| MEXICO CITY, April 23, 2025 /PRNewswire/ -- Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) ("Rotoplas", "the Company"), the leading provider of water solutions in the Americas, today reports its unaudited financial results for the first quarter of 2025. The information has been prepared in accordance with International Financial Reporting Standards (IFRS). Figures are expressed in millions of Mexican pesos. Key Highlights Q1'25 - Net sales of $2.6 billion for Q1'25, a 1.2% decrease compared to the previous year.
- EBITDA of $301 million, with an 11.4% margin.
- Net income was $24 million, with a 0.9% margin.
- Service sales increased by 14.7%, primarily driven by bebbia.
- bebbia exceeded 143,000 active subscribers at the end of the quarter.
Message from the CEO "We began the year with slightly lower sales compared to the same period last year, due to a high comparative base, particularly in Mexico, where the drought began in early 2024. During the quarter, all countries posted growth except for Mexico, with strong performances in the United States and in bebbia within the services segment. E-commerce in Mexico continues to gain traction, supported by strong customer acceptance, while we also strengthened our portfolio with IoT-based solutions for real-time water level monitoring and the launch of the new vertical water tank. Year-over-year comparison against Q1'24 is challenging due to the exceptionally high EBITDA margin recorded in that period. Nevertheless, we delivered sequential improvement versus the previous two quarters, reversing the trend through disciplined cost control and a focus on cash generation—allowing us to improve our net debt position compared to December 2024." — Carlos Rojas Aboumrad Financial Results Q1'25 vs Q1'24 (Figures in millions of Mexican pesos) Indicator | Q1'25 | % YoY | Net Sales | 2,636 | (1.2 %) | Adj. EBITDA[1] | 301 | (45.9 %) | % margin | 11.4 % | (940) bps | Net Result | 24 | (92.3 %) | ROIC | 5.1 % | (890) bps | Net Debt | 3,869 | 8.9 % | Net Debt / EBITDA | 3.1 x | 1.5 x |
Q1'25 vs Q1'24 Results - Net Sales reached $2,636 million, representing a 1.2% decrease, driven by a 2.6% decline in the product segment, which was impacted by a high comparative base in Mexico due to the drought in the central region of the country. In contrast, the services segment grew 14.7%, driven by the strong performance of bebbia, which continues to accelerate its growth pace.
- Gross Profit was $1,117 million, a 17.4% decrease. Gross margin closed at 42.4%, contracting by 830 bps due to higher cost of sales associated with the depreciation of the Mexican peso and lower absorption of fixed costs in Mexico and Argentina.
- Operating Income reached $139 million, a 67.0% decrease compared to Q1'24. This decline was driven by higher cost of sales and an increase in operating expenses. Cost control initiatives contributed to an improvement in expenses as a percentage of sales compared to the previous two quarters.
- EBITDA closed at $301 million, a decrease of 45.9%. The EBITDA margin stood at 11.4%. Excluding severance payments related to the migration from the Anáhuac plant to Ixtapaluca, the margin would have been 13.2%. Despite the year-over-year decline, sequential improvement in EBITDA is observed over the last two quarters.
- Net income was $24 million, a 92.3% decrease. This decline was mainly due to the drop in operating income, along with an increase in financial expenses.
- Net Financial Debt[2] / EBITDA leverage closed at 3.1x. Short- and long-term financial debt increased by 12.4%, and net debt increased by 8.9% year-over-year. However, disciplined management of cash, CapEx, and debt during the quarter helped strengthen the financial position, with a 2.1% sequential reduction in net debt.
- CapEx for the period amounted to $97 million, primarily focused on the growth of services such as bebbia and RSA in Mexico.
Sales and EBITDA by Geography and Solution Q1'25 vs Q1'24 (Figures in millions of Mexican pesos) Sales | Q1'25 | % YoY | Mexico | 1,537 | (9.7 %) | Argentina | 451 | 2.0 % | United States | 280 | 24.9 % | Other | 368 | 23.1 % | Products | 2,380 | (2.6 %) | Services | 255 | 14.7 % | EBITDA | Q1'25 | % YoY | Mexico | 287 | (39.2 %) | Argentina | (22) | NM | United States | (19) | 48.7 % | Other | 55 | 13.0 % | Products | 314 | (48.3 %) | Services | (13) | 74.3 % | EBITDA Margin | Q1'25 | % YoY | Mexico | 18.6 % | (910) bps | Argentina | (4.8 %) | NM | United States | (6.9 %) | 1,000 bps | Other | 15.0 % | (130) bps | Products | 13.2 % | NM | Services | (5.2 %) | NM |
Sales and EBITDA Breakdown by Geography
| Sales | % | EBITDA | % | Mexico | 1,537 | 58 % | 287 | 95 % | Argentina | 451 | 17 % | -22 | -7 % | United States | 280 | 11 % | -19 | -6 % | Others | 368 | 14 % | 55 | 18 % | Total | 2,636 | 100 % | 301 | 100 % |
Mexico - Sales decreased by 9.7%, due to an exceptionally strong first quarter in 2024 driven by drought conditions. In 2025, lower activity in the construction sector and a challenging economic environment have also been observed.
