Contract Maturity Rate received Rate paid Liabilities: Interest rate swap Ps. 353,333 Ps. 32,842 11/15/2018 12/15/2023 TIIE 28 days (1) 8.33 % Average Maturity date Forwards US Dollar / Mexican Peso US$ 140,325 Ps. 287,452 22.36 Weekly, through October 2021 Total Liabilities Ps. 320,294 Non-current liability Ps. 25,179 Total current liability Ps. 295,115 (1) As of January 3, 2021, the 28-day TIIE rate was 4.49% |
Retirement Benefits _ Defined_2
Retirement Benefits – Defined Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefits [Abstract] | |
Schedule of net defined benefit liability and its components | 2022 2021 2020 Balance at January 1 Ps. 2,093 1,678 1,630 Additions for subsidiaries’ acquisition 149,243 - - Included in profit or loss: Current service cost 13,322 614 425 Interest cost 9,461 101 114 Net cost of the period 22,783 715 539 Included in other comprehensive income: Actuarial (gain) loss (15,585 ) (83 ) 1,199 Income tax effect - - (360 ) Other: Benefits paid (4,627 ) (217 ) (1,330 ) Balance as of December 31 Ps. 153,907 2,093 1,678 |
Schedule of principal actuarial assumptions | 2022 2021 2020 Betterware JAFRA Betterware Betterware Financial: Future salary growth 6.5 % 5.5 % 5.0 % 4.0 % Discount rate 9.2 % 9.5 % 7.6 % 6.1 % Demographic: Number of employees 901 1,276 1,272 1,294 Age average 34 años 38 años 32 years 31 years Longevity average 3 años 7 años 2 years 2 years |
Schedule of sensitivity analysis | Effects as of Effects as of Effects as of Betterware JAFRA Betterware Betterware Increase / decrease in the discount rate + 0.50% Ps. 361 146 156 126 - 0.50% (174 ) (151 ) (174 ) (141 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Financial Instruments Text Block Abstract | |
Schedule of financial instruments | As of December 31, 2022 Amortized cost Fair value through profit or loss Fair value hierarchy Financial assets - Trade account receivables, net Ps. 971,063 - Trade account receivables from related parties 61 - Total 971,124 - Financial liabilities - Accounts payable to suppliers 1,371,778 - Lease liability 291,908 - Long term debt and borrowings 6,148,675 - Derivative financial instruments - 15,329 2 Total Ps. 7,812,361 15,329 As of December 31, 2021 Amortized cost Fair value through profit or loss Fair value hierarchy level Financial assets - Trade account receivables, net Ps. 745,593 - Trade account receivables from related parties 24 - Derivative financial instruments - 28,193 2 Total 745,617 28,193 Financial liabilities - Accounts payable to suppliers 1,984,932 - Lease liability 17,880 - Long term debt 1,510,385 - Total Ps. 3,513,197 - As of January 3, 2021 Amortized cost Fair value through profit or loss Fair value hierarchy Financial assets - Trade account receivables, net Ps. 735,026 - Total 735,026 - Financial liabilities - Long term debt and borrowings 629,877 - Accounts payable to suppliers 2,078,628 - Lease liability 24,378 - Derivative financial instruments - 320,294 2 Total Ps. 2,732,883 320,294 |
Schedule of financial assets and financial liabilities at the reporting date | 2022 2021 2020 US$ €$ Rp$ US$ US$ Assets 13,006 105 60,340 10,686 29,559 Liabilities (23,142 ) (78 ) - (35,148 ) (49,570 ) Net position (10,136 ) 27 60,340 (24,462 ) (20,011 ) Closing exchange rate of the year 19.3615 20.7693 0.0013 20.5157 19.9352 |
Schedule of exchange rate sensitivity analysis | 2022 Impact on net income Ps. 19,490 |
Schedule of bank credit lines | Bank credit lines and long term debt 2022 2021 2020 Amount used Ps. 6,198,695 1,500,000 626,554 Amount not used 1,380,000 250,000 297,828 Total credit lines and long term debt Ps. 7,578,695 1,750,000 924,382 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders’ Equity [Abstract] | |
Schedule of stockholders’ equity number of shares | Betterware de México, S.A.P.I. de C.V. As of As of As of Fixed capital 10,000 10,000 10,000 Variable capital 37,306,546 37,306,546 36,574,968 37,316,546 37,316,546 36,584,968 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Earnings Per Share Text Block Abstract | |
Schedule of income and share data used in calculation of basic earnings per share | 2022 2021 2020 Net income (in thousands of pesos) Attributable to Owners of the Group Ps. 872,557 1,751,645 298,444 Shares (in thousands of shares) Weighted average of outstanding shares Basic 37,256 36,974 34,083 Diluted 37,277 37,337 34,383 Basic and diluted earnings per share: Basic earnings per share (pesos per share) Ps. 23.42 47.38 8.76 Diluted earnings per share (pesos per share) 23.41 46.91 8.68 |
Related party balances and tr_2
Related party balances and transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related parties balances and transactions [Abstract] | |
Schedule of related parties outstanding | Trade account receivables from related parties 2022 2021 2020 Fundación Betterware., A.C. Ps. 61 24 - Trade account payables to related parties 2022 2021 2020 Campalier, S.A. de C.V. Ps. 96,859 - - |
Schedule of Trading transactions | Revenues / expensess to Betterware with: 2022 2021 Lease income Donation expenses Lease income Donation expenses Fundación Betterware., A.C. Ps. 63 3,350 42 920 2022 Expenses/ to Lazos with: Interest expenses Campalier, S.A. de C.V. Ps. 7,479 |
Revenue and Operating Expenses
Revenue and Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue and Operating Expenses [Abstract] | |
Schedule of disaggregation revenue per product segments | 2022 2021 2020 Revenue by home organization products: Kitchen and food preservation Ps. 2,163,684 3,283,421 2,524,475 Home solutions 1,272,272 2,319,156 1,452,096 Bedroom 854,323 1,608,424 824,370 Bathroom 749,161 1,217,927 840,080 Laundry & Cleaning 691,272 826,188 825,874 Tech & mobility 553,977 769,767 770,733 Others 58,655 42,800 - Total revenue by home organization products 6,343,344 10,067,683 7,237,628 Revenue by beauty and personal care products: Fragrance 3,472,919 - - Color 642,876 - - Skin care 611,905 - - Toiletries 321,806 - - Others 114,699 - - Total revenue of beauty and personal care products 5,164,205 - - Total revenue of the Group Ps. 11,507,549 10,067,683 7,237,628 |
Schedule of operating expenses by nature | 2022 2021 2020 Promotions for the sales force Ps. 1,743,961 503,291 172,177 Cost of personnel services and other employee benefits 1,502,030 621,519 564,213 Distribution costs 473,516 463,762 331,023 Sales catalog 445,753 417,522 289,170 Depreciation and amortization 287,702 82,122 43,688 Impairment loss on trade accounts receivables 269,595 198,495 57,627 Commissions and professional fees 217,384 69,954 61,403 Events, marketing and advertising 199,771 109,822 19,237 Packing materials 161,095 201,006 112,512 Rent expense 96,729 52,660 22,451 Travel expenses 33,223 11,258 13,522 Bank fees 25,853 34,335 23,965 Market research 12,031 9,550 8,495 Other 409,545 192,514 174,462 Ps. 5,878,188 2,967,810 1,893,945 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment [Abstract] | |
Schedule of segment information of the Group | As of December 31, 2022 As of As of The Group’s companies BWM´s segment JAFRA´s segment Eliminations (1) Total BWM´s segment BWM´s segment EBITDA 1,514,227 801,881 - 2,316,108 2,683,987 2,107,023 Depreciation and amortization 109,055 178,647 - 287,702 82,122 43,688 Operating income 1,405,172 623,234 - 2,028,406 2,601,865 2,063,335 Interest income 10,607 32,777 (14,695 ) 28,689 25,872 10,930 Interest expense (546,977 ) (11,039 ) 14,695 (543,321 ) (75,818 ) (80,253 ) Unrealized (loss) gain in valuation of DFI (43,522 ) - - (43,522 ) 330,315 (287,985 ) Changes in fair value of warrants - - - - - (851,520 ) Foreign exchange loss, net (81,212 ) (2,156 ) - (83,368 ) (319,739 ) (30,402 ) Income before income taxes 744,068 642,816 - 1,386,884 2,562,495 824,105 Income taxes 367,166 149,754 - 516,920 814,556 525,661 Income for the year 376,902 493,062 - 869,964 1,747,939 298,444 Net revenue Ps. 6,343,344 5,166,545 (2,340 ) 11,507,549 10,067,683 7,237,628 Divestment in subsidiaries Ps. (21,862 ) - - (21,862 ) - - Total assets Ps. 8,958,162 8,154,942 (5,780,371 ) 11,332,733 5,185,229 4,359,706 Total liabilities Ps. (8,363,605 ) (2,592,037 ) 720,189 (10,235,453 ) (3,985,026 ) (3,477,730 ) Fixed assets additions Ps. 77,899 50,201 (3,492 ) 124,608 336,310 619,279 (1) The column of eliminations corresponds to the transactions between the Group’s subsidiaries for the concepts of loans, interest income (expenses), expenses for corporate services, sales of fixed assets, initial investment in subsidiary, among the most important. |
Schedule of income recognized | The income recognized during the year 2022, 2021 and 2020, national and foreign, is shown below 2022 2021 2020 Revenue in Mexico Ps. 10,531,505 10,059,285 7,237,628 Revenue in United States (2) 966,085 - - Revenue in Guatemala 9,959 8,398 - Total revenue of the Group Ps. 11,507,549 10,067,683 7,237,628 (2) The main concentration of JAFRA’s income is in Mexico, however, there is an entity in the United States which represents a smaller percentage 8% of the Group’s total income. |
Nature of business and signif_2
Nature of business and significant events (Details) $ / shares in Units, $ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
Jan. 03, 2021 | Dec. 14, 2020 MXN ($) | Oct. 08, 2020 $ / shares shares | Mar. 13, 2020 MXN ($) shares | Mar. 13, 2020 USD ($) shares | Mar. 10, 2020 $ / shares shares | Nov. 18, 2022 MXN ($) | Mar. 28, 2022 MXN ($) shares | Mar. 24, 2022 MXN ($) | Jan. 18, 2022 MXN ($) | Aug. 30, 2021 MXN ($) | Jul. 31, 2020 | Dec. 31, 2022 | Mar. 13, 2020 USD ($) shares | |
Nature of business and significant events (Details) [Line Items] | ||||||||||||||
Business segments | 2 | |||||||||||||
Agreement percentage | 100% | |||||||||||||
Total cash consideration (in Pesos) | $ | $ 5,044,371 | |||||||||||||
Long-term loan (in Pesos) | $ | $ 4,498,695 | |||||||||||||
Subscribed paid shares | 55,514 | |||||||||||||
Subscribed unpaid shares | 37,693 | |||||||||||||
Transaction cost (in Pesos) | $ | $ 16,610 | |||||||||||||
Transaction cost (in Pesos) | $ | $ 5,252 | |||||||||||||
Sustainability bond issuance (in Pesos) | $ | $ 1,500,000 | |||||||||||||
Percentage of products sold in the United States | 90% | |||||||||||||
Customers shipment date with payment terms | between 14 and 28 days | |||||||||||||
Cash acquisition cost | $ 498,445 | $ 22,767 | ||||||||||||
Net cash | 181,734 | $ 7,519 | ||||||||||||
Liability transaction equivalent fair value (in Pesos) | $ | $ 55,810 | |||||||||||||
Shares offered for subscription and payment | 2,040,000 | 2,040,000 | ||||||||||||
Percentage of shares held by shareholders | 87.70% | 87.70% | ||||||||||||
Percentage of shares held by acquired entity shareholders | 6.40% | 6.40% | ||||||||||||
Percentage of shares held by other investors | 5.90% | 5.90% | ||||||||||||
Issuance of shares issued and outstanding | 34,451,020 | 34,451,020 | ||||||||||||
Purchase total share | 5,804,125 | |||||||||||||
Purchase option unit share | 250,000 | |||||||||||||
Option issue share | 250,000 | |||||||||||||
Additional share | 250,000 | |||||||||||||
Issuance share | 214,020 | |||||||||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 11.44 | $ 11.44 | ||||||||||||
Paid exercise price per share (in Dollars per share) | $ / shares | 0.5 | |||||||||||||
Warrant holder receive share | 0.37 | |||||||||||||
Increase equity (in Pesos) | $ | $ 4,724 | |||||||||||||
Warrants [Member] | ||||||||||||||
Nature of business and significant events (Details) [Line Items] | ||||||||||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 11.5 | |||||||||||||
Bottom of range [Member] | ||||||||||||||
Nature of business and significant events (Details) [Line Items] | ||||||||||||||
Maturity term | 4 years | |||||||||||||
Shares vested over a period | 4 years | |||||||||||||
Top of range [Member] | ||||||||||||||
Nature of business and significant events (Details) [Line Items] | ||||||||||||||
Maturity term | 7 years | |||||||||||||
Shares vested over a period | 5 years |
Significant accounting polici_3
Significant accounting policies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 MXN ($) shares | |
Significant Accounting Policies [Abstract] | |
Percentage of effective rate | 10% |
