| 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
December 31, 2021 |
|
|
As of
January 3, 2021 |
|
| 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.
|