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
|
%Δ
|
2024
|
2023
|
%Δ
|
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 25th,
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
(vs 2020)
|
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
|
%Δ
|
2024
|
2023
|
%Δ
|
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
|
%Δ
|
2024
|
2023
|
%Δ
|
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
|
%Δ
|
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
|
%
|
%Δ
|
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
|
Δ
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
|
%Δ
|
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
|
%Δ
|
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 30th, 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
|
%Δ
|
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
|
|
felipe.barragan@btgpactual.com
|
GBM
|
Regina
Carrillo
|
Buy
|
$50.00
|
|
rcarrillo@gbm.com
|
SIGNUM /
PUNTO
|
Armando
Rodríguez
|
Buy
|
$39.00
|
|
Armando.rodriguez@signumresearch.com
|
Miranda Global
Research /ESG
|
Martín Lara / Marimar
Torreblanca
|
Buy
|
$46.00
|
|
martin.lara@miranda-gr.com
marimar.torreblanca@miranda-partners.com
|
Apalache
|
Jorge
Plácido
|
Buy
|
$44.00
|
|
jorge.placido@apalache.mx
|
|
|
|
|
|
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
|
%Δ
|
2024
|
2023
|
%Δ
|
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
|
%Δ
|
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
|
%Δ
|
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 9th.
- 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
26th.
- Rotoplas invited the investment public to its 1Q24
Earnings Conference - April
25th.
- 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 4th.
- 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
|
mfernandez@rotoplas.com
|
mescobar@rotoplas.com
|
agua@rotoplas.com
|
|
• 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 10th, 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.
View original
content:https://www.prnewswire.com/news-releases/rotoplas-second-quarter-2024-results-302205773.html
SOURCE Grupo Rotoplas S.A.B. de C.V.