Grupo Rotoplas Reports Second Quarter 2018 Results
MEXICO CITY, July 23, 2018 /PRNewswire/ --
Quarterly Highlights
-- EBITDA grew by double digits and sales almost 10%, year on year,
reflecting the company's resilience in the face of difficult market
conditions specially the depreciation of the currency in Argentina.
-- Acquisition of IPS in Argentina, a leading provider of water-flow
solutions, strengthens water solution portfolio in the region.
-- Standard and Poor's maintained credit ratings and positive outlook for
the Company. Improved Bloomberg's ESG score.
Year-to-date Highlights
-- Double digit growth in sales and EBITDA(1), successful incorporation of
e-commerce platform in the USA.
-- Net profit negatively affected by interest expenses and FX losses.
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Grupo Rotoplas S.A.B. de C.V. (AGUA.MX) ("Rotoplas", "the Company" or "the Group"), the leading provider of individual and integrated water solutions in the Americas, reported its unaudited financial results for the second quarter of 2018. The information within has been prepared based on International Financial Reporting Standards (IFRS).
We are registering significant growth in the United States due to the contribution of the e-commerce platform acquired during the last quarter of 2017 and an increased demand for water-flow solutions in Mexico. We are also continuing to execute our long-term strategy for the region with the acquisition of IPS, a leading water-flow solutions provider, which ideally complements our product portfolio in the region. We continue to grow our water-as-a-service platform, reaching more than 9,700 points of water purification and treatment service in Mexico. It is also worth noting that Standard and Poor's reiterated our positive outlook and credit ratings, which highlights our financial strength and the benefits of our diversified product and regional portfolio. And we have also improved our Bloomberg environment, social and governance (ESG) score, validating our commitment to sustainability, accountability and positive social impact.
During this quarter, many of the major Latin American markets experienced significant political uncertainty, natural disasters, slowing economic growth and weak currencies, most notably the Argentinean Peso which depreciated sharply against the US dollar and MXN. Moreover, significant interest rate increases affected consumer spending. These factors were particularly challenging for a company such as Rotoplas, with a large and expanding presence in the Americas, and significant dollar denominated raw material costs. Nonetheless we were able to navigate successfully the difficult environment, a validation of our regional and product diversification and our core competitive strengths.
We posted double digit EBITDA growth, significantly boosted operating cash flow from a year ago, acquired new businesses in strategic markets, and maintained our strong balance sheet.
Going forward, we expect that some of the factors that affected our operations this quarter will recede. In Mexico, in particular, the clarity of the Presidential election results and the future government's commitment to fiscal prudency and the independence of the Central Bank has already contributed to the stability of the financial markets. As political uncertainty recedes, Rotoplas expects a more favorable environment for its key products in Mexico.
"These quarter's results, and the first half in general, demonstrate the underlining strength of our businesses across our main markets, as well as our ability to integrate new acquisitions into our existing regional and product portfolio. To the extent Mexico's and Latin American economies and currencies improve going forward, we expect Rotoplas to be a significant beneficiary. We will continue to push for organic growth and operating efficiencies, while pursuing new opportunities as set out in our long-term strategy," remarked Carlos Rojas Mota Velasco, Chairman and CEO of Grupo Rotoplas.
Conference Call
Grupo Rotoplas is pleased to invite you to participate in its Second Quarter 2018 Conference Call, to be held on Tuesday, July 24th, 2018 at 10:00 a.m. Mexico City time (11:00 a.m. EST).
Management team will host the call and discuss results, followed by a Q&A session.
Carlos Rojas Mota Velasco - Chairman and Chief Executive Officer
Mario Romero Orozco - Chief Financial Officer
Ofelia López Aranda Trewartha - Investor Relations
To participate in the conference call please use the Conference ID 7327029 and dial or log in: Mexico: 01 800 514 8435
United States: 1 888 204 4368
Other Countries: 1 323 794 2423
Web: http://www.rotoplas.com/inversionistas.html
Investor Relations Contact Information
Ofelia López Aranda
Tel: +52 (55) 52015000
Ext. 50163
Email: olopezaranda@rotoplas.com
Forward Looking Statements
This press release may include certain forward-looking statements relating to Grupo Rotoplas S.A.B. de C.V., it relies on considerations of the Grupo Rotoplas S.A.B. de C.V. management which are based on current and known information; however, the forward-looking statements could vary due to facts, circumstances and events beyond the control of Grupo Rotoplas, S.A.B. de C.V.
About the Company
Grupo Rotoplas S.A.B. de C.V. is America's leading provider of individual and integrated water solutions for storing, carrying, and treating water. With 40 years' experience in the industry and 21 plants throughout the Americas, Rotoplas has a presence in 14 countries and a portfolio that includes 27 product lines. Grupo Rotoplas has been listed on the Mexican Stock Exchange (BMV) under the ticker "AGUA" since December 2014.
(1) Adjusted EBITDA equals EBITDA plus extraordinary acquisition expenses of $11 MXN million in the first quarter of 2018.
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SOURCE Grupo Rotoplas S.A.B. de C.V.
