MEXICO CITY, Oct. 22, 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 third 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 | 3Q24 vs 3Q23
- Net sales closed the quarter at Ps. 2,838 million, 6.0% below 3Q23, due to Argentina's performance amidst the country's economic recession, which could not be offset by growth in other regions. Excluding Argentina, net sales would have increased by 3.9%.
- Product sales decreased by 6.9%, primarily impacted by the macroeconomic situation in Argentina and a slowdown in Mexico caused by heavy rainfall, with monthly precipitation up to 33% higher than the average of the last 10 years. This reduced the demand for storage solutions and limited the ability to offset the impact in Argentina.
- Service sales increased by 8.9%, driven by the continued growth of bebbia, which reached 127,000 subscribers and, in August, launched bebbia SMART, a platform that allows users to check water consumption and quality data from their mobile device.
- Gross profit stood at Ps. 1,179 million, 12.3% lower than in 3Q23. The gross margin decreased by 290 bps, reaching 41.6%, due to lower sales which affected the absorption of fixed costs.
- Operating income stood at Ps. 89 million, a 73.6% decrease compared to 3Q23. Operating expenses increased by 0.7% in absolute terms compared to the previous quarter, with the main impact on margins being the decline in sales. The increase in operating expenses is attributed to higher logistics costs and the development of digital initiatives focused on empowering users with data on water quantity and quality for better management.
- EBITDA closed at Ps. 247 million, 47.3% lower than in 3Q23. The EBITDA margin was 8.7% compared to 15.5% in 3Q23.
- Net result for the quarter was a loss of Ps. 73 million, compared to a profit of Ps. 229 million in 3Q23. This result is largely due to lower sales volumes, which impacted operating income.
HIGHLIGHTS | CUMULATIVE 2024 vs 2023
- Net sales reached Ps. 8,477 million, 3.3% below the same period last year. This result primarily reflects the impact of the economic situation in Argentina and the lack of drought in the United States. Excluding Argentina, net sales would have increased by 7.9%.
- Product sales decreased by 5.9%, impacted by the economic contraction in Argentina, as well as weather conditions and lower agricultural activity in the United States.
- Service sales grew by 42.9%, representing 7.7% of total sales, driven by the expansion of bebbia, strong traction from water treatment plants, and the development of rieggo.
- Gross profit stood at Ps. 3,921 million, decreasing by 2.4%. The gross margin closed at 46.3%, an increase of 50 bps, mainly driven by an effective commercial strategy during the first half of the year.
- Operating income reached Ps. 817 million, 32.3% lower than in 2023. This decrease is due to lower expense absorption, as well as an increase in logistics costs and the development of new digital capabilities to drive the growth of the service platform.
- Accumulated EBITDA closed at Ps. 1,253 million, a decrease of 20.6%. The EBITDA margin stood at 14.8%.
- Net income reached Ps. 291 million, an increase of 20.6% compared to Ps. 241 million the previous year, due to lower financial expenses. Last year, extraordinarily high financial expenses were recorded due to the strength of the Mexican peso, which resulted in a negative valuation of MXN/USD exchange rate hedging instruments.
- ROIC decreased by 740 basis points, closing at 10.3%, 40 bps below the cost of capital.
- Net Debt/EBITDA leverage closed at 2.1x, driven by the decrease in EBITDA over the last 12 months.
- During the period, Ps. 382 million was invested in CapEx, primarily focused on expanding production capacity and modernizing key operational processes to improve efficiency and competitiveness in Mexico.
