As of December 31, 2024, 2023 and 2022, the payment period granted to customers is 14 and 30 days for Betterware and Jafra, respectively. No interest is charged on outstanding accounts receivable.

The Group measures the loss reserve for commercial accounts receivable in an amount equal to the expected lifetime credit loss. Expected credit losses in accounts receivable are estimated using a provisions matrix with reference to the debtor’s previous default history and an analysis of the debtor’s current financial situation, adjusted for factors specific to the debtors and the general economic conditions of the industry in which the debtors operate, and assessing both current and predicted conditions as of the reporting date.

The Group’s significant growth in recent years has caused volatility in collections. Because of this, management has applied significant estimation to determine the estimated expected credit losses as of December 31, 2024, 2023 and 2022, where the weighting of the historical behavior was analyzed, given what happened due to the extraordinary events of the COVID-19 pandemic, thus normalizing the expectation of future credit losses. The expected credit loss calculation is adjusted to reflect forward-looking information on macroeconomic factors that could affect customers’ ability to repay their debts.

The Group cancels an account receivable when there is information that indicates that the debtor is experiencing serious financial difficulties and there is no realistic prospect of recovery, e.g. when the debtor has been placed in liquidation or has entered bankruptcy proceedings, or when a commercial account receivable is more than one year old, whichever occurs first. For the years ended December 31, 2024, 2023 and 2022, Ps.321,399, Ps.94,194 and Ps.237,928 have been canceled, respectively.

The following tables show the expected lifetime credit loss recognized for commercial trade accounts receivable, in accordance with the simplified approach established in IFRS 9.

The following tables show the movement in lifetime expected credit loss that has been recognized for commercial trade account receivables, in accordance with the simplified approach set out in IFRS 9.

Long term account receivable from the sale of the “San Angel” property

As of December 31, 2024 the Company recognized an account receivable arising from the sale of the San Ángel de Jafra Mexico property. The sale transaction was agreed for a total price of Ps.385,700, of which only Ps.140,000 has been collected as of December 31, 2024. The remaining Ps.245,700 will be covered in semiannual payments until 2027.

This receivable was initially recognized at fair value, which was determined as the present value of future cash flows using an effective rate of 10.1%As of December 31, 2024, management decided not to recognize an expected credit loss effect on the San Ángel account receivable because the probability of non-collection was considered low and the payments are secured by the mortgage on the same property.