Grupo Rotoplas, the leading provider of water solutions, products and services in the Americas, reported that its net sales grew 2.2% to reach 1,982 million pesos.
This was driven by double-digit growth in the United States, Central America, and Mexico, offsetting lower revenues in Argentina, Peru, and Brazil.
Product sales, which represent 93% of total sales, grew 1.5%, pushed by the storage category.
On the other hand, service sales grew 12.2%, as a result of the strong performance of drinking water sources and bebbia, as well as the stable income of water treatment plants.
“The drinking water platform achieved record sales for its value proposition to grant access to purified water without leaving the house,” the company noted.
Grupo Rotoplas’ gross profit increased 5.1% and gross margin expanded by 120 basis points, due to lower raw material costs and efficiencies achieved in manufacturing processes.
Grupo Rotoplas and its earnings
Operating income increased 1.8% to 261 million pesos and the operating margin remained stable at 13.2 percent.
Adjusted EBITDA reached 346 million pesos, in line with the first quarter of 2019, while the margin decreased by 40 basis points, to 17.5%. This despite the impact on operations and demand experienced in March in relation to the COVID-19 emergency.
Finally, net profit before discontinued operations reached 465 million pesos, 4.9 times more than in the same period of the previous year. This was helped by gains from financial instruments and foreign exchange gains due to the appreciation of the exchange rate of foreign currencies against the Mexican peso.