Description of lease agreement | The Group recognizes an asset for right-of-use and the corresponding lease liability, for all lease agreements in which it acts as lessee, except in the following cases: short-term leases (defined as leases with a lease term of less than 12 months); leases of low-value assets (defined as leases of assets with an individual market value of less than US$5,000 (five thousand dollars)); and, lease agreements whose payments are variable (without any contractually defined fixed payment). |
Minimum fixed capital | $ | $ 50 |
Ordinary cost | shares | 10,000 |
Significant accounting polici_4
Significant accounting policies (Details) - Schedule of consolidated statement of financial position - MXN ($) $ in Thousands | Dec. 31, 2021 | Jan. 03, 2021 |
Adjusted [Member] | ||
Current assets: | ||
Trade accounts receivable, net | $ 745,593 | $ 735,026 |
Inventories, net | 1,286,155 | 1,284,672 |
Prepaid expenses | 35,596 | 52,581 |
Total current assets | 3,352,747 | 2,852,516 |
Total assets | 5,185,229 | 4,359,706 |
Current liabilities: | ||
Accrued expenses | 159,354 | |
Provisions | 118,468 | 153,978 |
Income tax payable | 97,634 | |
Total current liabilities | 2,449,919 | 2,870,367 |
Non-current liabilities: | ||
Deferred income tax | 38,975 | 39,852 |
Total non-current liabilities | 1,535,107 | 607,363 |
Total liabilities | 3,985,026 | 3,477,730 |
Stockholder’s equity | ||
Capital stock | 321,312 | 308,035 |
Retained earnings (deficit) | 856,994 | (334,769) |
Equity attributable to owners of the Group | 1,185,548 | 881,976 |
Total stockholders’ equity | 1,200,203 | 881,976 |
Total liabilities and stockholders’ equity | 5,185,229 | 4,359,706 |
Previously Presented [Member] | ||
Current assets: | ||
Trade accounts receivable, net | 778,054 | 757,806 |
Inventories, net | 1,339,378 | 1,274,026 |
Prepaid expenses | 69,224 | 94,501 |
Total current assets | 3,472,059 | 2,906,570 |
Total assets | 5,304,541 | 4,413,760 |
Current liabilities: | ||
Accrued expenses | 142,169 | |
Provisions | 115,192 | 151,008 |
Income tax payable | 88,679 | |
Total current liabilities | 2,420,503 | 2,867,397 |
Non-current liabilities: | ||
Deferred income tax | 80,907 | 56,959 |
Total non-current liabilities | 1,577,039 | 624,470 |
Total liabilities | 3,997,542 | 3,491,867 |
Stockholder’s equity | ||
Capital stock | 294,999 | 281,722 |
Retained earnings (deficit) | 990,103 | (268,539) |
Equity attributable to owners of the Group | 1,292,344 | 921,893 |
Total stockholders’ equity | 1,306,999 | 921,893 |
Total liabilities and stockholders’ equity | 5,304,541 | 4,413,760 |
Difference [Member] | ||
Current assets: | ||
Trade accounts receivable, net | (32,461) | (22,780) |
Inventories, net | (53,223) | 10,646 |
Prepaid expenses | (33,628) | (41,920) |
Total current assets | (119,312) | (54,054) |
Total assets | (119,312) | (54,054) |
Current liabilities: | ||
Accrued expenses | 17,185 | |
Provisions | 3,276 | 2,970 |
Income tax payable | 8,955 | |
Total current liabilities | 29,416 | 2,970 |
Non-current liabilities: | ||
Deferred income tax | (41,932) | (17,107) |
Total non-current liabilities | (41,932) | (17,107) |
Total liabilities | (12,516) | (14,137) |
Stockholder’s equity | ||
Capital stock | 26,313 | 26,313 |
Retained earnings (deficit) | (133,109) | (66,230) |
Equity attributable to owners of the Group | (106,796) | (39,917) |
Total stockholders’ equity | (106,796) | (39,917) |
Total liabilities and stockholders’ equity | $ (119,312) | $ (54,054) |
Significant accounting polici_5
Significant accounting policies (Details) - Schedule of consolidated statement of profit or loss and other comprehensive income - MXN ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 31, 2021 | |
Adjusted [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net revenue | $ 7,237,628 | $ 10,067,683 |
Cost of sales | 3,280,348 | 4,498,008 |
Gross profit | 3,957,280 | 5,569,675 |
Administrative expenses | 667,647 | 1,247,742 |
Selling expenses | 895,275 | 1,256,289 |
Distribution expenses | 331,023 | 463,779 |
Total operating expense | 1,893,945 | 2,967,810 |
Operating income | 2,063,335 | 2,601,865 |
Income before income taxes | 824,105 | 2,562,495 |
Current income tax | 791,856 | |
Deferred income tax | (51,173) | 22,700 |
Net income for the year | 298,444 | 1,747,939 |
Previously Presented [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net revenue | 7,260,408 | 10,039,668 |
Cost of sales | 3,290,994 | 4,399,164 |
Gross profit | 3,969,414 | 5,640,504 |
Administrative expenses | 664,677 | 1,247,436 |
Selling expenses | 853,355 | 1,264,581 |
Distribution expenses | 331,023 | 463,779 |
Total operating expense | 1,849,055 | 2,975,796 |
Operating income | 2,120,359 | 2,664,708 |
Income before income taxes | 881,129 | 2,625,338 |
Current income tax | 782,901 | |
Deferred income tax | (34,066) | 41,553 |
Net income for the year | 338,361 | 1,800,884 |
Increase (decrease) due to changes in accounting policy [member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net revenue | (22,780) | 28,015 |
Cost of sales | (10,646) | 98,844 |
Gross profit | (12,134) | (70,829) |
Administrative expenses | 2,970 | 306 |
Selling expenses | 41,920 | (8,292) |
Distribution expenses | ||
Total operating expense | 44,890 | (7,986) |
Operating income | (57,024) | (62,843) |
Income before income taxes | (57,024) | (62,843) |
Current income tax | 8,955 | |
Deferred income tax | (17,107) | (18,853) |
Net income for the year | $ (39,917) | $ (52,945) |
Significant accounting polici_6
Significant accounting policies (Details) - Schedule of percentage of participation | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Betterware de México, S.A.P.I. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | 100% | 100% | |
BLSM Latino América Servicios, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 99% | 99% | 99% | |
Betterware de Guatemala, S.A. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Guatemala | |||
Functional currency | Quetzal | |||
Percentage of participation | 70% | 70% | ||
Programa Lazos, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 70% | 70% | ||
GurúComm, S.A.P.I. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | [1] | Mexico | ||
Functional currency | [1] | Peso | ||
Percentage of participation | [1] | 60% | ||
Innova Catálogos, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | [2] | Mexico | ||
Functional currency | [2] | Peso | ||
Percentage of participation | [2] | 70% | ||
Betterware Ningbo Trading Co, LTD. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | China | |||
Functional currency | Yuan | |||
Percentage of participation | 100% | 100% | ||
Finayo, S.A.P.I. de C.V. SOFOM ENR [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | |||
Jafra México Holding Company, B.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Holanda | |||
Functional currency | Euro | |||
Percentage of participation | 100% | |||
Distribuidora Comercial JAFRA, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | |||
Jafra Cosmetics International, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | |||
Jafra Cosmetics, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | |||
Serviday, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | |||
Jafrafin, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | |||
Distribuidora Venus, S.A. de C.V. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | Mexico | |||
Functional currency | Peso | |||
Percentage of participation | 100% | |||
Jafra Cosmetics International, Inc. [Member] | ||||
Home organization (“Betterware”): | ||||
Operating Country | United States | |||
Functional currency | Dollar | |||
Percentage of participation | 100% | |||
[1]GurúComm was part of the Group until March 28, 2022.[2]Innova Catálogos was part of the Group until November 18, 2022. |
Significant accounting polici_7
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation | 12 Months Ended |
Dec. 31, 2022 | |
Vehicles [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 4 years |
Bottom of Range [Member] | Buildings [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 5 years |
Bottom of Range [Member] | Molds and machinery [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 3 years |
Bottom of Range [Member] | Computers and equipment [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 3 years |
Bottom of Range [Member] | Leasehold improvements [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 3 years |
Top of Range [Member] | Buildings [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 50 years |
Top of Range [Member] | Molds and machinery [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 15 years |
Top of Range [Member] | Computers and equipment [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 10 years |
Top of Range [Member] | Leasehold improvements [Member] | |
Significant accounting policies (Details) - Schedule of useful lives are used in the calculation of depreciation [Line Items] | |
Estimated useful lives and depreciation method | 5 years |
Significant accounting polici_8
Significant accounting policies (Details) - Schedule of lives of intangible assets with a defined useful life | 12 Months Ended |
Mar. 31, 2008 | |
Customer relationships [Member] | |
Significant accounting policies (Details) - Schedule of lives of intangible assets with a defined useful life [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
JAFRA [Member] | |
Significant accounting policies (Details) - Schedule of lives of intangible assets with a defined useful life [Line Items] | |
Estimated useful lives of intangible assets | 12 years |
Software [Member] | |
Significant accounting policies (Details) - Schedule of lives of intangible assets with a defined useful life [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Brands and logo rights [Member] | Minimum [Member] | |
Significant accounting policies (Details) - Schedule of lives of intangible assets with a defined useful life [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Brands and logo rights [Member] | Maximum [Member] | |
Significant accounting policies (Details) - Schedule of lives of intangible assets with a defined useful life [Line Items] | |
Estimated useful lives of intangible assets | 30 years |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) $ in Thousands | Jan. 03, 2021 MXN ($) |
Cash [Member] | |
Cash and cash equivalents (Details) [Line Items] | |
Cash amount | $ 42,915 |
Cash and cash equivalents (De_2
Cash and cash equivalents (Details) - Schedule of cash and cash equivalents - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents (Details) - Schedule of cash and cash equivalents [Line Items] | |||
Cash and cash equivalents | $ 815,644 | $ 1,175,198 | $ 649,820 |
Cash on hand in banks [Member] | |||
Cash and cash equivalents (Details) - Schedule of cash and cash equivalents [Line Items] | |||
Cash and cash equivalents | 367,076 | 951,092 | 629,146 |
Time deposits [Member] | |||
Cash and cash equivalents (Details) - Schedule of cash and cash equivalents [Line Items] | |||
Cash and cash equivalents | $ 448,568 | $ 224,106 | $ 20,674 |
Trade account receivables (Deta
Trade account receivables (Details) - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 |
Disclosure Of Trade And Other Receivables Text Block Abstract | |||
Accounts receivable canceled | $ 237,928 | $ 117,414 | $ 62,184 |
Trade account receivables (De_2
Trade account receivables (Details) - Schedule of trade account receivables - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of trade accounts receivable [Abstract] | |||
Trade account receivables | $ 1,092,855 | $ 835,757 | $ 744,109 |
Expected credit loss | (121,792) | (90,164) | (9,083) |
Total trade receivables | $ 971,063 | $ 745,593 | $ 735,026 |
Trade account receivables (De_3
Trade account receivables (Details) - Schedule of accounts receivable - MXN ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Estimated total gross carrying amount at default | $ 744,109 | $ 1,092,855 | $ 835,757 |
Expected credit loss | $ 46,260 | $ 121,792 | $ 90,164 |
Not past due [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 2% | 1% | |
Estimated total gross carrying amount at default | $ 640,675 | $ 560,642 | |
Expected credit loss | $ 8,163 | $ 6,814 | |
Fourteen to Twenty One [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 30% | 18% | 27% |
Estimated total gross carrying amount at default | $ 31,918 | $ 24,198 | $ 31,439 |
Expected credit loss | $ 9,588 | $ 4,337 | $ 8,338 |
Twenty One to Twenty Eight [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 62% | 39% | 60% |
