Mexico City, October 21st. 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 third quarter of 2020 ending September 30th. The information within has been prepared based on International Financial Reporting Standards (IFRS).
Quarterly Results 3Q20 vs 3Q19
(Figures in million Mexican pesos)
- Net sales reached a record in the Company’s history growing 18.1% due to changes in consumption habits and trends that have increased the demand for water and favor online commerce.
All countries reported double-digit sales growth, except Argentina, which maintained the same level of sales as the previous year.- Product sales grew by 20.0%, driven by increased demand for water management solutions and an acceleration of e-commerce sales.
- Services sales fell by 4.0%. There were record sales for bebbia and strong growth for water drinking fountains. However, there was a decrease in Sytesa’s billing as some water treatment and recycling units went from a comprehensive scheme to operation and maintenance only, while the new plants were not able to begin operations due to delays related to mobility restrictions caused by COVID-19.
- Gross profit reached Ps. 981 million and the margin contracted 100 bps due to higher manufacturing costs related to the payment of additional personnel and overtime as a result of health contingency measures.
- Operating income reached Ps. 276 million with an operating margin of 11.7%, lower than 3Q19 due to the recognition of Ps. 75 million in expenses for the execution of the Flow transformation program, the implementation of health protocols of Ps. 7 million and Ps. 4 million in donations related to the sanitary crisis. Without these non-recurring expenses, the margin would have been 15.3% and operating expenses would have grown 14.4%, less than the increase in sales.
- Adjusted EBITDA1 reached Ps. 445 million with a margin of 18.8%. The initiatives that belong to the Flow program contributed with Ps. 131 million, 30% of the EBITDA.
- The net result before discontinued operations was a profit of Ps. 41 million.
- ROIC closed at 9.8%, an improvement of 50 bps compared to the previous year, the lowest gap to the cost of capital in 17 quarters.
- During the quarter, cash increased by Ps. 201 million, with the leverage ratio reaching 0.5x Net Debt/adjusted EBITDA.
- The cash conversion cycle improved by 23 days due to a more efficient working capital management.
1Adjusted EBITDA considers: operating income + depreciation and amortization + non-recurring expenses (donations and Flow implementation expenses). In 3Q20 it considers Ps. 75 million of Flow expense and Ps. 4 million donations and in 3Q19 it considers Ps. 3 million donations.
Miranda Newswire – Full Press Release: Download PDF
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