Rotoplas: First Quarter 2025 Results
MEXICO CITY, April 23, 2025 /PRNewswire/ -- Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) ("Rotoplas", "the Company"), the leading provider of water solutions in the Americas, today reports its unaudited financial results for the first quarter of 2025. The information has been prepared in accordance with International Financial Reporting Standards (IFRS).
Figures are expressed in millions of Mexican pesos.
Key Highlights Q1'25
-- Net sales of $2.6 billion for Q1'25, a 1.2% decrease compared to the
previous year.
-- EBITDA of $301 million, with an 11.4% margin.
-- Net income was $24 million, with a 0.9% margin.
-- Service sales increased by 14.7%, primarily driven by bebbia.
-- bebbia exceeded 143,000 active subscribers at the end of the quarter.
Message from the CEO
"We began the year with slightly lower sales compared to the same period last year, due to a high comparative base, particularly in Mexico, where the drought began in early 2024. During the quarter, all countries posted growth except for Mexico, with strong performances in the United States and in bebbia within the services segment. E-commerce in Mexico continues to gain traction, supported by strong customer acceptance, while we also strengthened our portfolio with IoT-based solutions for real-time water level monitoring and the launch of the new vertical water tank. Year-over-year comparison against Q1'24 is challenging due to the exceptionally high EBITDA margin recorded in that period. Nevertheless, we delivered sequential improvement versus the previous two quarters, reversing the trend through disciplined cost control and a focus on cash generation--allowing us to improve our net debt position compared to December 2024."
-- Carlos Rojas Aboumrad
Financial Results Q1'25 vs Q1'24
(Figures in millions of Mexican pesos)
Indicator Q1'25 % YoY
Net Sales 2,636 (1.2 %)
Adj. EBITDA[1] 301 (45.9 %)
% margin 11.4 % (940)
bps
Net Result 24 (92.3 %)
ROIC 5.1 % (890)
bps
Net Debt 3,869 8.9 %
Net Debt / EBITDA 3.1 x 1.5 x
Q1'25 vs Q1'24 Results
-- Net Sales reached $2,636 million, representing a 1.2% decrease, driven
by a 2.6% decline in the product segment, which was impacted by a high
comparative base in Mexico due to the drought in the central region of
the country. In contrast, the services segment grew 14.7%, driven by the
strong performance of bebbia, which continues to accelerate its growth
pace.
-- Gross Profit was $1,117 million, a 17.4% decrease. Gross margin closed
at 42.4%, contracting by 830 bps due to higher cost of sales associated
with the depreciation of the Mexican peso and lower absorption of fixed
costs in Mexico and Argentina.
-- Operating Income reached $139 million, a 67.0% decrease compared to
Q1'24. This decline was driven by higher cost of sales and an increase
in operating expenses. Cost control initiatives contributed to an
improvement in expenses as a percentage of sales compared to the
previous two quarters.
-- EBITDA closed at $301 million, a decrease of 45.9%. The EBITDA margin
stood at 11.4%. Excluding severance payments related to the migration
from the Anáhuac plant to Ixtapaluca, the margin would have been 13.2%.
Despite the year-over-year decline, sequential improvement in EBITDA is
observed over the last two quarters.
-- Net income was $24 million, a 92.3% decrease. This decline was mainly
due to the drop in operating income, along with an increase in financial
expenses.
-- Net Financial Debt[2] / EBITDA leverage closed at 3.1x. Short- and
long-term financial debt increased by 12.4%, and net debt increased by
8.9% year-over-year. However, disciplined management of cash, CapEx, and
debt during the quarter helped strengthen the financial position, with a
2.1% sequential reduction in net debt.
-- CapEx for the period amounted to $97 million, primarily focused on the
growth of services such as bebbia and RSA in Mexico.
Sales and EBITDA by Geography and Solution Q1'25 vs Q1'24
(Figures in millions of Mexican pesos)
Sales Q1'25 % YoY
Mexico 1,537 (9.7 %)
Argentina 451 2.0 %
United States 280 24.9 %
Other 368 23.1 %
Products 2,380 (2.6 %)
Services 255 14.7 %
EBITDA Q1'25 % YoY
Mexico 287 (39.2 %)
Argentina (22) NM
United States (19) 48.7 %
Other 55 13.0 %
Products 314 (48.3 %)
Services (13) 74.3 %
EBITDA Margin Q1'25 % YoY
Mexico 18.6 % (910) bps
Argentina (4.8 %) NM
United States (6.9 %) 1,000 bps
Other 15.0 % (130) bps
Products 13.2 % NM
Services (5.2 %) NM
Sales and EBITDA Breakdown by Geography
Sales % EBITDA %
Mexico 1,537 58 % 287 95 %
Argentina 451 17 % -22 -7 %
United States 280 11 % -19 -6 %
Others 368 14 % 55 18 %
Total 2,636 100 % 301 100 %
Mexico
-- Sales decreased by 9.7%, due to an exceptionally strong first quarter in
2024 driven by drought conditions. In 2025, lower activity in the
construction sector and a challenging economic environment have also
been observed.
