Rotoplas: Second Quarter 2023 Results

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MEXICO CITY, July 26, 2023 /PRNewswire/ — Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) (“Rotoplas”, “the Company”), America’s leading company in water solutions, reports its unaudited second quarter 2023 results. The information has been prepared in accordance with the International Financial Reporting Standards (IFRS). 

BMV: AGUA (PRNewsFoto/Grupo Rotoplas SAB de CV) (PRNewsfoto/Grupo Rotoplas S.A.B. de C.V.)

Figures are expressed in millions of Mexican pesos.

HIGHLIGHTS | 2Q23 vs 2Q22

  • During the quarter, Rotoplas decided, due to a contraction in some of its markets because of weather conditions and instability in Peru, to focus its efforts on the variables under its control: 1) operating profitability, 2) brands leadership, and 3) new business growth. Achieving good growth in services, an improvement in operating margins, a record EBITDA for a second quarter, and a 460 bps increase in ROIC.
  • Rotoplas reported net sales of Ps. 3,004 million during the quarter, 12.9% lower than in 2Q22, impacted by the performance of the products platform and by the exchange rate translation effect as a result of the strength of the Mexican peso versus other currencies.

    Taking the 2022 exchange rate, and isolating the effect of devaluation in Argentina, the decrease in net sales would have been 7.3%.
    • Product sales decreased 14.3% as a consequence of a high comparative base in Mexico due to the severe drought in the northeast of the country in the previous year. In addition, low demand, accompanied by weather events and the effect of the exchange rate, affected the revenues of foreign subsidiaries.
    • Service sales increased 33.2%, driven by the performance of bebbia, which achieved record subscriptions, as well as by the water treatment and recycling plants business that continued to gain traction.
  • Gross margin closed at 45.4%, a 320 bps expansion vs. 2Q22, as a result of an effective pricing strategy and the decrease in raw material costs.
  • Operating income reached Ps. 433 million, 1.1% higher than in 2Q22, due to the higher gross margin and disciplined expense control.
  • EBITDA increased 4.9%, to reach Ps. 554 million. For the period, the impact of new businesses1 development amounted to Ps. 100 million. The EBITDA margin expanded 310 bps to 18.4%, as a result of a solid gross margin in products and a decrease in the negative EBITDA from the services platform.
  • Net result was a loss of Ps. 24 million, mainly affected by the recognition of Ps. 281 million in financial expenses related to the mark-to-market valuation of MXN/USD exchange rate hedging instruments, as well as foreign exchange losses.
  • ROIC closed at 17.6%, 460 bps higher than in June 2022 and 550 bps above the cost of capital.
  • In May, a capital reimbursement of Ps. 0.45 per outstanding share was paid to shareholders.

HIGHLIGHTS | CUMULATIVE 2023 vs 2022

  • Net sales reached Ps. 5,750 million, 5.8% below the same period of the previous year.

    Taking the 2022 exchange rate and isolating the devaluation effect in Argentina, the decrease in net sales would have been 0.7%.
    • Product sales decreased 7.5% due to the impact of the exchange rate on international operations, as well as lower demand caused by weather-related factors and macroeconomic instability in some countries.
    • Services sales increased 42.9% as a result of bebbia’s growth, as well as the treatment and recycling plants business expansion, and the development of rieggo.
  • Gross margin closed at 46.5%, a 520 bps increase due to our effective commercial strategy, as well as the reduction in raw material costs.
  • Operating income increased 33.9% to Ps. 872 million, as a result of the gross margin improvement and the expense control aligned with sales levels.
  • EBITDA increased 30.3% to reach Ps. 1,107 million, figure in line with guidance in absolute terms. Also, the margin expanded 540 bps, to 19.3%, figure above guidance. For the period, the impact of new businesses2 development amounted to Ps. 187 million.
  • Net income amounted to Ps. 12 million, 94.1% lower than in 2022, mainly due to a 2.4x increase in the financial expenses related to the valuation of derivative instruments, as well as foreign exchange losses.
  • Net Debt/EBITDA leverage closed at 1.6x and the cash conversion cycle increased by 11 days. Also, interest coverage increased by 82.7%.
  • The Company invested Ps. 190 million in CapEx, mainly allocated to the upgrade of the traditional products business to maintain its strength and finance the development of new businesses.

