MEXICO CITY, Feb. 7, 2024 /PRNewswire/ -- Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) ("Rotoplas", "the Company"), America's leading company in water solutions, reports its unaudited fourth quarter and full year 2023 results. The information has been prepared in accordance with the International Financial Reporting Standards (IFRS).
Figures are expressed in millions of Mexican pesos.
- Net sales increased 8.0% to reach Ps. 3,376 million, a record figure for a fourth quarter, driven by a double-digit increase in service sales for the fifth consecutive quarter and a recovery in products demand.
If the 2022 exchange rate were considered and the devaluation effect in Argentina isolated, the increase in net sales would have been 16.0%. - During the period, Rotoplas aimed to achieve a balance between growth and profitability by participating in promotional campaigns such as Ofertas Azules in Mexico, which had an impact on quarterly operating margins. However, it was able to maintain an annual EBITDA margin in line with the financial guidance, reaching 17.5%.
- Net income decreased 90.5% due to higher operating expenses in the quarter, alongside increased financial expenses. The latter expenses were particularly affected by the inflationary environment in Argentina, as well as foreign exchange losses related to the strength of the Mexican peso.
HIGHLIGHTS | FULL YEAR 2023 vs 2022
- In an environment marked by challenges, including increased caution in consumer spending, the strength of the Mexican peso and specific macroeconomic and climatic factors, the Company adopted a strategy focused on the variables within its control, including: 1) operational excellence, 2) maintaining brand leadership, and 3) the expansion of new businesses.
This approach allowed the Company to improve its EBITDA margin by 200 bps and maintain or increase its market share. Likewise, the services platform grew and ROIC closed with an 80 bps expansion. - Net sales closed at Ps. 12,146 million, 4.9% below 2022 due to a high comparative base in products related to severe droughts in the previous year, as well as the impact of the "super peso" on sales of subsidiaries outside Mexico .
If the 2022 exchange rate were considered and the devaluation effect in Argentina isolated, the growth in net sales would have been 1.6%.
- Product sales decreased 6.6% while service sales, which represent 5.1% of total sales, increased 42.6% to Ps. 625 million. This was the result of the expansion of bebbia, good traction of the water treatment and recycling plants business in Mexico, as well as the development of our irrigation business.
- The gross margin closed at 44.5%, an increase of 290 bps, which reflects the commercial strategy to protect profitability and a benefit in the cost of raw materials.
- Operating income declined 1.6% to Ps. 1,559 million, while operating margin expanded 40 bps to close the year at 12.8%.
- EBITDA grew 7.5 %, closing at Ps. 2,131 million, a historical record, which represents a 200 bps expansion in EBITDA margin to 17.5%, in line with the financial guidance.
- Net income closed at Ps. 280 million, 64.6% below 2022, due to higher financial expenses resulting from the impact of the MXN/USD exchange rate hedge, inflationary effect in Argentina, and foreign exchange losses.
- ROIC increased by 80 basis points, to close at 14.9%, and remains 260 bps above the cost of capital.
- Net Debt/EBITDA leverage closes at 1.6x and the cash conversion cycle is optimized by 29 days due to improved working capital management and the restatement of the balance sheet in Argentina . Likewise, interest coverage increased 7.8%. However, macroeconomic effects related to exchange rates and inflation have impacted cash flow generation.
- During the year, Ps. 609 million were invested in CapEx, mainly allocated to update the production process of storage solutions, keeping the legacy product portfolio competitive and up to date.
HIGHLIGHTS | OTHER 2023 MILESTONES
- In September, the Company entered into a strategic agreement with Google Cloud to incorporate artificial intelligence solutions in its functional areas, businesses, and internal processes. Additionally, the Google Cloud platform will be integrated with RISE with SAP solution, with the goal of advancing the company's digital transformation.
- In December, during AGUA Day, the Programmatic M&A Strategy was announced. The first action under this strategy was the acquisition of assets from HiTech Irrigation of Mexico, a company specializing in irrigation services and systems. The objective of this transaction is to strengthen the capabilities of rieggo, in alignment with the Company's growth strategy.
- Record levels of customer satisfaction were achieved due to the user centered approach implemented through the User Experience Committees, increasing the Group's Net Promoter Score (NPS) from 72 to 76.
