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Yahoo Finance Plus Rotoplas: Third Quarter 2022 Results
MEXICO CITY, Oct. 19, 2022 /PRNewswire/ -- Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) ("Rotoplas", "the Company"), America's leading company in water solutions, reports its unaudited third quarter 2022 results. The information has been prepared in accordance with the International Financial Reporting Standards (IFRS).
Figures are expressed in millions of Mexican pesos.
HIGHLIGHTS | 3Q22 vs 3Q21
For the second consecutive quarter, Rotoplas reported record net sales, which reached Ps. 3,543 million. Additionally, the Company achieved a sequential and year-over-year recovery in margins.
Net sales increased 23.4%, driven by double-digit growth in Mexico and Argentina.
Gross margin increased by 790 bps, closing at 42.8%, driven by an increase in prices and the sequential recovery in volumes.
Operating income was 2.5x higher than 3Q21, reaching Ps. 482 million, even with the recognition of expenses related to the businesses which are currently under development (Acuantia in the United States, bebbia in Mexico, and water treatment and recycling plants in Brazil).
Adjusted EBITDA[1] increased 59.8% reaching Ps. 582 million with a 16.4% margin. EBITDA was impacted by Ps. 81 million due to the development of new businesses. This figure was Ps. 45 million higher than in 3Q21.
As a result of an operational improvement, net income was 8.6x higher than 3Q21.
ROIC closed at 14.4%, 230 bps above the cost of capital. This was in line with the sustainable economic value creation strategy to maintain a positive environmental and social impact.
In July, AGUA* was once again included in the Mexican Stock Exchange's ESG Index.
HIGHLIGHTS | Cumulative 2022 vs 2021
Net sales reached an all time high of Ps. 9,649 million, an 18.9% increase. This figure is above annual guidance.
Net sales benefited from growth in Mexico, Argentina, and the United States.
Gross margin closed at 41.9%, a 430 bps expansion driven by the strength of leading brands that allowed for sequential price increases.
Operating income was Ps. 1,133 million, a 53.7% increase, despite the recognition of expenses related to the development of new businesses, whose sales are still not enough to cover expenses.
Adjusted EBITDA[1] reached Ps. 1,432 million, a 14.0% increase with a 14.8% margin. The margin contracted 70 bps as a result of the development of new businesses, which impacted EBITDA by Ps. 236 million. This figure was Ps. 133 million higher than 9M21.
As a result of the operating improvement, net income was Ps. 386 million, a 75.4% increase.
Net Debt/ Adj. EBITDA leverage closed at 1.6x and the cash conversion cycle increased by 11 days, ensuring business continuity in an environment of unstable supply chains.
CapEx was Ps. 452 million, which was mainly related to the development of the new product portfolio in Mexico, water treatment and recycling plants in Brazil, and the expansion of manufacturing capacity to meet the growing demand for the Company's solutions.
KEY FIGURES | FINANCIAL DATA
3Q | 9M | ||||||
2022 | 2021 | %Δ | 2022 | 2021 | %Δ | ||
Income Statement | Net Sales | 3,543 | 2,870 | 23.4 % | 9,649 | 8,114 | 18.9 % |
% gross margin | 42.8 % | 34.9 % | 790 bps | 41.9 % | 37.6 % | 430 bps | |
Operating Income | 482 | 190 | NM | 1,133 | 737 | 53.7 % | |
% margin | 13.6 % | 6.6 % | 700 bps | 11.7 % | 9.1 % | 260 bps | |
EBITDA | 582 | 287 | NM | 1,432 | 1,021 | 40.2 % | |
Adjusted EBITDA[1] | 582 | 364 | 59.8 % | 1,432 | 1,256 | 14.0 % | |
% margin | 16.4 % | 12.7 % | 370 bps | 14.8 % | 15.5 % | (70) bps | |
Net Income | 176 | 20 | NM | 386 | 220 | 75.4 % | |
% margin | 5.0 % | 0.7 % | 430 bps | 4.0 % | 2.7 % | 130 bps | |
Balance Sheet | Cash and Cash Equivalents | 996 | 2,166 | (54.0 %) | |||
Total Debt | 4,096 | 4,163 | (1.6 %) | ||||
Net Debt | 3,099 | 1,998 | 55.1 % | ||||
Cash Flow | Operating Cash Flow | 510 | 44 | NM | |||
CapEx | 452 | 378 | 19.7 % | ||||
Working Capital | (606) | (494) | 22.6 % | ||||
Others | Net Debt / Adj. EBITDA | 1.6x | 1.2x | 0.4x | |||
ROIC | 14.4 % | 15.7 % | (130) bps | ||||
Cash Conversion Cycle | 60 | 49 | 11 days | ||||
OPERATING FIGURES | January – September 2022
Employees | 3,428 |
Government transactions | 2.8 % |
E-commerce clients | 22,000 |
bebbia users | 83,000 |
20L water jugs saved | 5 million |
MESSAGE | CEO
Dear Investors,
The third quarter marks another period of record results for Rotoplas. We remain on track to meet our earnings guidance with a cumulative sales growth of 18.9% and an EBITDA margin of 14.8%.
