MEXICO CITY, July 24, 2024 /PRNewswire/ -- Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) ("Rotoplas", "the Company"), leader in water management solutions in the Americas, reports its unaudited second quarter 2024 results. The information has been prepared in accordance with the International Financial Reporting Standards (IFRS).
Figures are expressed in millions of Mexican pesos.
HIGHLIGHTS | 2Q24 vs 2Q23
- During 2Q24, Mexico and Central America showed solid performance, driven by strong demand, primarily for storage solutions in the region, supplying record volumes of water tanks and cisterns. Additionally, the services platform continues its positive growth trend, gaining subscribers in bebbia and closing new projects and contracts in RSA, rieggo, and Acuanta Brasil. However, Rotoplas' consolidated results were affected by the economic recession and devaluation in Argentina.
- Net sales closed the quarter at Ps. 2,972 million, 1.1% below 2Q23. This is mainly due to the decrease in sales in Argentina. Excluding Argentina, net sales would have increased by 14.1%.
- Product sales decreased by 4.6%, affected by the economic downturn in Argentina and the absence of drought in the United States.
- Service sales increased by 70.9%, driven by the expansion of bebbia, strong traction in RSA and Acuantia Brazil, as well as the growth of rieggo.
- Gross profit reached Ps.1,390 million, a growth of 2.0% compared to 2Q23. The gross margin increased by 140 basis points to reach 46.8%, due to an effective pricing strategy during the quarter.
- Operating income stood at Ps. 307 million, a decrease of 29.1% compared to 2Q23. This was due to lower absorption of fixed costs in Argentina, an increase in logistics expenses to meet demand in Mexico and Central America, and expenses related to the development of digital capabilities.
- EBITDA closed at Ps. 450 million, an 18.8% decrease from 2Q23, due to the decline in sales that resulted in lower coverage of operating expenses. The EBITDA margin was 15.1% compared to 18.4% in 2Q23.
- Net income closed at Ps. 60 million, an improvement compared to the loss of Ps. 24 million in 2Q23, due to a decrease in financial expenses related to the MXN/USD exchange rate hedging in 2023 because of the strength of the Mexican peso during that period.
HIGHLIGHTS | CUMULATIVE 2024 vs 2023
- Net sales stood at Ps. 5,639 million, 1.9% below the same period of the previous year, mainly due to the challenging economic environment in Argentina. Excluding Argentina, net sales would have increased by 9.8%.
- Product sales decreased by 5.3%, impacted by the strong Mexican peso, which reduced consolidated growth by 2.3 percentage points, in addition to the contraction in demand in Argentina and the United States due to macroeconomic and climatic factors, respectively.
- Service sales continued to perform well, growing by 63.6% to reach Ps. 466 million, representing 8% of total sales, driven by the continued success of bebbia and the growth of rieggo and RSA.
- Gross profit stood at Ps. 2,742 million, increasing by 2.5%. The gross margin closed at 48.6%, an increase of 210 bps due to greater efficiency in the manufacturing process of storage solutions in Mexico, as well as a better pricing strategy.
- Operating income reached Ps. 728 million, 16.5% below 2023, due to lower sales, as well as higher logistics expenses and the development of new digital capabilities to support the growth of the service platform.
- EBITDA closed at Ps. 1,005 million, a decrease of 9.2% due to pressure on operating margins resulting from increased expenses and lower sales in some countries. The EBITDA margin stood at 17.8%.
- Net income reached Ps. 364 million, a significant increase compared to Ps. 12 million in the previous year, due to lower financial expenses. The previous year recorded extraordinarily high expenses due to the strength of the Mexican peso, which resulted in a negative valuation of the MXN/USD exchange rate hedging instruments.
- ROIC decreased by 490 basis points to 12.7%, remaining 110 basis points above the cost of capital.
- Net Debt/EBITDA leverage closed at 1.8x, remaining below the internal limit defined by the Company of 2.0x.