- The nationwide rollout of Tinaco Plus+ was completed, along with the launch of the vertical water tank and the level sensor, which enables real-time water level monitoring in tanks or cisterns from a mobile device.
- The service platform continues to deliver double-digit growth, mainly driven by bebbia and the treatment plants operated under the RSA brand.
- EBITDA was impacted by lower sales volumes in the product segment, as well as by the higher relative weight of the services business within the revenue mix.
Argentina - Sales increased by 2.0%, reflecting a slight recovery compared to the previous quarter. However, the adverse macroeconomic environment—high inflation, competitive pressure, and low consumer confidence—continued to limit business performance.
- Sales volumes in the water flow category have started to show improved momentum. Storage has stabilized, halting the downward trend, while heaters remain the most affected category, although their performance also reflects seasonality, as it is the warm season.
- EBITDA was impacted by dollarized costs and low absorption of fixed costs.
United States - Sales grew by 24.9%, driven by improved commercial and marketing execution, despite weaker activity in residential construction and a soft agricultural environment. The strengthening of the U.S. dollar against the Mexican peso also contributed positively to growth.
- EBITDA was negative but showed an improvement compared to Q1'24, marking progress toward profitability.
Other Countries (Peru, Central America and Brazil) - Sales increased 23.1%, driven by solid growth in all countries:
In Peru, the successful development of the water flow and improvement categories continued.
Central America recorded growth across all countries (Guatemala, Honduras, Nicaragua, Costa Rica, and El Salvador), with strong demand in all three categories.
In Brazil, progress was made in the development of new water treatment plant projects, with a positive growth outlook. - EBITDA showed an improvement, reflecting both higher sales volumes and strict cost control.
Products - Sales contracted due to a high comparative base resulting from the drought in Mexico during 2024, as well as lower demand driven by consumer caution amid macroeconomic uncertainty in the country.
- EBITDA declined due to lower sales volumes in Mexico and the impact of dollarized costs and expenses in Argentina.
Services - Sales increased, driven by the growth of bebbia and treatment plants in Mexico and to a lesser extent by the performance of water treatment and recycling plants in Brazil.
- Although still negative, EBITDA continues to improve significantly thanks to bebbia's increased scale and RSA's sustained growth.
Other Indicators Q1'25 vs Q1'24 (Figures in millions of Mexican pesos) Indicators | Q1'25 | % YoY | Cash and cash equivalents | 766 | 34.3 % | Short Term Debt | 635 | NM | Long Term Debt | 3,999 | 0.0 % | Total Debt | 4,635 | 12.4 % | Net Debt | 3,869 | 8.9 % | CapEx | 97 | (0.2 %) | Change in Working Capital (cash flow) | (9) | (97.5 %) | CCC (days) | 63 | 33 | Comprehensive Financing Result | (116) | 83.2 % |
CapEx - Capital investments represented 3.7% of quarterly sales.
- In line with financial priorities focused on strengthening cash flow, 86% of CapEx was allocated to services in Mexico and Brazil, under a scheme in which investment is made only once a purification customer or a treatment plant contract is secured.
Comprehensive Financing Result - The comprehensive financing result recorded an expense of $116 million, compared to $64 million in Q1'24. The 2025 expense includes $151 million for interest on debt, commissions, and leases, and a $35 million benefit from exchange rate effects and inflation in Argentina.
Derivative Financial Instruments - As of March 31st, 2025, the market value of Grupo Rotoplas' position was:
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| Market Value | Instrument | MXN/USD exchange rate forward | $34.5 millions |
Sustainability Strategy Milestones - Rotoplas Mexico received the Socially Responsible Company distinction for the fifteenth consecutive year.
- The recruitment process was updated by incorporating artificial intelligence tools to enhance the attraction and retention of women in the workforce.