KEY FIGURES | 3Q24 vs 3Q23
3Q | 9M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Income Statement | Net Sales | 2,838 | 3,020 | (6.0 %) | 8,477 | 8,770 | (3.3 %) |
% gross margin | 41.6 % | 44.5 % | (290) bps | 46.3 % | 45.8 % | 50 bps | |
Operating income | 89 | 335 | (73.6 %) | 817 | 1,207 | (32.3 %) | |
% margin | 3.1 % | 11.1 % | (800) bps | 9.6 % | 13.8 % | (420) bps | |
EBITDA1 | 247 | 470 | (47.3 %) | 1,253 | 1,577 | (20.6 %) | |
% margin | 8.7 % | 15.5 % | (680) bps | 14.8 % | 18.0 % | (320) bps | |
Net Result | (73) | 229 | NM | 291 | 241 | 20.6 % | |
% margin | (2.6 %) | 7.6 % | NM | 3.4 % | 2.7 % | 70 bps | |
Balance | Cash and Cash Equivalent | 616 | 633 | (2.7 %) | |||
Debt with cost | 4,414 | 4,114 | 7.3 % | ||||
Net Debt | 3,798 | 3,481 | 9.1 % | ||||
(Cumulative) Cash Flow | Operating Cash Flow | 733 | 811 | (9.6 %) | |||
CapEx | 382 | 274 | 39.2 % | ||||
Working Capital | (529) | (214) | NM | ||||
Others | Net Debt / EBITDA | 2.1 x | 1.6 x | 0.5 x | |||
ROIC | 10.3 % | 17.7 % | (740) bps | ||||
Cash Conversion Cycle | 49 | 53 | (4) days | ||||
KEY FIGURES | JANUARY - SEPTEMBER
Employees | 3,640 |
Sales points | +32,000 |
Government transactions (% of sales) | 4.0 % |
e-commerce clients | +5,500 |
Bebbia units | +127,000 |
20L water jugs saved | 39.7 million |
MESSAGE | CEO
Dear Investors,
This quarter has presented significant challenges on both the climatic and economic fronts. In Argentina, the economic recovery has been slower than expected, impacting our sales in that market. Additionally, in Mexico, the transition from extreme drought to record rainfall - the heaviest in 80 years during some months - has slowed the growth of our products, affecting our ability to offset the performance in Argentina.
These phenomena underscore the effects of climate change that we are facing, with increasingly frequent extreme weather events such as prolonged droughts, more intense hurricanes, and unpredictable shifts in rainfall patterns. These factors make demand more volatile and harder to predict, forcing us to find new ways to anticipate market cycles, especially in categories like water storage.
Despite these challenges, our services segment continues to perform well. bebbia keeps growing, and in August we launched bebbia SMART. This has been well received in the market, with 25% of new subscriptions in September opting for this new model.
I would like to highlight the four strategic priorities of our business, which continue to guide our decisions: i) Sustainable growth of products, ii) Sustainable development of services, iii) Digitalization of the water ecosystem, and iv) Creating value for all stakeholders.
In terms of profitability, although expenses remained stable, the decline in sales affected our margins. We will be strategic in controlling costs and expenses, as well as investing in digital capabilities to improve efficiency and results.
Looking ahead, we are excited by the support of public policies that promote efficient water use, which is key to our long-term development. Our strategy remains strong, with clear opportunities to create value.
Lastly, I am proud to mention that S&P Ratings has recognized us as one of the five leading ESG companies globally in our industry, reinforcing our commitment to sustainability and long-term positive impact.
Carlos Rojas Aboumrad
INVITE | EARNINGS CALL
Wednesday, October 23 rd, 10:00am Mexico City Time (12:00pm, EST)
Speakers: Carlos Rojas (CEO), Andres Pliego (incoming CFO), Mario Romero (former CFO and Board Member)
Link: https://rotoplas.zoom.us/webinar/register/WN_91ciwNAIRlWMbu1UyDlOQA#/registration
GUIDANCE | 2024-2025
Metric | 2024 Revised Guidance (September) | ||
Guidance | Increase in net sales | (5%) - 0% | |
EBITDA Margin | 14.0% - 15.0% | ||
Net Debt/EBITDA | 2.0x - 2.2x | ||
ROIC | ROIC = WACC - 100/200 bp |
EBITDA | BY REGION AND SOLUTION
3Q | 9M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Mexico | Sales | 1,513 | 1,478 | 2.4 % | 5,046 | 4,529 | 11.4 % |
EBITDA | 243 | 332 | (26.6 %) | 1,148 | 1,223 | (6.1 %) | |
% Margin | 16.1 % | 22.4 % | (630) bps | 22.7 % | 27.0 % | (430) bps | |