Estimated total gross carrying amount at default | $ 17,772 | $ 15,592 | $ 22,463 |
Expected credit loss | $ 10,946 | $ 6,142 | $ 13,386 |
Less than Twenty Eight [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 33% | 41% | 28% |
Estimated total gross carrying amount at default | $ 53,744 | $ 161,204 | $ 221,213 |
Expected credit loss | $ 17,563 | $ 66,126 | $ 61,626 |
Less than Thirty to Fifty Nine [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 7% | ||
Estimated total gross carrying amount at default | $ 77,509 | ||
Expected credit loss | $ 5,130 | ||
Less than Sixty to One Twenty [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 21% | ||
Estimated total gross carrying amount at default | $ 31,366 | ||
Expected credit loss | $ 6,735 | ||
Less than One Twenty [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 61% | ||
Estimated total gross carrying amount at default | $ 42,969 | ||
Expected credit loss | $ 26,172 | ||
Betterware de México [member] | Not past due [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 1% | ||
Estimated total gross carrying amount at default | $ 365,978 | ||
Expected credit loss | $ 3,561 | ||
JAFRA in Mexico and United States [member] | Not past due [Member] | |||
Trade account receivables (Details) - Schedule of accounts receivable [Line Items] | |||
Expected credit loss rate | 1% | ||
Estimated total gross carrying amount at default | $ 374,039 | ||
Expected credit loss | $ 3,589 |
Trade account receivables (De_4
Trade account receivables (Details) - Schedule of expected credit loss - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | |
Schedule of expected credit loss [Abstract] | |||
Balance at beginning | $ (90,164) | $ (9,083) | $ (13,640) |
Expected credit loss | (269,595) | (198,495) | (46,260) |
Specific credit loss | (11,367) | ||
Amounts written off | 237,928 | 117,414 | 62,184 |
Foreign currency translation | 39 | ||
Balance at ending | $ (121,792) | $ (90,164) | $ (9,083) |
Inventories and cost of sales_2
Inventories and cost of sales (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories and cost of sales [Abstract] | |||
Cost of inventories recognized as an expense | $ 3,579,093 | $ 4,498,008 | $ 3,280,348 |
Write-downs of inventory | $ 72,988 | $ 43,645 | $ 24,438 |
Inventories and cost of sales_3
Inventories and cost of sales (Details) - Schedule of inventories and cost of sales - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of inventories and cost of sales [Abstract] | |||
Finished goods | $ 1,568,459 | $ 787,135 | $ 915,645 |
Packing material | 262,480 | 35,718 | 26,029 |
Raw materials | 109,681 | ||
Cost of inventories | 1,940,620 | 822,853 | 941,674 |
Merchandise in transit | 182,050 | 463,302 | 342,998 |
Inventories | $ 2,122,670 | $ 1,286,155 | $ 1,284,672 |
Prepaid expenses (Details) - Sc
Prepaid expenses (Details) - Schedule of prepaid expenses - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of prepaid expenses [Abstract] | |||
Premiums paid in advance for insurance | $ 16,238 | $ 16,961 | $ 10,061 |
Advances to suppliers | 12,891 | 1,320 | 2,689 |
Other | 23,433 | 17,315 | 39,831 |
Total | $ 52,562 | $ 35,596 | $ 52,581 |
Other assets (Details) - Schedu
Other assets (Details) - Schedule of other assets - Other Assets [Member] - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of other assets [Abstract] | |||
Inventory of rewards | $ 153,168 | $ 54,247 | $ 28,804 |
Employees and consultors | 42,878 | ||
Rewards catalogs | 13,009 | 12,067 | 10,492 |
Security deposit | 8,654 | 4,274 | 5,774 |
Recoverable taxes | 2,133 | 10,725 | 44,618 |
Restricted cash | 42,915 | ||
Other receivables | 15,099 | 4,949 | 3,588 |
Total other assets | 234,941 | 86,262 | 136,191 |
Current | 188,266 | 81,988 | 130,417 |
Non-current | $ 46,675 | $ 4,274 | $ 5,774 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Property Plant And Equipment Text Block Abstract | ||||
Total payments related to this construction | $ 508,958 | $ 37,500 | $ 397,000 | |
Investment amount | $ 1,108,458 | |||
Capitalized borrowing costs | $ 33,460 |
Property, plant and equipment_4
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of property, plant and equipment, net [Abstract] | |||
Acquisition cost | $ 3,190,297 | $ 1,231,794 | $ 905,840 |
Accumulated depreciation | (216,923) | (162,302) | (114,713) |
Total property, plant and equipment, net | $ 2,973,374 | $ 1,069,492 | $ 791,127 |
Property, plant and equipment_5
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | |
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | $ 1,231,794 | $ 905,840 | $ 305,874 |
Acquisition cost, Additions | 124,608 | 336,310 | 619,279 |
Acquisition cost, Disposals | (121,385) | (24,368) | (19,313) |
Acquisition cost, Ending balance | 3,190,297 | 1,231,794 | 905,840 |
Acquisition cost, Subsidiaries’ Acquisitions | 1,957,781 | 14,012 | |
Acquisition cost, Transfers | |||
Acquisition cost, Foreign currency translation | (2,501) | ||
Land [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | 49,256 | 49,256 | 47,124 |
Acquisition cost, Additions | 2,132 | ||
Acquisition cost, Disposals | |||
Acquisition cost, Ending balance | 1,302,493 | 49,256 | 49,256 |
Acquisition cost, Subsidiaries’ Acquisitions | 1,253,237 | ||
Acquisition cost, Transfers | |||
Acquisition cost, Foreign currency translation | |||
Molds and machinery [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | 270,148 | 126,296 | 41,269 |
Acquisition cost, Additions | 1,081 | 82,457 | 85,049 |
Acquisition cost, Disposals | (18,319) | (2,334) | (22) |
Acquisition cost, Ending balance | 558,027 | 270,148 | 126,296 |
Acquisition cost, Subsidiaries’ Acquisitions | 237,818 | ||
Acquisition cost, Transfers | 67,299 | 63,729 | |
Acquisition cost, Foreign currency translation | |||
Vehicles [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | 17,714 | 13,107 | 1,602 |
Acquisition cost, Additions | 6,183 | 6,046 | 28,740 |
Acquisition cost, Disposals | (2,124) | (1,439) | (17,235) |
Acquisition cost, Ending balance | 21,773 | 17,714 | 13,107 |
Acquisition cost, Subsidiaries’ Acquisitions | |||
Acquisition cost, Transfers | |||
Acquisition cost, Foreign currency translation | |||
Computers and equipment [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | 80,979 | 68,040 | 66,823 |
Acquisition cost, Additions | 9,605 | 709 | 3,273 |
Acquisition cost, Disposals | (99,640) | (19,764) | (2,056) |
Acquisition cost, Ending balance | 122,502 | 80,979 | 68,040 |
Acquisition cost, Subsidiaries’ Acquisitions | 101,512 | 13,473 | |
Acquisition cost, Transfers | 32,544 | 18,521 | |
Acquisition cost, Foreign currency translation | (2,498) | ||
Leasehold improvements [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | 38,115 | 34,308 | 29,882 |
Acquisition cost, Additions | 479 | 119 | 4,426 |
Acquisition cost, Disposals | (831) | ||
Acquisition cost, Ending balance | 43,238 | 38,115 | 34,308 |
Acquisition cost, Subsidiaries’ Acquisitions | 1,430 | 539 | |
Acquisition cost, Transfers | 3,214 | 3,980 | |
Acquisition cost, Foreign currency translation | |||
Buildings [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | 678,298 | 326,644 | |
Acquisition cost, Additions | 326,644 | ||
Acquisition cost, Disposals | |||
Acquisition cost, Ending balance | 1,032,032 | 678,298 | 326,644 |
Acquisition cost, Subsidiaries’ Acquisitions | 321,994 | ||
Acquisition cost, Transfers | 31,740 | 351,654 | |
Acquisition cost, Foreign currency translation | |||
Construction in progress [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment, net acquisition cost [Line Items] | |||
Acquisition cost, Beginning balance | 97,284 | 288,189 | 119,174 |
Acquisition cost, Additions | 107,260 | 246,979 | 169,015 |
Acquisition cost, Disposals | (1,302) | ||
Acquisition cost, Ending balance | 110,232 | 97,284 | $ 288,189 |
Acquisition cost, Subsidiaries’ Acquisitions | 41,790 | ||
Acquisition cost, Transfers | (134,797) | $ (437,884) | |
Acquisition cost, Foreign currency translation | $ (3) |
Property, plant and equipment_6
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment accumulated depreciation - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | |
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment accumulated depreciation [Line Items] | |||
Accumulated depreciation, Beginning balance | $ (162,302) | $ (114,713) | $ (98,524) |
Accumulated depreciation, Depreciation expense | (148,193) | (60,551) | (17,232) |
Accumulated depreciation, disposals | 91,166 | 12,962 | 1,043 |
Accumulated depreciation, Ending balance | (216,923) | (162,302) | (114,713) |
Foreign currency translation | 2,406 | ||
Molds and machinery [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment accumulated depreciation [Line Items] | |||
Accumulated depreciation, Beginning balance | (48,761) | (29,284) | (25,648) |
Accumulated depreciation, Depreciation expense | (60,965) | (20,236) | (3,636) |
Accumulated depreciation, disposals | 6,459 | 759 | |
Accumulated depreciation, Ending balance | (103,267) | (48,761) | (29,284) |
Foreign currency translation | |||
Vehicles [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment accumulated depreciation [Line Items] | |||
Accumulated depreciation, Beginning balance | (5,283) | (2,138) | (1,505) |
Accumulated depreciation, Depreciation expense | (3,992) | (3,162) | (633) |
Accumulated depreciation, disposals | 180 | 17 | |
Accumulated depreciation, Ending balance | (9,095) | (5,283) | (2,138) |
Foreign currency translation | |||
Computers and equipment [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment accumulated depreciation [Line Items] | |||
Accumulated depreciation, Beginning balance | (54,188) | (56,797) | (48,003) |
Accumulated depreciation, Depreciation expense | (40,738) | (9,374) | (9,837) |
Accumulated depreciation, disposals | 84,523 | 11,983 | 1,043 |
Accumulated depreciation, Ending balance | (7,997) | (54,188) | (56,797) |
Foreign currency translation | 2,406 | ||
Leasehold improvements [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment accumulated depreciation [Line Items] | |||
Accumulated depreciation, Beginning balance | (29,936) | (25,224) | (23,368) |
Accumulated depreciation, Depreciation expense | (1,134) | (4,915) | (1,856) |
Accumulated depreciation, disposals | 4 | 203 | |
Accumulated depreciation, Ending balance | (31,066) | (29,936) | (25,224) |
Foreign currency translation | |||
Buildings [Member] | |||
Property, plant and equipment, net (Details) - Schedule of property, plant and equipment accumulated depreciation [Line Items] | |||
Accumulated depreciation, Beginning balance | (24,134) | (1,270) | |
Accumulated depreciation, Depreciation expense | (41,364) | (22,864) | (1,270) |
Accumulated depreciation, disposals | |||
Accumulated depreciation, Ending balance | (65,498) | $ (24,134) | $ (1,270) |
Foreign currency translation |
Business combination (Details)
Business combination (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 18, 2022 | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | |
Business combination (Details) [Line Items] | |||
Agreement acquire percentage | 100% | ||
long-term bank loan | $ 4,498,695 | ||
Available cash amount (in Dollars) | $ 30,000 | ||
Contractual value | 736,063 | ||
Expected loss estimate | 243,954 | ||
Fair value of accounts receivable | 492,109 | ||
Acquisition Costs | 5,044,371 | ||
Profit or loss | 13,377,529 | ||
Net income | 1,097,092 | ||
Business combinations [member] | |||
Business combination (Details) [Line Items] | |||
Profit or loss | 5,164,205 | ||
Net income | $ 493,062 |
Business combination (Details)
Business combination (Details) - Schedule of assets acquired and liabilities assumed - Business combinations [member] $ in Thousands | Dec. 31, 2022 MXN ($) |
Business combination (Details) - Schedule of assets acquired and liabilities assumed [Line Items] | |
Current assets and others non-current assets | $ 2,885,952 |
Property, plant and equipment, net | 1,957,784 |
Intangible assets | 1,394,424 |
Current liabilities and non-current liabilities | (1,630,260) |
Deferred income tax | (813,661) |
Total identifiable assets acquired and liabilities assumed | 3,794,239 |
Goodwill | 1,250,132 |
Total assets acquired, net | $ 5,044,371 |
Business combination (Details_2
Business combination (Details) - Schedule of assets acquired and liabilities assumed - Business combinations [member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 MXN ($) | |