KEY FIGURES | FINANCIAL DATA      



2Q


6M




2023

2022

2023

2022

Income Statement

Net Sales

3,004

3,447

(12.9 %)

5,750

6,107

(5.8 %)

    %gross margin

45.4 %

42.2 %

320 bps

46.5 %

41.3 %

520 bps

Operating Income

433

429

1.1 %

872

651

33.9 %

% margin

14.4 %

12.4 %

200 bps

15.2 %

10.7 %

450 bps

EBITDA3

554

528

4.9 %

1,107

850

30.3 %

% margin

18.4 %

15.3 %

310 bps

19.3 %

13.9 %

540 bps

Net result

(24)

122

NM

12

210

(94.1 %)

% margin

(0.8 %)

3.5 %

(430) bps

0.2 %

3.4 %

(320) bps









Balance

Cash and Cash equivalents

536

1,079

(50.3 %)




Debt with cost

4,187

4,007

4.5 %




Net Debt

3,652

2,928

24.7 %












Cumulative Cash Flow

Operating Cash Flow

432

395

9.2 %




CapEx

190

293

(34.9 %)




Working Capital

(281)

(283)

(0.6 %)












Others

Net Debt / EBITDA

1.6 x

1.6 x

0.0 x




ROIC

17.6 %

13.0 %

460 bps




Cash Conversion Cycle

70

59

11 days




RELEVANT FIGURES I JANUARY – JUNE 2023  

Employees

3,360

Sales Points

>32,000

Government Transactions

3.1 %

e-commerce clients

>5,400

bebbia users

>98,000

20L water jugs saved

12.3 million

MESSAGE | CEO

Dear Investors,

During the quarter, as we observed several external factors that affected the Company’s consolidated revenues, we decided to focus our efforts on the variables that we can control, prioritizing operating profitability over sales growth, without neglecting our market share in the different geographies.

With this, EBITDA increased by 30%, and we have exceeded 3 out of the 4 key targets in our earnings guidance, achieving a better EBITDA margin, higher ROIC and a lower leverage level than stipulated. Additionally, the pricing strategy focused on maintaining the leading position of our brands successfully defended and/or increased our market share.

I would like to highlight the profitability of the products platform, as it has allowed us to continue developing new businesses, including the services platform, which is now growing at a double-digit rate for the third consecutive quarter. Additionally, the service platform is growing in scale, which has helped it to reduce the negative EBITDA.

We continue to invest in upgrading our traditional business while monitoring working capital levels to preserve a healthy cash position. So far this year, the appreciation of the Mexican peso against other currencies has had a mixed effect on our results and cash position, reducing some costs, but affecting consolidated sales and the financial expenses due to the valuation of exchange rate hedges and foreign exchange losses.

As part of the risk management strategy implemented several years ago, we contract annual MXN/USD exchange rate hedges to cover budgeted costs and expenses. This has provided important benefits some years and increased financial expenses in others, nevertheless, in the long term it has helped us maintain the sustainability and continuity of the business.

We are excited to continue working to provide access and sanitation to more people, while putting our best talent to work every day to overcome the challenges that arise in the sector. We expect to close 2023 with the same level of sales as the previous year, however, we estimate to reach an EBITDA margin between 17% – 18% and a ROIC higher than the cost of capital by at least 250 bps.

Carlos Rojas Aboumrad 

INVITATION | EARNINGS CALL

Thursday, July 27, 10:00 am CDMX time (12:00pm, EST

Speakers: Carlos Rojas Aboumrad (CEO) and Mario Romero Orozco (CFO) 

Link : Earnings Call 2Q23 registration link

GUIDANCE | 2023-2025


Metrics

2023

Guidance

2023 Revised

 Guidance (April)

2023 Revised

 Guidance (July)

Objectives

2025

Guidance

Increase in net sales 

> 15%

≥10%

0 %

≥2x sales

(vs 2020)

EBITDA Margin

16.0% – 17.0%

16.0% – 17.0%

17.0% – 18.0%

20%


Net Debt / EBITDA

< 2.0x

< 2.0x

< 2.0x

2.0x


ROIC

ROIC = WACC + 150 bp

ROIC = WACC + 150 bp

ROIC = WACC + 250 bp

∼ 20%

EBITDA  |  BY REGION AND SOLUTION             



2Q


6M




2023

2022

2023

2022

Mexico

Sales

1,541

1,758

(12.3 %)

3,051

3,130

(2.5 %)


EBITDA

431

369

17.0 %

891

588

51.6 %


% Margin

28.0 %

21.0 %

700 bps

29.2 %

18.8 %

1,040 bps









Argentina

Sales

884

950

(6.9 %)

