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Grupo Rotoplas SAB de CV

Rotoplas: Second Quarter 2025 Results

MEXICO CITY , July 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 second quarter of 2025. The information has been prepared in accordance with International Financial Reporting Standards (IFRS). 

BMV: AGUA

Figures are expressed in millions of Mexican pesos.

Key Highlights Q2'25

  • Net sales were $2.9 billion, a 0.9% decrease compared to Q2'24. On a cumulative basis, net sales reached $5.6 billion, a 1.0% decrease compared to 2024.
  • EBITDA of $369 million, with a 12.5% margin. The cumulative EBITDA was $669 million, with a cumulative margin of 12.0%.
  • Net income was $42 million, with a 1.4% margin. In the first half of the year, net income was $65 million, with a margin of 1.2%.
  • Service sales increased by 16.7% during the quarter and by 15.8% in the first half of the year, primarily driven by bebbia.
  • bebbia exceeded 155,000 active subscribers at the end of June.

Message from the CEO

"We started the second quarter aware of the challenging comparative base we would face due to the 2024 drought in Mexico. Even so, we delivered stable results: sales were nearly in line with the previous year, reflecting solid performance across our operations, particularly outside Mexico. Notably, the United States stood out, where we achieved profitable growth, undoubtedly marking an important step forward for the Company.

In the services segment, sustained growth and EBITDA margin improvement stood out, confirming our progress toward a more balanced and resilient business model.

We remain focused on improving the factors within our control, such as disciplined expense management and protecting cash flow. In this regard, we succeeded in reducing expenses as a percentage of sales, optimizing working capital, and maintaining a selective approach to CapEx allocation. These efforts are reflected in sequential improvement in EBITDA margin and a reduction in net debt compared to the previous quarter.

We continue advancing in digitalization, with our e-commerce channel in Mexico meeting expectations and the expansion of IoT solutions. We closed the quarter with sequential operational improvement and a stronger financial position."

— Carlos Rojas Aboumrad

Results January – June
 (Figures in millions of Mexican pesos)

Indicator

Q2'25

Q2'24

%YoY

6M'25

6M'24

%YoY

Net Sales

2,945

2,972

(0.9 %)

5,580

5,639

(1.0 %)

Adjusted EBITDA1

369

450

(18.1 %)

669

1,005

(33.4 %)

% margin

12.5 %

15.1 %

(260) bps

12.0 %

17.8 %

(580) bps

Net Result

42

60

(30.9 %)

65

364

(82.1 %)

ROIC2

5.2 %

12.7 %

(750) bps


Net Financial Debt3

3,753

3,667

2.3 %


Net Financial Debt / EBITDA2

3.2 x

1.8 x

1.4 x


 

Q2'25 vs Q2'24 Results

  • Net Sales  reached $2,945 million, 0.9% below Q2'24, driven by a 2.5% decline in the product segment, which, despite solid growth in the United States and other countries, was not enough to offset the contraction recorded in Mexico, which faced a high comparative base due to the 2024 drought in the central region of the country. In contrast, the services segment grew 16.7%, driven by the strong performance of bebbia and the growth of RSA Mexico.
  • Gross profit was $1,217 million. Gross margin closed at 41.3%, contracting by 550 bps due to lower product sales in Mexico and Argentina, which affected the absorption of fixed costs.
  • Operating income reached $207 million, down 32.6% compared to Q2'24. The decline was mainly due to a weaker gross margin, which more disciplined expense control could not fully offset—even though expenses remained lower as a percentage of sales.  However, operating income showed a positive sequential trend, increasing 49.1% compared to the previous quarter.
  • EBITDA closed at $369 million, and the EBITDA margin stood at 12.5%. Despite the year-over-year decrease, sequential improvement was observed compared to previous quarters, mainly reflecting expense control.
  • Net income was $42 million, 30.9% below the previous year, driven by lower operating income.

Cumulative Results 2025 vs 2024

  • Net sales reached $5,580 million, a 1.0% decrease, driven by a 2.6% decline in the product segment, partially offset by 15.8% growth in the services segment.
  • Gross profit was $2,333 million, a 14.9% decrease. Gross margin closed at 41.8%, contracting by 680 bps mainly due to lower absorption of fixed costs in Mexico and Argentina.
  • Operating income reached $346 million, a 52.5% decrease compared to 2024. This decline was the result of gross margin pressure, as the Company achieved a slight reduction in expenses as a percentage of sales.
  • EBITDA closed at $669 million, with an EBITDA margin of 12.0%. While this represents a decrease compared to the same period last year, it shows an improvement over the previous semester.
  • Net income was $65 million, an 82.1% decrease. This decline was driven by lower operating income and a slight increase in financial expenses.
  • Net Financial debt / EBITDA 4  leverage closed at 3.2x, resulting from the decline in LTM EBITDA.
  • CapEx for the period amounted to $211 million, primarily focused on the services segment in Mexico, particularly in bebbia and in water treatment and recycling plants.