- The Company's greenhouse gas reduction targets have been submitted for validation by the Science Based Target Initiative SBTi, increasing its ambition from being a carbon neutral company by 2040 to being Net Zero by 2050.
- The CDP 2023 Climate Change Questionnaire score improved from B to A-, achieving a leadership position and outperforming the industry average, as well as the North American and global averages
- Grupo Rotoplas received the following awards and recognitions during the year:
- S&P Sustainability Yearbook 2023.
- Leading Company in Sustainable Innovation Award, in the Social category, granted by HSBC, in collaboration with EY Mexico.
- Distinction 'Company Committed to Labor Inclusion of People with Disabilities' awarded by Éntrale in Mexico .
- Best Economic Performance in the 2023 Sustainability Index by Environmental Management media in Argentina
- Peru received the Sustainable Management Company Distinction, awarded by the Perú Sostenible organization.
- S&P Sustainability Yearbook 2023.
AGUA*
- In May, a cash capital reimbursement of Ps. 0.50 ( fifty cents ) per share was paid to shareholders.
- In November, a capital reimbursement in kind was paid with treasury shares by delivering one share for every 30 shares held.
- Rotoplas was ratified as a component of the ESG index of the Mexican Stock Exchange and remained in the DJSI MILA Pacific Alliance for the sixth consecutive year.
- The Company moved up 1 place in the Mexican Stock Exchange's Liquidity Index to the 50th place.
KEY FIGURES | FINANCIAL DATA
4Q | 12M | ||||||
2023 | 2022 | %? | 2023 | 2022 | %? | ||
Income Statement | Net Sales | 3,376 | 3,125 | 8.0 % | 12,146 | 12,774 | (4.9 %) |
%gross margin | 44.5 % | 45.0 % | (50) bps | 45.5 % | 42.6 % | 290 bps | |
Operating Income | 352 | 452 | (22.0 %) | 1,559 | 1,584 | (1.6 %) | |
% margin | 10.4 % | 14.5 % | (410) bps | 12.8 % | 12.4 % | 40 bps | |
EBITDA[1] | 554 | 550 | 0.7 % | 2,131 | 1,982 | 7.5 % | |
% margin | 16.4 % | 17.6 % | (120) bps | 17.5 % | 15.5 % | 200 bps | |
Net Income | 39 | 405 | (90.5 %) | 280 | 791 | (64.6 %) | |
% margin | 1.1 % | 13.0 % | NM | 2.3 % | 6.2 % | (390) bps | |
Balance | Cash and Cash equivalents | 566 | 673 | (15.9 %) | |||
Debt with cost | 4,028 | 4,009 | 0.5 % | ||||
Net Debt | 3,462 | 3,337 | 3.8 % | ||||
Cumulative Cash Flow | Operating Cash Flow | 1,290 | 998 | 29.2 % | |||
CapEx | 609 | 659 | (7.6 %) | ||||
Working Capital | (168) | (678) | (75.3 %) | ||||
Others | Net Debt / EBITDA | 1.6 x | 1.7 x | (0.1) x | |||
ROIC | 14.9 % | 14.1 % | 80 bps | ||||
Cash Conversion Cycle | 42 | 71 | (29) days | ||||
RELEVANT FIGURES ? JANUARY - DECEMBER 2023
Employees | 3,483 |
Sales points | +32,000 |
Government transactions | 3.3 % |
e-commerce clients | +6,700 |
Bebbia units | +110,000 |
20L water jugs saved | 26.9 million |
MESSAGE | CEO
Dear Investors,
The fourth quarter has helped us to validate the relevance of decentralized solutions as a vital complement to public infrastructure, providing access to water and sanitation in the amount and with the quality that the population currently requires.
Toward the end of the year, the Cutzamala system began to have difficulties in supplying water to the Valley of Mexico, causing outages in several municipalities in the metropolitan area. This event, along with our Ofertas Azules, contributed to the highest December sales of storage solutions in Mexico in the last seven years.
During the year, despite the impact on products sales growth due to the strength of the Mexican peso, we were able to maintain the leadership of our brands and continue our strong momentum in the expansion of our services businesses. We focused our talent on pursuing profitability, as well as improving user experience and providing solutions that support population adaptation to climate change, as well as mitigating its effects.
Likewise, the management of working capital and prudence in cash management throughout the year, even considering the impact on cash flow generation by exchange rates and inflation, helped us maintain a healthy leverage level and increase interest coverage on debt.
