Rotoplas: Second Quarter 2025 Results
MEXICO CITY, July 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 second quarter of 2025. The information has been prepared in accordance with International Financial Reporting Standards (IFRS).
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Figures are expressed in millions of Mexican pesos.
Key Highlights Q2'25
-- Net sales were $2.9 billion, a 0.9% decrease compared to Q2'24. On a
cumulative basis, net sales reached $5.6 billion, a 1.0% decrease
compared to 2024.
-- EBITDA of $369 million, with a 12.5% margin. The cumulative EBITDA was
$669 million, with a cumulative margin of 12.0%.
-- Net income was $42 million, with a 1.4% margin. In the first half of the
year, net income was $65 million, with a margin of 1.2%.
-- Service sales increased by 16.7% during the quarter and by 15.8% in the
first half of the year, primarily driven by bebbia.
-- bebbia exceeded 155,000 active subscribers at the end of June.
Message from the CEO
"We started the second quarter aware of the challenging comparative base we would face due to the 2024 drought in Mexico. Even so, we delivered stable results: sales were nearly in line with the previous year, reflecting solid performance across our operations, particularly outside Mexico. Notably, the United States stood out, where we achieved profitable growth, undoubtedly marking an important step forward for the Company.
In the services segment, sustained growth and EBITDA margin improvement stood out, confirming our progress toward a more balanced and resilient business model.
We remain focused on improving the factors within our control, such as disciplined expense management and protecting cash flow. In this regard, we succeeded in reducing expenses as a percentage of sales, optimizing working capital, and maintaining a selective approach to CapEx allocation. These efforts are reflected in sequential improvement in EBITDA margin and a reduction in net debt compared to the previous quarter.
We continue advancing in digitalization, with our e-commerce channel in Mexico meeting expectations and the expansion of IoT solutions. We closed the quarter with sequential operational improvement and a stronger financial position."
-- Carlos Rojas Aboumrad
Results January - June
(Figures in millions of Mexican pesos)
Indicator Q2'25 Q2'24 %YoY 6M'25 6M'24 %YoY
Net Sales 2,945 2,972 (0.9 %) 5,580 5,639 (1.0 %)
Adjusted EBITDA(1) 369 450 (18.1 %) 669 1,005 (33.4 %)
% margin 12.5 % 15.1 % (260) bps 12.0 % 17.8 % (580) bps
Net Result 42 60 (30.9 %) 65 364 (82.1 %)
ROIC(2) 5.2 % 12.7 % (750) bps
Net Financial Debt(3) 3,753 3,667 2.3 %
Net Financial Debt /EBITDA(2) 3.2 x 1.8 x 1.4 x
Q2'25 vs Q2'24 Results
-- Net Sales reached $2,945 million, 0.9% below Q2'24, driven by a 2.5%
decline in the product segment, which, despite solid growth in the
United States and other countries, was not enough to offset the
contraction recorded in Mexico, which faced a high comparative base due
to the 2024 drought in the central region of the country. In contrast,
the services segment grew 16.7%, driven by the strong performance of
bebbia and the growth of RSA Mexico.
-- Gross profit was $1,217 million. Gross margin closed at 41.3%,
contracting by 550 bps due to lower product sales in Mexico and
Argentina, which affected the absorption of fixed costs.
-- Operating income reached $207 million, down 32.6% compared to Q2'24. The
decline was mainly due to a weaker gross margin, which more disciplined
expense control could not fully offset--even though expenses remained
lower as a percentage of sales. However, operating income showed a
positive sequential trend, increasing 49.1% compared to the previous
quarter.
-- EBITDA closed at $369 million, and the EBITDA margin stood at 12.5%.
Despite the year-over-year decrease, sequential improvement was observed
compared to previous quarters, mainly reflecting expense control.
-- Net income was $42 million, 30.9% below the previous year, driven by
lower operating income.
Cumulative Results 2025 vs 2024
-- Net sales reached $5,580 million, a 1.0% decrease, driven by a 2.6%
decline in the product segment, partially offset by 15.8% growth in the
services segment.
-- Gross profit was $2,333 million, a 14.9% decrease. Gross margin closed
at 41.8%, contracting by 680 bps mainly due to lower absorption of fixed
costs in Mexico and Argentina.
-- Operating income reached $346 million, a 52.5% decrease compared to
2024. This decline was the result of gross margin pressure, as the
Company achieved a slight reduction in expenses as a percentage of
sales.
-- EBITDA closed at $669 million, with an EBITDA margin of 12.0%. While
this represents a decrease compared to the same period last year, it
shows an improvement over the previous semester.
-- Net income was $65 million, an 82.1% decrease. This decline was driven
by lower operating income and a slight increase in financial expenses.