- During the period, Ps. 236 million was invested in CapEx, mainly aimed at modernizing the manufacturing processes for storage solutions. Additionally, there was a disbursement of Ps. 178 million for the acquisition of two companies, as part of the Programmatic M&A strategy.
KEY FIGURES | JANUARY - JUNE
Note: To analyze the business excluding Argentina, the results from the second table are included.
2Q | 6M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Income Statement | Net Sales | 2,972 | 3,004 | (1.1 %) | 5,639 | 5,750 | (1.9 %) |
% gross margin | 46.8 % | 45.4 % | 140 bps | 48.6 % | 46.5 % | 210 bps | |
Operating income | 307 | 433 | (29.1 %) | 728 | 872 | (16.5 %) | |
% margin | 10.3 % | 14.4 % | (410) bps | 12.9 % | 15.2 % | (230) bps | |
EBITDA[1] | 450 | 554 | (18.8 %) | 1,005 | 1,107 | (9.2 %) | |
% margin | 15.1 % | 18.4 % | (330) bps | 17.8 % | 19.3 % | (150) bps | |
Net Result | 60 | (24) | NA | 364 | 12 | NA | |
% margin | 2.0 % | (0.8 %) | 280 bps | 6.4 % | 0.2 % | 620 bps | |
Results Excluding Argentina | Net Sales | 2,418 | 2,119 | 14.1 % | 4,643 | 4,229 | 9.8 % |
% gross margin | 50.7 % | 49.5 % | 120 bps | 51.5 % | 50.1 % | 140 bps | |
Operating Income | 319 | 326 | (2.4 %) | 694 | 710 | (2.2 %) | |
% margin | 13.2 % | 15.4 % | (220) bps | 14.9 % | 16.8 % | (190 bps) | |
EBITDA | 432 | 419 | 3.2 % | 915 | 891 | 2.8 % | |
% margin | 17.9 % | 19.8 % | (190) bps | 19.7 % | 21.1 % | (140) bps | |
Balance | Cash and Cash Equivalent | 666 | 536 | 24.2 % | |||
Debt with cost | 4,332 | 4,187 | 3.5 % | ||||
Net Debt | 3,667 | 3,652 | 0.4 % | ||||
(Cumulative) Cash Flow | Operating Cash Flow | 521 | 432 | 20.8 % | |||
CapEx | 236 | 190 | 23.8 % | ||||
Working Capital | (545) | (281) | 93.9 % | ||||
Others | Net Debt / EBITDA | 1.8 x | 1.6 x | 0.2 x | |||
ROIC | 12.7 % | 17.6 % | (490) bps | ||||
Cash Conversion Cycle | 47 | 70 | (23 days) | ||||
KEY FIGURES | JANUARY - JUNE 2024
Employees | 3,716 |
Sales points | +32,000 |
Government transactions | 4.1 % |
e-commerce clients | +6,000 |
bebbia units | +121,000 |
20L wáter jugs saved | 23.3 million |
MESSAGE | CEO
Dear investors,
During this quarter, Rotoplas has demonstrated the ability to adapt in challenging environments. Water stress, a growing issue in many regions, continues to challenge companies in the water industry regarding product availability, supply chain, and distribution, as well as maintaining high levels of service.
In the semester, thanks to the strong commitment of our operational team, we were able to fulfill market demand in Mexico and Central America, reaching record sales for water tanks and cisterns, even exceeding levels of 2022 when northeast Mexico faced a severe water shortage. We remain focused on modernizing and optimizing the production process of water tanks and ensuring that our products reach those who need them.
Similarly, the services segment continues to show solid growth, confirming a very positive trend. We continue to invest in developing field service capabilities and digital platforms to support this growth and maintain high-quality service. These investments not only enhance the current service but also position us to capture greater value in the future.