In terms of sustainability, I would like to highlight that, in addition to receiving several recognitions, we managed to reduce CO2e Scope 1 and 2 emissions by 12% at the Group level, while 24% of our processed resins came from recycled material. Additionally, in response to the crisis in the state of Guerrero caused by Hurricane Otis, we reaffirmed our commitment to the community by activating the Water Program for Affected Areas (PAZA).
Looking ahead to 2024, we will take firm steps to progress in our key initiatives, including the digitization of our operations, supported by the strategic collaboration with Google Cloud and RISE with SAP. Additionally, we will focus on the evolution of our Programmatic M&A strategy, the implementation of the new manufacturing technology for storage solutions in the remaining plants in Mexico, and the expansion of our services businesses.
I thank you for another year of loyalty and trust in Rotoplas. Rest assured that we remain steadfast in our commitment to fostering a culture of sustainability around water for the benefit of present and future generations, while remaining true to our mission.
Carlos Rojas Aboumrad
INVITATION | EARNINGS CALL
Thursday, February 08 th, 10:00 am CDMX time ( 11:00pm, EST )
Speakers: Carlos Rojas Aboumrad (CEO) and Mario Romero Orozco (CFO)
Link: https://rotoplas.zoom.us/webinar/register/WN_aIfIr7cPTwSKva4Dp7vZmA#/registration
GUIDANCE | 2023-2025
Metrics | 2023 Revised Guidance | 2023 Results | 2024 Guidance | |
Guidance | Increase in net sales | (8 %) | (5 %) | > 10% |
EBITDA Margin | 17.0% - 18.0% | 17.5 % | 18.0% - 19.0% | |
Net Debt / EBITDA | < 2.0x | 1.6x | < 2.0x | |
ROIC | ROIC = WACC + 350bps | ROIC = WACC + 260bps | ROIC =WACC + 200bps |
EBITDA | BY REGION AND SOLUTION
4Q | 12M | ||||||
2023 | 2022 | %? | 2023 | 2022 | %? | ||
Mexico | Sales | 1,473 | 1,549 | (4.9 %) | 6,001 | 6,374 | (5.9 %) |
EBITDA | 314 | 369 | (14.9 %) | 1,537 | 1,302 | 18.1 % | |
% Margin | 21.3 % | 23.8 % | (250) bps | 25.6 % | 20.4 % | 520 bps | |
Argentina | Sales | 1,394 | 916 | 52.1 % | 3,903 | 3,698 | 5.6 % |
EBITDA | 242 | 123 | 96.6 % | 628 | 570 | 10.2 % | |
% Margin | 17.4 % | 13.4 % | 400 bps | 16.1 % | 15.4 % | 70 bps | |
United States | Sales | 239 | 315 | (24.0 %) | 1,101 | 1,402 | (21.5 %) |
EBITDA | (39) | (20) | 97.6 % | (191) | (64) | NM | |
% Margin | (16.3 %) | (6.3 %) | NM | (17.4 %) | (4.5 %) | (1,290) bps | |
Others | Sales | 271 | 344 | (21.4 %) | 1,141 | 1,300 | (12.3 %) |
EBITDA | 37 | 78 | (52.8 %) | 158 | 174 | (9.4 %) | |
% Margin | 13.5 % | 22.6 % | (910) bps | 13.8 % | 13.4 % | 40 bps | |
4Q | 12M | ||||||
2023 | 2022 | %? | 2023 | 2022 | %? | ||
Products | Sales | 3,209 | 2,999 | 7.0 % | 11,521 | 12,336 | (6.6 %) |
EBITDA | 595 | 616 | (3.4 %) | 2,385 | 2,281 | 4.6 % | |
Margin | 18.5 % | 20.5 % | (200) bps | 20.7 % | 18.5 % | 220 bps | |
Services | Sales | 167 | 127 | 32.1 % | 625 | 438 | 42.6 % |
EBITDA | (41) | (66) | (37.4 %) | (254) | (299) | (15.0 %) | |
% Margin | (24.6 %) | (52.0 %) | NM | (40.7 %) | (68.2 %) | NM | |
Mexico
Net sales contracted 4.9% during the quarter and 5.9% on a cumulative basis. This as a result of a very high comparative base in products related to the generalized drought in the country during 2022 and more specifically in the northeast during the second and third quarters of the previous year.