We continue to focus on maintaining a healthy balance between growth and value creation, seeking to reduce risk and maximize profitability through the guidelines set by the Flow Program, which is an essential part of our day-to-day operations. We continue to develop initiatives that will help us face climate change challenges, the evolving demand, and macroeconomic volatility, so that we can quickly adapt to offer the best products and services. bebbia continues to expand and our other developing businesses are improving their growth expectations.
We remain focused on the updating of the traditional business, which generates value for the Company and helps us to maintain a solid balance sheet and a stable cash flow, allowing us to continue looking for innovation and expansion opportunities.
We are convinced that Rotoplas' business model is well supported and will continue to deliver good results in the short and long term. Also, we are prepared to face the challenges that may arise in the remainder of the year and are confident that the business' agility will allow us to continue identifying and taking advantage of opportunities within the fast-growing water industry.
Our human talent and financial strength will continue to be key to create value for our stakeholders and continue fulfilling our mission to provide people with more and better water.
Carlos Rojas Aboumrad
INVITE | EARNINGS CALL
Thursday, October 20st, 10:00am Mexico City Time (11:00am, EST)
Speakers: Carlos Rojas Aboumrad (CEO) and Mario Romero Orozco (CFO)
Link: https://rotoplas.zoom.us/webinar/register/WN_ESY82l8iQc6Ykz6hGE_zxA
Password: 3Q22
GUIDANCE | 2022-2025
During the 1Q22 earnings conference call, the Company updated its 2022 guidance. The modification of the annual earnings guidance does not affect the objectives set in the 2020-2025 Sustainable Growth Strategy.
Metric | Revised Guidance 2022 | Objectives 2025 | |
Guidance | Increase in net sales | ≥ 15% | 2x sales (vs. 2020) |
Adjusted EBITDA Margin | 15.5% - 16.5% | ≥ 20% | |
Net Debt / Adj. EBITDA | ≤ 2.0x | ≤ 2.0x | |
ROIC | ROIC ≥ WACC + 100 bps | ∼ 20% |
SALES AND EBITDA | BY REGION AND SOLUTION
Figures by geographic region (millions of pesos) | |||||||
3Q | 9M | ||||||
2022 | 2021 | %Δ | 2022 | 2021 | %Δ | ||
Mexico | Sales | 1,695 | 1,465 | 15.7 % | 4,825 | 4,320 | 11.7 % |
Adj. EBITDA[1] | 345 | 193 | 78.4 % | 933 | 756 | 23.3 % | |
% Margin | 20.3 % | 13.2 % | 710 bps | 19.3 % | 17.5 % | 180 bps | |
Argentina | Sales | 1,190 | 730 | 63.1 % | 2,781 | 1,801 | 54.4 % |
Adj. EBITDA[1] | 212 | 123 | 72.5 % | 447 | 277 | 61.1 % | |
% Margin | 17.8 % | 16.9 % | 90 bps | 16.1 % | 15.4 % | 70 bps | |
United States | Sales | 378 | 370 | 2.1 % | 1,087 | 989 | 9.9 % |
Adj. EBITDA[1] | 4 | 24 | (82.2 %) | (44) | 66 | NM | |
% Margin | 1.1 % | 6.4 % | (530) bps | (4.1 %) | 6.7 % | NM | |
Others | Sales | 280 | 305 | (8.3 %) | 956 | 1,005 | (4.8 %) |
Adj. EBITDA[1] | 21 | 24 | (15.2 %) | 96 | 156 | (38.2 %) | |
% Margin | 7.4 % | 7.9 % | (50) bps | 10.1 % | 15.5 % | (540) bps | |
Figures by solution (millions of pesos) | |||||||
3Q | 9M | ||||||
2022 | 2021 | %Δ | 2022 | 2021 | %Δ | ||
Products | Sales | 3,430 | 2,743 | 25.1 % | 9,337 | 7,728 | 20.8 % |
Adj. EBITDA[1] | 663 | 388 | 70.6 % | 1,665 | 1,306 | 27.5 % | |
% Margin | 19.3 % | 14.2 % | 510 bps | 17.8 % | 16.9 % | 90 bps | |
Services | Sales | 113 | 127 | (11.4 %) | 312 | 386 | (19.2 %) |
Adj. EBITDA[1] | (81) | (24) | NM | (233) | (50) | NM | |