Business combination (Details) - Schedule of assets acquired and liabilities assumed [Line Items] | |
Cash out | $ 5,044,371 |
Less cash and cash equivalent balances acquired from JAFRA | (345,908) |
Net cash used (investing activities) | $ 4,698,463 |
Goodwill (Details)
Goodwill (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||||
Mar. 25, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 07, 2022 | Mar. 12, 2021 | Jan. 03, 2021 | |
Goodwill (Details) [Line Items] | ||||||
Percentage of voting equity interests acquired | 98% | 100% | ||||
Disposal amount (in Pesos) | $ 22,634 | |||||
Goodwill (in Pesos) | $ 1,599,718 | $ 371,075 | $ 348,441 | |||
Net assets percentage | 100% | |||||
Total cash agreed amount (in Pesos) | $ 5,044,371 | |||||
Weighted-average cost of capital market interest rate | 7.30% | |||||
Estimates terminal growth, period | 5 years | |||||
Description of budgeted EBITDA growth rate | Budgeted EBITDA was estimated taking into account past experience and a revenue growth rate projected taking into account the average growth levels experienced over the past 5 years and the estimated sales volume and price growth for the next five years. It was assumed that the sales price would increase in line with forecast inflation over the next five years. | |||||
Goodwill additions (in Pesos) | $ 22,634 | |||||
GurúComm [Member] | ||||||
Goodwill (Details) [Line Items] | ||||||
Percentage of voting equity interests acquired | 60% | |||||
Consideration transferred (in Pesos) | $ 45,000 | |||||
Catálogos, S.A. de C.V [Member] | ||||||
Goodwill (Details) [Line Items] | ||||||
Percentage of voting equity interests acquired | 70% | |||||
Consideration transferred (in Pesos) | $ 5,000 | |||||
Betterware and Programa Lazos, S.A. de C.V. [Member] | ||||||
Goodwill (Details) [Line Items] | ||||||
Percentage of voting equity interests acquired | 2% | |||||
Goodwill (in Pesos) | $ 1,145 | |||||
Weighted-average cost of capital market interest rate | 11.80% | 5.70% | ||||
Jafra México Holding B.V. [Member] | ||||||
Goodwill (Details) [Line Items] | ||||||
Percentage of voting equity interests acquired | 100% | |||||
Goodwill (in Pesos) | $ 1,250,132 | |||||
JAFRA [Member] | ||||||
Goodwill (Details) [Line Items] | ||||||
Weighted-average cost of capital market interest rate | 9.10% |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of goodwill - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Goodwill Abstract | |||
Goodwill cost, Beginning | $ 371,075 | $ 348,441 | $ 348,441 |
Goodwill additions | 1,251,277 | 22,634 | |
Goodwill disposals | (22,634) | ||
Goodwill cost, Ending | $ 1,599,718 | $ 371,075 | $ 348,441 |
Goodwill (Details) - Schedule_2
Goodwill (Details) - Schedule of goodwill balances of Group’s companies - MXN ($) $ in Thousands | 12 Months Ended | 23 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 03, 2021 | |
Goodwill (Details) - Schedule of goodwill balances of Group’s companies [Line Items] | |||
Total of Goodwill | $ 1,599,718 | $ 371,075 | $ 348,441 |
Betterware [Member] | |||
Goodwill (Details) - Schedule of goodwill balances of Group’s companies [Line Items] | |||
Total of Goodwill | 348,441 | 348,441 | 348,441 |
JAFRA [Member] | |||
Goodwill (Details) - Schedule of goodwill balances of Group’s companies [Line Items] | |||
Total of Goodwill | 1,250,132 | ||
Finayo [Member] | |||
Goodwill (Details) - Schedule of goodwill balances of Group’s companies [Line Items] | |||
Total of Goodwill | 1,145 | ||
GurúComm [Member] | |||
Goodwill (Details) - Schedule of goodwill balances of Group’s companies [Line Items] | |||
Total of Goodwill | 17,372 | ||
Innova Catálogos [Member] | |||
Goodwill (Details) - Schedule of goodwill balances of Group’s companies [Line Items] | |||
Total of Goodwill | $ 5,262 |
Goodwill (Details) - Schedule_3
Goodwill (Details) - Schedule of values assigned to the key assumptions used in the estimation of the recoverable amount | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Betterware [Member] | |||
Goodwill (Details) - Schedule of values assigned to the key assumptions used in the estimation of the recoverable amount [Line Items] | |||
Discount rate | 10% | 12.80% | 11.20% |
Terminal value growth rate | 0% | 3% | 3% |
EBITDA margin (earnings before interest, taxes, depreciation and amortization) | 30% | 30% | 38% |
JAFRA [Member] | |||
Goodwill (Details) - Schedule of values assigned to the key assumptions used in the estimation of the recoverable amount [Line Items] | |||
Discount rate | 9.10% | ||
Terminal value growth rate | 2% | ||
EBITDA margin (earnings before interest, taxes, depreciation and amortization) | 15.30% |
Intangible assets, net (Details
Intangible assets, net (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||||
Apr. 07, 2022 | Jan. 03, 2021 | Jul. 28, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, net (Details) [Line Items] | |||||
Carrying amount of intangible assets | $ 849,106 | ||||
Amortized useful lives | 12 years | 10 years | |||
Intangible assets for brands and logo rights | $ 806 | 489 | $ 626 | ||
Brand names [member] | |||||
Intangible assets, net (Details) [Line Items] | |||||
Carrying amount of intangible assets | $ 253,000 | ||||
Bottom of range [member] | |||||
Intangible assets, net (Details) [Line Items] | |||||
Estimated useful life | 10 years | ||||
Top of range [member] | |||||
Intangible assets, net (Details) [Line Items] | |||||
Estimated useful life | 30 years |
Intangible assets, net (Detai_2
Intangible assets, net (Details) - Schedule of intangible assets - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 03, 2021 | Dec. 31, 2020 | |
Intangible assets, net (Details) - Schedule of intangible assets [Line Items] | |||
Acquisition cost, beginning balance | $ 368,377 | $ 346,259 | $ 346,259 |
Additions | 65,426 | 24,609 | |
Disposals | (2,491) | ||
Acquisition cost, ending period | 433,803 | 368,377 | |
Accumulated amortization, beginning balance | (49,016) | (35,294) | (35,294) |
Amortization expense | (15,027) | (13,722) | |
Eliminated disposals | |||
Accumulated amortization, ending period | (64,043) | (49,016) | |
Brand [Member] | |||
Intangible assets, net (Details) - Schedule of intangible assets [Line Items] | |||
Acquisition cost, beginning balance | 253,000 | 253,000 | 253,000 |
Additions | |||
Disposals | |||
Acquisition cost, ending period | 253,000 | 253,000 | |
Customer relationships [Member] | |||
Intangible assets, net (Details) - Schedule of intangible assets [Line Items] | |||
Acquisition cost, beginning balance | 64,000 | 64,000 | 64,000 |
Additions | |||
Disposals | |||
Acquisition cost, ending period | 64,000 | 64,000 | |
Accumulated amortization, beginning balance | (37,333) | (30,933) | (30,933) |
Amortization expense | (6,400) | (6,400) | |
Eliminated disposals | |||
Accumulated amortization, ending period | (43,733) | (37,333) | |
Software [Member] | |||
Intangible assets, net (Details) - Schedule of intangible assets [Line Items] | |||
Acquisition cost, beginning balance | 45,984 | 21,651 | 21,651 |
Additions | 65,356 | 24,333 | |
Disposals | |||
Acquisition cost, ending period | 111,340 | 45,984 | |
Accumulated amortization, beginning balance | (7,096) | (421) | (421) |
Amortization expense | (8,377) | (6,675) | |
Eliminated disposals | |||
Accumulated amortization, ending period | (15,473) | (7,096) | |
Brands and logo rights [Member] | |||
Intangible assets, net (Details) - Schedule of intangible assets [Line Items] | |||
Acquisition cost, beginning balance | 5,393 | 7,608 | 7,608 |
Additions | 70 | 276 | |
Disposals | (2,491) | ||
Acquisition cost, ending period | 5,463 | 5,393 | |
Accumulated amortization, beginning balance | (4,587) | (3,940) | $ (3,940) |
Amortization expense | (250) | (647) | |
Eliminated disposals | |||
Accumulated amortization, ending period | $ (4,837) | $ (4,587) |
Intangible assets, net (Detai_3
Intangible assets, net (Details) - Schedule acquisition cost $ in Thousands | 12 Months Ended |
Dec. 31, 2022 MXN ($) | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | $ 433,803 |
Subsidiaries’ Acquisitions | 1,394,424 |
Additions | 51,045 |
Disposals | |
Foreign currency translation | (1,003) |
Amortization expense | 1,878,269 |
Accumulated impairment [member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | (134,387) |
Disposals | (70,344) |
Foreign currency translation | |
Amortization expense | |
Accumulated amortization, ending period | (64,043) |
Brand [Member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | 253,000 |
Subsidiaries’ Acquisitions | 840,616 |
Additions | 9,493 |
Disposals | |
Foreign currency translation | (1,003) |
Amortization expense | 1,102,106 |
Customer relationships [Member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | 64,000 |
Subsidiaries’ Acquisitions | 553,808 |
Additions | |
Disposals | |
Foreign currency translation | |
Amortization expense | 617,808 |
Customer relationships [Member] | Accumulated impairment [member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | (84,145) |
Disposals | (40,412) |
Foreign currency translation | |
Amortization expense | |
Accumulated amortization, ending period | (43,733) |
Software [Member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | 111,340 |
Subsidiaries’ Acquisitions | |
Additions | 41,443 |
Disposals | |
Foreign currency translation | |
Amortization expense | 152,783 |
Software [Member] | Accumulated impairment [member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | (45,159) |
Disposals | (29,686) |
Foreign currency translation | |
Amortization expense | |
Accumulated amortization, ending period | (15,473) |
Brands and logo rights [Member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | 5,463 |
Subsidiaries’ Acquisitions | |
Additions | 109 |
Disposals | |
Foreign currency translation | |
Amortization expense | 5,572 |
Brands and logo rights [Member] | Accumulated impairment [member] | |
Intangible assets, net (Details) - Schedule acquisition cost [Line Items] | |
Accumulated amortization, beginning balance | (5,083) |
Disposals | (246) |
Foreign currency translation | |
Amortization expense | |
Accumulated amortization, ending period | $ (4,837) |
Intangible assets, net (Detai_4
Intangible assets, net (Details) - Schedule of customers relationships balances - Customer-related intangible assets [member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 |
Intangible assets, net (Details) - Schedule of customers relationships balances [Line Items] | |||
Betterware | $ 13,867 | $ 20,267 | $ 26,667 |
JAFRA | 519,796 | ||
Total of customers relationships | $ 533,663 | $ 20,267 | $ 26,667 |
Leases (Details)
Leases (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Leases Text Block [Abstract] | |||
Depreciation, right-of-use assets | $ 69,165 | $ 6,544 | $ 12,666 |
Lease terms | 1 year | ||
Rental expense | $ 31,003 | $ 52,660 | $ 15,703 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of right of use assets - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Jan. 03, 2021 | |
Schedule of Right of Use Assets [Abstract] | ||
Cost, Beginning | $ 39,579 | $ 36,909 |
Cost, Additions | 1,388 | 20,531 |
Cost, Disposals | (3,275) | (17,861) |
Cost, Ending | 37,692 | 39,579 |
Accumulated depreciation, Beginning | (14,697) | (13,098) |
Accumulated depreciation, Depreciation expense | (6,544) | (12,734) |
Accumulated depreciation, Disposals | 933 | 11,135 |
Accumulated depreciation, Ending | $ (20,308) | $ (14,697) |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of depreciation expense $ in Thousands | 12 Months Ended |
Dec. 31, 2022 MXN ($) | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | $ (20,308) |
Subsidiaries’ Acquisitions | 1,394,424 |
Additions | (69,165) |
Disposals | 1,509 |
Foreign currency translation | (295) |
Ending balance | 88,259 |
Vehiclesg [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | (147) |
Additions | (21,795) |
Disposals | 1,024 |
Foreign currency translation | |
Ending balance | (20,918) |
Buildings [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | |
Additions | (12,947) |
Disposals | |
Foreign currency translation | |
Ending balance | (12,947) |
Warehouse [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | (17,101) |
Additions | (18,658) |
Disposals | 484 |
Foreign currency translation | |
Ending balance | (35,275) |