During the last quarter, the Mexico Valley region experienced frequent interruptions in water supply, caused by challenges within the Cutzamala system. Simultaneously, the "Ofertas Azules" campaign was carried out. The combination of these elements resulted in the highest storage sales for a month of December in the last seven years. Nonetheless, the recovery observed in December was not able to offset the drop in sales experienced during the first two months of the quarter.
Services sales continued to grow double-digit for the fifth consecutive quarter, driven by the expansion of bebbia and Rotoplas Servicios de Agua. Additionally, rieggo continues to develop positively.
During the quarter, EBITDA margin contracted 250 bps to 21.3%, impacted by the "Ofertas Azules" campaign. However, on a cumulative basis, the margin expanded 520 basis points to 25.6%, driven by record margins in products and an improvement in the negative EBITDA in services.
Argentina
In Argentina, net sales increased 52.1% in the quarter and 5.6% for the year. These increases are due to both an increase in sales volumes in certain categories and price adjustments made to mitigate inflationary pressures on costs.
Our strategy remains focused on maintaining profitability, improving manufacturing productivity and increasing market share.
For 4Q23, the EBITDA margin expanded 400 basis points to 17.4%, as a result of improved cost and expense absorption in the period. On a cumulative basis, the EBITDA margin closed at 16.1%, an expansion of 70 basis points, driven mainly by growth, as well as strict expense control throughout the year.
NOTE: Adoption of IAS 29, Financial Reporting in Hyperinflationary Economies.
Due to Argentina experiencing inflation above 100% in the last three years, it is considered a hyperinflationary economy. In accordance with IAS 29, an adjustment for inflation has been made to the Financial Statements to consider changes in purchasing power.
International Accounting Standard (IAS) 29, Financial Information in Hyperinflationary Economies establishes that the results of operations in Argentina should be reported as if they were hyperinflationary as of January 1 st, 2018. Moreover, an adjustment for inflation in the Financial Statements should be made to account for the change in the purchasing power of the local currency.
As a result, in 2023 the impact of the restatement results in an increase of Ps. 325 million in interest expense, negatively impacting the Comprehensive Financing Result. After considering taxes, the impact on net income amounts to Ps. 125 million.
United States
Fourth quarter net sales decreased 24.0% in Mexican pesos and 13.8% in US dollars. On a cumulative basis, sales decreased 21.5% in pesos and 10.6% in local currency.
Demand for water storage solutions was affected by an unusually wet season in states such as Texas and California, which account for a third of total sales.
In addition, there was a normalization in demand for storage solutions following the pandemic years and the surge experienced in certain crops within the agricultural sector.
EBITDA was negative Ps. 39 million in the quarter and negative Ps. 191 million for the full year, impacted by the reduction in demand and costs related to the development of the septic business, as well as to the implementation of the new e-commerce platform.
Other Countries
Net sales in other countries ( Peru, Guatemala, El Salvador, Costa Rica, Honduras, Nicaragua and Brazil ) decreased 21.4% in the quarter and 12.3% in the year.
In Peru , the market experienced a contraction due to a decrease in construction activity, a reduction in government spending, and the climatic impacts associated with the El Niño phenomenon, which resulted in an unusual lack of cold weather during the winter season, thus reducing the demand for water heaters.
In Central America , annual sales decreased in Mexican pesos due to exchange rate effects, but grew in local currency. During the last quarter, the " Ofertas Azules" commercial campaign was launched, achieving an increase in sales volumes.
In Brazil , progress continues to be made in the development of the water treatment and recycling plants business. During the quarter, a shift in the commercial strategy was implemented, choosing to approach heavy industry and light industry individually, assigning specialized equipment to each sector.
As a result of the decrease in sales and lower absorption of costs and expenses, the EBITDA margin for the quarter contracted 910 bps to reach 13.5%. However, the implementation of a rigorous expense control to adjust expenses to sales levels, together with the pricing strategy, allowed the cumulative EBITDA margin to increase by 40 bps to 13.8%.
ANALYSIS | COSTS AND EXPENSES
Gross Profit
Gross profit increased 6.9% in the quarter and 1.4% in the year. For 4Q23, the margin contracted 50 bps to close at 44.5%, due to the launch of promotional campaigns. For the year, the margin expanded 290 bps to 45.5%. This expansion results from the commercial strategy focused on protecting profitability, as well as a benefit in raw material costs.
