| 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 years of 2023, 2022 and 2021, are as follows:
|
a) |
Movement
in defined liability and post-employment |
The
following table shows a reconciliation from the opening balances to the closing balances for the defined benefit liability and its components:
| |
|
Defined benefits |
|
|
Post-employment
benefits |
|
| |
|
Seniority
premium and termination indemnity at retirement (BWM-JAFRA) |
|
|
Pension plan
(JAFRA) |
|
| |
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance
at January 1 |
|
Ps. |
30,148 |
|
|
|
2,093 |
|
|
|
1,678 |
|
|
|
123,759 |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Additions
for subsidiaries’ acquisition |
|
|
- |
|
|
|
23,637 |
|
|
|
- |
|
|
|
- |
|
|
|
125,606 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included
in profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Past
service cost |
|
|
(1,010 |
) |
|
|
- |
|
|
|
- |
|
|
|
(29,615 |
) |
|
|
- |
|
|
|
- |
|
| Current
service cost |
|
|
4,246 |
|
|
|
2,924 |
|
|
|
614 |
|
|
|
5,605 |
|
|
|
4,553 |
|
|
|
- |
|
| Interest
cost |
|
|
3,426 |
|
|
|
2,095 |
|
|
|
101 |
|
|
|
10,487 |
|
|
|
7,367 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
(gain) cost of the period |
|
|
6,662 |
|
|
|
5,019 |
|
|
|
715 |
|
|
|
(13,523 |
) |
|
|
11,920 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included
in other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurement
of defined benefit obligation |
|
|
11,730 |
|
|
|
(1,818 |
) |
|
|
(83 |
) |
|
|
10,630 |
|
|
|
(13,767 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Others: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits
paid |
|
|
(3,123 |
) |
|
|
(1,223 |
) |
|
|
(217 |
) |
|
|
(38,175 |
) |
|
|
- |
|
|
|
- |
|
| Others |
|
|
(958 |
) |
|
|
2,440 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance
as of December 31 |
|
Ps. |
44,459 |
|
|
|
30,148 |
|
|
|
2,093 |
|
|
|
82,691 |
|
|
|
123,759 |
|
|
|
- |
|
The
conditions of the pension plan (JAFRA) are described below:
As
of September 30, 2023, JAFRA modified the conditions of its pension plan, which generated a past service benefit effect of Ps.(29,615)
in JAFRA’s pension plan as described below:
Conditions
before October 2023:
|
a) |
Normal retirement: Retirement of the employee upon reaching age 65 with at least 20 years of service for the Company. |
|
b) |
Early retirement: Early retirement of the employee as long as he or she has turned 60 and has at least 10 years of service within the Company. |
Conditions
after October 2023:
Employee
groups:
|
● |
Group
1: JAFRA employees who, as of September 30, 2023, are 60 years of age or older and have 10 years of continuous service and employees
who join JAFRA on a date after September 30, 2023. |
|
● |
Group
2 (transition): JAFRA employees who, as of September 30, 2023, are 60 years of age or older and have 10 years of continuous service. |
|
● |
Group
1: Retirement upon reaching age 65 with at least 20 years of service for the Company. |
|
● |
Group
2: Retirement upon turning 65 with at least 10 years of service within the Company. |
|
● |
Group
1: The employee will not have the possibility of exercising early retirement, therefore, to be entitled to any benefit from this plan,
he or she must turn 65 years old with at least 20 years of service for the Company. |
|
● |
Group
2: The employee who does not reach the normal retirement date may retire with early retirement as long as he or she has turned 60 years
old with at least 10 years of service within the Company. |
The
following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):
| |
|
2023 |
|
|
2022 |
|
|
2021 |
|
| |
|
Betterware |
|
|
JAFRA |
|
|
Betterware |
|
|
JAFRA |
|
|
Betterware |
|
| Financial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Future salary growth |
|
|
7.0 |
% |
|
|
5.5 |
% |
|
|
6.5 |
% |
|
|
5.5 |
% |
|
|
5.0 |
% |
| Discount rate |
|
|
9.7 |
% |
|
|
9.3 |
% |
|
|
9.2 |
% |
|
|
9.5 |
% |
|
|
7.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demographic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of employees |
|
|
938 |
|
|
|
1,356 |
|
|
|
901 |
|
|
|
1,276 |
|
|
|
1,272 |
|
| Age average |
|
|
35 years |
|
|
|
38 years |
|
|
|
34 years |
|
|
|
38 years |
|
|
|
32 years |
|
| Longevity average |
|
|
3 years |
|
|
|
7 years |
|
|
|
3 years |
|
|
|
7 years |
|
|
|
2 years |
|
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 December 31: |
|
| |
|
2023 |
|
|
2022 |
|
|
2021 |
|
| |
|
Betterware |
|
|
JAFRA |
|
|
Betterware |
|
|
JAFRA |
|
|
Betterware |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase / decrease in the discount rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| + 0.50% |
|
Ps. |
500 |
|
|
|
94 |
|
|
|
361 |
|
|
|
146 |
|
|
|
156 |
|
| - 0.50% |
|
|
(500 |
) |
|
|
(98 |
) |
|
|
(174 |
) |
|
|
(151 |
) |
|
|
(174 |
) |
|