% Margin | NM | NM | NM | NM | NM | NM | |
Adjusted EBITDA
3Q | 9M | |||||
2022 | 2021 | %Δ | 2022 | 2021 | %Δ | |
EBITDA | 582 | 287 | 102.4 % | 1,432 | 1,021 | 40.2 % |
Flow Implementation Costs | - | 75 | NM | - | 225 | NM |
Donations | - | 1 | NM | - | 9 | NM |
Adj EBITDA[1] | 582 | 364 | 59.8 % | 1,432 | 1,256 | 14.0 % |
Since the second quarter of 2020, we have been recognizing "one-time" expenses for the implementation of the Flow program; and non-recurring expenses that have short- and long-term benefits in revenue, expense, working capital and organizational culture to ensure permanent change. The fourth quarter of 2021 was the last period in which these "one-time" expenses were recognized.
Mexico
Net Sales increased 15.7% vs 3Q21 driven by double-digit growth in products, which offset the weaker performance of the services platform.
Product sales had double-digit growth, driven by a sequential recovery in volume and price increases. Likewise, demand generated by droughts in the Northwest region of the country also supported the increase in sales.
Services sales decreased due to a contraction in the water treatment and recycling plant businesses, which continues to be slow. bebbia kept up its good pace and recorded a double-digit expansion, however, it does not offset the other divisions.
Adjusted EBITDA for the quarter was Ps. 345 million, an increase of 78.4% related to the operational strength in products. The adjusted EBITDA margin for the quarter expanded 710 bps, reaching 20.3% in 3Q22.
Cumulative net sales increased by 11.7%, reaching Ps. 4,825 million driven by product growth, which compensates lower service sales.
On a cumulative basis, adjusted EBITDA was Ps. 933 million, a 23.3% increase, with a 19.3% margin, even when considering the impact of adding new bebbia users and the generalized increase in expenses due to inflation.
The adjusted EBITDA margin was 19.3%, a 180 bps expansion compared to 9M21.
Argentina
Net sales increased by 63.1% vs 3Q21 with record growth in the storage and improvement categories, driven by the pricing strategy and the development of strategic commercial levers.
Cumulative net sales increased by 54.4% driven by the continuous improvement in the commercial and pricing strategy, and synergies between the storage, water flow, and improvement businesses.
Adjusted EBITDA for the quarter reached Ps. 212 million vs Ps. 123 million in 3Q21, a 72.5% increase. Adjusted EBITDA margin closed at 17.8%, a 90 bps expansion due to operating leverage resulting from higher sales growth compared to expense growth.
Cumulative adjusted EBITDA reached Ps. 447 million, an increase of 61.1%, driven by higher expense absorption and improved operating discipline.
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 of the above, in the first nine months of 2022, the impact of the restatement resulted in an increase of Ps. 230 million in financial expense, negatively impacting the Comprehensive Financing Result. After considering taxes, the impact on net income amounted to Ps. 150 million.
United States
Net Sales for the quarter increased 2.1% to reach Ps. 378 million, driven by sales related to government relief programs for droughts, especially in California, as well as the development of the septic business.
Cumulative net sales increased 9.9%, reaching Ps. 1,087 million driven by the e-commerce platform. Likewise, the septic platform once again doubled sales compared to 2021.
