Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Leases

v3.24.1.u1
Leases
 12 Months Ended
Dec. 31, 2023
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 dates, with the latest expiration date in 2028. Those leases were recorded as right of use assets as follows:

 

    As of
January 1,
2021		     Additions     Disposals     As of
December 31,
2021		  
                                 
Cost   Ps. 39,579       1,388       (3,275 )     37,692  

 

    As of
January 1,
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 )
                                         
Accumulated depreciation   Ps. (20,308 )     (69,165 )     1,509       (295 )     88,259  

 

   

As of
December 31,
2022

     Additions     Disposals     Foreign
currency
translation		    

As of
December 31,
2023

  
                               
Vehicles   Ps. 107,542       49,934       (18,206 )     (1,862 )     137,408  
Buildings     94,616       131,450       -       (8,325 )     217,741  
Warehouses     119,903       2,718       -       (4,767 )     117,854  
Office furniture and equipment     8,151       3,172       (2,928 )     -       8,395  
Computer equipment     51,612       15,088       -       -       66,700  
                                         
Cost   Ps. 381,824       202,362       (21,134 )     (14,954 )     548,098  

 

   

As of
December 31,
2022

     Additions     Disposals     Foreign
currency
translation		    

As of December 31,
2023

  
                               
Vehicles   Ps. (20,918 )     (41,266 )     6,275       1,515       (54,394 )
Buildings     (12,947 )     (23,321 )     -       1,428       (34,840 )
Warehouses     (35,275 )     (26,158 )     -       1,514       (59,919 )
Office furniture and equipment     (1,346 )     (2,651 )     1,078       -       (2,919 )
Computer equipment     (17,773 )     (19,549 )     -       -       (37,322 )
                                         
Accumulated depreciation   Ps. (88,259 )     (112,945 )     7,353       4,457       (189,394 )

 

The right-of-use asset depreciation expense for the years of 2023, 2022 and 2021 amounted to Ps.112,945, Ps.69,165 and Ps.6,544, respectively, and is included within administrative expenses in the consolidated statement of profit or loss and other comprehensive income.

 

As of December 31, 2023, 2022 and 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, office equipment (printers), cars and premises in different regions.

 

As of December 31, 2023, 2022 and 2021, Betterware leased warehouses, offices, commercial space, 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, 2023, 2022 and 2021, amounted to Ps.15,295, Ps.31,003 and Ps.52,660, respectively.

 

Lease liability

 

The lease liabilities as of December 31, 2023, 2022 and 2021 are described below.

 

Lease liability        
Balance as of January 1, 2021   Ps. 24,378  
Lease additions (1)     1,388  
Lease disposals (1)     (1,704 )
Rent payments (principal and interest) (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 (principal and interest) (2)     (76,214 )
Foreign currency translation (1)     (1,172 )
Interest expense (1)     11,566  
Balance as of December 31, 2022     291,908  
Lease additions (1)     202,362  
Lease disposals (1)     (12,298 )
Rent payments (principal and interest) (2)     (123,241 )
Foreign currency translation (1)     (12,526 )
Interest expense (1)     26,771  
Balance as of December 31, 2023   Ps. 372,976  

 

(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  
2024   Ps 140,942  
2025     111,495  
2026     71,639  
2027     40,974  
2028-2034     146,541  
         
    Ps 511,591