Office furniture and equipment [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | |
Additions | (1,346) |
Disposals | |
Foreign currency translation | |
Ending balance | (1,346) |
Computer equipment [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | (3,060) |
Additions | (14,419) |
Disposals | 1 |
Foreign currency translation | (295) |
Ending balance | (17,773) |
Right-of-use assets [member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | 37,692 |
Subsidiaries’ Acquisitions | 150,781 |
Additions | 195,021 |
Disposals | (1,670) |
Foreign currency translation | |
Ending balance | 381,824 |
Right-of-use assets [member] | Vehiclesg [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | 623 |
Subsidiaries’ Acquisitions | 59,657 |
Additions | 48,433 |
Disposals | (1,171) |
Foreign currency translation | |
Ending balance | 107,542 |
Right-of-use assets [member] | Buildings [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | |
Subsidiaries’ Acquisitions | 7,049 |
Additions | 88,051 |
Disposals | (484) |
Foreign currency translation | |
Ending balance | 94,616 |
Right-of-use assets [member] | Warehouse [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | 17,101 |
Subsidiaries’ Acquisitions | 53,575 |
Additions | 49,227 |
Disposals | |
Foreign currency translation | |
Ending balance | 119,903 |
Right-of-use assets [member] | Office furniture and equipment [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | |
Subsidiaries’ Acquisitions | 2,697 |
Additions | 5,454 |
Disposals | |
Foreign currency translation | |
Ending balance | 8,151 |
Right-of-use assets [member] | Computer equipment [Member] | |
Leases (Details) - Schedule of depreciation expense [Line Items] | |
Beginning balance | 19,968 |
Subsidiaries’ Acquisitions | 27,803 |
Additions | 3,856 |
Disposals | (15) |
Foreign currency translation | |
Ending balance | $ 51,612 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of lease liabilities - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | ||
Schedule Of Lease Liabilities Abstract | ||||
Balance Lease liability, beginning | $ 17,880 | $ 24,378 | $ 24,584 | |
Lease additions | [1] | 193,856 | 1,388 | 20,531 |
Subsidiaries’ Acquisitions | [1] | 146,187 | ||
Foreign currency translation | [1] | (1,172) | ||
Lease disposals | [1] | (195) | (1,704) | (13,966) |
Rent payments | [2] | (76,214) | (6,899) | (8,825) |
Interest expense | [1] | 11,566 | 717 | 2,054 |
Balance Lease liability, ending | $ 291,908 | $ 17,880 | $ 24,378 | |
[1]Changes that do not represent cash flow[2]Changes that represent cash flow |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of total future minimum lease payments $ in Thousands | Dec. 31, 2022 MXN ($) |
Leases (Details) - Schedule of total future minimum lease payments [Line Items] | |
Total future minimum lease payments | $ 486,129 |
2023 [Member] | |
Leases (Details) - Schedule of total future minimum lease payments [Line Items] | |
Total future minimum lease payments | 92,341 |
2024 [Member] | |
Leases (Details) - Schedule of total future minimum lease payments [Line Items] | |
Total future minimum lease payments | 99,715 |
2025 [Member] | |
Leases (Details) - Schedule of total future minimum lease payments [Line Items] | |
Total future minimum lease payments | 101,315 |
2026 [Member] | |
Leases (Details) - Schedule of total future minimum lease payments [Line Items] | |
Total future minimum lease payments | 93,946 |
2027 [Member] | |
Leases (Details) - Schedule of total future minimum lease payments [Line Items] | |
Total future minimum lease payments | $ 98,812 |
Accounts payable to suppliers (
Accounts payable to suppliers (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts payable to suppliers [Abstract] | |||
Discounted suppliers | $ 584,872 | $ 1,237,913 | $ 1,315,744 |
Debt and borrowings (Details)
Debt and borrowings (Details) - MXN ($) | 1 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||||||
Apr. 05, 2022 | Mar. 31, 2022 | Aug. 31, 2021 | Mar. 31, 2021 | Mar. 10, 2020 | Aug. 31, 2021 | Jul. 30, 2020 | Jan. 31, 2018 | Jul. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 03, 2021 | Sep. 20, 2020 | Mar. 27, 2020 | |
Debt and borrowings (Details) [Line Items] | |||||||||||||||
Line credit | $ 400 | $ 449.8695 | $ 486.79 | $ 486.79 | $ 486.79 | $ 250 | $ 400,000,000 | $ 258.750 | |||||||
Maturity term | 5 years | ||||||||||||||
Global payment percentage | 30% | ||||||||||||||
Total amount | $ 1,500,000,000 | ||||||||||||||
Sustainability bonds | $ 500,000,000 | ||||||||||||||
Sustainability bonds percentage | 5.15% | 5.15% | |||||||||||||
Sustainability bonds rate plus | 0.40% | 0.40% | |||||||||||||
Banxico plus percentage | 0.40% | 0.40% | |||||||||||||
Interest pay | $ 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | ||||||||||||
Fixed rate, percentage | 8.35% | 8.35% | |||||||||||||
Proceeds received | $ 588.300 | ||||||||||||||
Long-term debt | 521.449 | 521.449 | |||||||||||||
Additional secured credit line | $ 181.72 | ||||||||||||||
Secured credit line | 521.449 | $ 400 | |||||||||||||
Liquidated totality | $ 521,449,000 | $ 48,679,000 | |||||||||||||
Pledged as collateral amount | $ 809.01 | ||||||||||||||
Amending agreement | $ 800 | ||||||||||||||
Description of loans | Betterware entered into a current account credit line agreement with HSBC México, S.A., for an amount of Ps.50,000, with provisions by means of promissory notes specifying payment of principal and interest. BLSM is jointly liable for this credit. On May 4, 2020, the first amendment agreement was signed, in which the amount of the credit line was increased to Ps.150,000. The maturity date of this credit line is March 10, 2022, and it bears interest at the TIIE rate plus 200 basis points. During 2022, 2021 and 2020, the Group utilized Ps.620,000, Ps.20,000 and Ps.115,000, respectively, of which as of December 31, 2022, 2021, and January 3, 2021, the entire amounts have been repaid. | ||||||||||||||
Fair value of debt | $ 648.9926 | $ 149.9867 | $ 634.992 | ||||||||||||
Long-term debt | The long-term debt of the syndicated credit line contains the following financial obligations: a)A leverage ratio equal to or less than 3.00. b)A debt service coverage ratio equal to or greater than 1.25. c)A minimum stockholders’ equity equivalent to 90% of stockholders’ equity at the close of the last immediately preceding fiscal year. | ||||||||||||||
Bonds | $ 500,000,000 | ||||||||||||||
Banamex [member] | |||||||||||||||
Debt and borrowings (Details) [Line Items] | |||||||||||||||
Line credit | $ 500 | ||||||||||||||
Total amount | $ 195 | ||||||||||||||
BBVA [Member] | |||||||||||||||
Debt and borrowings (Details) [Line Items] | |||||||||||||||
Line credit | $ 75,000,000 | ||||||||||||||
Interest rate | 7.50% | ||||||||||||||
Bottom of range [Member] | |||||||||||||||
Debt and borrowings (Details) [Line Items] | |||||||||||||||
Maturity term | 4 years | ||||||||||||||
Top of range [Member] | |||||||||||||||
Debt and borrowings (Details) [Line Items] | |||||||||||||||
Maturity term | 7 years |
Debt and borrowings (Details) -
Debt and borrowings (Details) - Schedule of long-term debt - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | $ 6,148,675 | $ 1,510,385 | $ 629,877 |
Less: Current portion | 230,419 | 28,124 | 105,910 |
Long term debt and borrowings | 5,918,256 | 1,482,261 | 523,967 |
Simple credit line with Banamex [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | 4,432,711 | ||
Two-tranche sustainability bond [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | 1,485,545 | 1,482,261 | |
Credit line with Banamex [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | 200,000 | ||
Innova Catalogos [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | 15 | ||
Secured credit line with Banamex [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | 373,333 | ||
Secured credit line with Banamex One [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | 188,500 | ||
Credit line with BBVA [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | 64,721 | ||
Interest payable [Member] | |||
Debt and borrowings (Details) - Schedule of long-term debt [Line Items] | |||
Total debt | $ 30,419 | $ 28,109 | $ 3,323 |
Debt and borrowings (Details)_2
Debt and borrowings (Details) - Schedule of cash flows arising from financing activities - MXN ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | |||
Long-term debt and borrowings [Member] | |||||
Debt and borrowings (Details) - Schedule of cash flows arising from financing activities [Line Items] | |||||
Balances at beginning | $ 1,482,276 | $ 583,639 | $ 666,806 | ||
Changes that represent cash flows - Loans obtained | 5,818,705 | 1,520,000 | 1,712,207 | ||
Restricted cash | 42,915 | (42,915) | [1] | ||
Payments | (1,120,025) | (646,716) | (1,757,112) | ||
Changes that do not represent cash flows: | |||||
Control obtained over subsidiaries | 177 | ||||
Amortization of bond issuance cost | 3,285 | 1,192 | |||
Amortization of Long term debt- Syndicated Credit Line | 22,737 | ||||
Amortization of commissions and debt issuance cost | 4,653 | ||||
Balances at ending | 6,118,256 | 1,482,276 | 583,639 | ||
Changes that represent cash flows - | |||||
Bond issuance costs | (88,722) | (18,931) | |||
Interest payable [Member] | |||||
Debt and borrowings (Details) - Schedule of cash flows arising from financing activities [Line Items] | |||||
Balances at beginning | 28,109 | 3,323 | 10,907 | ||
Restricted cash | [1] | ||||
Payments | (502,847) | (49,123) | (121,297) | ||
Changes that do not represent cash flows: | |||||
Interest expense | 505,157 | 73,909 | 80,253 | ||
Borrowing costs capitalized on property, plant and equipment | 33,460 | ||||
Balances at ending | 30,419 | 28,109 | 3,323 | ||
Derivative financial instruments, net [Member] | |||||
Debt and borrowings (Details) - Schedule of cash flows arising from financing activities [Line Items] | |||||
Balances at beginning | (28,193) | 320,294 | 32,309 | ||
Restricted cash | [1] | ||||
Payments | (18,172) | ||||
Changes that do not represent cash flows: | |||||
Valuation effects of derivative financial instruments | 43,522 | (330,315) | 287,985 | ||
Balances at ending | $ 15,329 | $ (28,193) | $ 320,294 | ||
[1]Balances in column “Long-term debt” in the table above, are netted with restricted cash balances on 2020 period. |
Debt and borrowings (Details)_3
Debt and borrowings (Details) - Schedule of long-term debt maturities $ in Thousands | 12 Months Ended |
Dec. 31, 2022 MXN ($) | |
Schedule Of Long Term Debt Maturities Abstract | |
2023 | $ 853,401 |
2024 | 899,275 |
2025 | 2,087,221 |
2026 | 1,698,045 |
2027-2028 | 2,778,621 |
Total | $ 8,316,563 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Mexico [Member] | |||
Income Taxes (Details) [Line Items] | |||
Tax rate | 30% | ||
Guatemala [Member] | |||
Income Taxes (Details) [Line Items] | |||
Tax rate | 25% | ||
United States [Member] | |||
Income Taxes (Details) [Line Items] | |||
Tax rate | 21% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income tax recognized in profit or loss - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Tax Recognized In Profit Or Loss Abstract | |||
Current tax | $ 533,522 | $ 791,856 | $ 576,834 |
Deferred tax (benefit) expense | (16,602) | 22,700 | (51,173) |
Income tax recognized in profit or loss | $ 516,920 | $ 814,556 | $ 525,661 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciliation of income tax expense recognized from statutory to effective ISR rate - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule Of Reconciliation Of Income Tax Expense Recognized From Statutory To Effective Isr Rate Abstract | ||||
Profit before income tax | $ 1,386,884 | $ 2,542,495 | $ 824,105 | |
Tax rate | 30% | 30% | 30% | |
Income tax expense calculated at 30% statutory tax rate | $ 416,065 | $ 768,749 | $ 247,232 | |
Inflation effects, net | 3,536 | 25,039 | 8,333 | |
Non-deductible expenses | [1] | 148,569 | 5,790 | 5,493 |
Loss on valuation of warrants | 255,456 | |||
Share-based payments | 1,780 | 1,744 | 8,275 | |
Other items, net | (53,030) | 13,234 | 872 | |
Total income tax expense | $ 516,920 | $ 814,556 | $ 525,661 | |
Income tax rate | 37% | 32% | 64% | |