Pre-operating expenses from the septic business and technological expenses for the expansion of the e-commerce platform negatively impacted the adjusted EBITDA, resulting in Ps. 4 million in the quarter and negative Ps. 44 million cumulatively. There was a sequential improvement in EBITDA, which turned positive in the third quarter.
Other countries
Net sales from other countries (Peru, Guatemala, El Salvador, Costa Rica, Honduras, Nicaragua, and Brazil) reached Ps. 280 million in the quarter, 8.3% lower than the same period of the previous year. On a cumulative basis, net sales decreased 4.8% vs 9M21.
In Peru, sales were affected by the deterioration of the population's purchasing power and a market contraction. Cumulatively, sales decreased due to a general decline in demand.
In Central America, lower sales were due to a deceleration in all countries in the region, as well as heavy rains and floods that prevented the construction of new projects.
In Brazil, the new legislation promoting the migration from a state-owned to a private water model benefited the project pipeline in the region. In addition, during the period, the construction of new water treatment and recycling plants continued. There was also an improvement of operational and maintenance capabilities.
Adjusted EBITDA reached Ps. 21 million in the quarter and Ps. 96 million on a cumulative basis. The EBITDA margin contracted 50 bps in 3Q22 compared to 3Q21, reaching 7.4% and decreased 540 bps vs 9M21, reaching 10.1%. The margin contraction is related to lower cost absorption due to less sales volume in Peru and Central America, as well as water treatment plant development expenses in Brazil.
ANALYSIS | COSTS AND EXPENSES
Gross Profit
Gross profit for the period increased by 51.1% in the quarter and 32.4% in the first nine months of the year. Likewise, the gross margin increased 790 bps to reach 42.8% in 3Q22 and 430 bps on a cumulative basis to reach 41.9%.
The sequential and year-over-year margin improvement was due to price adjustments and an increase in volumes during the third quarter.
Operating Income
Operating income reached Ps. 482 million in the quarter, a 2.5x increase, with a 700 bps margin expansion to 13.6%.
This expansion was lower than the improvement in the gross margin due to the recognition of expenses related to new businesses; Acuantia in the United States, bebbia in Mexico, and water treatment and recycling plants in Brazil, whose marginal contribution was negative due to the development stage they are in.
On a cumulative basis, operating income increased 53.7% to reach Ps. 1,133 million. Cumulative operating margin was 11.7%, 260 bps higher than in the same period of 2021.
As in the quarter, the improvement in the operating margin was lower than the improvement in gross margin, due to expenses related to new businesses, as well as the reactivation of travel, in-person events, and some marketing strategies that were put on hold during 2021 as a result of the pandemic.
Comprehensive Financing Result
The comprehensive financing result for 3Q22 was an expense of Ps. 237 million compared to an expense of Ps. 162 million in the same period of the previous year. The expense in the quarter considers Ps. 103 million for interest on debt, commissions and leases, Ps. 34 million for the valuation of financial instruments, and Ps. 100 million for the monetary position in Argentina, which was Ps. 85 million higher than 3Q21.
The cumulative comprehensive financing result was an expense of Ps. 586 million vs an expense of Ps. 439 million in 2021. Financial expenses include the payment of interest on the AGUA 17-2X sustainable bond, commissions and leasing for Ps. 296 million, Ps. 66 million for the valuation of financial instruments, and Ps. 224 million for monetary position in Argentina, which was Ps. 179 million higher than 3Q21.
Net Result
The net profit for the quarter was Ps. 176 million compared to Ps. 20 million in 3Q21, 8.6x higher than 3Q21. This expansion is related to the commercial strategy and a generalized improvement in the operating results.
Cumulative net profit was Ps. 386 million, 75.4% higher than the same period of the previous year due to a sequential, year-over-year improvement in the operating margin.
CapEx
9M | ||||||
2022 | % | 2021 | % | %Δ | ||
Mexico | 335 | 74 % | 300 | 79 % | 11.9 % | |
Argentina | 38 | 8 % | 40 | 11 % | (5.0 %) | |
United States | 33 | 7 % | 13 | 3 % | NM | |
Others | 45 | 10 % | 25 | 7 % | 80.7 % | |
Total | 452 | 100 % | 378 | 100 % | 19.7 % | |
Capital investments represented 4.7% of sales during the first nine months of the year, an increase of 19.7% compared to the previous year.