1,520

1,591

(4.4 %)


EBITDA

135

143

(5.7 %)

217

234

(7.5 %)


% Margin

15.3 %

15.1 %

20 bps

14.3 %

14.7 %

(40) bps









United States

Sales

294

377

(22.0 %)

573

709

(19.2 %)


EBITDA

(48)

(29)

65 %

(98)

(48)

103 %


% Margin

(16.2 %)

(7.7 %)

(850) bps

(17.1 %)

(6.8 %)

NM









Others

Sales

284

362

(21.5 %)

605

676

(10.5 %)


EBITDA

35

45

(21.9 %)

97

76

28.1 %


% Margin

12.5 %

12.5 %

NM

16.0 %

11.2 %

480 bps







2Q


6M




2023

2022

2023

2022

Products

Sales

2,862

3,340

(14.3 %)

5,465

5,907

(7.5 %)


EBITDA

618

611

1.3 %

1,217

1,003

21.4 %


Margin

21.6 %

18.3 %

330 bps

22.3 %

17.0 %

530 bps









Services

Sales

142

107

33.2 %

285

199

42.9 %


EBITDA

(64)

(83)

(22.0 %)

(110)

(153)

(27.9 %)


% Margin

(45.3 %)

(77.3 %)

NM

(38.6 %)

(76.6 %)

NM

 

Mexico

Net sales decreased 12.3% during the quarter and 2.5% in the semester.

Product sales were affected by a decrease in revenues in the second quarter due to a high comparative base in 2022 related to the then extreme drought in the northeast region of the country. In addition, the Company maintained a commercial strategy of price adjustments to keep prices competitive in the face of declining raw material costs.

On the other hand, service sales grew double-digit for the third consecutive quarter, driven by bebbia, which generated record subscriptions in the second quarter. Water treatment plants business continues to gain traction and rieggo keeps developing.

EBITDA margin for the quarter increased 700 bps to 28.0% and cumulatively expanded more than 10 percentage points, closing at 29.2%. This was the result of lower raw material costs and a solid pricing strategy, as well as expense control in line with sales performance. In addition, the services platform reduced the impact on EBITDA by reducing its operating loss.

Argentina

Net sales during the quarter decreased 6.9% in Mexican pesos and increased 107.2% in local currency, due to a double exchange effect, on one hand, the Argentine peso depreciated and, on the other hand, the Mexican peso strengthened.

On a cumulative basis, sales decreased 4.4% in Mexican pesos, and increased 103.7% in Argentine pesos.

Growth in local currency was mainly driven by price increases, however, the storage and improvement categories also showed volume growth both in the quarter and on a cumulative basis. Water heater sales volumes were lower than expected during the second quarter due to a milder winter.

In 2Q23, the EBITDA margin closed at 15.3%, a 20 bps expansion due to raw material cost benefits and an effective expense control.

For the first half, the EBITDA margin contracted 40 bps to 14.3% as a result of benefits related to lower raw material prices that had not been recognized in Argentina during the first quarter because of a time lag between the purchase of materials and the recognition of costs.

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 semester of 2023 the impact of the restatement results in an increase of Ps. 124 million in interest expense, negatively impacting the Comprehensive Financing Result. After considering taxes, the impact on net income amounts to Ps. 127 million.

United States

Net sales for the quarter decreased 22.0% in Mexican pesos and 11.7% in US dollars. Cumulatively, sales decreased 19.2% in pesos and 9.8% in local currency.

We observed lower demand for water storage solutions and septic tanks due to the humid weather, reduced activity in the agricultural sector, and a cautious consumer amidst macroeconomic uncertainty. Also, during the same period of the previous year, severe droughts had been experienced.

Agriculture in California and several Midwest states has been affected by sluggish global demand for certain products like almonds, localized flooding, and low commodity prices.

The operational problems caused by the digital platform update that occurred during the first quarter were resolved, however, the high levels of rain and snow that carried through the month of May have reduced the drought and delayed the installation of treatment solutions due to the humidity of the soil. Also, buyers have prioritized spending in other sectors.

Expenses related to the development of the septic tank business and the e-commerce platform upgrades put pressure on EBITDA, which was negative Ps. 48 million for the quarter and negative Ps. 98 million on a cumulative basis.

Other countries

Net sales in other countries (Peru, Guatemala, El Salvador, Costa Rica, Honduras, Nicaragua and Brazil) decreased 21.5% in the quarter and 10.5% in the first half of the year.

