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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
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