Capital investments include:
Ps. 312 million of investments in new technology to produce storage solutions, and in machinery to increase production capacity for water flow category in Mexico. These are part of the investment in the long-term sustainability of the business, including the design of a new generation of water storage tanks and the increase in piping production capacity.
Ps. 36 million were allocated to water treatment and recycling plants in Brazil and Ps. 4 million in Mexico.
CapEx related to growth initiatives within the Flow program amounted to Ps. 246 million. This includes investments across all countries and in different categories, and/or businesses.
ANALYSIS | BALANCE SHEET
Cash Conversion Cycle (Days)
9M | |||
2022 | 2021 | Δ days | |
Inventory Days | 73 | 64 | 9 |
Accounts Receivable Days | 59 | 72 | (13) |
Accounts Payable Days | 72 | 87 | (15) |
Cash Conversion Cycle | 60 | 49 | 11 |
Inventory Days: Average Inventory / (3M Cost of Sales / 90)
Accounts Receivable Days: Average Accounts Receivable / (3M Sales / 90)
Accounts Payable Days: Average Suppliers / (3M Cost of Sales / 90)
During the period, the cash conversion cycle increased by 11 days, as a result of our strategy focused on securing raw materials supply in an unstable supply chain environment.
Debt
9M | |||
2022 | 2021 | %∆ | |
Total Debt | 4,096 | 4,163 | (1.6 %) |
Short-term Debt | 97 | 165 | (41.2 %) |
Long-term Debt | 3,999 | 3,998 | 0.0 % |
Cash and Cash Equivalents | 996 | 2,166 | (54.0 %) |
Net Debt | 3,099 | 1,998 | 55.1 % |
Debt Maturity Profile
Total debt was Ps. 4,096 million and corresponds to the AGUA 17-2X sustainable bond.
Currency | Amount in MXN | Fixed Rate | Maturity | ||
AGUA 17-2X Bond | Mexican Pesos | 4,096 | 8.65 % | June 2027 | |
FINANCIAL RATIOS
9M | |||
2022 | 2021 | %∆ | |
Net Debt / Adjusted EBITDA[1] | 1.6x | 1.2x | 0.4x |
Interest Coverage Ratio* | 7.4x | 4.2x | 3.2x |
Total Liabilities / Total Stockholders' Equity | 1.0x | 1.1x | (0.1)x |
Net Earnings per Share** | 0.79 | 0.45 | 75.4 % |
*Adjusted EBITDA LTM/interest payments LTM **Net income divided by 486.2 million shares, expressed in Mexican pesos.
Leverage as of the third quarter of 2022 was within the Company's debt guideline of 2.0x Net Debt/Adjusted EBITDA.
ROIC / Cost of Capital
3Q16 | 3Q17 | 3Q18 | 3Q19 | 3Q20 | 3Q21 | 3Q22 | |
ROIC | 7.5 % | 7.6 % | 7.5 % | 9.3 % | 9.8 % | 15.7 % | 14.4 % |
WACC | 12.8 % | 11.1 % | 12.0 % | 12.6 % | 10.7 % | 11.7 % | 12.1 % |
ROIC: NOPAT L12M/Average Invested Capital t, t-1.
Invested Capital: Total Assets – Cash and Cash Equivalents – Short-Term Liabilities.
ROIC excludes Flow program execution costs from 2Q20 to 4Q21 as they are one-off.
ROIC amounted to 14.4% at the end of September, a 130 bps contraction vs the previous year. However, the ROIC remains 230 bps above the cost of capital that increased 40 bps year-over-year.
The creation of sustainable economic value continues to positively impact the Company's stakeholders. Likewise, there was a positive change in the ROIC trend compared to the past few quarters.
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 September 30th, 2022, the market value of Grupo Rotoplas' position was:
Market Value | ||
Instrument | MXN/USD exchange rate forward | Ps. (11.3) million |
ESG | ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Updates regarding sustainability initiatives during the quarter include:
In alliance with Acciona, we supported 25 families in vulnerable situations, and with water shortages in the municipality of San Pedro Quiatoni, Oaxaca, with the installation of rainwater harvesting systems.
The second edition of the Rotoplas-FUNAM Award focused on gender was announced. It seeks to drive and recognize the research work conducted by female UNAM students to promote research on the implementation of the new Mexican Official Standard NOM 001 in the wastewater sanitation field.