Argentina | Sales | 728 | 989 | (26.4 %) | 1,724 | 2,510 | (31.3 %) |
EBITDA | 16 | 169 | (90.7 %) | 106 | 386 | (72.6 %) | |
% Margin | 2.2 % | 17.1 % | NM | 6.1 % | 15.4 % | (930) bps | |
United States | Sales | 292 | 288 | 1.4 % | 777 | 861 | (9.8 %) |
EBITDA | (30) | (55) | (45.6 %) | (99) | (153) | (35.4 %) | |
% Margen | (10.2 %) | (19.0 %) | 880 bps | (12.7 %) | (17.7 %) | 500 bps | |
Others | Sales | 305 | 265 | 14.8 % | 930 | 870 | 6.9 % |
EBITDA | 18 | 24 | (24.2 %) | 97 | 121 | (19.7 %) | |
% Margin | 6.0 % | 9.0 % | (300) bps | 10.4 % | 13.9 % | (350) bps | |
3Q | 9M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Products | Sales | 2,649 | 2,847 | (6.9 %) | 7,823 | 8,312 | (5.9 %) |
EBITDA | 352 | 573 | (38.5 %) | 1,488 | 1,790 | (16.9 %) | |
% Margin | 13.3 % | 20.1 % | (680) bps | 19.0 % | 21.5 % | (250) bps | |
Servicies | Sales | 189 | 173 | 8.9 % | 654 | 458 | 42.9 % |
EBITDA | (105) | (103) | 1.6 % | (235) | (213) | 10.4 % | |
% Margin | (55.5 %) | (59.5 %) | 400 bps | (36.0 %) | (46.5 %) | NM | |
Sales and EBITDA Breakdown by Country
9M24 | % | 9M23 | % | |
Sales | ||||
Mexico | 5,046 | 60 % | 4,529 | 52 % |
Argentina | 1,724 | 20 % | 2,510 | 29 % |
United States | 777 | 9 % | 861 | 10 % |
Other | 930 | 11 % | 870 | 10 % |
Total | 8,477 | 100 % | 8,770 | 100 % |
EBITDA | ||||
Mexico | 1,148 | 92 % | 1,223 | 78 % |
Argentina | 106 | 8 % | 386 | 24 % |
United States | (99) | -8 % | (153) | -10 % |
Other | 97 | 8 % | 121 | 8 % |
Total | 1,252 | 100 % | 1,577 | 100 % |
Mexico
During 3Q24, net sales in Mexico increased by 2.4%, while on a cumulative basis, while on a cumulative basis they rose by 11.4%, driven by growth in both products and the service platform.
In the quarter, heavy rainfall reduced the demand for water storage products and slowed down construction, affecting the demand for water management solutions.
The service platform continues to grow, with bebbia showing strong performance, supported by the launch of bebbia SMART, an intelligent water purification system that allows users to monitor water consumption and quality through an app.
The EBITDA margin for the quarter contracted by 630 bps, standing at 16.1%, while on a cumulative basis, it contracted by 430 bps, reaching 22.7%. This contraction is due to higher operating costs, particularly in logistics and digital initiatives aimed at upgrading the product business and driving service growth.
Argentina
Net sales for the quarter decreased by 26.4% in Mexican pesos, while in local currency, they grew by 98%, reflecting the impact of devaluation and inflation. Despite this adverse context, a slight recovery in sales volumes was recorded compared to the immediate previous quarter, suggesting early signs of improvement.
The economic recession affected demand across all categories, and competitive pressure limited the ability to adjust prices in response to inflation. Competitors implemented aggressive strategies to increase revenue and reduce inventories.
Lower absorption of fixed costs and expenses impacted margins. In 3Q24, the EBITDA margin closed at 2.2%, compared to 17.1% in 3Q23, while on a cumulative basis, it contracted by 930 bps, closing at 6.1%
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 restatement resulted in a decrease of Ps. 27 million in financial expenses, benefiting the Comprehensive Financing Result. After considering taxes, the benefit in net profit amounts to Ps. 11 million.
United States
During the third quarter, net sales increased by 1.4%, while on a cumulative basis, they decreased by 9.8%. The lower demand for storage solutions was mainly due to wetter weather conditions and a slowdown in the agricultural sector.
Thanks to the cost containment strategy, negative EBITDA was reduced by 45.6% during the quarter and by 35.4% in the first nine months of the year. Although the EBITDA margin remains negative, it is showing continuous improvement.
Other countries
Net sales in other countries (Peru, Guatemala, El Salvador, Costa Rica, Honduras, Nicaragua and Brazil) increased by 14.8 % in the quarter and 6.9% over the nine-month period.