On the other hand, in Argentina, we have faced a severe economic recession and devaluation, lasting longer than expected, which has not been seen in the past 20 years. This situation has significantly impacted the Group's sales and profitability. Nonetheless, we remain vigilant of future market dynamics and potential opportunities. In the United States, climatic conditions have not been in our favor; however, we continue to seek ways to refocus and strengthen the business, looking for strategies that will allow us to regain profitability.
The focus on innovation and operational efficiency has helped us maintain a solid position and even increase market share in various regions. We will continue to adapt to market conditions, optimize our operations, and seek growth opportunities. We appreciate the support of our team, customers, distributors, and shareholders as we remain committed to improving people's quality of life through our water management solutions.
Carlos Rojas Aboumrad
INVITE | EARNINGS CALL
Thursday, July 25 th, 10:00am Mexico City Time (12:00pm, EST)
Speakers: Carlos Rojas Aboumrad (CEO) and Mario Romero Orozco (CFO)
Link: https://rotoplas.zoom.us/webinar/register/WN_2gnQlF-eREOEr4gr-PMWjA
GUIDANCE | 2024-2025
Metric | 2024 Guidance | 2024 Revised Guidance (July) | Objectives 2025 | ||
Guidance | Increase in Net Sales | > 10% | > 0% - 5% | =2x sales | |
EBITDA Margin | 18.0% - 19.0% | 17.0% - 18.0% | = 20% | ||
Net Debt/EBITDA | < 2.0x | < 2.0x | = 2.0x | ||
ROIC | ROIC = WACC + 200 bps | ROIC = WACC | ~ 20% |
EBITDA | BY REGION AND SOLUTION
2Q | 6M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Mexico | Sales | 1,831 | 1,541 | 18.8 % | 3,533 | 3,051 | 15.8 % |
EBITDA | 433 | 431 | 0.5 % | 905 | 891 | 1.5 % | |
% Margin | 23.7 % | 28.0 % | (430) bps | 25.6 % | 29.2 % | (360) bps | |
Argentina | Sales | 554 | 884 | (37.4 %) | 996 | 1,520 | (34.5 %) |
EBITDA | 17 | 135 | (87.1 %) | 90 | 217 | (58.5 %) | |
% Margin | 3.1 % | 15.3 % | NA | 9.0 % | 14.3 % | (530) bps | |
United States | Sales | 261 | 294 | (11.2 %) | 485 | 573 | (15.4 %) |
EBITDA | (31) | (48) | (34.7 %) | (69) | (98) | (29.7 %) | |
% Margin | (11.9 %) | (16.2 %) | 430 bps | (14.2 %) | (17.1 %) | 290 bps | |
Others | Sales | 326 | 284 | 14.7 % | 625 | 605 | 3.4 % |
EBITDA | 30 | 35 | (14.8 %) | 79 | 97 | (18.6 %) | |
% Margin | 9.3 % | 12.5 % | (320) bps | 12.6 % | 16.0 % | (340) bps | |
2Q | 6M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Products | Sales | 2,729 | 2,862 | (4.6 %) | 5,174 | 5,465 | (5.3 %) |
EBITDA | 528 | 618 | (14.6 %) | 1,136 | 1,217 | (6.7 %) | |
% Margin | 19.4 % | 21.6 % | (220) bps | 22.0 % | 22.3 % | (30) bps | |
Servicies | Sales | 243 | 142 | 70.9 % | 466 | 285 | 63.6 % |
EBITDA | (78) | (64) | 21.9 % | (131) | (110) | 18.7 % | |
% Margin | (32.3 %) | (45.3 %) | 1,300 bps | (28.0 %) | (38.6 %) | 1,060 bps | |
Mexico
During 2Q24, net sales increased by 18.8% on a quarterly basis and 15.8% on a cumulative basis, driven by strong growth in both products and services. Within products, the storage category grew the most, registering record sales of water tanks and cisterns. Additionally, in May, the company participated in the Hot Sale campaign with the Blue Offers, "Ofertas Azules"in Spanish, providing discounts on storage and other product lines.
