Interim report
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Rotoplas más y mejor agua Rotoplas | Second Quarter 2021 Results Mexico City , July 21 , 2021. Grupo Rotoplas S.A.B. de C.V. ( BMV : AGUA * ) ( " Rotoplas ” or “ the Company " ) , America's leading company in water solutions , reports its unaudited second quarter results from April to June . The information has been prepared in accordance with the International Financial Reporting Standards ( IFRS ) . Figures are expressed in millions of Mexican pesos . 2Q21 vs 2Q20 | HIGHLIGHTS ✪ Rotoplas reported record net sales for a quarter , with an increase of 47.6 % , driven by droughts , heat waves , and cuts in the water supply in some countries , as well as by an increase in market share in the regions where it operates , and the launch of new solutions . Product sales increased 52.1 % , with double - digit growth in all countries and in all categories : storage , water flow , and improvement . Services sales contracted 3.8 % , mainly due to the impact on the drinking fountain business as a result of school closures from the pandemic , and a slow recovery of the water treatment plant and water recycling business . With a long - term vision , and in a raw material scarcity environment , the Company decided to absorb the increase in raw material costs and prioritize the expansion in market share , which resulted in an impact of Ps . 130 million in gross profit . This strategy is estimated to increase the annual growth rate at the group level by 5.1 % as a result of better brand positioning , thus generating a long - term value of 4.8x the absorbed cost . Gross margin decreased by 260 bps , however , greater efficiency in expenses helped offset this effect and the operating margin decreased by 70 bps . Adjusted EBITDA ' increased 42.5 % , and reached a margin of 14.9 % , 50 bps lower than 2Q20 . Net income for the period was a profit of Ps . 65 million compared to a loss of Ps . 59 million in 2Q20 , the period most affected by the pandemic . ROIC closed at 16.0 % , an improvement of 720 bps vs. the same quarter of the previous year and 450 bps above the cost of capital . ( AGUA * ) Adjusted EBITDA considers : operating income + depreciation and amortization + non - recurring expenses ( donations and Flow implementation expenses ) . In 2Q21 it takes into account Ps . 75 million of Flow expense and Ps . 6 million donations and in 2020 Ps . 21 million of Flow expenses and Ps . 5 million donations .