[1]Includes (i) certain payroll expenses which are partially deductible as grocery vouchers, help for transportation, life and major medical expenses insurance, among others; and (ii) certain cost of sales expenses as samples and obsolescence items. |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred tax asset (liabilities) reconciliation of changes in deferred taxes balances - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | |
Expected credit loss [Member] | |||
Deferred tax assets: | |||
Balance at beginning | $ 32,427 | $ 8,319 | $ 5,217 |
Recognized in profit or loss | (3,085) | 3,102 | |
Recognized in other comprehensive income | |||
Balance at ending | 29,342 | 32,427 | 8,319 |
Accruals and provisions [Member] | |||
Deferred tax assets: | |||
Balance at beginning | 69,529 | 25,937 | |
Recognized in profit or loss | 43,232 | ||
Recognized in other comprehensive income | 360 | ||
Balance at ending | 69,529 | ||
Derivative Financial Instruments, Assets [Member] | |||
Deferred tax assets: | |||
Balance at beginning | 35,886 | ||
Recognized in profit or loss | 351 | (35,886) | 35,886 |
Recognized in other comprehensive income | |||
Balance at ending | 5,103 | 35,886 | |
Liability assumed for subsidiaries’ acquisition | 4,752 | ||
Property, Plant and equipment [Member] | |||
Deferred tax assets: | |||
Balance at beginning | 5,538 | 4,579 | |
Recognized in profit or loss | 5,538 | (4,579) | |
Recognized in other comprehensive income | |||
Balance at ending | 5,538 | ||
Intangible assets [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (81,980) | (83,900) | (85,820) |
Recognized in profit or loss | 1,920 | 1,920 | |
Recognized in other comprehensive income | |||
Balance at ending | (81,980) | (83,900) | |
Accounting effects from changing reporting period | |||
Inventories [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (34,234) | (9,353) | |
Recognized in profit or loss | (24,881) | ||
Balance at ending | (34,234) | ||
Derivative financial instruments1 [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (7,380) | (89) | |
Recognized in profit or loss | (1,471) | (7,380) | 89 |
Recognized in other comprehensive income | |||
Balance at ending | (3,915) | (7,380) | |
Liability assumed for subsidiaries’ acquisition | 4,936 | ||
Property, plant and equipment1 [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (10,888) | ||
Recognized in profit or loss | (38,200) | 10,888 | (10,888) |
Recognized in other comprehensive income | |||
Balance at ending | (388,721) | (10,888) | |
Liability assumed for subsidiaries’ acquisition | (350,521) | ||
Other assets and prepaid expenses liabilities [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (6,959) | (13,891) | |
Recognized in profit or loss | 6,932 | ||
Recognized in other comprehensive income | |||
Balance at ending | (6,959) | ||
Net deferred tax liability [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (38,975) | (22,247) | (73,420) |
Recognized in profit or loss | 16,602 | (22,700) | 50,813 |
Recognized in other comprehensive income | 360 | ||
Balance at ending | (514,400) | (38,975) | (22,247) |
Liability assumed for subsidiaries’ acquisition | (492,027) | ||
Accounting effects from changing reporting period | 5,972 | ||
Expected credit loss One [Member] | |||
Deferred tax assets: | |||
Balance at beginning | 32,427 | 8,319 | |
Recognized in profit or loss | 12,799 | ||
Balance at ending | 32,427 | 8,319 | |
Accounting effects from changing reporting period | 11,309 | ||
Accruals and provisions One [Member] | |||
Deferred tax assets: | |||
Balance at beginning | 38,107 | 69,529 | |
Recognized in profit or loss | (31,422) | ||
Balance at ending | 38,107 | 69,529 | |
Inventories Tax Liabilities [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (9,088) | (34,234) | |
Recognized in profit or loss | 30,483 | ||
Balance at ending | (9,088) | (34,234) | |
Accounting effects from changing reporting period | (5,337) | ||
Other assets and prepaid expenses liabilities One [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (16,599) | (6,959) | |
Recognized in profit or loss | (9,640) | ||
Balance at ending | (16,599) | $ (6,959) | |
Accruals and provisions Two [Member] | |||
Deferred tax assets: | |||
Balance at beginning | 38,107 | ||
Recognized in profit or loss | 99,556 | ||
Balance at ending | 394,096 | 38,107 | |
Liability assumed for subsidiaries’ acquisition | 256,433 | ||
Property, Plant and equipment [Member] | |||
Deferred tax assets: | |||
Balance at beginning | 5,538 | ||
Recognized in profit or loss | (5,538) | ||
Recognized in other comprehensive income | |||
Balance at ending | 5,538 | ||
Intangible Assets Liabilities [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (81,980) | ||
Recognized in profit or loss | 1,920 | ||
Balance at ending | (498,387) | (81,980) | |
Liability assumed for subsidiaries’ acquisition | (418,327) | ||
Inventories Liabilities [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (9,088) | ||
Recognized in profit or loss | (18,656) | ||
Balance at ending | (27,744) | (9,088) | |
Other assets and prepaid expenses Two [Member] | |||
Deferred tax assets: | |||
Balance at beginning | (16,599) | ||
Recognized in profit or loss | (18,275) | ||
Balance at ending | (24,174) | $ (16,599) | |
Liability assumed for subsidiaries’ acquisition | $ 10,700 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of unrecognized deferred tax assets $ in Thousands | 12 Months Ended |
Dec. 31, 2022 MXN ($) | |
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | |
Jafra Cosmetics International, S.A. de C.V. | $ 31,237 |
Jafrafin, S.A. de C.V. | $ 2,659 |
2019 [Member] | |
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | |
Life year | 2029 |
Jafra Cosmetics International, S.A. de C.V. | $ 27,861 |
Jafrafin, S.A. de C.V. | |
2020 [Member] | |
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | |
Life year | 2030 |
Jafra Cosmetics International, S.A. de C.V. | $ 3,376 |
Jafrafin, S.A. de C.V. | |
2021 [Member] | |
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | |
Life year | 2031 |
Jafra Cosmetics International, S.A. de C.V. | |
Jafrafin, S.A. de C.V. | $ 2,659 |
Provisions (Details) - Schedule
Provisions (Details) - Schedule of provisions - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | |
Provisions (Details) - Schedule of provisions [Line Items] | |||
Beginning balance | $ 118,468 | $ 153,978 | $ 46,689 |
Increases | 4,566,198 | 2,212,397 | 1,343,821 |
Payments | (4,589,782) | (2,247,907) | (1,236,532) |
Foreign currency translation | (1,056) | ||
Ending balance | 793,412 | 118,468 | 153,978 |
Additions for subsidiaries’ acquisition | 699,584 | ||
Commissions, promotions and other [Member] | |||
Provisions (Details) - Schedule of provisions [Line Items] | |||
Beginning balance | 113,431 | 107,146 | 32,779 |
Increases | 4,030,497 | 2,054,420 | 1,272,651 |
Payments | (4,012,720) | (2,048,135) | (1,198,284) |
Foreign currency translation | (135) | ||
Ending balance | 491,353 | 113,431 | 107,146 |
Additions for subsidiaries’ acquisition | 360,280 | ||
Bonuses and other employee benefits [Member] | |||
Provisions (Details) - Schedule of provisions [Line Items] | |||
Beginning balance | 4,537 | 46,540 | 13,356 |
Increases | 74,764 | 140,436 | 54,223 |
Payments | (52,898) | (182,439) | (21,039) |
Foreign currency translation | |||
Ending balance | 26,403 | 4,537 | 46,540 |
Additions for subsidiaries’ acquisition | |||
Professional services fees [Member] | |||
Provisions (Details) - Schedule of provisions [Line Items] | |||
Beginning balance | 500 | 292 | 554 |
Increases | 48,292 | 17,541 | 16,947 |
Payments | (54,490) | (17,333) | (17,209) |
Foreign currency translation | |||
Ending balance | 57,292 | 500 | 292 |
Additions for subsidiaries’ acquisition | 62,990 | ||
Other general provisions [Member] | |||
Provisions (Details) - Schedule of provisions [Line Items] | |||
Beginning balance | |||
Increases | 412,645 | ||
Payments | (469,674) | ||
Foreign currency translation | (921) | ||
Ending balance | 218,364 | ||
Additions for subsidiaries’ acquisition | $ 276,314 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||||||||
Jan. 03, 2021 MXN ($) | Jan. 03, 2021 | Dec. 23, 2020 shares | Oct. 08, 2020 $ / shares shares | Oct. 07, 2020 $ / shares shares | Sep. 30, 2020 shares | Aug. 31, 2021 MXN ($) | Dec. 31, 2020 $ / shares shares | Oct. 07, 2020 MXN ($) shares | Oct. 07, 2020 $ / shares shares | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 MXN ($) shares | Aug. 31, 2020 shares | Apr. 12, 2020 shares | |
Derivative Financial Instruments (Details) [Line Items] | |||||||||||||||
Line of credit derivative (in Pesos) | $ | $ 400,000 | ||||||||||||||
TIIE rate | 4.49% | ||||||||||||||
Loss of derivative financial instruments (in Pesos) | $ | (43,522) | $ 330,315 | $ (287,985) | ||||||||||||
Number of purchase securities called by warrants or rights | 250,000 | ||||||||||||||
Number of option to issue securities called by warrants or rights | 250,000 | ||||||||||||||
Number of additional purchase securities called by warrants or rights | 250,000 | ||||||||||||||
Warrants repurchased | 157,388 | ||||||||||||||
Warrant share | 1,142,325 | 895,597 | |||||||||||||
Warrants exchanged | 621,098 | ||||||||||||||
Warrants settled on cash basis | 462,130 | 433,467 | 462,130 | 462,130 | 433,467 | ||||||||||
Warrants price (in Dollars per share) | $ / shares | $ 0.37 | ||||||||||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 11.44 | ||||||||||||||
Cash received (in Pesos) | $ | $ 116,419 | ||||||||||||||
Issuance of betterware shares | 214,020 | ||||||||||||||
Derivative price (in Dollars per share) | $ / shares | $ 18 | ||||||||||||||
Warrant exchange | 3,087,022 | ||||||||||||||
Public warrant not exercised | 8,493 | ||||||||||||||
Price per warrant (in Dollars per share) | $ / shares | $ 0.01 | ||||||||||||||
Private warrant exercised | 239,125 | ||||||||||||||
Exchange for shares | 156,505 | ||||||||||||||
Fair value of the warrants (in Pesos) | $ | $ 851,520 | $ 851,520 | |||||||||||||
Swap With Banamex (Member) | |||||||||||||||
Derivative Financial Instruments (Details) [Line Items] | |||||||||||||||
Interest rate swap, cancellation fee (in Pesos) | $ | $ 18,172 | ||||||||||||||
Warrants [Member] | |||||||||||||||
Derivative Financial Instruments (Details) [Line Items] | |||||||||||||||
Warrants price (in Dollars per share) | $ / shares | $ 1 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details) - Schedule of Derivative Financial Instrument Contracts $ / shares in Units, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 MXN ($) $ / shares | Dec. 31, 2021 MXN ($) $ / shares | Jan. 03, 2021 MXN ($) $ / shares | Jan. 03, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 03, 2021 USD ($) | |
Currency swap contract [member] | |||||||
Derivative Financial Instruments (Details) - Schedule of Derivative Financial Instrument Contracts [Line Items] | |||||||
Notional amount | $ 41,750 | $ 134,050 | $ 287,452 | ||||
Fair Value | $ 15,329 | $ 28,193 | |||||
Average Strike (in Pesos per share and Dollars per share) | $ / shares | $ 20,310 | $ 20,660 | $ 22,360 | ||||
Maturity date | Weekly, through August 2023 | Weekly, through October 2022 | Weekly, through October 2021 | ||||
Total Assets | $ 28,193 | ||||||
Liabilities: | |||||||
Total Liabilities | $ 320,294 | ||||||
Total Liabilities | $ 15,329 | ||||||
Non-current liability | 25,179 | ||||||
Total current liability | $ 295,115 | ||||||
Interest rate swap contract [member] | |||||||
Derivative Financial Instruments (Details) - Schedule of Derivative Financial Instrument Contracts [Line Items] | |||||||
Notional amount | $ 353,333 | ||||||
Fair Value | $ 32,842 | ||||||
Maturity date | 12/15/2023 | ||||||
Contract date | 11/15/2018 | ||||||
Rate received | TIIE 28 days (1) | ||||||
Rate paid | 8.33% | 8.33% |
Retirement Benefits _ Defined_3
Retirement Benefits – Defined Benefit Obligations (Details) - Schedule of net defined benefit liability and its components - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of net defined benefit liability and its components [Abstract] | |||
Balance at beginning | $ 2,093 | $ 1,678 | $ 1,630 |
Additions for subsidiaries’ acquisition | 149,243 | ||
Included in profit or loss: | |||
Current service cost | 13,322 | 614 | 425 |
Interest cost | 9,461 | 101 | 114 |
Net cost of the period | 22,783 | 715 | 539 |
Included in other comprehensive income: | |||
Actuarial (gain) loss | (15,585) | (83) | 1,199 |
Income tax effect | (360) | ||
Other: | |||
Benefits paid | (4,627) | (217) | (1,330) |