Excluding the effect of the appreciation of the Mexican peso, sales would have decreased 11.3% in the quarter and would have been flat on a cumulative basis. 

In Peru, demand has been affected by lower household income and the deterioration of purchasing power due to high inflation levels. In addition, demand for water heaters was impacted by high temperatures during winter.

In Central America, sales decreased in Mexican pesos, but increased in local currency as a result of the commercial strategy of price adjustments with the objective to promote demand in the region.

In Brazil, the portfolio of water treatment and recycling plants continues to expand. Additionally, the legislation promoting the migration to a private model rather than a state-owned model has generated a solid pipeline of projects.

Quarterly EBITDA margin remained at the same level as 2Q22 thanks to expense control efforts. On a cumulative basis, EBITDA margin increased 480 bps, driven by lower raw material costs, disciplined expense control and improved performance in Brazil, which is generating greater scale.

ANALYSIS | COSTS AND EXPENSES     

Gross Profit

Gross profit for the quarter decreased 6.4% and increased 6.0% for the first six months of the year. Margin expanded 320 bps to 45.4% in the quarter and 520 bps to 46.5% in the first six months of the year. This improvement is mainly due to a reduction in raw material costs, as well as an effective pricing strategy in each location.

Operating Income

Operating income reached Ps. 433 million in the quarter, 1.1% higher than in 2Q22, reaching a 14.4% margin, which represents a 200 bps expansion.

On a cumulative basis, operating income increased 33.9%, reaching a 15.2% margin, 450 bps higher than in the previous year. The margin expansion was driven by the gross margin benefit, as well as an efficient expense management in both product and service platforms.

Comprehensive financing result

The comprehensive financing result for 2Q23 resulted in a Ps. 439 million expense compared to a Ps. 195 million expense in the same period of 2022. The expense includes Ps. 100 million for interest on debt, commissions and leases, Ps. 252 million for valuation of financial instruments and Ps. 87 million for foreign exchange losses and inflationary effects in Argentina.

The cumulative comprehensive financing result resulted in an Ps. 850 million expense compared to a Ps. 349 million expense in the same period of 2022. The expense includes Ps. 190 million for interest on debt, commissions and leases, Ps. 504 million for valuation of financial instruments and Ps. 156 million for foreign exchange losses and inflationary effects in Argentina.

Net Result

Net result for the second quarter was a Ps. 24 million loss, compared to a Ps. 122 million profit in the same quarter of the previous year. On a cumulative basis, net profit was Ps. 12 million, compared to Ps. 210 million in the first six months of 2022.

Net income was mainly affected by the increase in financial expenses related to MXN/USD exchange rate hedges to guarantee costs, as well as foreign exchange losses.

CapEx


6M


2023

%

2022

%

Mexico

162

85 %

216

74 %

(25.3 %)

Argentina

20

11 %

33

11 %

(38.3 %)

United States

6

3 %

9

3 %

(28.9 %)

Others

3

1 %

35

12 %

(92.5 %)

Total

190

100 %

293

100 %

(34.9 %)

Capital investments represented 3.3% of sales for the semester, a 34.9% reduction compared to the same period of last year.

 Capital investments include:

  • Ps. 168 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. 14 million for treatment plants in Mexico and Ps. 5 million in Brazil, representing 8% of the total CapEx.
  • CapEx related to the Flow program initiatives amounted to Ps. 82 million.

ANALYSIS | BALANCE SHEET      

Cash Conversion Cycle (Days)


6M



2023

2022

Δ days

Inventory Days

75

69

6

Accounts Receivable Days

74

60

14

Accounts Payable Days

79

70

9

Cash Conversion Cycle

70

59

11

Inventory days: Average Inventories / (Cost of Sales 3M / 90) 

Days Past Due: Average Accounts Receivable / (3M Sales / 90) 

Supplier Days: Average Supplier Days / (Cost of Sales 3M / 90)

During the quarter, the cash conversion cycle increased by 11 days, due to a sales volume reduction in some of the countries where the Company operates.