Operating Income
Operating income for the quarter closed at Ps. 352 million, with a margin of 10.4%, a 410 bps contraction due to higher operating expenses. For the full year, operating income decreased 1.6%, with a margin of 12.8%, 40 bps higher than in the same period of 2022. This expansion is due to the improvement in gross margin.
Comprehensive Financing result
The comprehensive financing result for the fourth quarter resulted in an expense of Ps. 311 million compared to a Ps. 181 million expense in the fourth quarter of 2022. This includes Ps. 94 million for interest on debt, commissions and leases, a Ps. 97 million benefit from the valuation of financial instruments, and Ps. 314 million for inflationary effects in Argentina and foreign exchange losses in several countries.
On a cumulative basis, the comprehensive financing result was an expense of Ps. 1,251 million compared to a Ps. 768 million in 2022, an increase of 62.9%. This includes Ps. 384 million for interest on debt, commissions and leases, Ps. 288 million for the valuation of the foreign exchange hedge and Ps. 579 million for inflationary effects in Argentina and foreign exchange losses in some countries.
Net Result
Net income for the fourth quarter decreased 90.5% compared to the same period of the previous year, closing at Ps. 39 million due to higher operating and financial expenses, which were particularly affected by the inflationary environment in Argentina and foreign exchange losses related to the strength of the Mexican peso.
On a cumulative basis, net income decreased 64.6% to Ps. 280 million, compared to Ps. 791 million in 2022. This decrease is due to an increase in financial expenses related to a Ps. 288 million impact from the valuation of MXN/USD exchange rate hedges, as well as the inflationary effect in Argentina and foreign exchange losses in several countries amounting to Ps. 579 million.
CapEx
12M | |||||
2023 | % | 2022 | % | %? | |
Mexico | 548 | 90 % | 524 | 80 % | 4.5 % |
Argentina | 44 | 7 % | 52 | 8 % | (16.6 %) |
United States | 9 | 1 % | 36 | 6 % | (75.8 %) |
Others | 8 | 1 % | 46 | 7 % | (82.1 %) |
Total | 609 | 100 % | 659 | 100 % | (7.6 %) |
Capital investments represented 5.0% of sales in 2023, a 7.6% reduction compared to the amount allocated in the same period of last year.
Capital investments include:
- Ps. 470 million invested in new technology to produce storage solutions and in machinery to increase production capacity for the water flow category in Mexico and Argentina . These investments are part of our plan to maintain the long-term sustainability of the business.
- Ps. 122 million for treatment plants in Mexico and Ps. 3 million in Brazil, representing 21% of the total CapEx.
ANALYSIS | BALANCE SHEET
Cash Conversion Cycle (Days)
12M | |||
2023 | 2022 | ? days | |
Inventory Days | 55 | 86 | (31) |
Accounts Receivable Days | 57 | 62 | (5) |
Accounts Payable Days | 70 | 77 | (7) |
Cash Conversion Cycle | 42 | 71 | (29) |
Inventory days: Quarterly Average of Inventories / (Cost of Sales 3M / 90)
Days Past Due: Quarterly Average of Customers and Other Accounts Receivable / ( 3M Sales / 90)
Supplier Days: Quarterly Average of Suppliers and Other Short-Term Accounts Payable / (Cost of Sales 3M / 90)
The cash conversion cycle was optimized by 29 days, as a result of improved working capital management, as well as the restatement of the balance sheet in Argentina .
Debt
12M | |||
2023 | 2022 | %? | |
Total Debt | 4,028 | 4,009 | 0.5 % |
Short-Term Debt | 29 | 11 | NM |
Long-term debt | 3,999 | 3,999 | 0.0 % |
Cash and Cash Equivalents | 566 | 673 | (15.9 %) |
Net Debt | 3,462 | 3,337 | 3.8 % |
Debt Maturity Profile
Total debt amounts to Ps. 4,028 million pesos and corresponds to the AGUA 17-2X Sustainable Bond, as well as a working capital loan.
