#Mexico #Mexico City #Sustainable Development #water solutions #Rotoplas

Rotoplas Financial Performance: Q2 2026 Overview

Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA), a leader in water solutions across the Americas, has released its unaudited financial results for the second quarter of 2026. The company continues to show resilience, reflecting a 3.4% year-over-year increase in net sales, totaling 3.0 billion Mexican pesos. This growth is part of a broader upward trend, with cumulative net sales reaching 5.7 billion pesos, representing a 2.2% increase compared to the previous year.

Key Financial Metrics

EBITDA: Rotoplas recorded an EBITDA of 409 million pesos, reflecting an impressive margin of 13.4%. Cumulatively, EBITDA for the first half of 2026 stood at 741 million pesos, showcasing a margin of 13.0%.
Operating Profit: The operating profit rose to 217 million pesos, up by 4.8% from Q2 2025, contributing to a cumulative operating profit of 377 million pesos for the year.
Net Result: A recorded loss of 201 million pesos for Q2 primarily stems from net finance costs associated with Argentina's economic environment, influencing the overall financial performance. In the first half, the total net result loss reached 89 million pesos.

Operational Highlights

During this quarter, service sales surged by 4.7%, eclipsed by an impressive 8.7% increase in the first half, fueled mainly by the performance of the bebbia subscription service. Product sales also experienced growth, climbing by 3.2% in Q2 and 1.5% cumulatively.

Carlos Rojas Aboumrad, the CEO, stated, "We’ve effectively navigated through key challenges while achieving significant metrics in our sales and EBITDA, reaffirming our strategic initiatives. Despite ongoing macro-economic hurdles, particularly in Argentina, we are seeing signs of stabilization and improvement in operational efficiency."

Regional Performance Insights

The company experienced varied performance across different regions:
1. Mexico: Sales soared by 4.4% in Q2, with a notable increase in products like vertical water tanks and smart pumps. EBITDA in Mexico rose by 15.1%, achieving a margin of 21.1%.
2. Argentina: Faced a decline of 13.1% in sales, with operating conditions pressured by currency devaluation. However, year-on-year local currency sales showed a reversal in volume recovery, particularly in water heaters amidst increased demand.
3. United States: Posted growth, with a 2.4% increase in sales despite temporary fluctuations in revenue due to exchange rate impacts. This marks the fifth consecutive quarter of positive EBITDA for Rotoplas in the U.S. market, confirming solid operational turnaround.
4. Other Regions: Sales surged in Peru, Central America, and Brazil, influenced by a robust marketing strategy and ongoing investments in water treatment solutions.

Financial Structure Strengthening

In a strategic move, Rotoplas prepaid a substantial portion of its AGUA bond and secured a seven-year loan with Bancomext, enhancing its maturity profile and supporting ongoing deleveraging efforts. The net financial debt/EBITDA ratio improved to 2.3x from 3.2x year-over-year, demonstrating a healthier balance sheet while concurrently prioritizing investments.

Commitment to Sustainability

Rotoplas remains committed to innovation and sustainability, progressively addressing customer needs and enhancing service delivery. The company plans to transparently report progress towards the Sustainable Development Goals through its Sustainability Development Impact Disclosure (SDID).

In summary, Rotoplas' Q2 financial results exhibit an overall promising trajectory despite economic uncertainties. The firm continues to adapt and innovate, positioning itself for sustained growth and long-term value across diverse markets.