The services platform grew solidly thanks to the strong traction of bebbia, the growth of RSA with the operation of treatment plants, and rieggo, which began to gain relevance. Additionally, the acquisitions made by the Group have provided capabilities to accelerate the growth of the treatment plants and irrigation businesses.
EBITDA margin for the quarter contracted 430 bps to 23.7%, and on a cumulative basis, it contracted 360 bps to 25.6%. This was due to the rise in operating expenses, driven by enhanced logistics to meet demand in the central region of the country and the development of digital initiatives for products and services. Additionally, in February, construction began on the Ixtapaluca plant, which will replace the Anáhuac plant, the Group's first plant in Mexico City.
Argentina
Net sales for the quarter decreased by 37.4% in Mexican pesos, while in local currency they increased by 145.2%, showing the impact of the currency devaluation and inflation in the country. On a cumulative basis, sales decreased by 34.5% in Mexican pesos and increased by 176.2% in Argentine pesos.
The significant economic recession affected sales volumes across all three categories. However, water heaters proved to be the most resilient product line in in this economic scenario.
The increase in costs and expenses due to their dollarization, along with lower absorption of fixed costs, negatively impacted margins. In 2Q24, the EBITDA margin closed at 3.1% compared to 15.3% in 2Q23, while on a cumulative basis, it contracted by 530 bps to close at 9.0%.
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 1st, 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 the first half of 2024, the impact of the restatement resulted in a decrease of Ps. 37 million in financial expenses, benefiting the Comprehensive Financing Result. After considering taxes, the benefit in net profit amounts to Ps. 3 million.
United States
During the second quarter, net sales decreased by 11.2%, while on a cumulative basis, they decreased by 15.4%, due to the absence of drought conditions and increased competition, which has put pressure on prices.
The septic tank business has strategically refocused its efforts to optimize service offerings according to geography, currently providing full service exclusively in Texas.
Thanks to the cost and expense containment strategy, negative EBITDA has been reduced by 34.7% during the quarter. In the first half of the year, the negative EBITDA was reduced by 29.7%. Although the EBITDA margin remains negative, it is progressively improving, marking the path towards breakeven.
Other countries
Net sales in other countries (Peru, Guatemala, El Salvador, Costa Rica, Honduras, Nicaragua and Brazil) increased by 14.7 % in the quarter and 3.4% in the first half of the year, driven by strong performance in Central America and a recovery in Peru during the second quarter.
In Peru , sales increased in 2Q24 despite the challenging macroeconomic environment and political instability. The increase was due to a higher demand for water heaters in response to a severe winter, in contrast to the previous year when the El Niño phenomenon resulted in an absence of cold weather.
Central America sales increased, driven by a solid performance across all five countries, with an increase in sales across the three categories: storage, water flow, and improvement. Record sales volumes of water tanks and cisterns were registered during the first half of the year.
In Brazil , the portfolio of water treatment and recycling plant projects continued to trend positively, with significant advances in revenue generation and closing new contracts. Additionally, strategies were implemented to improve operational efficiency and strengthen the commercial team.
The EBITDA margin in other countries decreased by 320 bps in the quarter and 340 bps in the first half of the year, closing at 12.6%. This decline was due to the contraction in sales in Peru during the first quarter, increased logistics expenses to meet demand in Central America, and expenses related to the construction of treatment plants in Brazil.
ANALYSIS | COSTS AND EXPENSES
Gross Profit
The gross profit for the quarter increased by 2.0%, reaching Ps.1,390 million, and grew by 2.5% in the first half of the year, reaching Ps.2,742 million. The margin expanded by 140 bps to reach 46.8% in the quarter and by 210 bps to 48.6% on a cumulative basis. This margin expansion is due to an effective pricing adjustment strategy aimed at maintaining competitiveness, in addition to increased efficiency in the manufacturing process of storage solutions in Mexico.