 

Sales and EBITDA by Geography and Solution January - June
 (Figures in millions of Mexican pesos)

Sales

Q2'25

Q2'24

% YoY

6M'25

6M'24

% YoY

Mexico

1,711

1,831

(6.5 %)

3,248

3,533

(8.1 %)

Argentina

550

554

(0.7 %)

1,001

996

0.5 %

United States

315

261

20.6 %

595

485

22.6 %

Other

369

326

13.0 %

737

625

17.8 %

Products

2,661

2,729

(2.5 %)

5,041

5,174

(2.6 %)

Services

284

243

16.7 %

539

466

15.8 %

EBITDA

Q2'25

Q2'24

% YoY

6M'25

6M'24

% YoY

Mexico

327

433

(24.5 %)

614

905

(32.1 %)

Argentina

(43)

17

NM

(64)

90

NM

United States

26

(31)

NM

6

(69)

NM

Other

58

30

93.1 %

113

79

43.7 %

Products

409

528

(22.5 %)

723

1,136

(36.3 %)

Services

(41)

(78)

(48.0 %)

(54)

131

(58.5 %)

EBITDA Margin

Q2'25

Q2'24

% YoY

6M'25

6M'24

% YoY

Mexico

19.1 %

23.7 %

(460) bps

18.9 %

25.6 %

(670) bps

Argentina

(7.8 %)

3.1 %

NM

(6.4 %)

9.0 %

NM

United States

8.1 %

(11.9 %)

NM

1.0 %

(14.2 %)

NM

Other

15.8 %

9.3 %

650 bps

15.4 %

12.6 %

280 bps

Products

15.4 %

19.4 %

(400) bps

14.3 %

22.0 %

(770) bps

Services

(14.4 %)

(32.3 %)

NM

(10.1 %)

(28.0 %)

NM

 

Sales and EBITDA breakdown by geography


2Q'25


6M'25


Sales

EBITDA


Sales

EBITDA

Mexico

58 %

89 %


58 %

92 %

Argentina

19 %

-12 %


18 %

-10 %

United States

11 %

7 %


11 %

1 %

Other

13 %

16 %


13 %

17 %

Total

100 %

100 %


100 %

100 %

 

Mexico

  • Sales decreased by 6.5% on a quarterly basis and 8.1% on a cumulative basis, due to the contraction in product sales, impacted by a high comparative base following the 2024 drought and a challenging macroeconomic environment.
  • During the semester, key highlights include the completion of the nationwide rollout of Tinaco Plus+, the launch of the new vertical water tank, and continued progress in digitalization through B2B and B2B2C e-commerce platforms. Additionally, the services platform sustained double-digit growth, mainly driven by bebbia, which reached 155,000 active subscriptions as of June, along with higher RSA sales.
  • EBITDA was impacted by lower sales volumes in the product segment, although cost control measures allowed the margin to remain stable compared to the previous quarter.

Argentina

  • Sales decreased by 0.7% during the quarter and increased by 0.5% on a cumulative basis. This performance reflects demand impacted by an adverse macroeconomic environment, characterized by high inflation, competitive pressure, and low consumer confidence—factors that continued limiting business growth.
  • Sales volumes in all three categories—storage, water flow, and improvement—stabilized during the quarter; however, signs of recovery remain limited.
  • EBITDA was impacted by the reduced ability to pass on cost increases to prices and by lower absorption of fixed costs.

United States

  • Sales grew 20.6% during the second quarter and 22.6% on a cumulative basis, driven by favorable conditions such as drought in the western region, growth in data center construction, and higher municipal investments in water infrastructure, which offset weakness in the residential and agricultural sectors.
  • EBITDA was positive both for the quarter and year-to-date, driven by a combination of higher sales, increased operational productivity at physical stores, and strict expense control.

Other Countries
(Peru, Central America, and Brazil)

  • Sales increased 13.0% in Q2'25 and by 17.8% in the first half of the year, driven by solid growth in all countries: 

    In Peru, growth was observed across all three categories — storage, flow, and improvement — driven by the launch of Tinaco Plus+, the expansion of the piping line, and the cold season, which boosted demand for water heaters.

    In Central America, growth was driven by higher sales volumes in the storage and water flow categories, along with strong performance in Guatemala and Costa Rica.

    In Brazil, sales of treatment plants maintained a sustained growth trend.

  • EBITDA showed improvement, reflecting both higher sales volumes and disciplined spending under an operational efficiency approach.

Products

  • Sales contracted due to a high comparative base following the peak of the 2024 drought in Mexico, which could not be offset by the solid results recorded in the United States and other countries.
  • EBITDA declined due to lower volumes in Mexico and the adverse macroeconomic environment in Argentina, which—despite stronger expense control—limited the absorption of fixed costs.

