| 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
January 1,
2020 |
|
|
Additions |
|
|
Disposals |
|
|
As
of
January 3,
2021 |
|
| Cost |
|
Ps. |
36,909 |
|
|
|
20,531 |
|
|
|
(17,861 |
) |
|
|
39,579 |
|
| |
|
As
of
January 1,
2020 |
|
|
Depreciation
expense |
|
|
Disposals |
|
|
As
of
January 3,
2021 |
|
| Accumulated
depreciation |
|
Ps. |
(13,098 |
)
|
|
|
(12,734 |
) |
|
|
11,135 |
|
|
|
(14,697 |
) |
| |
|
As
of
January 3,
2021 |
|
|
Additions |
|
|
Disposals |
|
|
As
of
December 31,
2021 |
|
| Cost |
|
Ps. |
39,579 |
|
|
|
1,388 |
|
|
|
(3,275 |
) |
|
|
37,692 |
|
| |
|
As
of
January 3,
2021 |
|
|
Depreciation
expense |
|
|
Disposals |
|
|
As
of
December 31,
2021 |
|
| Accumulated
depreciation |
|
Ps. |
(14,697 |
)
|
|
|
(6,544 |
) |
|
|
933 |
|
|
|
(20,308 |
) |
| |
|
As
of
December 31,
2021 |
|
|
Subsidiaries’
Acquisitions |
|
|
Additions |
|
|
Disposals |
|
|
Foreign
currency
translation |
|
|
As
of
December 31,
2022 |
|
| 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
December 31,
2021 |
|
|
Additions |
|
|
Disposals |
|
|
Foreign
currency
translation |
|
|
As
of
December 31,
2022 |
|
| 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 |
|
|