Operating Income
The operating profit closed at Ps. 307 million in the second quarter of 2024, a figure 29.1% below that of 2Q23, achieving a margin of 10.3%. Cumulatively, operating profit decreased by 16.5% to reach Ps. 728 million, representing a margin of 12.9%, 230 bps below the previous year. This reduction in margins is mainly due to the decrease in sales, the increase in logistical expenses, and the costs associated with digital initiatives.
Comprehensive Financing Result
The comprehensive financing result for the second quarter of 2024 showed a significant improvement, recording an expense of Ps. 187 million compared to an expense of Ps. 439 million in 2Q23, representing a reduction of 57.4%. The 2024 expense includes Ps. 130 million for interest on debt, commissions, and leases, and Ps. 57 million due to exchange rate effects and inflation in Argentina.
The cumulative comprehensive financing result was an expense of Ps. 250 million compared to an expense of Ps. 850 million in the same period of 2023, representing a reduction of 70.5%. The 2024 expense includes Ps. 230 million for interest on debt, commissions, and leases, and Ps. 20 million due to exchange rate effects and inflation in Argentina.
In 2024, the accounting method for recording hedging instruments was modified; the effects of the MXN/USD hedging are now recorded along with costs rather than within the Comprehensive Financing Result, thus influencing the gross margin.
The following table breaks down the effect of exchange rate hedges on the gross margin in 2023 and 2024.
6M | |||
2024 | 2023 | %? | |
Sales | 5,639 | 5,750 | (1.9 %) |
Cost of Sales | 2,871 | 3,075 | (6.7 %) |
MXN/USD Hedging Effect | (27) | (504) | (94.7 %) |
Gross Margin without Hedging Impact | 49.1 % | 46.5 % | 260 bp |
Gross Margin with Hedging Impact | 48.6 % | 37.8 % | 1,080 bp |
Net Result
Net result in the second quarter of the year was Ps. 60 million compared to a loss of Ps. 24 million in 2Q23. On a cumulative basis, net result was Ps. 364 million, compared with Ps. 12 million in the first six months of 2023. This significant improvement is primarily due to the reduction in financial expenses, as extraordinarily high financial expenses were recorded in 2023 due to the strength of the Mexican peso, resulting in a negative valuation of the MXN/USD exchange rate hedging instruments.
CapEx
6M | |||||
2024 | % | 2023 | % | %? | |
Mexico | 224 | 95 % | 162 | 85 % | 38.5 % |
Argentina | 8 | 3 % | 20 | 11 % | (61.9 %) |
United States | 0 | 0 % | 6 | 3 % | NA |
Others | 4 | 2 % | 3 | 1 % | 64.8 % |
Total | 236 | 100 % | 190 | 100 % | 23.8 % |
Capital investments represented 4.2% of sales for the semester and showed a 23.8% increase compared to the same period last year.
Capital investments include:
- In Mexico, we are continuing with the technological renewal in our plants for the manufacturing of storage solutions, as well as with the construction of the new plant in Ixtapaluca. Additionally, it includes Ps. 53 million allocated to bebbia and Ps. 22 million for treatment plants.
- In Argentina, an investment aimed at increasing productive capacity at the water flow plant during the first quarter of the year.
- Among others, it mainly includes investment for treatment plants in Brazil.
ANALYSIS | BALANCE SHEET
Cash Conversion Cycle (Days)
2Q | |||
2024 | 2023 | ? days | |
Inventory Days | 70 | 75 | (5) |
Accounts Receivale Days | 67 | 74 | (7) |
Accounts Payable Days | 90 | 79 | 11 |
Cash Conversion Cycle | 47 | 70 | (23) |
Inventory Days: Average Inventory / (3M Cost of Sales / 90)
Accounts Receivable Days: Average Accounts Receivable / (3M Sales / 90)
Accounts Payable Days: Average Suppliers / (3M Cost of Sales / 90)
During the quarter, we maintained a strong focus on managing working capital.