Currency | Amount in MXN | Rate | Maturity | |
AGUA Bond 17-2X | Mexican pesos | 4,011 | Fixed 8.65% | June 16th, 2027 |
Citi Working Capital Loan | US dollars | 17 | SOFR + 2.55% | May 1st, 2024 |
FINANCIAL RATIOS
12M | |||
2023 | 2022 | %? | |
Net Debt / EBITDA | 1.6 x | 1.7 x | (0.1) x |
Interest coverage* | 9.2 x | 8.5 x | 7.8 % |
Total Liabilities / Stockholders' Equity | 1.3 x | 0.9 x | 0.3 x |
Net Income per Share** | 0.58 | 1.63 | (64.6 %) |
*EBITDA LTM / net interest LTM
**Net income between 486.2 million shares, expressed in Mexican pesos.
During 2023, the Company maintained a stable leverage level in line with its debt policy, which sets a maximum limit of 2.0 times Net Debt to EBITDA ratio.
ROIC / Cost of Capital
4Q17 | 4Q18 | 4Q19 | 4Q20 | 4Q21 | 4Q22 | 4Q23 | |
ROIC | 7.3 % | 7.3 % | 9.8 % | 12.4 % | 14.5 % | 14.1 % | 14.9 % |
WACC | 10.5 % | 12.5 % | 12.9 % | 10.0 % | 12.1 % | 12.7 % | 12.3 % |
ROIC: NOPAT LTM/ Invested Capital LTM, monthly average.
Invested capital: total assets - cash and cash equivalents - short-term liabilities.
ROIC excludes Flow program execution expenses from 2Q20 to 4Q21 as they are non-recurring.
The ROIC reached 14.9%, which represents an 80 basis points increase compared to the same period in 2022. Additionally, it was 260 bps above the cost of capital.
Financial derivates
The use of derivative financial instruments is governed by the recommendations and policies issued by the Board of Directors and supervised by the Audit Committee, which provides guidelines on the management of exchange risk, interest rate risk, credit risk, the use of derivative and non-derivative financial instruments, and the investment of excess liquidity.
As of December 31 st, 2023, the market value of Grupo Rotoplas' positions was:
Market Value | ||
Type of Instrument | MXN/USD exchange rate forward | Ps. ( 18.3 ) million |
ESG | ENVIRONMENTAL, SOCIAL AND GOVERNANCE
During the year, the following progress within the Sustainable initiatives stands out:
2023 Target | 2023 Results | 2025 Target | |
Tier-1 suppliers evaluated with ESG Criteria | 45 % | 50 % | 100 % |
Customer Satisfaction (NPS) | 73 | 76 | 80 |
CO2 intensity - scopes 1 and 2 per ton of processed resin | 0.45 | 0.43 | 0.41 |
m3 of water purified by our solutions | 656K | 759K | 1.7MM |
People with access to water and sanitation (cumulative) | 788K | 800K | 1MM |
Women in the workforce | 27 % | 24 % | 30 % |
- 5 of the 6 public ESG goals were achieved, except for the gender goal, as priority was given to the development of workspaces and culture before increasing the number of women in the workforce.
- In the environmental area, the reduction of ~12% in CO2 emissions Scope 1 and 2, as well as the use of 12,428 tons of recycled resins, 24% of the total resins processed, stand out. Additionally, during the year, the Company's greenhouse gas reduction goals were submitted for approval by the Science Based Target Initiative (SBTi), increasing the Company's ambition from being a carbon neutral company by 2040 to being Net Zero by 2050.
- Within the governance pillar, the Code of Ethics, the Integrity, Anticorruption and Conflict of Interest Prevention Policies were updated, and our sustainable culture was promoted through internal communication and onboarding courses for new personnel. Likewise, board members were trained on risks related to the digitization of operations and the Sustainability 2.0 Committee was launched, which in turn promoted the creation of the Diversity and Inclusion Committee.
- In the social dimension, a human rights assessment was carried out for the first time at the Group level and 2 volunteer programs were organized in Mexico, 1 in Peru and 1 in Argentina, collecting 2.6 tons of waste from water bodies and delivering 8 biopozo toilets to communities in need. Additionally, the gender, LGBTIQ+ and People with Disabilities roundtables developed a work plan, deployed a communication campaign during their commemorative month, and sought an expert ally to become a more inclusive and diverse company.
- In partnership with UNDP, the A Fluir 2023 initiative was launched to support urban and rural communities in vulnerable situations through donations. This initiative successfully delivered 615 kits and 24 rainwater harvesting systems, benefiting over 51,000 people across Mexico .
