Mexico City – Rotoplas (water*), a Mexican company of water solutions, registered lower sales in the first quarter before a high comparative base due to the drought registered in the country in 2024, but also by the challenging economic environment.
The company’s financial report to the first quarter showed a 1.2% annual reduction in net sales, at MXN $ 2,636 millionaffected by the results in Mexico, a market that represents more than half of the company’s income that also operates in Argentina, the United States and another 11 countries.
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Rotoplas sales in Mexico fell 9.7% after the strong demand for products and services in the first quarter of last year for persistent drought, in addition, the company indicated that “it has observed lower dynamism in the construction sector and a challenging economic environment”.
Macroeconomic uncertainty has returned to the most cautious consumer, which has decreased demand for the company’s products, while in the service division the growth of the Purification of Babbia water and treatment plants is maintained.
The company also records a reduction of 45.9% in its operating flow (Ebitda) consolidated and 92.3% in net profit due to the decrease in operational utility coupled with greater financial expenses.
In March, the qualifier, S&P Global Ratings lowered the qualification in national scale of the ‘MXAA-‘ A ‘MXA+’ Group, the third category on the national scale, considering that the economic environment will make it difficult for the company to reverse the deterioration that its credit indicators showed at the end of 2024 in the next 12 months.
Rotoplas closed 2024 with a level of leverage of 2.6x, that rose to 3.1x in the first quarter. The qualifying agency estimated that it is between 2.0x-2.5x at the close of 2025.
The company indicated that its financial debt of both short -term and long -term increased 12.4% annual in the period, while the net debt grew 8.9%, but indicated that disciplined cash management, capital and debt expenses allowed to reduce 2.1% the net debt compared to the previous quarter.
