Grupo Rotoplas Q1 2024: Water Solutions Drive Growth
Financial Highlights
* Total revenue decreased by 6.1% due to weak demand and exchange rate effects in certain countries.
* EBITDA increased by 56.2%, driven by expansion in Mexico and solid growth in South America and the United States.
* EBITDA margin remained over 20% with ROIC above the cost of capital.
Operational Performance
Mexico
* Solid growth in storage, water flow, and improvement solutions, despite challenges in the construction sector.
* Acquisition of HiTech, IrriVan, and a treatment plant contributed to services growth.
* Price pressures led to a decrease in margins.
United States
* Demand softness in key areas and price pressure impacted water storage sales.
* Septic tank business underwent strategic refocus and optimization.
* Margins declined due to sales contraction and expenses associated with online commerce and strategic initiatives.
Other Countries
* Sales decreased by 6.7% due to slow demand in Brazil, not offset by growth in other countries.
* Sales increased in the United States, driven by the five countries and all three categories: storage, water flow, and improvement.
* Drought conditions in certain countries boosted storage demand.
Corporate Governance
* Appointment of two new independent board members proposed to enhance diversity and perspectives.
* Dividend of MXN per share proposed to distribute value to shareholders.
Outlook
Grupo Rotoplas remains focused on providing water solutions and expanding access in its operating regions. The company is implementing operational and financial strategies to mitigate market challenges, enhance efficiency, and create value for stakeholders.