Participation of 22 employees in the "Renacer del Suelo" volunteer program to improve air quality in Mexico City.
Workshops and training on diversity and inclusion were given to the administrative staff. Employees had a discussion with Marina Diaz, one of Grupo Rotoplas' Board Members, about the role of women in the Company. A workshop on unconscious bias was also held.
In Argentina, the "Agua en Debate" forum was held. This forum is focused on creating awareness among high school students about the correct use of water through the research of environmental issues, specifically water care. This program impacted 864 students and 47 teachers in 36 different academic institutions.
For more information on our ESG programs, visit our sustainability website:
https://rotoplas.com/sustentabilidad/home-eng/
AGUA* | PERFORMANCE AND ANALYST COVERAGE
3Q | ||||
2022 | 2021 | %∆ | ||
AGUA* | Closing price | 28.80 | 24.33 | 18.4 % |
P/BV | 2.3 x | 2.1 x | 0.2 x | |
EV/EBITDA | 10.4 x | 9.3 x | 1.1 x | |
Source: SiBolsa
Treasury shares:
As of September 30th, 2022, the Company had 12.4 million shares in the treasury, equivalent to an invested amount of Ps. 335 million. To date, no treasury shares have been cancelled.
Analyst Coverage
As of September 30th, 2022, analyst coverage was provided by:
Recommendation | PO | ||
BTG Pactual | Felipe Barragán | Buy | $39.50 |
felipe.barragan@btgpactual.com | |||
GBM | Regina Carrillo | Buy | $48.00 |
rcarrillo@gbm.com | |||
SIGNUM | Alain Jaimes | Buy | $42.22 |
alain.jaimes@signumresearch.com | |||
Miranda Research | Martín Lara / Marimar Torreblanca | Buy | $45.00 |
martin.lara@miranda-gr.com | |||
Apalache | Jorge Plácido | Buy | $40.80 |
jorge.placido@apalache.mx | |||
Consensus | Buy | $43.10 |
TRANSFORMATION PROGRAM | FLOW
In 2019, Rotoplas began the "Flow" transformation program to focus the business on economic value creation and sustainable growth. The strategy is based on initiatives that are divided between three pillars:
A. Profitability of the Current Portfolio
- levers for income, cost, expenditure and working capital
B. Growth Initiatives and Execution
- improve the execution of growth opportunities and capital allocation decisions
C. Organizational Culture and Health
- leadership, operational discipline, talent development, accountability, and organizational climate
Flow has evolved and is part of the culture of innovation and continuous improvement.
FINANCIAL STATEMENTS | Balance Sheet, Income Statement and Cash Flow[6]
Income Statement
(unaudited figures in millions of Mexican pesos)
3Q | 9M | ||||||
2022 | 2021 | %Δ | 2022 | 2021 | %Δ | ||
Income Statement | Net Sales | 3,543 | 2,870 | 23.4 % | 9,649 | 8,114 | 18.9 % |
COGS | 2,028 | 1,867 | 8.6 % | 5,610 | 5,064 | 10.8 % | |
Gross Profit | 1,515 | 1,003 | 51.1 % | 4,039 | 3,050 | 32.4 % | |
% margin | 42.8 % | 34.9 % | 790 bps | 41.9 % | 37.6 % | 430 bps | |
Operating Expenses | 1,033 | 812 | 27.2 % | 2,906 | 2,313 | 25.6 % | |
Operating Income | 482 | 190 | NM | 1,133 | 737 | 53.7 % | |
% margin | 13.6 % | 6.6 % | 700 bps | 11.7 % | 9.1 % | 260 bps | |
Comp. Financing Result | (237) | (162) | 46.7 % | (586) | (439) | 33.7 % | |
Financial Income | 35 | 34 | 1.1 % | 93 | 116 | (19.7 %) | |
Financial Expenses | (272) | (196) | 38.7 % | (679) | (554) | 22.6 % | |
Income Before Taxes | 243 | 29 | NM | 546 | 300 | 81.9 % | |