Analyst Coverage Institution | Analyst | Recommendation | Target Price (MXN) | BTG Pactual | Gordon Lee | Neutral | $24.80 | GBM | Regina Carrillo | Buy | $44.00 | Punto Casa de Bolsa | Gerardo Campos | Buy | $18.64 | Miranda Research | Martín Lara | Buy | $31.00 | Apalache | Jorge Plácido | Buy | $31.70 |
| Consensus | Buy | $30.03 |
Investor Conference Call Invite Thursday, April 24, 2025, at 10:00am Mexico City time (12:00pm EST)
Speakers: Carlos Rojas (CEO), Andrés Pliego (CFO)
Link: https://rotoplas.zoom.us/webinar/register/WN_PhnaNC_-QwmL4-Tg-h5Iqw#/registration Financial Statements Income Statement (Unaudited figures in millions of Mexican pesos)
| Q1 |
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| 2025 | 2024 | %Δ | Net Sales | 2,636 | 2,667 | (1.2 %) | COGS | 1,519 | 1,316 | 15.4 % | Gross Profit | 1,117 | 1,352 | (17.4 %) | % margin | 42.4 % | 50.7 % | (830) bps | Operation Expenses | 978 | 931 | 5.0 % | Operating Income | 139 | 421 | (67.0 %) | % margin | 5.3 % | 15.8 % | NM | Comp. Financing Result | (116) | (64) | 83.2 % | Financial Income | 14 | 11 | 31.1 % | Financial Expenses | (131) | (75) | 75.5 % | Income Before Taxes | 22 | 357 | (93.7 %) | Taxes | (1) | 54 | NM | Net Income | 24 | 304 | (92.3 %) | % margin | 0.9 % | 11.4 % | NM | EBITDA1 | 301 | 555 | (45.9 %) | % margin | 11.4 % | 20.8 % | (940) bps | EBITDA2 ex severance package | 349 | 555 | (37.1 %) | % margin | 13.2 % | 20.8 % | (760) bps |
Balance Sheet (Unaudited figures in millions of Mexican pesos)
| March |
|
| 2025 | 2024 | %Δ | Cash and Cash Equivalents | 766 | 570 | 34.3 % | Clients and Other Accounts Receivable | 2,146 | 2,213 | (3.0 %) | Inventory | 1,868 | 1,239 | 50.8 % | Other Current Assets | 201 | 270 | (25.6 %) | Current Assets | 4,981 | 4,292 | 16.1 % | Property, Plant and Equipment - Net | 3,928 | 3,982 | (1.4 %) | Other Long-term Assets | 5,803 | 4,734 | 22.6 % | Total Assets | 14,711 | 13,007 | 13.1 % | Short-term Debt | 635 | 124 | NA | Suppliers and Other Accounts Payable | 2,024 | 1,597 | 26.7 % | Other Current Liabilities | 170 | 248 | (31.3 %) | Short-term Liabilities | 2,830 | 1,969 | 43.7 % | Long-term Debt | 3,999 | 3,999 | 0.0 % | Other long-term Liabilities | 1,354 | 834 | 62.4 % | Total Liabilities | 8,184 | 6,802 | 20.3 % | Total Stockholders' Equity | 6,527 | 6,205 | 5.2 % | Total Liabilities + Stockholders' Equity | 14,711 | 13,007 | 13.1 % |
Cash Flow (Unaudited figures in millions of Mexican pesos)
| January - March |
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| 2025 | 2024 | %Δ | EBIT | 139 | 421 | (67.0 %) | Depreciation and Amortization | 161 | 134 | 20.1 % | Inventory | (64) | (173) | (63.2 %) | Accounts Receivable | 95 | (237) | NM | Accounts Payable | (40) | 49 | NM | Other Current Liabilities | 56 | (54) | NM | Taxes | (33) | (8) | NM | Operating Cash Flow | 314 | 132 | NM | CapEx | (97) | (98) | (0.2 %) | Other Investment Activities | 49 | (15) | NM | Investing Cash Flow | (49) | (113) | (56.9 %) | Dividends | 0 | 0 | NM | Repurchase Fund | (2) | (5) | NM | Short and Long-term Debt | (135) | 8 | NM | Interest and Leases | (84) | (41) | NM | Financing Cash Flow | (221) | (38) | NM | Change in Cash | 44 | (18) | NM | Effect of exchange rate on cash | (10) | 23 | NM | Net Change in Cash | 34 | 4 | NM | Initial Cash Balance | 732 | 566 | 29.4 % | Final Cash Balance | 766 | 570 | 34.3 % |
Investor Relations Contact Mariana Fernández mfernandez@rotoplas.com | María Fernanda Escobar mfescobar@rotoplas.com | agua@rotoplas.com |
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Disclaimer This document may contain forward-looking statements regarding the future performance of Grupo Rotoplas S.A.B. de C.V. These statements are based on current management expectations and information available at the time of publication. Actual results may differ materially due to various risks, uncertainties, and external factors beyond the Company's control. Grupo Rotoplas assumes no obligation to update or revise any forward-looking statements. 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] Adjusted EBITDA includes $1 million in donations. [2] Excluding leases.  View original content to download multimedia:https://www.prnewswire.com/news-releases/rotoplas-first-quarter-2025-results-302436411.html
SOURCE Grupo Rotoplas S.A.B. de C.V. | |