In Peru , sales increased in 3Q24 despite the challenging macroeconomic environment, driven by higher sales volumes in the storage and waterflow categories. However, the strongest growth was seen in the water heater category, where demand was particularly high, favored by a colder winter.
Central America showed solid sales growth, driven by the strong performance in Costa Rica and Guatemala, as well as increases across the three key categories: storage, waterflow, and improvement. More effective commercial discipline has been a key factor in maintaining this momentum.
In Brazil , the portfolio of water treatment and recycling plant projects continues to demonstrate steady growth in Bookings, with an increasingly diverse client base.
The EBITDA margin decreased by 300 bps in the quarter and by 350 bps cumulatively, closing at 6.0% and 10.4%, respectively. This reduction was primarily due to the increase in operating costs, particularly in logistics and distribution expenses, as well as the costs related to the development of the treatment plant business in Brazil.
ANALYSIS | COSTS AND EXPENSES
Gross Profit
The gross profit for the quarter decreased by 12.3%, reaching Ps. 1,179 million, while over the last nine months it declined by 2.4%, reaching Ps. 3,921 million. The margin contracted by 290 bps, standing at 41.6% during the quarter, but expanded by 50 bps on a cumulative basis, reaching 46.3%.
The quarterly contraction was due to lower sales, which impacted the absorption of fixed costs. However, the cumulative expansion was a result of greater operational efficiency in manufacturing processes and an effective commercial strategy during the first half of the year.
Operating Income
The operating profit reached Ps. 89 million, with a margin of 3.1%, representing a 73.6% decrease compared to 3Q23. On a cumulative basis, operating income was Ps. 817 million, with a margin of 9.6%, reflecting a contraction of 420 bps compared to the previous year.
This reduction in margins was mainly due to lower sales, higher logistics costs, and increased expenses related to the development of digital initiatives, which are aimed at strengthening the company's future competitiveness.
Comprehensive Financing Result
The comprehensive financing result for the third quarter of 2024 recorded an expense of Ps. 189 million, compared to Ps. 90 million in 3Q23. The 2024 expense includes Ps. 117 million for interest on debt, commissions, and leases, and Ps. 72 million due to exchange rate effects and inflation in Argentina.
The cumulative comprehensive financing result was an expense of Ps. 439 million compared to an expense of Ps. 940 million in the same period of 2023. The 2024 expense includes Ps. 347 million for interest on debt, commissions, and leases, and Ps. 92 million due to exchange rate effects and inflation in Argentina.
In 2024, the accounting method for recording hedging was modified; the effects of the MXN/USD hedging are now recorded along with costs rather than within the Comprehensive Financing Result (RIF in Spanish), thus influencing the gross margin.
The following table breaks down the effect of exchange rate hedging on the gross margin in 2023 and 2024.
9M | |||
2024 | 2023 | %? | |
Sales | 8,477 | 8,770 | (3.3 %) |
Cost of Sales | 4,556 | 4,750 | (4.1 %) |
MXN/USD Hedging Effect | 7 | (384) | NM |
Gross Margin without Hedging Impact | 46.3 % | 45.8 % | 50 bps |
Gross Margin with Hedging Impact | 46.3 % | 41.4 % | 480 bps |
Net Result
Net result in the third quarter was a net loss of Ps. 73 million, compared to a net income of Ps. 229 million in 3Q23. However, on a cumulative basis, net income was Ps. 291 million, surpassing the Ps. 241 million recorded in the first nine months of 2023.
The quarterly loss is mainly explained by the contraction in operating margins due to lower sales, which did not cover financial costs. On a cumulative basis, the improvement is largely due to the reduction in financial expenses, as in 2023, exceptionally high expenses were recorded due to the appreciation of the Mexican peso, which resulted in a negative valuation of the MXN/USD hedging instruments.
CapEx
9M | |||||
2024 | % | 2023 | % | %? | |
Mexico | 350 | 92 % | 226 | 82 % | 54.6 % |
Argentina | 28 | 7 % | 35 | 13 % | (20.4 %) |
United States | 0 | 0 % | 7 | 3 % | (97.6 %) |
Others | 4 | 1 % | 6 | 2 % | (30.1 %) |
Total | 382 | 100 % | 274 | 100 % | 39.2 % |
Capital investments represented 4.5% of quarterly sales over the nine-month period and showed a 39.2% increase compared to the same period last year.
