v3.25.1
Retirement Benefits – Defined Benefit Obligations
 12 Months Ended
Dec. 31, 2024
Retirement Benefits – Defined Benefit Obligations [Abstract]  
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 2024, 2023 and 2022, are as follows:

 

a)Movement in defined benefit 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 (Betterware-Jafra)   Pension plan (Jafra) 
   2024   2023   2022   2024   2023   2022 
                         
Balance at January 1  Ps.44,459    30,148    2,093    82,691    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   4,996    4,246    2,924    4,345    5,605    4,553 
Interest cost   3,988    3,426    2,095    7,408    10,487    7,367 
                               
Net (gain) cost of the period   8,984    6,662    5,019    11,753    (13,523)   11,920 
                               
Included in other comprehensive income:                              
Remeasurement of defined benefit obligation   5,663    11,730    (1,818)   (15,888)   10,630    (13,767)
                               
Others:                              
Benefits paid   (5,482)   (3,123)   (1,223)   (3,868)   (38,175)   
-
 
Others   
-
    (958)   2,440    
-
    
-
    
-
 
                               
Balance as of December 31  Ps. 53,624    44,459    30,148    74,688    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.

 

a)Normal retirement:

 

●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.

 

b)Early retirement:

 

●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.

 

b)Actuarial assumptions

 

The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):

 

   2024   2023   2022 
   BWM   JAFRA   BWM   JAFRA   BWM   JAFRA 
Financial:                        
Future salary growth   7.0%   5.5%   7.0%   5.5%   6.5%   5.5%
Discount rate   9.7%   11.0%   9.7%   9.3%   9.2%   9.5%
                               
Demographic:                              
Number of employees   934    1,400    938    1,356    901    1,276 
Average age   35 años    38 años    35 years    38 years    34 years    38 years 
Average longevity   4 años    7 años    3 years    7 years    3 years    7 years 
c)Sensitivity analysis

 

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: 
   2024   2023   2022 
   BWM   JAFRA   BWM   JAFRA   BWM   JAFRA 
                         
Increase / decrease in the discount rate                        
+0.50%  Ps.1,206    28    500    94    361    146 
-0.50%   (717)   (30)   (500)   (98)   (174)   (151)