Mexico City, July 22nd. Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA) (“Rotoplas” or “the Company” or “the Group”), the leading provider of water solutions, products and services, in the Americas, announced today its unaudited financial results for the second quarter of 2020 ending June 30th. The information within has been prepared based on International Financial Reporting Standards (IFRS).
Quarterly Results 2Q20 vs 2Q19
(Figures in million Mexican pesos)
- During the COVID-19 pandemic we have prioritized taking due care of our collaborators, customers, and suppliers, while strengthening the Company’s financial position.
- Net sales grew by 0.7% to reach Ps. 1,904 million, driven by double-digit growth in the United States and Central America, and a 3.2% increase in Mexico. This was due to the change in consumer habits, with water demand up in the face of the confinement caused by the pandemic. These increases offset the lost sales of Ps. 275 million in Argentina, Peru, El Salvador, and Honduras, markets all affected by operating restrictions that impacted up to 72% of business days, as was the case in Peru.
- Product sales amounted to Ps. 1,752 million, showing a highly resilient business model. The water storage category partially offset lower water flow and water improvement sales.
- Services sales grew by 21.8%, as a result of a double-digit increase in the three business lines: water treatment plants, bebbia, and drinking water fountains.
- Gross profit reached Ps. 757 million and the margin contracted 270 bp due to the fixed costs incurred by the temporary closure of the plants and distribution centers.
- Operating income reached Ps. 178 million with an operating margin of 9.3%. Figure lower than 2Q19 due to operating restrictions that impacted by Ps. 74 million the absorption of fixed costs and expenses, as well as expenses related to the implementation of health care measures. Additionally, commercial expenses to drive the service platform and expenses related to the execution of Flow transformation affected earnings.
- Adjusted EBITDA reached Ps. 294 million, a decrease vs 2Q19 mainly impacted by production interruptions and mobility restrictions that it is estimated affected the result by Ps. 83 million.
- The net result before discontinued operations was negative, amounting to Ps. 59 million, as a result of an exchange loss due to a long position in dollars and due to revaluation of foreign currency receivables, in addition to the explained shortfall in operating results.
- ROIC closed at 8.8%, an improvement of 90 bp against that registered in June 2019, consistent with the company’s primary objective of improving returns on capital.
- The leverage ratio stood at 0.6x Net Debt / Adjusted EBITDA.
- The cash conversion cycle was optimized by 16 days due to more efficient working capital management.
- Rotoplas was included in the sample for the “S&P/BMV Total Mexico ESG Index”, launched by the Mexican Stock Exchange (BMV).
- On May 20th, a capital reimbursement to shareholders of $0.80 per share was paid in two equal payments, one in cash and one in Company shares.
- The Sustainability Management System Platform through which the Company’s key ESG indicators can be monitored regularly was launched and can be consulted here: https://rotoplas.com/sustentabilidad/home-eng/
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Investor Relations Contact Details
Mariana Fernández
Tel: +52 (55) 5201 5000 Ext. 50163
E-mail: mfernandez@rotoplas.com
María Fernanda Escobar
Tel: +52 (55) 5201 5000 Ext. 50341
E-mail: mfescobar@rotoplas.com