Capital investments include:
- In Mexico, we continue with the technological upgrade of our plants for the manufacturing of storage solutions, as well as the construction of the Ixtapaluca plant, which will improve production capacity and operational efficiency. Additionally, the CapEx includes Ps. 90 million allocated to bebbia and Ps. 29 million for treatment plants.
- In Argentina, capital investments have focused on optimizing the waterflow plant and operational improvements to address economic challenges.
- Others mainly represents the investment for treatment plants in Brazil.
ANALYSIS | BALANCE SHEET
Cash Conversion Cycle (Days)
9M | |||
2024 | 2023 | ? days | |
Inventory Days | 81 | 71 | 10 |
Accounts Receivale Days | 69 | 60 | 9 |
Accounts Payable Days | 101 | 78 | 23 |
Cash Conversion Cycle | 49 | 53 | (4) |
Inventory Days: Average 3M Inventory / (3M Cost of Sales / 90)
Accounts Receivable Days: Average 3M Accounts Receivable / (3M Sales / 90)
Accounts Payable Days: Average 3M Suppliers / (3M Cost of Sales / 90)
During the quarter, we maintained a strong focus on managing working capital.
Debt
9M | |||
2024 | 2023 | %? | |
Total Debt | 4,414 | 4,114 | 7.3 % |
Short-term Debt | 415 | 115 | NA |
Long-term Debt | 3,999 | 3,999 | 0.0 % |
Cash and Cash Equivalents | 616 | 633 | (2.7 %) |
Net Debt | 3,798 | 3,481 | 9.1 % |
Debt Maturity Profile
Total debt increased to Ps. 4,414 million and corresponds to the AGUA 17-2X sustainable bond, as well as short-term loans for working capital. The combined cost of debt is 8.8%.
Currency | Amount in MXN | Rate | Maturity | |
AGUA 17-2X Sustainable Bond | Mexican Pesos | 4,099 | Fixed 8.65% | June 16, 2027 |
HSBC Working Capital Loan | Mexican Pesos | 295 | TIIE +.9% | December 3, 2024 |
Citi Working Capital Loan | U.S. Dollars | 20 | SOFR + 2.35% | July 26, 2024 |
Financial Ratios
9M | |||
2024 | 2023 | %? | |
Net Debt / EBITDA | 2.1 x | 1.6 x | 0.5 x |
Interest covarage* | 6.9 x | 8.6 x | (19.8 %) |
Total Liabilities / Total Stockholders' Equity | 1.2 x | 1.1 x | 0.1 x |
Net Earnings per Share** | 0.60 | 0.50 | 20.6 % |
* EBITDA LTM/ net interest LTM
**Net income divided by 486.2 million shares, expressed in Mexican pesos.
At the end of the third quarter of 2024, leverage is above the Company's internal debt limit, which sets a maximum of 2.0x Net Debt/EBITDA. It is important to highlight that this is an internal guideline, not a contractual restriction or covenant, and the issuer expects to return to levels below 2.0x in the short term.
ROIC & Cost of Capital
3Q17 | 3Q18 | 3Q19 | 3Q20 | 3Q21 | 3Q22 | 3Q23 | 3Q24 | |
ROIC | 7.6 % | 7.5 % | 9.3 % | 9.8 % | 15.7 % | 14.4 % | 17.7 % | 10.3 % |
WACC | 11.1 % | 12.0 % | 12.6 % | 10.7 % | 11.7 % | 12.1 % | 12.4 % | 10.7 % |
ROIC: NOPAT (L12M) / Average Invested Capital (L12M monthly)
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 10.3%, decreasing by 740 bps compared to the same quarter of the previous year and is 40 basis points below 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 September 30 th, 2024, the market value of Grupo Rotoplas' position was:
Market Value | ||
Instrument | MXN/USD exchange rate forward | Ps. 46.94 millon |
ESG | ENVIORMENTAL, SOCIAL AND GOVERNANCE
During the quarter, the following progress in sustainable initiatives stood out:
- Rotoplas published its first Environmental Product Declaration (EPD) for the Tinaco Plus+ 1,100L, sharing its environmental footprint throughout its lifecycle. Having an EPD is important as it provides a transparent and quantified assessment of a product's environmental impact at every stage, from material extraction to final disposal. This tool is key in facilitating sustainable decision-making by consumers.