- In response to the damage caused by Hurricane Otis in Guerrero in Mexico, the Water Program for Affected Areas (PAZA) was reactivated. This initiative focused on providing support, primarily through in-kind and monetary donations, to assist our collaborators, distributors, and customers with their immediate needs and later with the reconstruction of their homes. Moreover, water tanks damaged by the hurricane were repaired free of charge for the end users, ensuring they had access to essential water storage solutions during the recovery period.
- In December, both bebbia and Rotoplas participated in the Annual Demonstration for people with disabilities in Mexico City, bebbia even offered hydration services during the event.
AGUA | PERFORMANCE AND ANALYST COVERAGE
December | ||||
2023 | 2022 | %? | ||
Agua* | Closing price | 30.06 | 31.49 | (4.5 %) |
P/BV | 2.4 x | 2.4 x | 0.0 x | |
EV/EBITDA | 8.5 x | 9.4 x | (0.9) x | |
Source: SiBolsa
Treasury shares:
As of December 31 st, 2023, the Company had 1.9 million shares in the treasury, equivalent to an invested amount of Ps. 163 million. Treasury shares have never been cancelled.
Analyst Coverage
As of December 31 st, 2023, analysts' coverage was provided by:
Recommendation | TP | ||
BTGPactual | FelipeBarragan | Buy | $40.60 |
felipebarragan@btgpactualcom | |||
GBM | Regina Carrillo | Buy | $48.39 |
rcarrillo@gbmcom | |||
SIGNUM | Alain Jaimes | Buy | $37.74 |
alainjaimes@signumresearchcom | |||
Miranda Research | MartínLara /MarimarTorreblanca | Buy | $41.61 |
martin.lara@miranda-grcom marimartorreblanca@miranda-partnerscom | |||
Apalache | Jorge Placido | Buy | $42.58 |
jorgeplacido@apalachemx | |||
Consensus | Buy | $43.52 |
FINANCIAL STATEMENTS | Balance Sheet, Income Statement and Cash Flow
Income Statement
(Unaudited figures, millions of Mexican pesos)
4Q | 12M | ||||||
2023 | 2022 | %? | 2023 | 2022 | %? | ||
Income Statement | Net Sales | 3,376 | 3,125 | 8.0 % | 12,146 | 12,774 | (4.9 %) |
COGS | 1,875 | 1,720 | 9.0 % | 6,625 | 7,331 | (9.6 %) | |
Gross Profit | 1,502 | 1,405 | 6.9 % | 5,521 | 5,444 | 1.4 % | |
% margin | 44.5 % | 45.0 % | (50) bps | 45.5 % | 42.6 % | 290 bps | |
Operating Expenses | 1,149 | 953 | 20.6 % | 3,962 | 3,859 | 2.7 % | |
Operating Income | 352 | 452 | (22.0 %) | 1,559 | 1,584 | (1.6 %) | |
% margin | 10.4 % | 14.5 % | (410) bps | 12.8 % | 12.4 % | 40 bps | |
Comp. Financing result | (311) | (181) | 71.5 % | (1,251) | (768) | 62.9 % | |
Financial Income | 48 | 105 | (54.8 %) | 155 | 198 | (21.8 %) | |
Financial Expenses | (359) | (287) | 25.1 % | (1,406) | (966) | 45.5 % | |
Income before taxes | 41 | 271 | (85.0 %) | 307 | 817 | (62.5 %) | |
Taxes | 2 | (134) | NM | 27 | 26 | 2.0 % | |
Net Result | 39 | 405 | (90.5 %) | 280 | 791 | (64.6 %) | |
% margin | 1.1 % | 13.0 % | NM | 2.3 % | 6.2 % | (390) bps | |
EBITDA[2] | 554 | 550 | 0.7 % | 2,131 | 1,982 | 7.5 % | |
% margin | 16.4 % | 17.6 % | (120) bps | 17.5 % | 15.5 % | 200 bps | |
Balance Sheet (Unaudited figures, millions of Mexican pesos)
12M | ||||
2023 | 2022 | %? | ||
Balance Sheet | Cash and Cash Equivalents | 566 | 673 | (15.9 %) |
Accounts Receivable | 1,765 | 2,029 | (20.0 %) | |
Inventory | 1,006 | 1,524 | (34.0 %) | |
Other Current Assets | 301 | 297 | (12.4 %) | |
Current Assets | 3,638 | 4,522 | (22.9 %) | |
Property, Plant and Equipment - Net | 4,123 | 3,272 | 26.0 % | |