Services

  • Sales continued growing at a double-digit rate, mainly driven by the performance of bebbia, which surpassed 155,000 active subscribers, as well as the growth of RSA in Mexico.
  • Although still negative, EBITDA showed a significant improvement, supported by RSA's sustained growth and the scaling of bebbia.

Other Indicators January - June
 (Figures in millions of Mexican pesos)

Indicators

6M'25

6M'24

% YoY

Cash and cash equivalents

762

666

14.5 %

Short Term Financial Debt5

515

333

54.7 %

Long Term Financial Debt6

3,999

3,999

0.0 %

Total Debt

4,515

4,332

4.2 %

Net Debt

3,753

3,667

2.3 %

CapEx

211

236

(10.5 %)

   Mexico

177

224

(21.0 %)

   Argentina

10

8

32.5 %

   United States

-

-

NM

   Other

24

4

NM

Change in Working Capital (cash flow)

(56)

(545)

(89.7 %)

CCC (days)

51

47

4 days

Comprehensive Financing Result

(271)

(250)

8.1 %

 

CapEx

  • Capital investments represented 3.8% of sales for the semester.
  • In line with financial priorities focused on strengthening cash flow, maintenance CapEx remained at low levels, with most of the total investment allocated to services.

Comprehensive Financing Result  

  • The comprehensive financing result for the second quarter recorded an expense of $154 million, compared to $187 million in Q2'24. The 2025 expense includes $126 million for interest, commissions, and leases, and a $28 million impact from exchange rate effects and inflation in Argentina.
  • The cumulativecomprehensive financing result recorded an expense of $271 million, compared to $250 million in 2024. The 2025 expense includes $278 million for interest, commissions and leases, and a $7 million benefit from exchange rate effects and inflation in Argentina.

Derivative Financial Instruments

  • As of June 30th, 2025, the market value of Grupo Rotoplas' position was:

Market Value

Instrument

MXN/USD exchange rate forward

($6.13) million

 

Sustainability Strategy Milestones

  • Supplier Engagement Assessment – CDP
    Grupo Rotoplas was recognized by CDP as a global sustainability leader in its supply chain, achieving the highest rating in the Supplier Engagement Assessment. This distinction reflects its solid performance in carbon footprint measurement, decarbonization target setting, and supplier engagement. Rotoplas is one of only two Mexican companies included in this list, alongside CEMEX.

  • Sustainable Management Company  – Peru
    Rotoplas Peru received the Sustainable Management Company Distinction for the eighth consecutive year, in recognition of its ongoing commitment to best environmental, social, and governance (ESG) practices in the country.

  • Community Action
    Rotoplas collaborated in Peru with strategic entities such as SUNASS (Superintendencia Nacional de Servicios de Saneamiento) to donate storage solutions, directly benefiting over 11,300 people in educational centers and shelters. In Mexico, in partnership with Heineken, the Company delivered rainwater harvesting systems to community centers, impacting 35 schools in Nuevo León. These initiatives reinforce Rotoplas' commitment to bringing more and better water to the communities where it operates.

  • Biodiversity Analysis 
    Rotoplas completed its first biodiversity analysis focused on its operations in Mexico, marking a key step toward the comprehensive management of environmental impacts beyond climate change. This high-level analysis evaluates dependencies, impacts, risks, and opportunities associated with biodiversity loss within operations in Mexico and throughout the supply chain. The study aligns with international frameworks such as TNFD, reinforcing the integration of nature in strategic decision-making. 

Analyst Coverage

Institution

Analyst

Recommendation

Target Price (MXN)

BTG Pactual

Orlando Alcántara

Neutral

$24.80

GBM

Regina Carrillo

Outperform

$44.00

Punto Casa de Bolsa

Gerardo Campos 

Buy

$18.64

Miranda Research

Martín Lara

Buy

$28.00

Apalache

Jorge Plácido

Buy

$28.50


Consensus

Buy

$28.79

 

Investor Conference Call Invite

Thursday, July 24, 2025, at 10:00amMexico City time (12:00pm EST)
Speakers: Carlos Rojas (CEO), Andrés Pliego (CFO)
Registration: https://rotoplas.zoom.us/webinar/register/WN_yQ1_nkcnSjSdhX1MIgED0w#/registration

Financial Statements

Income Statement
 (Unaudited figures in millions of Mexican pesos)


Q2


6M



2025

2024

% Δ

2025

2024

% Δ

Net Sales

2,945

2,972

(0.9 %)

5,580

5,639

(1.0 %)

COGS

1,728

1,582

9.3 %

3,247

2,898

12.1 %

Gross Profit

1,217

1,390

(12.5 %)

2,333

2,742

(14.9 %)