- Rotoplas' emission reduction targets were approved by the SBTi (Science Based Targets initiative), committing to a 42% reduction in scope 1 and 2 emissions, and a 25% reduction in scope 3 emissions by 2030.
- In collaboration with JP Morgan, Rotoplas published its SDID (Sustainable Development Impact Disclosure) Report, becoming the first company in Latin America and the second globally to disclose how its strategy aligns with the UN Sustainable Development Goals.
- Rotoplas improved its Corporate Sustainability Assessment (CSA) 2024 score by 2 points from S&P Ratings, placing it among the top 5 companies globally in its industry.
- Through the Rotogotas de Ayuda Campaign, 1,462 water tanks were donated across 7 Mexican states (Chihuahua, Oaxaca, Nuevo Leon, Tamaulipas, Chiapas, Guanajuato, and Estado de Mexico), benefiting more than 16,000 people affected by the extreme drought in 2024.
- In collaboration with Coca-Cola FEMSA, The Coca-Cola Foundation, and Isla Urbana, Rotoplas launched the "Escuelas con Agua" program, which aims to install rainwater harvesting systems in schools across Mexico.
AGUA | PREFROMANCE AND ANALYST COVERAGE
September | ||||
2024 | 2023 | %? | ||
AGUA* | Closing Price | 23.55 | 25.11 | (6.2 %) |
P/BV | 1.8 x | 2.1x | (0.3) x | |
EV/EBITDA | 8.8 x | 7.7 x | 1.1 x | |
Treasury shares
As of September 30th, 2024, the Company had 2.2 million shares in the treasury, equivalent to an invested amount of Ps. 56 million. Treasury shares have never been cancelled.
Analyst Coverage
As of September 30th, 2024, analysts' coverage was provided by:
Recommendation | PO | |||
BTG Pactual | Felipe Barragán | Neutral | $29.00 | |
[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 | $44.00 | |
[email protected] | ||||
Apalache | Jorge Pla´cido | Buy | $44.00 | |
[email protected] | ||||
Consensus | Buy | $41.20 | ||
FINANCIAL STATMENTS | INCOME STATMENT, BALANCE SHEET AND CASH FLOW
Income Statement
(Unaudited figures, millions of Mexican pesos)
3Q | 9M | ||||||
2024 | 2023 | %? | 2024 | 2023 | %? | ||
Income Statement | Net Sales | 2,838 | 3,020 | (6.0 %) | 8,477 | 8,770 | (3.3 %) |
COGS | 1,658 | 1,675 | (1.0 %) | 4,556 | 4,750 | (4.1 %) | |
Gross Profit | 1,179 | 1,345 | (12.3 %) | 3,921 | 4,019 | (2.4 %) | |
% margin | 41.6 % | 44.5 % | (290) bps | 46.3 % | 45.8 % | 50 bps | |
Operation Expenses | 1,091 | 1,010 | 8.0 % | 3,105 | 2,813 | 10.4 % | |
Operating Income | 89 | 335 | (73.6 %) | 817 | 1,207 | (32.3 %) | |
% margin | 3.1 % | 11.1 % | (800) bps | 9.6 % | 13.8 % | (420) bps | |
Comp. Financing Results | (189) | (90) | NA | (439) | (940) | (53.3 %) | |
Financial Income | 44 | 33 | 33.9 % | 89 | 107 | (16.9 %) | |
Financial Expenses | (232) | (123) | 89.2 % | (528) | (1,047) | (49.5 %) | |
Income Before Taxes | (100) | 244 | NM | 377 | 266 | 41.8 % | |
Taxes | (27) | 16 | NM | 86 | 25 | NM | |
Net Income | (73) | 229 | NM | 291 | 241 | 20.6 % | |
% margin | (2.6 %) | 7.6 % | NM | 3.4 % | 2.7 % | 70 bps | |
EBITDA2 | 247 | 470 | (47.3 %) | 1,253 | 1,577 | (20.6 %) | |
% margin | 8.7 % | 15.5 % | (680) bps | 14.8 % | 18.0 % | (320) bps | |
Balance Sheet (unaudited figures in millions of Mexican pesos)
September | ||||
2024 | 2023 | %? | ||
Balance Sheet | Cash and Cash Equivalents | 616 | 633 | (2.7 %) |
Accounts Receivable | 1,792 | 1,686 | 6.3 % | |