Debt
June | |||
2024 | 2023 | %? | |
Total Debt | 4,332 | 4,187 | 3.5 % |
Short-term Debt | 333 | 189 | 76.6 % |
Long-term Debt | 3,999 | 3,999 | 0.0 % |
Cash and Cash Equivalents | 666 | 536 | 24.2 % |
Net Debt | 3,667 | 3,652 | 0.4 % |
Debt Maturity Profile
Total debt amounts to Ps. 4,332 million and corresponds to the AGUA 17-2X sustainable bond, as well as short-term loans for working capital. The blended cost of debt is 9.05%:
Currency | Amount in MXN | Rate | Maturity | |
AGUA 17-2X Sustainable Bond | Mexican Pesos | 4,010 | Fixed 8.65% | June 16, 2027 |
HSBC Working Capital Loan | Mexican Pesos | 295 | TIIE +.9% | June 15, 2025 |
Citi Working Capital Loan | U.S. Dollars | 19 | SOFR + 2.55% | July 27, 2024 |
Citi Working Capital Loan | Argentine Pesos | 8 | Fixed 111.5% | August 26, 2024 |
Financial Ratios
6M | |||
2024 | 2023 | %? | |
Net Debt / EBITDA | 1.8 x | 1.6 x | 12.5 % |
Interest covarage* | 8.2 x | 9.5 x | (13.7 %) |
Total Liabilities / Total Stockholders' Equity | 1.1 x | 1.2 x | (8.3 %) |
Net Earnings per Share** | 0.75 | 0.03 | NA |
* EBITDA LTM/ net interest LTM
**Net income divided by 486.2 million shares, expressed in Mexican pesos.
The leverage as of the second quarter of 2024 is within the debt threshold internally established by the Company of 2.0x Net Debt/EBITDA.
ROIC / Cost of Capital
2Q17 | 2Q18 | 2Q19 | 2Q20 | 2Q21 | 2Q22 | 2Q23 | 2Q24 | |
ROIC | 6.9 % | 7.7 % | 7.9 % | 8.8 % | 16.0 % | 13.0 % | 17.6 % | 12.7 % |
WACC | 11.8 % | 11.5 % | 12.6 % | 11.5 % | 11.5 % | 12.4 % | 12.1 % | 11.6 % |
ROIC: NOPAT L12M/ Monthly average Invested Capital t, t-1
Invested Capital: Total Assets - Cash and Cash Equivalents - Short-Term Liabilities
ROIC excludes Flow program execution costs from 2Q20 to 4Q21 as they are one-off
The ROIC reached 12.7%, which represents a decrease of 490 bps compared to the same quarter of the previous year. The primary reasons for this decrease are the economic downturn in Argentina and higher taxes in Mexico and Central America. However, it ended the quarter at 110 bps above the cost of capital, which recorded a decrease of 50 bps compared to the previous year.
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 June 30 th, 2024, the market value of Grupo Rotoplas' position was:
Market Value | ||
Instrument | MXN/USD exchange rate forward | Ps. 41.19 millon |
ESG | ENVIORMENTAL, SOCIAL AND GOVERNANCE
During the quarter, the following progress stands out within the sustainable initiatives:
- Grupo Rotoplas received the Sustainable Management Company Distinction in Peru for the seventh consecutive year.
- Rotoplas Mexico has initiated the supply of 100% renewable electricity for its León Rotopinsa and León Rotomoldeo plants.
- Leveraging the strategic agreement with Google Cloud to incorporate artificial intelligence solutions into its functional areas, businesses, and internal processes, Rotoplas completed the first phase of development of the online environmental indicators platform.
- In collaboration with the United Nations Development Programme (UNDP), the 2024 edition of the "A Fluir" initiative was launched, seeking to benefit municipalities with high levels of social deprivation and water stress through donations of Rotoplas products.
- In response to the drought in Mexico, the "Rotogotas de Ayuda" campaign was implemented, allowing customers and the community to collaborate so that Rotoplas can donate water tanks in the most affected states. Participation is possible by purchasing products (every peso helps), creating videos with water-saving tips using the hashtag Rotogotas, and using a filter on social media.