-- Net Financial debt / EBITDA((4)) leverage closed at 3.2x, resulting from
the decline in LTM EBITDA.
-- CapEx for the period amounted to $211 million, primarily focused on the
services segment in Mexico, particularly in bebbia and in water
treatment and recycling plants.
Sales and EBITDA by Geography and Solution January - June
(Figures in millions of Mexican pesos)
Sales Q2'25 Q2'24 % YoY 6M'25 6M'24 % YoY
Mexico 1,711 1,831 (6.5 %) 3,248 3,533 (8.1 %)
Argentina 550 554 (0.7 %) 1,001 996 0.5 %
United States 315 261 20.6 % 595 485 22.6 %
Other 369 326 13.0 % 737 625 17.8 %
Products 2,661 2,729 (2.5 %) 5,041 5,174 (2.6 %)
Services 284 243 16.7 % 539 466 15.8 %
EBITDA Q2'25 Q2'24 % YoY 6M'25 6M'24 % YoY
Mexico 327 433 (24.5 %) 614 905 (32.1 %)
Argentina (43) 17 NM (64) 90 NM
United States 26 (31) NM 6 (69) NM
Other 58 30 93.1 % 113 79 43.7 %
Products 409 528 (22.5 %) 723 1,136 (36.3 %)
Services (41) (78) (48.0 %) (54) 131 (58.5 %)
EBITDA Margin Q2'25 Q2'24 % YoY 6M'25 6M'24 % YoY
Mexico 19.1 % 23.7 % (460) bps 18.9 % 25.6 % (670) bps
Argentina (7.8 %) 3.1 % NM (6.4 %) 9.0 % NM
United States 8.1 % (11.9 %) NM 1.0 % (14.2 %) NM
Other 15.8 % 9.3 % 650 bps 15.4 % 12.6 % 280 bps
Products 15.4 % 19.4 % (400) bps 14.3 % 22.0 % (770) bps
Services (14.4 %) (32.3 %) NM (10.1 %) (28.0 %) NM
Sales and EBITDA breakdown by geography
2Q'25 6M'25
Sales EBITDA Sales EBITDA
Mexico 58 % 89 % 58 % 92 %
Argentina 19 % -12 % 18 % -10 %
United States 11 % 7 % 11 % 1 %
Other 13 % 16 % 13 % 17 %
Total 100 % 100 % 100 % 100 %
Mexico
-- Sales decreased by 6.5% on a quarterly basis and 8.1% on a cumulative
basis, due to the contraction in product sales, impacted by a high
comparative base following the 2024 drought and a challenging
macroeconomic environment.
-- During the semester, key highlights include the completion of the
nationwide rollout of Tinaco Plus+, the launch of the new vertical water
tank, and continued progress in digitalization through B2B and B2B2C
e-commerce platforms. Additionally, the services platform sustained
double-digit growth, mainly driven by bebbia, which reached 155,000
active subscriptions as of June, along with higher RSA sales.
-- EBITDA was impacted by lower sales volumes in the product segment,
although cost control measures allowed the margin to remain stable
compared to the previous quarter.
Argentina
-- Sales decreased by 0.7% during the quarter and increased by 0.5% on a
cumulative basis. This performance reflects demand impacted by an
adverse macroeconomic environment, characterized by high inflation,
competitive pressure, and low consumer confidence--factors that
continued limiting business growth.
-- Sales volumes in all three categories--storage, water flow, and
improvement--stabilized during the quarter; however, signs of recovery
remain limited.
-- EBITDA was impacted by the reduced ability to pass on cost increases to
prices and by lower absorption of fixed costs.
United States
-- Sales grew 20.6% during the second quarter and 22.6% on a cumulative
basis, driven by favorable conditions such as drought in the western
region, growth in data center construction, and higher municipal
investments in water infrastructure, which offset weakness in the
residential and agricultural sectors.
-- EBITDA was positive both for the quarter and year-to-date, driven by a
combination of higher sales, increased operational productivity at
physical stores, and strict expense control.
Other Countries
(Peru, Central America, and Brazil)
-- Sales increased 13.0% in Q2'25 and by 17.8% in the first half of the
year, driven by solid growth in all countries: In Peru, growth was
observed across all three categories -- storage, flow, and improvement
-- driven by the launch of Tinaco Plus+, the expansion of the piping
line, and the cold season, which boosted demand for water heaters.In
Central America, growth was driven by higher sales volumes in the
storage and water flow categories, along with strong performance in
Guatemala and Costa Rica.In Brazil, sales of treatment plants maintained
a sustained growth trend.
-- EBITDA showed improvement, reflecting both higher sales volumes and
disciplined spending under an operational efficiency approach.
Products
-- Sales contracted due to a high comparative base following the peak of
the 2024 drought in Mexico, which could not be offset by the solid
results recorded in the United States and other countries.