Inventory | 1,623 | 1,323 | 22.7 % | |
Other Current Assets | 582 | 671 | (13.2 %) | |
Current Assets | 4,613 | 4,313 | 7.0 % | |
Property, Plant and Equipment - Net | 4,234 | 3,139 | 34.9 % | |
Other Long-term Assets | 5,529 | 4,868 | 13.6 % | |
Total Assets | 14,376 | 12,320 | 16.7 % | |
Short-term Debt | 415 | 115 | NM | |
Suppliers | 1,036 | 853 | 21.4 % | |
Other Accounts Payable | 1,125 | 842 | 33.7 % | |
Short-term Liablilities | 2,576 | 1,810 | 42.3 % | |
Long-term Debt | 3,999 | 3,999 | 0.0 % | |
Other long-term Liabilities | 1,287 | 624 | NM | |
Total Liablities | 7,862 | 6,432 | 22.2 % | |
Total Stockholders' Equity | 6,514 | 5,888 | 10.6 % | |
Total Liabilities + Stockholders' Equity | 14,376 | 12,320 | 16.7 % | |
Cash Flow (Unaudited figures, millions of Mexican pesos)
9M | ||||
2024 | 2023 | %? | ||
Cash Flow | EBIT | 817 | 1,207 | (32.3 %) |
Depreciation and Amortization | 431 | 364 | 18.6 % | |
Inventory | (461) | (129) | NM | |
Accounts Receivable | (259) | (247) | 5.0 % | |
Accounts Payable | 191 | 162 | 18.2 % | |
Other Current Liabilities | 137 | (425) | NM | |
Taxes | (123) | (120) | 2.6 % | |
Operating Cash Flow | 733 | 811 | (9.6 %) | |
CapEx | (382) | (274) | 39.2 % | |
Other Investment Activities | (143) | 89 | NM | |
Investing Cash Flow | (524) | (185) | NM | |
Dividends | (242) | (235) | NM | |
Repurchase Fund | (7) | (52) | NM | |
Short and Long-term Debt | 295 | 17 | NM | |
Interest and Leases | (359) | (316) | 13.6 % | |
Financing Cash Flow | (313) | (587) | (46.6 %) | |
Change in Cash | (105) | 40 | NM | |
Effect of exchange rate on cash | 155 | (80) | NM | |
Net Change in Cash | 50 | (40) | NM | |
Inicial Cash Balance | 566 | 673 | (15.9 %) | |
Final Cash Balance | 616 | 633 | (2.7 %) | |
PRESS RELEASES | 3Q24
- Rotoplas informed the investment public that it is the first company in the region to publish its Sustainable Development Impact Disclosure (SDID). - September 23 rd.
- Rotoplas informed the investment public about the initiation of the transition process for its new CFO. - September 2 nd.
- Rotoplas informed the investment public that it has obtained validation of its emission reduction targets from the SBTi. - August 29 th.
- Rotoplas reported an improvement in its S&P CSA score and announced that it remains listed in the BMV ESG index. - August 22 nd.
- Rotoplas informed the investment public about the ratification of the independent external audit firm. - August 9 th.
- Rotoplas invited the investment public to its 2Q24 Earnings Conference Call. - July 25 th.
- Rotoplas informed the investment public that S&P Global Ratings affirmed its 'mx AA-' rating with a stable outlook. - July 4 th.
- For more information, please consult the relevant events section of our website: https://rotoplas.com/inversionistas/eventos-relevantes/
CONTACT DETAILS | INVESTOR RELATIONS
Mariana Fernández Maria 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. 4.0 million in 3Q24 and Ps. 5.1 million in 9M24. Additionally, it includes donations of Ps. 4.2 million in 3Q23 and Ps. 6.9 million in 9M23.
2 EBITDA includes donations of Ps. 4.0 million in 3Q24 and Ps. 5.1 million in 9M24. Additionally, it includes donations of Ps. 4.2 million in 3Q23 and Ps. 6.9 million in 9M23.
SOURCE Grupo Rotoplas S.A.B. de C.V.