AGUA | PERFORMANCE AND ANALYST COVERAGE
2Q | ||||
2024 | 2023 | %? | ||
AGUA* | Closing Price | 27.27 | 25.51 | 6.9 % |
P/BV | 2.1 x | 2.1 x | 0.0 % | |
EV/EBITDA | 8.3 x | 7.2 x | 15.3 % | |
Treasury shares
As of June 30th, 2024, the Company had 1.6 million shares in the treasury, equivalent to an invested amount of Ps. 155 million. Treasury shares have never been cancelled.
Analyst Coverage
As of June 30th, analysts' coverage was provided by:
Recommendation | PO | |||
BTG Pactual | Felipe Barragán | Neutral | $34.00 | |
[email protected] | ||||
GBM | Regina Carrillo | Buy | $50.00 | |
[email protected] | ||||
SIGNUM / PUNTO | Armando Rodríguez | Buy | $39.00 | |
[email protected] | ||||
Miranda Global Research /ESG | Martín Lara / Marimar Torreblanca | Buy | $46.00 | |
[email protected] | ||||
Apalache | Jorge Pla´cido | Buy | $44.00 | |
[email protected] | ||||
Consensus | Buy | $42.60 | ||
FINANCIAL STATEMENTS | INCOME STATEMENT, BALANCE SHEET AND CASH FLOW
Income Statement
(Unaudited figures, millions of Mexican pesos)
2Q | 6M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Income Statement | Net Sales | 2,972 | 3,004 | (1.1 %) | 5,639 | 5,750 | (1.9 %) |
COGS | 1,582 | 1,640 | (3.6 %) | 2,898 | 3,075 | (5.8 %) | |
Gross Profit | 1,390 | 1,363 | 2.0 % | 2,742 | 2,674 | 2.5 % | |
% margin | 46.8 % | 45.4 % | 140 bps | 48.6 % | 46.5 % | 210 bps | |
Operation Expenses | 1,083 | 930 | 16.5 % | 2,014 | 1,803 | 11.7 % | |
Operating Income | 307 | 433 | (29.1 %) | 728 | 872 | (16.5 %) | |
% margin | 10.3 % | 14.4 % | (410) bps | 12.9 % | 15.2 % | (230) bps | |
Comp. Financing Results | (187) | (439) | (57.4 %) | (250) | (850) | (70.5 %) | |
Financial Income | 35 | 44 | (21.6 %) | 46 | 75 | (39.0 %) | |
Financial Expenses | (221) | (483) | (54.2 %) | (296) | (924) | (68.0 %) | |
Income Before Taxes | 120 | (6) | NA | 477 | 22 | NA | |
Taxes | 60 | 19 | NA | 114 | 9 | NA | |
Net Income | 60 | (24) | NA | 364 | 12 | NA | |
% margin | 2.0 % | (0.8 %) | 280 bps | 6.4 % | 0.2 % | 620 bps | |
EBITDA[2] | 450 | 554 | (18.8 %) | 1,005 | 1,107 | (9.2 %) | |
% margin | 15.1 % | 18.4 % | (330) bps | 17.8 % | 19.3 % | (150) bps | |
Balance Sheet (unaudited figures in millions of Mexican pesos)
June | ||||
2024 | 2023 | %? | ||
Balance Sheet | Cash and Cash Equivalents | 666 | 536 | 24.2 % |
Accounts Receivable | 1,816 | 1,909 | (4.9 %) | |
Inventory | 1,376 | 1,321 | 4.2 % | |
Other Current Assets | 634 | 741 | (14.5 %) | |
Current Assets | 4,491 | 4,507 | (0.4 %) | |
Property, Plant and Equipment - Net | 4,061 | 3,163 | 28.4 % | |
Other Long-term Assets | 4,933 | 4,861 | 1.5 % | |
Total Assets | 13,484 | 12,531 | 7.6 % | |
Short-term Debt | 333 | 189 | 76.6 % | |
Suppliers | 949 | 807 | 17.6 % | |
Other Accounts Payable | 1,041 | 1,111 | (6.3 %) | |
Short-term Liablilities | 2,323 | 2,107 | 10.3 % | |