-- EBITDA declined due to lower volumes in Mexico and the adverse
macroeconomic environment in Argentina, which--despite stronger expense
control--limited the absorption of fixed costs.
Services
-- Sales continued growing at a double-digit rate, mainly driven by the
performance of bebbia, which surpassed 155,000 active subscribers, as
well as the growth of RSA in Mexico.
-- Although still negative, EBITDA showed a significant improvement,
supported by RSA's sustained growth and the scaling of bebbia.
Other Indicators January - June
(Figures in millions of Mexican pesos)
Indicators 6M'25 6M'24 % YoY
Cash and cash equivalents 762 666 14.5 %
Short Term Financial Debt5 515 333 54.7 %
Long Term Financial Debt6 3,999 3,999 0.0 %
Total Debt 4,515 4,332 4.2 %
Net Debt 3,753 3,667 2.3 %
CapEx 211 236 (10.5 %)
Mexico 177 224 (21.0 %)
Argentina 10 8 32.5 %
United States NM
Other 24 4 NM
Change in Working Capital (cash flow) (56) (545) (89.7 %)
CCC (days) 51 47 4 days
Comprehensive Financing Result (271) (250) 8.1 %
CapEx
-- Capital investments represented 3.8% of sales for the semester.
-- In line with financial priorities focused on strengthening cash flow,
maintenance CapEx remained at low levels, with most of the total
investment allocated to services.
Comprehensive Financing Result
-- The comprehensive financing result for the second quarter recorded an
expense of $154 million, compared to $187 million in Q2'24. The 2025
expense includes $126 million for interest, commissions, and leases, and
a $28 million impact from exchange rate effects and inflation in
Argentina.
-- The cumulative comprehensive financing result recorded an expense of
$271 million, compared to $250 million in 2024. The 2025 expense
includes $278 million for interest, commissions and leases, and a $7
million benefit from exchange rate effects and inflation in Argentina.
Derivative Financial Instruments
-- As of June 30(th), 2025, the market value of Grupo Rotoplas' position
was:
Market Value
Instrument MXN/USD exchange rate ($6.13)
forward million
Sustainability Strategy Milestones
-- Supplier Engagement Assessment - CDPGrupo Rotoplas was recognized by CDP
as a global sustainability leader in its supply chain, achieving the
highest rating in the Supplier Engagement Assessment. This distinction
reflects its solid performance in carbon footprint measurement,
decarbonization target setting, and supplier engagement. Rotoplas is one
of only two Mexican companies included in this list, alongside CEMEX.
-- Sustainable Management Company - PeruRotoplas Peru received the
Sustainable Management Company Distinction for the eighth consecutive
year, in recognition of its ongoing commitment to best environmental,
social, and governance (ESG) practices in the country.
-- Community ActionRotoplas collaborated in Peru with strategic entities
such as SUNASS (Superintendencia Nacional de Servicios de Saneamiento)
to donate storage solutions, directly benefiting over 11,300 people in
educational centers and shelters. In Mexico, in partnership with
Heineken, the Company delivered rainwater harvesting systems to
community centers, impacting 35 schools in Nuevo León. These
initiatives reinforce Rotoplas' commitment to bringing more and better
water to the communities where it operates.
-- Biodiversity Analysis Rotoplas completed its first biodiversity analysis
focused on its operations in Mexico, marking a key step toward the
comprehensive management of environmental impacts beyond climate change.
This high-level analysis evaluates dependencies, impacts, risks, and
opportunities associated with biodiversity loss within operations in
Mexico and throughout the supply chain. The study aligns with
international frameworks such as TNFD, reinforcing the integration of
nature in strategic decision-making.
