Grupo Rotoplas Reports Resilient Q2 Fiscal Performance

Grupo Rotoplas: Second Quarter Financial Highlights

Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) has reported its financial results for the second quarter of 2025, showcasing a resilient performance in a challenging environment. The company, known as a leading water solutions provider in the Americas, has prepared these results in accordance with International Financial Reporting Standards (IFRS).

Key Financial Metrics for the Second Quarter

For Q2 2025, Rotoplas reported net sales of 2.9 billion Mexican pesos, reflecting a slight 0.9% decrease compared to the same quarter last year. Despite a challenging comparative base, the cumulative sales stood at 5.6 billion Mexican pesos, marking a 1.0% decrease from 2024.

In terms of profitability, the company achieved an EBITDA of 369 million Mexican pesos, with a margin of 12.5%. The cumulative EBITDA of 669 million pesos also reflected a margin of 12.0%. It is worth noting that net income for the period was 42 million pesos, corresponding to a 1.4% margin, with a half-year total of 65 million pesos, equivalent to a margin of 1.2%.

Operational Performance and Growth

The services segment experienced a notable increase of 16.7% in sales during the quarter. This growth can largely be attributed to the success of the bebbia service, which surpassed 155,000 active subscribers as of the end of June. This strong performance not only contributes positively to the overall revenue but also signals increasing consumer adoption of innovative solutions offered by Rotoplas.

Insights from the CEO

The CEO of Grupo Rotoplas, Carlos Rojas Aboumrad, highlighted the company’s focus on maintaining disciplined expense management and protecting cash flow amid market challenges. He noted the significance of improvements made in working capital and selective capital expenditure allocation, which resulted in a sequential improvement in the EBITDA margin and a reduction in net debt.

Furthermore, Rojas emphasized the company's commitment to digitalization initiatives, including the growth of its e-commerce channels and expansion of IoT solutions. These strategies have positioned Rotoplas for sustainable growth and a strong financial outlook.

Detailed Review of Quarterly Performance

In Q2 2025, net sales decreased due to a 2.5% decline in the product segment, largely influenced by previous year drought conditions impacting the Mexican market. However, this decline is mitigated by service segment growth and strong international performance, particularly in the United States, where the company achieved profitable growth.

Gross profit for the quarter was 1.2 billion pesos, reporting a gross margin of 41.3%. While this marks a contraction of 550 basis points year-over-year, the challenges facing product sales can also be attributed to decreased volume absorption of fixed costs.

Operational income for Q2 stood at 207 million pesos, reflecting a significant drop of 32.6%. However, the discipline in cost management allowed for a sequential improvement, highlighting Rotoplas' capacity to adapt to changing market conditions.

Cumulative Results and Strategic Directions

Examining the cumulative results for the first half of 2025, net sales reached 5.58 billion pesos, driven by a similar trend observed during the second quarter with a 1.0% decrease. The services segment’s strong 15.8% increase partially offset declines in product sales.

Looking ahead, Grupo Rotoplas continues to prioritize strategic investments in service infrastructure and innovation to capture emerging opportunities within the water solutions sector. The company is keen on enhancing operational efficiencies while ensuring sustainable practices in its business operations.

Conclusion

Despite facing challenges due to environmental factors and macroeconomic conditions, Grupo Rotoplas has showcased a resilient front by managing costs effectively and expanding its service offerings. The company remains committed to its strategy of growth through innovation and operational excellence, setting a strong foundation for future performance.

Frequently Asked Questions

What were the key highlights from Grupo Rotoplas' Q2 2025 results?

Grupo Rotoplas reported a 0.9% decrease in net sales compared to Q2 2024, with total sales of 2.9 billion pesos. EBITDA was 369 million pesos, and net income stood at 42 million pesos.

How did the services segment perform?

The services segment grew by 16.7% in Q2 2025, primarily driven by the growth of the bebbia service.

What challenges did the company face this quarter?

The company faced challenges due to a 2.5% decline in product sales, largely due to high comparative bases set by prior environmental conditions affecting the market.

What measures is Rotoplas taking to ensure future growth?

Grupo Rotoplas is focused on disciplined expense management, capital expenditure optimization, and digitalization initiatives to drive future growth.

Who is the current CEO of Grupo Rotoplas?

The current CEO of Grupo Rotoplas is Carlos Rojas Aboumrad.

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