Balance at ending | $ 153,907 | $ 2,093 | $ 1,678 |
Retirement Benefits _ Defined_4
Retirement Benefits – Defined Benefit Obligations (Details) - Schedule of principal actuarial assumptions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Betterware [Member] | |||
Financial: | |||
Future salary growth | 6.50% | 5% | 4% |
Discount rate | 9.20% | 7.60% | 6.10% |
Demographic: | |||
Number of employees | 901 | 1,272 | 1,294 |
Age average | 34 years | 32 years | 31 years |
Longevity average | 3 years | 2 years | 2 years |
JAFRA [Member] | |||
Financial: | |||
Future salary growth | 5.50% | ||
Discount rate | 9.50% | ||
Demographic: | |||
Number of employees | 1,276 | ||
Age average | 38 years | ||
Longevity average | 7 years |
Retirement Benefits _ Defined_5
Retirement Benefits – Defined Benefit Obligations (Details) - Schedule of sensitivity analysis $ in Thousands | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 USD ($) | Jan. 03, 2021 USD ($) |
Schedule of sensitivity analysis [Abstract] | |||
Increase / decrease in the discount rate | $ 500 | ||
Betterware | 361,000 | $ 156 | $ 126 |
JAFRA | 146,000 | ||
Increase / decrease in the discount rate | (500) | ||
Betterware | (174,000) | $ (174) | $ (141) |
JAFRA | $ (151,000) |
Financial Instruments (Details)
Financial Instruments (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 03, 2021 | |
Financial Instruments (Details) [Line Items] | ||
Exchange rate sensitivity analysis description | the Group has determined a 10 percent increase and decrease in Ps. currency units against the U.S. dollar (“relevant currency”). The 10 percent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated financial assets/liabilities and adjusts their translation at the year-end for a 10 percent change in foreign currency rates. Given that the foreign exchange currency net position results in a liability, a positive number below indicates an increase in profit where currency units strengthen 10 percent against the relevant currency. For a 10 percent weakening of currency units against the relevant currency, there would be a comparable impact on the net income, and the balances below would be negative. | |
Interest rate | 1% | |
Net income percentage (in Pesos) | $ 6,266 | |
Credit risk management, percent | 10% | |
Financial instrument term | 3 years | |
Interest rate sensitivity analysis [Member] | ||
Financial Instruments (Details) [Line Items] | ||
Interest rate | 1% |
Financial Instruments (Detail_2
Financial Instruments (Details) - Schedule of financial instruments - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 |
Financial assets - | |||
Trade account receivables, net | $ 971,063 | $ 745,593 | $ 735,026 |
Trade account receivables from related parties | 61 | 24 | |
Total | 971,124 | 745,617 | 735,026 |
Financial liabilities - | |||
Accounts payable to suppliers | 1,371,778 | 1,984,932 | 2,078,628 |
Lease liability | 291,908 | 17,880 | 24,378 |
Long term debt | 1,510,385 | ||
Long term debt and borrowings | 6,148,675 | 629,877 | |
Derivative financial instruments | 2 | 2 | 2 |
Total | 7,812,361 | 3,513,197 | 2,732,883 |
Fair value through profit or loss [member] | |||
Financial assets - | |||
Total | 28,193 | ||
Financial liabilities - | |||
Derivative financial instruments | 15,329 | $ 28,193 | 320,294 |
Total | $ 15,329 | $ 320,294 |
Financial Instruments (Detail_3
Financial Instruments (Details) - Schedule of financial assets and financial liabilities at the reporting date € / shares in Units, Rp / shares in Units, $ / shares in Units, € in Thousands, Rp in Thousands, $ in Thousands | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 EUR (€) € / shares | Dec. 31, 2022 IDR (Rp) Rp / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares |
Schedule Of Financial Assets And Financial Liabilities At The Reporting Date Abstract | |||||
Assets | $ 13,006 | € 105 | Rp 60,340 | $ 10,686 | $ 29,559 |
Liabilities | (23,142) | (78) | (35,148) | (49,570) | |
Net position | $ (10,136) | € 27 | Rp 60,340 | $ (24,462) | $ (20,011) |
Closing exchange rate of the year (in Euro per share, Dollars per share and Rupiahs per share) | (per share) | $ 19.3615 | € 20.7693 | Rp 0.0013 | $ 20.5157 | $ 19.9352 |
Financial Instruments (Detail_4
Financial Instruments (Details) - Schedule of exchange rate sensitivity analysis $ in Thousands | 12 Months Ended |
Dec. 31, 2022 MXN ($) | |
Schedule Of Exchange Rate Sensitivity Analysis Abstract | |
Impact on net income | $ 19,490 |
Financial Instruments (Detail_5
Financial Instruments (Details) - Schedule of bank credit lines - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Bank Credit Lines Abstract | |||
Amount used | $ 6,198,695 | $ 1,500,000 | $ 626,554 |
Amount not used | 1,380,000 | 250,000 | 297,828 |
Total credit lines and long term debt | $ 7,578,695 | $ 1,750,000 | $ 924,382 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Nov. 09, 2020 MXN ($) shares | Oct. 02, 2020 MXN ($) shares | May 08, 2020 MXN ($) | May 08, 2020 $ / shares | Mar. 10, 2020 MXN ($) | Jan. 10, 2020 MXN ($) | Jan. 10, 2020 MXN ($) $ / shares | Feb. 18, 2021 MXN ($) $ / shares | Nov. 19, 2020 $ / shares | Aug. 20, 2020 MXN ($) | Aug. 17, 2020 MXN ($) $ / shares | Mar. 31, 2022 MXN ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 MXN ($) shares | Jan. 03, 2021 MXN ($) shares | Dec. 31, 2020 shares | Dec. 31, 2022 MXN ($) $ / shares shares | Oct. 28, 2022 MXN ($) $ / shares | Sep. 08, 2022 MXN ($) | Aug. 19, 2022 MXN ($) $ / shares | Jun. 22, 2022 MXN ($) | Apr. 29, 2022 MXN ($) | Mar. 31, 2022 $ / shares | Feb. 11, 2022 MXN ($) $ / shares | Nov. 04, 2021 MXN ($) | Oct. 29, 2021 MXN ($) $ / shares | Aug. 19, 2021 MXN ($) | Aug. 13, 2021 MXN ($) $ / shares | Jun. 21, 2021 shares | May 20, 2021 MXN ($) | May 12, 2021 MXN ($) $ / shares | Mar. 04, 2021 MXN ($) | Dec. 14, 2020 MXN ($) | Dec. 31, 2019 MXN ($) | |
Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Treasury shares (in Shares) | shares | 356,029 | 283,403 | 1,015,072 | |||||||||||||||||||||||||||||||
Repurchased shares (in Shares) | shares | 72,626 | |||||||||||||||||||||||||||||||||
Repurchased amount (in Dollars) | $ 50,000 | $ 50,000 | ||||||||||||||||||||||||||||||||
Issued treasury shares (in Shares) | shares | 37,316,546 | 36,584,968 | 37,316,546 | 731,669 | ||||||||||||||||||||||||||||||
Increased variable capital | $ 27,183 | $ 89,235 | $ 181,865 | |||||||||||||||||||||||||||||||
Cashless exercises of issuance shares (in Shares) | shares | 3,520,489 | 352,256 | 214,020 | 1,457,798 | ||||||||||||||||||||||||||||||
Warrant shares (in Shares) | shares | 109,874 | 352,256 | ||||||||||||||||||||||||||||||||
Cash exercise (in Shares) | shares | 109,874 | |||||||||||||||||||||||||||||||||
Increased share premium | $ 860,571 | |||||||||||||||||||||||||||||||||
Redemption of shares (in Shares) | shares | 1,301,293 | |||||||||||||||||||||||||||||||||
Total capital increase share premium amount | $ 909,428 | |||||||||||||||||||||||||||||||||
Dividend per share (in Pesos per share) | $ / shares | $ 9.57 | $ 9.38 | $ 1.34 | $ 5.36 | $ 9.38 | $ 9.38 | $ 9.38 | $ 9.57 | ||||||||||||||||||||||||||
Dividend per shares (in Pesos per share) | $ / shares | $ 2.32 | |||||||||||||||||||||||||||||||||
Dividends from profits generated | $ 100,000 | |||||||||||||||||||||||||||||||||
Dividend per shares (in Pesos per share) | $ / shares | $ 2.9 | $ 9.11 | $ 9.27 | |||||||||||||||||||||||||||||||
Dividend paid in cash | $ 330,000 | $ 330,000 | ||||||||||||||||||||||||||||||||
Income tex percentage | 5% | |||||||||||||||||||||||||||||||||
Common stock percentage | 20% | |||||||||||||||||||||||||||||||||
Retained earnings | $ 350,000 | $ 856,994 | (334,769) | $ 779,941 | $ 50,000 | $ 200,000 | $ 350,000 | $ 350,000 | $ 350,000 | |||||||||||||||||||||||||
Par value per share (in Pesos per share) | (per share) | $ 10 | $ 17.03 | ||||||||||||||||||||||||||||||||
Equivalent amount | $ 25,321 | |||||||||||||||||||||||||||||||||
Reclassification amount | $ 876,518 | |||||||||||||||||||||||||||||||||
Issuance cost | 16,736 | |||||||||||||||||||||||||||||||||
Fair value liability | $ 55,810 | |||||||||||||||||||||||||||||||||
Merger stockholders’ equity increased | $ 4,724 | |||||||||||||||||||||||||||||||||
Shareholding paid | $ 26,259 | $ 105,035 | $ 183,812 | $ 183,812 | $ 183,812 | $ 183,812 | $ 180,489 | $ 180,489 | ||||||||||||||||||||||||||
Dividends payment from retained earnings | $ 350,000 | $ 350,000 | ||||||||||||||||||||||||||||||||
Cash paid | 37,692 | 39,579 | $ 199,610 | $ 36,909 | ||||||||||||||||||||||||||||||
Dividends from retained earnings | $ 70,000 | |||||||||||||||||||||||||||||||||
Dividend to campalier based on its shareholding | $ 42,739 | |||||||||||||||||||||||||||||||||
Remaining part of dividend | $ 168,136 | $ 53,522 | $ 176,621 | |||||||||||||||||||||||||||||||
Legal Reserve [Member] | ||||||||||||||||||||||||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Retained earnings | $ 10,679 | $ 10,679 | $ 10,679 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - Schedule of stockholders’ equity number of shares - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | |
Stockholders’ Equity (Details) - Schedule of stockholders’ equity number of shares [Line Items] | |||
Number of shares of stockholders’ equity | 37,316,546 | ||
Fixed Capital [Member] | |||
Stockholders’ Equity (Details) - Schedule of stockholders’ equity number of shares [Line Items] | |||
Number of shares of stockholders’ equity | 10,000 | ||
Variable Capital [Member] | |||
Stockholders’ Equity (Details) - Schedule of stockholders’ equity number of shares [Line Items] | |||
Number of shares of stockholders’ equity | 37,306,546 | ||
Betterware de México, S.A.P.I. de C.V. [member] | |||
Stockholders’ Equity (Details) - Schedule of stockholders’ equity number of shares [Line Items] | |||
Number of shares of stockholders’ equity | 37,316,546 | 36,584,968 | |
Betterware de México, S.A.P.I. de C.V. [member] | Fixed Capital [Member] | |||
Stockholders’ Equity (Details) - Schedule of stockholders’ equity number of shares [Line Items] | |||
Number of shares of stockholders’ equity | 10,000 | 10,000 | |
Betterware de México, S.A.P.I. de C.V. [member] | Variable Capital [Member] | |||
Stockholders’ Equity (Details) - Schedule of stockholders’ equity number of shares [Line Items] | |||
Number of shares of stockholders’ equity | 37,306,546 | 36,574,968 |
Share-Based Payments (Details)
Share-Based Payments (Details) | 1 Months Ended |
Jun. 30, 2021 | |
Share-based payments [Abstract] | |
Percentage of Shares Delivered | 2% |
Earnings per share (Details)
Earnings per share (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 2 Months Ended | 12 Months Ended | ||||||||
Nov. 09, 2020 shares | Oct. 02, 2020 shares | Mar. 31, 2022 MXN ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Dec. 31, 2022 $ / shares shares | Mar. 31, 2022 $ / shares | Jun. 21, 2021 shares | Jan. 03, 2021 shares | |
Disclosure Of Earnings Per Share Text Block Abstract | ||||||||||
Repurchased shares | 72,626 | |||||||||
Per share (in Dollars per share) | (per share) | $ 10 | $ 17.03 | ||||||||
Equivalent total (in Pesos) | $ | $ 25,321 | |||||||||
Repurchase amount (in Pesos) | $ 50,000 | $ 50,000 | ||||||||
Potentially dilutive shares | 20,680 | |||||||||
Treasury shares issued under stock based incentive plan | 731,669 | |||||||||
Conversion of warrants to purchase | 5,804,125 | |||||||||
Issuance of shares | 462,130 | |||||||||
Cashless exercises of issuance shares | 3,520,489 | 352,256 | 214,020 | 1,457,798 | ||||||
Issuance of warrants | 250,000 | |||||||||
Additional shares purchased | 250,000 | |||||||||
Outstanding shares | 37,316,546 | 37,316,546 | 731,669 | 36,584,968 |
Earnings per share (Details) -
Earnings per share (Details) - Schedule of income and share data used in calculation of basic earnings per share $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 MXN ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 MXN ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 MXN ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Schedule Of Income And Share Data Used In Calculation Of Basic Earnings Per Share Abstract | ||||||
Attributable to Owners of the Group | $ 872,557 | $ 872,557 | $ 1,751,645 | $ 1,751,645 | $ 298,444 | $ 298,444 |
Shares (in thousands of shares) | ||||||
Basic | 37,256,000 | 37,256,000 | 36,974,000 | 36,974,000 | 34,083,000 | 34,083,000 |