Analyst Coverage
Institution Analyst Recommendation Target Price
(MXN)
BTG Pactual Orlando
Alcántara Neutral $24.80
GBM Regina Carrillo Outperform $44.00
Punto Casa de Bolsa Gerardo Campos
Buy $18.64
Miranda Research Martín Lara
Buy $28.00
Apalache Jorge Plácido
Buy $28.50
Consensus
Buy $28.79
Investor Conference Call Invite
Thursday, July 24, 2025, at 10:00am Mexico City time (12:00pm EST)
Speakers: Carlos Rojas (CEO), Andrés Pliego (CFO)
Registration: https://rotoplas.zoom.us/webinar/register/WN_yQ1_nkcnSjSdhX1MIgED0w#/registration
Financial Statements
Income Statement
(Unaudited figures in millions of Mexican pesos)
Q2 6M
2025 2024 % 2025 2024 %
Net Sales 2,945 2,972 (0.9 %) 5,580 5,639 (1.0 %)
COGS 1,728 1,582 9.3 % 3,247 2,898 12.1 %
Gross Profit 1,217 1,390 (12.5 %) 2,333 2,742 (14.9 %)
% margin 41.3 % 46.8 % (550) bps 41.8 % 48.6 % (680) bps
Operation Expenses 1,010 1,083 (6.8 %) 1,987 2,014 (1.3 %)
Operating Income 207 307 (32.6 %) 346 728 (52.5 %)
% margin 7.0 % 10.3 % (330) bps 6.2 % 12.9 % (670) bps
Comp. Financing
Result (154) (187) (17.4 %) (271) (250) 8.1 %
Financial Income 19 35 (46.2 %) 33 46 (27.5 %)
Financial Expenses (173) (221) (21.9 %) (304) (296) 2.6 %
Income Before Taxes 52 120 (56.7 %) 74 477 (84.4 %)
Taxes 10 60 (82.5 %) 9 114 (91.8 %)
Net Income 42 60 (30.9 %) 65 364 (82.1 %)
% margin 1.4 % 2.0 % (60) bps 1.2 % 6.4 % (520) bps
Adjusted EBITDA7 369 450 (18.1 %) 669 1,005 (33.4 %)
% margin 12.5 % 15.1 % (260) bps 12.0 % 17.8 % (580) bps
Balance Sheet
(Unaudited figures in millions of Mexican pesos)
June
2025 2024 %
Cash and Cash Equivalents 762 666 14.5 %
Clients and Other Accounts Receivable 1,766 1,816 (2.7 %)
Inventory 1,446 1,376 5.1 %
Other Current Assets 553 675 (18.0 %)
Current Assets 4,527 4,532 (0.1 %)
Property, Plant and Equipment - Net 3,911 4,061 (3.7 %)
Other Long-term Assets 5,707 4,892 16.7 %
Total Assets 14,145 13,484 4.9 %
Short-term Financial Debt8 515 333 54.7 %
Suppliers and Other Accounts Payable 927 949 (2.2 %)
Other Current Liabilities 1,046 1,041 0.5 %
Short-term Liabilities 2,489 2,323 7.2 %
Long-term Financial Debt9 3,999 3,999 0.0 %
Other long-term Liabilities 1,304 882 47.9 %
Total Liabilities 7,793 7,204 8.2 %
Total Stockholders' Equity 6,352 6,281 1.1 %
Total Liabilities + Stockholders' Equity 14,145 13,484 4.9 %
Cash Flow
(Unaudited figures in millions of Mexican pesos)
January -June
2025 2024 %
EBIT 346 728 (52.5 %)
Depreciation and Amortization 321 276 16.4 %
Inventory 216 (295) NM
Accounts Receivable (39) (364) (89.4 %)
Accounts Payable (233) 114 NM
Other Current Liabilities 120 152 (21.3 %)
Taxes (65) (91) (28.8 %)
Operating Cash Flow 667 521 27.9 %
CapEx (211) (236) (10.5 %)
Other Investment Activities 51 (62) NM
Investing Cash Flow (161) (298) (46.0 %)
Dividends 0 (242) NM
Repurchase Fund (4) 7 NM
Short and Long-term Debt (166) 303 NM
Interest and Leases (322) (287) 12.3 %
Financing Cash Flow (492) (218) NM
Change in Cash 14 5 NM
Effect of exchange rate on cash 16 95 NM
Net Change in Cash 30 100 NM
Initial Cash Balance 732 566 29.4 %
Final Cash Balance 762 666 14.5 %
Investor Relations Contact
Mariana Fernández María Fernanda Escobar
mfernandez@rotoplas.com mfescobar@rotoplas.com
---
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
(1) In 2025, Adjusted EBITDA for the quarter includes $1 million in donations, and $2 million on a year-to-date basis. By comparison, in 2024, $0.4 million were considered in the quarter and $1 million on a cumulative basis for the same period.
(2 )The 2025 LTM NOPAT and EBITDA calculation does not include the post-closing 2024 adjustment related to Argentina's results. Considering this adjustment, ROIC based on audited figures would be 2.9% and leverage (Net Financial Debt / EBITDA) would stand at 3.9x.
(3 )Excluding leases.
(4 )The LTM EBITDA calculation does not include the post-closing 2024 adjustment related to Argentina's results. Considering this adjustment, leverage (Net Financial Debt / EBITDA) based on audited figures would stand at 3.9x.
(5 )Excluding leases.
(6 )Excluding leases.
(7 )In 2025, Adjusted EBITDA for the quarter includes $1 million in donations, and $2 million on a cumulative basis. By comparison, in 2024, $0.4 million were considered in the quarter and $1 million on a cumulative basis for the same period.
(8 )Excluding leases.
(9 )Excluding leases.
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SOURCE Grupo Rotoplas S.A.B. de C.V.