Debt


6M



2023

2022

Total Debt

4,187

4,007

4.5 %

Short-Term Debt

189

9

NM

Long-term debt

3,999

3,998

0.0 %

Cash and Cash Equivalents

536

1,079

(50.3 %)

Net Debt

3,652

2,928

24.7 %

Debt Maturity Profile

Total debt amounts to Ps. 4,187 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

4,007

Fixed 8.65%

June 16th, 2027

HSBC Working Capital Loan

Mexican pesos

180

TIIE + 0.9%

July 28th, 2023

FINANCIAL RATIOS


6M



2023

2022

Net Debt / EBITDA

1.6 x

1.6 x

0.0 x

Interest coverage*

9.5 x

5.2 x

82.7 %

Total Liabilities / Stockholders’ Equity

1.2 x

1.0 x

0.2 x

Net Income per Share**

0.03

0.43

(94.1 %)

*EBITDA LTM / net interest LTM

**Net income between 486.2 million shares, expressed in Mexican pesos.

During the first half of 2023, the Company has maintained a constant leverage in line with its debt policy, which establishes a ratio of 2.0x Net Debt/EBITDA.

As a result of the operating profitability, the interest coverage ratio improved by 82.7%.

ROIC / Cost of Capital


2Q17

2Q18

2Q19

2Q20

2Q21

2Q22

2Q23

ROIC

6.9 %

7.7 %

7.9 %

8.8 %

16.0 %

13.0 %

17.6 %

WACC

11.8 %

11.5 %

12.6 %

11.5 %

11.5 %

12.4 %

12.1 %

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 17.6%, which represents a 460 bps increase compared to June 2022. In addition, it was 550 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 June 30, 2023, the market value of Grupo Rotoplas’ positions was:



Market Value

Type of Instrument

MXN/USD exchange rate forward

Ps. (228.1) million

ESG | ENVIRONMENTAL, SOCIAL AND GOVERNANCE    

During the quarter, the following progress within the sustainable initiatives and social investment projects stands out:

  • For the sixth consecutive year, Peruvian operations received the Sustainable Management Company Distinction, awarded by the Perú Sostenible organization, in recognition of its commitment and sustainable practices.
  • In June, “Pride Month”, a comprehensive campaign was organized. It included publications, podcasts, lectures with expert speakers and workshops for employees to raise awareness regarding the struggle for equal rights for the LGBTIQ+ community and to promote a culture of tolerance and respect within the Company.
  • The ASEO and Independencia Sostenible projects in Peru focused on providing solutions to social challenges in low-income schools nationwide. Through this collaboration, storage and sanitation solutions were provided, including tanks, pumps and pipelines. In addition, the construction of new sanitary infrastructure with hand-washing facilities and the reforestation of a forest park was accomplished, providing support to the human settlement.

During the quarter, two projects in Argentina stand out:

  • “Mi primer baño” in collaboration with Hábitat para la humanidad Argentina (HPHA) benefited 250 families with storage and sanitation solutions, as well as a dining room that serves 200 children. In addition, sanitation training was given to both HPHA and families in the different neighborhoods.
  • “El Agua en debate”, providing 312 hours of training, including a panel on the importance of water treatment in the industry. The project was carried out through an alliance with Asociación Conciencia, AySA and Xylem, and involved 52 schools, reaching 1,200 students and 100 teachers.

AGUA | PERFORMANCE AND ANALYST COVERAGE    



June




2023

2022

Agua*

Closing price

25.51

24.94

2.3 %


P/BV

        2.1 x

1.9 x

0.2 x


EV/EBITDA

   7.2 x 

8.7 x

(1.6) x

         Source: SiBolsa

Treasury shares:

As of June 30th, 2023, the Company had 16.0 million shares in the treasury, equivalent to an invested amount of Ps. 454 million. Treasury shares have never been cancelled.

Analyst Coverage

As of June 30th, 2023, analyst coverage was provided by: 



Recommendation

TP

BTG Pactual

Felipe Barragan

Buy

$40.60


[email protected]

GBM

Regina Carrillo

Buy

$50.00


[email protected]

SIGNUM

Alain Jaimes

Buy

$42.22


[email protected]

Miranda Research

Martín Lara / Marimar Torreblanca

Buy

$44.00


[email protected]

[email protected]

Apalache

Jorge Placido

Buy

$44.00


[email protected]






                                        Consensus

Buy

$44.16

FINANCIAL STATEMENTS | Balance Sheet, Income Statement  and Cash Flow

Income Statement 

(unaudited figures, millions of Mexican pesos)



2Q


6M




2023

2022

2023

2022

Income Statement

Net Sales

3,004

3,447

(12.9 %)

5,750

6,107

(5.8 %)

COGS

1,640

1,991

(17.6 %)

3,075

3,583

(14.2 %)

Gross Profit

1,363

1,456

(6.4 %)