% margin

41.3 %

46.8 %

(550) bps

41.8 %

48.6 %

(680) bps

Operation Expenses

1,010

1,083

(6.8 %)

1,987

2,014

(1.3 %)

Operating Income

207

307

(32.6 %)

346

728

(52.5 %)

% margin

7.0 %

10.3 %

(330) bps

6.2 %

12.9 %

(670) bps

Comp. Financing Result

(154)

(187)

(17.4 %)

(271)

(250)

8.1 %

Financial Income

19

35

(46.2 %)

33

46

(27.5 %)

Financial Expenses

(173)

(221)

(21.9 %)

(304)

(296)

2.6 %

Income Before Taxes

52

120

(56.7 %)

74

477

(84.4 %)

Taxes

10

60

(82.5 %)

9

114

(91.8 %)

Net Income

42

60

(30.9 %)

65

364

(82.1 %)

% margin

1.4 %

2.0 %

(60) bps

1.2 %

6.4 %

(520) bps

Adjusted EBITDA7

369

450

(18.1 %)

669

1,005

(33.4 %)

% margin

12.5 %

15.1 %

(260) bps

12.0 %

17.8 %

(580) bps

 

Balance Sheet
 (Unaudited figures in millions of Mexican pesos)


June



2025

2024

% Δ

Cash and Cash Equivalents

762

666

14.5 %

Clients and Other Accounts Receivable

1,766

1,816

(2.7 %)

Inventory

1,446

1,376

5.1 %

Other Current Assets

553

675

(18.0 %)

Current Assets

4,527

4,532

(0.1 %)

Property, Plant and Equipment - Net

3,911

4,061

(3.7 %)

Other Long-term Assets

5,707

4,892

16.7 %

Total Assets

14,145

13,484

4.9 %

Short-term Financial Debt8

515

333

54.7 %

Suppliers and Other Accounts Payable

927

949

(2.2 %)

Other Current Liabilities

1,046

1,041

0.5 %

Short-term Liabilities

2,489

2,323

7.2 %

Long-term Financial Debt9

3,999

3,999

0.0 %

Other long-term Liabilities

1,304

882

47.9 %

Total Liabilities

7,793

7,204

8.2 %

Total Stockholders' Equity

6,352

6,281

1.1 %

Total Liabilities + Stockholders' Equity

14,145

13,484

4.9 %





 

Cash Flow
 (Unaudited figures in millions of Mexican pesos)


January - June



2025

2024

% Δ

EBIT

346

728

(52.5 %)

Depreciation and Amortization

321

276

16.4 %

Inventory

216

(295)

NM

Accounts Receivable

(39)

(364)

(89.4 %)

Accounts Payable

(233)

114

NM

Other Current Liabilities

120

152

(21.3 %)

Taxes

(65)

(91)

(28.8 %)

Operating Cash Flow

667

521

27.9 %

CapEx

(211)

(236)

(10.5 %)

Other Investment Activities

51

(62)

NM

Investing Cash Flow

(161)

(298)

(46.0 %)

Dividends

0

(242)

NM

Repurchase Fund

(4)

7

NM

Short and Long-term Debt

(166)

303

NM

Interest and Leases

(322)

(287)

12.3 %

Financing Cash Flow

(492)

(218)

NM

Change in Cash

14

5

NM

Effect of exchange rate on cash

16

95

NM

Net Change in Cash

30

100

NM

Initial Cash Balance

732

566

29.4 %

Final Cash Balance

762

666

14.5 %





 

Investor Relations Contact

Mariana Fernández

mfernandez@rotoplas.com

María Fernanda Escobar

mfescobar@rotoplas.com

agua@rotoplas.com


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 In 2025, Adjusted EBITDA for the quarter includes $1 million in donations, and $2 million on a year-to-date basis. By comparison, in 2024, $0.4 million were considered in the quarter and $1 million on a cumulative basis for the same period.
2 The 2025 LTM NOPAT and  EBITDA calculation does not include the post-closing 2024 adjustment related to Argentina's results. Considering this adjustment, ROIC based on audited figures would be 2.9% and leverage (Net Financial Debt / EBITDA) would stand at 3.9x.
3 Excluding leases.
4 The LTM EBITDA calculation does not include the post-closing 2024 adjustment related to Argentina's results. Considering this adjustment, leverage (Net Financial Debt / EBITDA) based on audited figures would stand at 3.9x.
5 Excluding leases.
6 Excluding leases.
7 In 2025, Adjusted EBITDA for the quarter includes $1 million in donations, and $2 million on a cumulative basis. By comparison, in 2024, $0.4 million were considered in the quarter and $1 million on a cumulative basis for the same period.
8 Excluding leases.
9 Excluding leases.

 

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SOURCE Grupo Rotoplas S.A.B. de C.V.