Other Long-Term Assets | 4,851 | 4,579 | 5.9 % | |
Total Assets | 12,611 | 12,567 | 0.4 % | |
Short-Term Debt | 29 | 11 | NM | |
Suppliers | 816 | 762 | 7.0 % | |
Other Accounts Payable | 854 | 732 | 16.8 % | |
Short-Term Liabilities | 1,699 | 1,505 | 12.9 % | |
Long-term debt with cost | 3,999 | 3,999 | 0.0 % | |
Other Long-Term Liabilities | 803 | 605 | 32.9 % | |
Total Liabilities | 6,501 | 6,108 | 6.4 % | |
Total Stockholders' Equity | 6,110 | 6,459 | (5.4 %) | |
Total Liabilities + Stockholders' Equity | 12,611 | 12,567 | 0.4 % | |
Cash Flow (Unaudited figures, millions of Mexican pesos)
12M | ||||
2023 | 2022 | %? | ||
Cash Flow | EBIT | 1,559 | 1,584 | (1.6 %) |
Depreciation and Amortization | 572 | 397 | 43.9 % | |
Inventories | (54) | (149) | (63.8 %) | |
Accounts Receivable | (320) | (589) | (45.6 %) | |
Accounts Payable | 207 | 60 | NM | |
Other current items | (533) | (153) | NM | |
Taxes | (140) | (153) | (8.0 %) | |
Cash flow from Operations | 1,290 | 998 | 12.1 % | |
CapEx | (609) | (659) | (7.6 %) | |
Other investment activities | 133 | 58 | NM | |
Cash flow from Investments | (476) | (601) | (20.9 %) | |
Dividends | (235) | (215) | 9.3 % | |
Repurchase fund | (74) | (302) | (75.3 %) | |
Short- and long-term debt | 17 | 0 | 0.0 % | |
Interests and leasing | (549) | (556) | (1.3 %) | |
Cash flow from Financing | (841) | (1,073) | (21.6 %) | |
Change in Cash | (27) | (677) | (94.8 %) | |
Exchange rate effect on cash | (80) | (279) | (71.5 %) | |
Net Change in Cash | (107) | (956) | (88.8 %) | |
Initial Cash Balance | 673 | 1,629 | (58.7 %) | |
Final Cash Balance | 566 | 673 | (15.9 %) | |
PRESS RELEASES | 4Q23
- AGUA Day 2023 Rotoplas a Sustainable Growth Story - December 13 th
- Rotoplas remains for the seventh consecutive year in the DJSI MILA Pacific Alliance - December 11 th
- rieggo® Rotoplas Strengthens Capabilities with the Acquisition of HiTech Irrigation in Mexico - December 06 th
- Payment of capital reimbursement in kind to shareholders - November 24 th
- Approved proposals to the Extraordinary General Shareholders' Meeting - November 15 th
- Board of Directors proposes capital reimbursement in kind - October 25 th
- Rotoplas renews market maker agreement with BTG Pactual - October 13 th
- Fitch ratifies 'AA(mex)' rating for Grupo Rotoplas; stable outlook - October 10 th
- Grupo Rotoplas regrets the passing of its board member Mr. Xavier García de Quevedo Topete - October 06 th
For more information, please consult the relevant events section of our website: https://rotoplas.com/investors/press-releases/
CONTACT DETAILS | INVESTOR RELATIONS
Mariana Fernandez
[email protected]
[email protected]
María Fernanda Escobar
[email protected]
- 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 expectations 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 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, piso 19, Col. Molino del Rey
Miguel Hidalgo
C.P. 11040, Ciudad de México
T. +52 (55) 5201 5000
www.rotoplas.com
[1] EBITDA considers donations of Ps. 12.3 million in 4Q23 and Ps. 19.2 million in 2023. There were no donations in 2022.
[2] EBITDA considers donations of Ps. 12.3 million in 4Q23 and Ps. 19.2 million in 2023. There were no donations in 2022.
Logo - http://mma.prnewswire.com/media/386887/Grupo_Rotoplas_BMV_Logo.jpg
SOURCE Grupo Rotoplas S.A.B. de C.V.