-- The nationwide rollout of Tinaco Plus+ was completed, along with the
launch of the vertical water tank and the level sensor, which enables
real-time water level monitoring in tanks or cisterns from a mobile
device.
-- The service platform continues to deliver double-digit growth, mainly
driven by bebbia and the treatment plants operated under the RSA brand.
-- EBITDA was impacted by lower sales volumes in the product segment, as
well as by the higher relative weight of the services business within
the revenue mix.
Argentina
-- Sales increased by 2.0%, reflecting a slight recovery compared to the
previous quarter. However, the adverse macroeconomic environment--high
inflation, competitive pressure, and low consumer confidence--continued
to limit business performance.
-- Sales volumes in the water flow category have started to show improved
momentum. Storage has stabilized, halting the downward trend, while
heaters remain the most affected category, although their performance
also reflects seasonality, as it is the warm season.
-- EBITDA was impacted by dollarized costs and low absorption of fixed
costs.
United States
-- Sales grew by 24.9%, driven by improved commercial and marketing
execution, despite weaker activity in residential construction and a
soft agricultural environment. The strengthening of the U.S. dollar
against the Mexican peso also contributed positively to growth.
-- EBITDA was negative but showed an improvement compared to Q1'24, marking
progress toward profitability.
Other Countries
(Peru, Central America and Brazil)
-- Sales increased 23.1%, driven by solid growth in all countries:In Peru,
the successful development of the water flow and improvement categories
continued.Central America recorded growth across all countries
(Guatemala, Honduras, Nicaragua, Costa Rica, and El Salvador), with
strong demand in all three categories.In Brazil, progress was made in
the development of new water treatment plant projects, with a positive
growth outlook.
-- EBITDA showed an improvement, reflecting both higher sales volumes and
strict cost control.
Products
-- Sales contracted due to a high comparative base resulting from the
drought in Mexico during 2024, as well as lower demand driven by
consumer caution amid macroeconomic uncertainty in the country.
-- EBITDA declined due to lower sales volumes in Mexico and the impact of
dollarized costs and expenses in Argentina.
Services
-- Sales increased, driven by the growth of bebbia and treatment plants in
Mexico and to a lesser extent by the performance of water treatment and
recycling plants in Brazil.
-- Although still negative, EBITDA continues to improve significantly
thanks to bebbia's increased scale and RSA's sustained growth.
Other Indicators Q1'25 vs Q1'24
(Figures in millions of Mexican pesos)
Indicators Q1'25 % YoY
Cash and cash equivalents 766 34.3 %
Short Term Debt 635 NM
Long Term Debt 3,999 0.0 %
Total Debt 4,635 12.4 %
Net Debt 3,869 8.9 %
CapEx 97 (0.2 %)
Change in Working Capital (cash flow) (9) (97.5 %)
CCC (days) 63 33
Comprehensive Financing Result (116) 83.2 %
CapEx
-- Capital investments represented 3.7% of quarterly sales.
-- In line with financial priorities focused on strengthening cash flow,
86% of CapEx was allocated to services in Mexico and Brazil, under a
scheme in which investment is made only once a purification customer or
a treatment plant contract is secured.
Comprehensive Financing Result
-- The comprehensive financing result recorded an expense of $116 million,
compared to $64 million in Q1'24. The 2025 expense includes $151 million
for interest on debt, commissions, and leases, and a $35 million benefit
from exchange rate effects and inflation in Argentina.
Derivative Financial Instruments
-- As of March 31(st), 2025, the market value of Grupo Rotoplas' position
was:
Market Value
Instrument MXN/USD exchange rate
forward
$34.5 millions
Sustainability Strategy Milestones
-- Rotoplas Mexico received the Socially Responsible Company distinction
for the fifteenth consecutive year.
-- The recruitment process was updated by incorporating artificial
intelligence tools to enhance the attraction and retention of women in
the workforce.