2,674

2,524

6.0 %

% margin

45.4 %

42.2 %

320 bp

46.5 %

41.3 %

520 bp

Operating Expenses

930

1,027

(9.5 %)

1,803

1,873

(3.7 %)

Operating Income

433

429

1.1 %

872

651

33.9 %

% margin

14.4 %

12.4 %

200 bp

15.2 %

10.7 %

450 bp

Comp. financing result

(439)

(195)

NM

(850)

(349)

NM

Financial Income

44

17

NM

75

58

28.2 %

Financial Expenses

(483)

(212)

NM

(924)

(408)

NM

Income before taxes

(6)

235

NM

22

303

(92.9 %)

Taxes

19

113

(83.7 %)

9

93

(90.2 %)

Net result

(24)

122

NM

12

210

(94.1 %)

% margin

(0.8 %)

3.5 %

 (430) bp

0.2 %

3.4 %

 (320) bp

EBITDA4

554

528

4.9 %

1,107

850

30.3 %

% margin

18.4 %

15.3 %

310 bp

19.3 %

13.9 %

540 bp

Balance Sheet (unaudited figures, millions of Mexican pesos)



6M




2023

2022

Balance Sheet

Cash and Cash Equivalents

536

1,079

(50.3 %)

Accounts Receivable

1,957

1,895

3.3 %

Inventory

1,321

1,507

(12.3 %)

Other Current Assets

753

689

9.3 %

Current Assets

4,567

5,170

(11.7 %)

Property, Plant and Equipment – Net

3,163

3,207

(1.4 %)

Other Long-Term Assets

4,801

4,137

16.0 %

Total Assets

12,531

12,514

0.1 %

Short-Term Debt

189

9

NM

Suppliers

807

847

(4.7 %)

Other Accounts Payable

1,111

792

40.3 %

Short-Term Liabilities

2,107

1,647

27.9 %

Long-term debt with cost

3,999

3,998

0.0 %

Other Long-Term Liabilities

631

600

5.1 %

Total Liabilities

6,737

6,246

7.9 %

Total Stockholders’ Equity

5,794

6,269

(7.6 %)

Total Liabilities + Stockholders’ Equity

12,531

12,514

0.1 %

Cash Flow (unaudited figures, millions of Mexican pesos)



6M




2023

2022

%Δ

Cash Flow

Net result

12

210

(94.1 %)

Adjustments to reconcile net result

796

536

48.3 %

Inventories

3

9

(66.4 %)

Accounts Receivable

(376)

(403)

(6.5 %)

Accounts Payable

92

111

(16.8 %)

Taxes

(96)

(68)

40.2 %

Cash flow from operations

432

395

9.2 %

CapEx

(190)

(293)

(34.9 %)

Other investment activities

60

28

NA

Cash flow from investments

(131)

(264)

(50.5 %)

Dividends

(235)

(215)

9.3 %

Repurchase fund

(33)

(134)

(75.1 %)

Short- and long-term debt

180

0

NA

Interests and leasing

(267)

(271)

(1.3 %)

Cash flow from financing

(356)

(620)

(42.6 %)

Change in Cash

(56)

(489)

(88.7 %)

Exchange rate effect on cash

(81)

(61)

34.2 %

Net Change in Cash

(137)

(550)

(75.1 %)

Initial Cash balance

673

1,629

(58.7 %)

Final Cash Balance

536

1,079

(50.3 %)

PRESS RELEASES | 2Q23    

  • S&P Global Ratings maintains ‘mx AA-‘ rating for Grupo Rotoplas with a stable outlook – June 9 th
  • Payment of capital reimbursement to shareholders – May 09 th
  • Resolutions Ordinary and Extraordinary Annual General Meeting 2023 April 27th

For more information, please consult the relevant events section of our website:        https://rotoplas.com/inversionistas/eventos-relevantes/.

CONTACT DETAILS | INVESTOR RELATIONS

Mariana Fernandez

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 10th, 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 New businesses involve bebbia and rieggo in Mexico, Acuantia in Brazil and Acuantia in the United States. 

2 New businesses involve bebbia and rieggo in Mexico, Acuantia in Brazil and Acuantia in the United States. 

3 EBITDA considers donations of Ps. 0.7 million in 2Q23 and Ps. 2.7 million in 6M23. 

4 EBITDA considers donations of Ps. 0.7 million in 2Q23 and Ps. 2.7 million in 6M23.

 

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SOURCE Grupo Rotoplas S.A.B. de C.V.

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