Diluted | 37,277,000 | 37,277,000 | 37,337,000 | 37,337,000 | 34,383,000 | 34,383,000 |
Basic earnings per share (pesos per share) | (per share) | $ 23.42 | $ 23,420 | $ 47.38 | $ 47,380 | $ 8.76 | $ 8,760 |
Diluted earnings per share (pesos per share) | (per share) | $ 23.41 | $ 23,410 | $ 46.91 | $ 46,910 | $ 8.68 | $ 8,680 |
Related party balances and tr_3
Related party balances and transactions (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Jun. 23, 2022 | Jan. 03, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related parties balances and transactions [Abstract] | ||||
Agreement amount | $ 150 | |||
Lazos received | $ 120 | |||
Short-term employee benefits | $ 37,713 | $ 47,265 | $ 42,170 |
Related party balances and tr_4
Related party balances and transactions (Details) - Schedule of related parties outstanding - MXN ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2021 | Dec. 31, 2020 |
Schedule of Related Parties Outstanding [Abstract] | ||||
Fundación Betterware., A.C. | $ 61 | $ 24 | ||
Campalier, S.A. de C.V. | $ 96,859 |
Related party balances and tr_5
Related party balances and transactions (Details) - Schedule of Trading transactions - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fundación Betterware., A.C.[Member] | ||
Related party balances and transactions (Details) - Schedule of Trading transactions [Line Items] | ||
Lease income | $ 63 | $ 42 |
Donation expenses | 3,350 | $ 920 |
Campalier, S.A. de C.V. [Member] | ||
Related party balances and transactions (Details) - Schedule of Trading transactions [Line Items] | ||
Interest expenses | $ 7,479 |
Revenue and Operating Expense_2
Revenue and Operating Expenses (Details) - Schedule of disaggregation revenue per product segments - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue by home organization products: | |||
Total revenue by home organization products | $ 6,343,344 | $ 10,067,683 | $ 7,237,628 |
Revenue by beauty and personal care products: | |||
Total revenue of beauty and personal care products | 5,164,205 | ||
Total revenue of the Group | 11,507,549 | 10,067,683 | 7,237,628 |
Kitchen and food preservation [Member] | |||
Revenue by home organization products: | |||
Total revenue by home organization products | 2,163,684 | 3,283,421 | 2,524,475 |
Home solutions [Member] | |||
Revenue by home organization products: | |||
Total revenue by home organization products | 1,272,272 | 2,319,156 | 1,452,096 |
Bedroom [Member] | |||
Revenue by home organization products: | |||
Total revenue by home organization products | 854,323 | 1,608,424 | 824,370 |
Bathroom [Member] | |||
Revenue by home organization products: | |||
Total revenue by home organization products | 749,161 | 1,217,927 | 840,080 |
Laundry & Cleaning [Member] | |||
Revenue by home organization products: | |||
Total revenue by home organization products | 691,272 | 826,188 | 825,874 |
Tech & mobility [Member] | |||
Revenue by home organization products: | |||
Total revenue by home organization products | 553,977 | 769,767 | 770,733 |
Others [Member] | |||
Revenue by home organization products: | |||
Total revenue by home organization products | 58,655 | 42,800 | |
Fragrance [Member] | |||
Revenue by beauty and personal care products: | |||
Total revenue of beauty and personal care products | 3,472,919 | ||
Color [Member] | |||
Revenue by beauty and personal care products: | |||
Total revenue of beauty and personal care products | 642,876 | ||
Skin care [Member] | |||
Revenue by beauty and personal care products: | |||
Total revenue of beauty and personal care products | 611,905 | ||
Toiletries [Member] | |||
Revenue by beauty and personal care products: | |||
Total revenue of beauty and personal care products | 321,806 | ||
Others [Member] | |||
Revenue by beauty and personal care products: | |||
Total revenue of beauty and personal care products | $ 114,699 |
Revenue and Operating Expense_3
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Promotions for the sales force [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | $ 1,743,961 | $ 503,291 | $ 172,177 |
Cost of personnel services and other employee benefits [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 1,502,030 | 621,519 | 564,213 |
Distribution costs [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 473,516 | 463,762 | 331,023 |
Sales catalog [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 445,753 | 417,522 | 289,170 |
Depreciation and amortization [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 287,702 | 82,122 | 43,688 |
Impairment loss on trade accounts receivables [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 269,595 | 198,495 | 57,627 |
Commissions and professional fees [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 217,384 | 69,954 | 61,403 |
Events, marketing and advertising [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 199,771 | 109,822 | 19,237 |
Packing materials [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 161,095 | 201,006 | 112,512 |
Rent expense [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 96,729 | 52,660 | 22,451 |
Travel expenses [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 33,223 | 11,258 | 13,522 |
Bank fees [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 25,853 | 34,335 | 23,965 |
Market research [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 12,031 | 9,550 | 8,495 |
Other [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | 409,545 | 192,514 | 174,462 |
Total operating expenses [Member] | |||
Revenue and Operating Expenses (Details) - Schedule of operating expenses by nature [Line Items] | |||
Operating expenses by nature | $ 5,878,188 | $ 2,967,810 | $ 1,893,945 |
Segment information (Details)
Segment information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Segment [Abstract] | |
Segment information description | ●Home organization segment (Betterware segment or BWM’ segment): Some of the categories through which Betterware offers its product line include kitchen and food preservation, home solutions, bathroom, laundry & cleaning, tech and mobility and bedroom (see note 26). BWM’s products are sold through catalogues and are distributed to the end customer by its network of distributors and associates in Mexico. As of December 31, 2022, the net income corresponding to this reportable segment represented 55.1%.●Beauty and Personal Care (B&PC) segment (JAFRA segment), formed by four main categories: fragrance, color (cosmetics), skin care and toiletries. JAFRA’s products are sold through 12 promotional catalogues published on a monthly basis and are distributed to the end customer by its network of leaders and consultants in its operative segments located in Mexico (JAFRA Mexico) and the United States (JAFRA US). |
Reportable segment percentage | 44.90% |
Total income rate | 8% |
Segment information (Details) -
Segment information (Details) - Schedule of segment information of the Group $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Jan. 03, 2021 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | ||
Segment information (Details) - Schedule of segment information of the Group [Line Items] | ||||||
EBITDA | $ 2,316,108 | |||||
Depreciation and amortization | $ 287,702 | |||||
Operating income | 2,028,406 | |||||
Interest income | 28,689 | |||||
Interest expense | (543,321) | |||||
Unrealized (loss) gain in valuation of DFI | (43,522) | |||||
Foreign exchange loss, net | (83,368) | |||||
Income before income taxes | 1,386,884 | |||||
Income taxes | 516,920 | |||||
Income for the year | 869,964 | |||||
Net revenue | 11,507,549 | |||||
Divestment in subsidiaries | (21,862) | |||||
Total assets | 11,332,733 | |||||
Total liabilities | (10,235,453) | |||||
Fixed assets additions | 124,608 | |||||
BWM [Member] | ||||||
Segment information (Details) - Schedule of segment information of the Group [Line Items] | ||||||
EBITDA | $ 2,107,023 | $ 1,514,227 | $ 2,683,987 | |||
Depreciation and amortization | 43,688 | 109,055 | 82,122 | |||
Operating income | 2,063,335 | 1,405,172 | 2,601,865 | |||
Interest income | 10,930 | 10,607 | 25,872 | |||
Interest expense | (80,253) | (546,977) | (75,818) | |||
Unrealized (loss) gain in valuation of DFI | (287,985) | (43,522) | 330,315 | |||
Changes in fair value of warrants | (851,520) | |||||
Foreign exchange loss, net | (30,402) | (81,212) | (319,739) | |||
Income before income taxes | 824,105 | 744,068 | 2,562,495 | |||
Income taxes | 525,661 | 367,166 | 814,556 | |||
Income for the year | 298,444 | 376,902 | 1,747,939 | |||
Net revenue | 7,237,628 | 6,343,344 | 10,067,683 | |||
Divestment in subsidiaries | (21,862) | |||||
Total assets | 4,359,706 | 8,958,162 | 5,185,229 | |||
Total liabilities | (3,477,730) | (8,363,605) | (3,985,026) | |||
Fixed assets additions | $ 619,279 | $ 77,899 | $ 336,310 | |||
JAFRA [Member] | ||||||
Segment information (Details) - Schedule of segment information of the Group [Line Items] | ||||||
EBITDA | 801,881 | |||||
Depreciation and amortization | 178,647 | |||||
Operating income | 623,234 | |||||
Interest income | 32,777 | |||||
Interest expense | (11,039) | |||||
Foreign exchange loss, net | (2,156) | |||||
Income before income taxes | 642,816 | |||||
Income taxes | 149,754 | |||||
Income for the year | 493,062 | |||||
Net revenue | 5,166,545 | |||||
Total assets | 8,154,942 | |||||
Total liabilities | (2,592,037) | |||||
Fixed assets additions | 50,201 | |||||
Eliminations [Member] | ||||||
Segment information (Details) - Schedule of segment information of the Group [Line Items] | ||||||
EBITDA | [1] | |||||
Depreciation and amortization | [1] | |||||
Operating income | [1] | |||||
Interest income | [1] | (14,695) | ||||
Interest expense | [1] | 14,695 | ||||
Unrealized (loss) gain in valuation of DFI | [1] | |||||
Changes in fair value of warrants | [1] | |||||
Foreign exchange loss, net | [1] | |||||
Income before income taxes | [1] | |||||
Income taxes | [1] | |||||
Income for the year | [1] | |||||
Net revenue | [1] | (2,340) | ||||
Divestment in subsidiaries | [1] | |||||
Total assets | [1] | $ (5,780,371) | ||||
Total liabilities | [1] | 720,189 | ||||
Fixed assets additions | [1] | $ (3,492) | ||||
[1]The column of eliminations corresponds to the transactions between the Group’s subsidiaries for the concepts of loans, interest income (expenses), expenses for corporate services, sales of fixed assets, initial investment in subsidiary, among the most important. |
Segment information (Details)_2
Segment information (Details) - Schedule of income recognized $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Segment information (Details) - Schedule of income recognized [Line Items] | ||||
Total revenue of the Group | $ 11,507,549 | $ 10,067,683 | $ 7,237,628 | |
Mexicos [member] | ||||
Segment information (Details) - Schedule of income recognized [Line Items] | ||||
Total revenue of the Group | 10,531,505 | 10,059,285 | 7,237,628 | |
United State [member] | ||||
Segment information (Details) - Schedule of income recognized [Line Items] | ||||
Total revenue of the Group | [1] | 966,085 | ||
Guatemalas [member] | ||||
Segment information (Details) - Schedule of income recognized [Line Items] | ||||
Total revenue of the Group | $ 9,959 | $ 8,398 | ||
[1]The main concentration of JAFRA’s income is in Mexico, however, there is an entity in the United States which represents a smaller percentage 8% of the Group’s total income. |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Dec. 31, 2022 MXN ($) |
Contingencies [Abstract] | |
Prepaid taxes | $ 5,331 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | ||||||
Mar. 08, 2023 MXN ($) $ / shares | Mar. 31, 2023 MXN ($) | Mar. 21, 2023 MXN ($) | Dec. 31, 2022 $ / shares | Apr. 29, 2022 MXN ($) | Mar. 31, 2022 $ / shares | Aug. 13, 2021 MXN ($) | |
Subsequent Events (Details) [Line Items] | |||||||
Dividends payment from retained earnings | $ 350,000,000 | $ 350,000,000 | |||||
Paid to shareholders | $ 525.18 | ||||||
Dividend per share (in Pesos per share) | (per share) | $ 10 | $ 17.03 | |||||
Non-adjusting events after reporting period [Member] | |||||||
Subsequent Events (Details) [Line Items] | |||||||
Dividends payment from retained earnings | $ 100 | $ 998.06 | |||||
Dividend per share (in Pesos per share) | $ / shares | $ 2.68 | ||||||
Advance payment | $ 100 | ||||||
Principal balance | $ 349.8695 |