Long-term Debt | 3,999 | 3,999 | 0.0 % | |
Other long-term Liabilities | 882 | 631 | 39.7 % | |
Total Liablities | 7,204 | 6,737 | 6.9 % | |
Total Stockholders' Equity | 6,281 | 5,794 | 8.4 % | |
Total Liabilities + Stockholders' Equity | 13,484 | 12,531 | 7.6 % | |
Cash Flow (Unaudited figures, millions of Mexican pesos)
6M | ||||
2024 | 2023 | %? | ||
Cash Flow | EBIT | 728 | 872 | (16.5 %) |
Depreciation and Amortization | 276 | 233 | 18.5 % | |
Inventory | (295) | 3 | NA | |
Accounts Receivable | (364) | (376) | (3.4 %) | |
Accounts Payable | 114 | 92 | 23.2 % | |
Other Current Liabilities | 152 | (296) | NA | |
Taxes | (91) | (96) | (5.3 %) | |
Operating Cash Flow | 521 | 432 | 20.8 % | |
CapEx | (236) | (190) | 23.8 % | |
Other Investment Activities | (62) | 60 | NA | |
Investing Cash Flow | (298) | (131) | 127.5 % | |
Dividends | (242) | (235) | 2.9 % | |
Repurchase Fund | 7 | (33) | NA | |
Short and Long-term Debt | 303 | 180 | 68.4 % | |
Interest and Leases | (287) | (267) | 7.2 % | |
Financing Cash Flow | (218) | (356) | (38.7 %) | |
Change in Cash | 5 | (56) | NA | |
Effect of exchange rate on cash | 95 | (81) | NA | |
Net Change in Cash | 100 | (137) | NA | |
Inicial Cash Balance | 566 | 673 | (15.9 %) | |
Final Cash Balance | 666 | 536 | 24.2 % | |
PRESS RELEASES | 2Q24
- Rotoplas informed the investment public that the capital reimbursement, approved at the Annual Ordinary and Extraordinary General Meeting held on April 26, was paid to the shareholders of the Company through S.D. Indeval Institución para el Depósito de Valores. - May 9 th.
- Rotoplas reported on the resolutions of the Annual Ordinary and Extraordinary General Shareholders' Meeting held on April 26, 2024, at 10:00 AM in Mexico City. - April 26 th.
- Rotoplas invited the investment public to its 1Q24 Earnings Conference - April 25 th.
- Rotoplas informed the investment public about the proposals to be presented at the Annual Ordinary and Extraordinary General Shareholders' Meeting to be held on April 26, 2024, at 10:00 AM in Mexico City. - April 4 th.
- For more information, please consult the relevant events section of our website:
https://rotoplas.com/investors/press-releases/
CONTACT DETAILS | INVESTOR RELATIONS
Mariana Fernández | María Fernanda Escobar |
[email protected] | [email protected] |
[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, 19th Floor, Molino del Rey
Miguel Hidalgo
Zip Code 11040, Mexico City
T. +52 (55) 5201 5000
www.rotoplas.com
[1] EBITDA includes donations of Ps. 0.4 million in 2Q24 and Ps. 1.1 million in 6M24. Additionally, it includes donations of Ps. 0.7 million in 2Q23 and Ps. 2.7 million in 6M23.
[2] EBITDA includes donations of Ps. 0.4 million in 2Q24 and Ps. 1.1 million in 6M24. Additionally, it includes donations of Ps. 0.7 million in 2Q23 and Ps. 2.7 million in 6M23.
SOURCE Grupo Rotoplas S.A.B. de C.V.