Analyst Coverage
Institution Analyst Recommendation Target Price
(MXN)
BTG Pactual Gordon Lee Neutral $24.80
GBM Regina Carrillo
Buy $44.00
Punto Casa de Bolsa Gerardo Campos
Buy $18.64
Miranda Research Martín Lara
Buy $31.00
Apalache Jorge Plácido
Buy $31.70
Consensus
Buy $30.03
Investor Conference Call Invite
Thursday, April 24, 2025, at 10:00am Mexico City time (12:00pm EST)
Speakers: Carlos Rojas (CEO), Andrés Pliego (CFO)
Link: https://rotoplas.zoom.us/webinar/register/WN_PhnaNC_-QwmL4-Tg-h5Iqw#/registration
Financial Statements
Income Statement
(Unaudited figures in millions of Mexican pesos)
Q1
2025 2024 %
Net Sales 2,636 2,667 (1.2 %)
COGS 1,519 1,316 15.4 %
Gross Profit 1,117 1,352 (17.4 %)
% margin 42.4 % 50.7 % (830)
bps
Operation Expenses 978 931 5.0 %
Operating Income 139 421 (67.0 %)
% margin 5.3 % 15.8 % NM
Comp. Financing Result (116) (64) 83.2 %
Financial Income 14 11 31.1 %
Financial Expenses (131) (75) 75.5 %
Income Before Taxes 22 357 (93.7 %)
Taxes (1) 54 NM
Net Income 24 304 (92.3 %)
% margin 0.9 % 11.4 % NM
EBITDA(1) 301 555 (45.9 %)
% margin 11.4 % 20.8 % (940)
bps
EBITDA(2) ex severance package 349 555 (37.1 %)
% margin 13.2 % 20.8 % (760)
bps
Balance Sheet
(Unaudited figures in millions of Mexican pesos)
March
2025 2024 %
Cash and Cash Equivalents 766 570 34.3 %
Clients and Other Accounts Receivable 2,146 2,213 (3.0 %)
Inventory 1,868 1,239 50.8 %
Other Current Assets 201 270 (25.6 %)
Current Assets 4,981 4,292 16.1 %
Property, Plant and Equipment - Net 3,928 3,982 (1.4 %)
Other Long-term Assets 5,803 4,734 22.6 %
Total Assets 14,711 13,007 13.1 %
Short-term Debt 635 124 NA
Suppliers and Other Accounts Payable 2,024 1,597 26.7 %
Other Current Liabilities 170 248 (31.3 %)
Short-term Liabilities 2,830 1,969 43.7 %
Long-term Debt 3,999 3,999 0.0 %
Other long-term Liabilities 1,354 834 62.4 %
Total Liabilities 8,184 6,802 20.3 %
Total Stockholders' Equity 6,527 6,205 5.2 %
Total Liabilities + Stockholders' Equity 14,711 13,007 13.1 %
Cash Flow
(Unaudited figures in millions of Mexican pesos)
January -
March
2025 2024 %
EBIT 139 421 (67.0 %)
Depreciation and Amortization 161 134 20.1 %
Inventory (64) (173) (63.2 %)
Accounts Receivable 95 (237) NM
Accounts Payable (40) 49 NM
Other Current Liabilities 56 (54) NM
Taxes (33) (8) NM
Operating Cash Flow 314 132 NM
CapEx (97) (98) (0.2 %)
Other Investment Activities 49 (15) NM
Investing Cash Flow (49) (113) (56.9 %)
Dividends 0 0 NM
Repurchase Fund (2) (5) NM
Short and Long-term Debt (135) 8 NM
Interest and Leases (84) (41) NM
Financing Cash Flow (221) (38) NM
Change in Cash 44 (18) NM
Effect of exchange rate on cash (10) 23 NM
Net Change in Cash 34 4 NM
Initial Cash Balance 732 566 29.4 %
Final Cash Balance 766 570 34.3 %
Investor Relations Contact
Mariana Fernández María Fernanda Escobar
mfernandez@rotoplas.com mfescobar@rotoplas.com
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agua@rotoplas.com
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Disclaimer
This document may contain forward-looking statements regarding the future performance of Grupo Rotoplas S.A.B. de C.V. These statements are based on current management expectations and information available at the time of publication. Actual results may differ materially due to various risks, uncertainties, and external factors beyond the Company's control. Grupo Rotoplas assumes no obligation to update or revise any forward-looking statements.
About the Company
Grupo Rotoplas S.A.B. de C.V. is America's leading provider of water solutions, including products and services for storing, piping, improving, treating, and recycling water. With over 40 years of experience in the industry and 18 plants throughout the Americas, Rotoplas is present in 14 countries and has a portfolio that includes 27 product lines, a services platform, and an e-commerce business. Grupo Rotoplas has been listed on the Mexican Stock Exchange (BMV) under the ticker "AGUA" since December 10(th), 2014.
Pedregal 24, 19th Floor, Molino del Rey
Miguel Hidalgo
Zip Code 11040, Mexico City
T. +52 (55) 5201 5000
www.rotoplas.com
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[1] Adjusted EBITDA includes $1 million in donations.
[2] Excluding leases.
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SOURCE Grupo Rotoplas S.A.B. de C.V.