Taxes | 67 | 8 | NM | 160 | 80 | 99.7 % | |
Net Income | 176 | 20 | NM | 386 | 220 | 75.4 % | |
% margin | 5.0 % | 0.7 % | 430 bps | 4.0 % | 2.7 % | 130 bps | |
Adjusted EBITDA[1] | 582 | 364 | 59.8 % | 1,432 | 1,256 | 14.0 % | |
% margin | 16.4 % | 12.7 % | 370 bps | 14.8 % | 15.5 % | (70) bps | |
Balance Sheet (unaudited figures in millions of Mexican pesos)
9M | ||||
2022 | 2021 | %∆ | ||
Balance Sheet | Cash and Cash Equivalents | 996 | 2,166 | (54.0 %) |
Accounts Receivable | 1,859 | 1,607 | 15.7 % | |
Inventory | 1,792 | 1,424 | 25.8 % | |
Other Current Assets | 617 | 771 | (20.0 %) | |
Current Assets | 5,263 | 5,968 | (11.8 %) | |
Property, Plant and Equipment - Net | 3,242 | 2,485 | 30.4 % | |
Other Long-term Assets | 4,233 | 4,358 | (2.9 %) | |
Total Assets | 12,738 | 12,811 | (0.6 %) | |
Short-term Debt | 97 | 165 | (41.2 %) | |
Suppliers | 968 | 1,039 | (6.8 %) | |
Other Accounts Payable | 787 | 945 | (16.7 %) | |
Short-term Liabilities | 1,853 | 2,149 | (13.8 %) | |
Long-term Debt | 3,999 | 3,998 | 0.0 % | |
Other long-term Liabilities | 633 | 582 | 8.8 % | |
Total Liabilities | 6,484 | 6,729 | (3.6 %) | |
Total Stockholders' Equity | 6,254 | 6,082 | 2.8 % | |
Total Liabilities + Stockholders' Equity | 12,738 | 12,811 | (0.6 %) | |
Cash Flow (unaudited figures in millions of Mexican pesos)
9M | ||||
2022 | 2021 | %Δ | ||
Cash Flow | EBIT | 1,133 | 737 | 53.7 % |
Depreciation | 299 | 284 | 5.3 % | |
Tax | (111) | (128) | (13.2 %) | |
Working Capital | (606) | (494) | 22.6 % | |
Other | (205) | (355) | (42.4 %) | |
Operating Cash Flow | 510 | 44 | NM | |
Operating Cash Flow Conversion (%) | 45.0 % | 5.9 % | NM | |
Net Interest | (206) | (253) | (18.6 %) | |
Dividends | (215) | (206) | 4.4 % | |
CapEx | (452) | (378) | 19.7 % | |
Repurchase Fund | (221) | (237) | (6.7 %) | |
Mergers and Acquisitions | 0 | 1 | NM | |
Short and Long-Term Debt | 0 | (133) | NM | |
Leases[7] | (36) | (41) | (12.4 %) | |
Other | (12) | 277 | NM | |
Net Change in Cash | (632) | (927) | (31.7 %) | |
Initial Cash Balance | 1,629 | 3,092 | (47.3 %) | |
Final Cash Balance | 996 | 2,166 | (54.0 %) | |
PRESS RELEASES | 3Q22
Rotoplas Strengthens its Sustainability Team – September 2nd
AGUA* is included for another year in the sample of the ESG index of the Mexican Stock Exchange (BMV) – July 8th
Extinction of trust F/000116 – July 7th
For more information, please refer to the Relevant Events section on our website: https://rotoplas.com/investors/relevant-events/#1
CONTACT DETAILS | INVESTOR RELATIONS
Mariana Fernández | María Fernanda Escobar |
Forward-Looking Statements
his 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 19 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, Col. Molino del Rey
Miguel Hidalgo
11040, Mexico City
T. +52 (55) 5201 5000
www.rotoplas.com
[1] Adjusted EBITDA considers: operating income plus depreciation and amortization, plus non-recurring expenses (donations and Flow implementation expenses). In 3Q21 it considers Ps. 75 million of Flow expense and Ps. 1 million donations. On a cumulative basis, it considers Ps. 225 million of Flow expenses and Ps. 9 million donations. During 2022, there were no adjustments for Flow expenses, and no donations.
View original content:https://www.prnewswire.com/news-releases/rotoplas-third-quarter-2022-results-301654152.html
SOURCE Grupo Rotoplas S.A.B. de C.V.
