Grupo Rotoplas S.A.B. (AGUA) Agua Day 2025 summary

Strategic transformation and digitalization

• Operations shifted from legacy processes to advanced, digitally integrated systems, including IoT-enabled products, AI-driven customer service, and predictive maintenance, resulting in significant efficiency gains and new business models.

• E-commerce and digital channels have become core to customer engagement, with automation and self-service reducing customer service costs by 40%, and 86% of administrative staff regularly leveraging AI.

• The service portfolio, led by Bebbia, expanded to a nationwide digital subscription platform, with services growing at a 56% CAGR and now representing 10% of total sales.

• Regional strategies unified under 'One Rotoplas,' increasing execution speed, operational integration, and improved decision-making while maintaining local autonomy.

• The company’s strategic framework centers on profitable growth, water innovation, technology enablement, and sustainable impact.

Financial evolution and operational discipline

• Sales peaked in 2022 at 12,774 million, then declined to 11,201 million in 2024 LTM, with EBITDA margin dropping from 18.2% in 2020 to 9.2% in LTM 2025.

• Financial priorities include reversing EBITDA decline, cost and expense reductions, operational efficiency, and strict CapEx discipline, with 70% of CapEx allocated to services and a pay-as-you-grow model.

• Working capital optimization and a focus on free cash flow are emphasized to safeguard liquidity and profitability, resulting in a 4% year-on-year expense decrease.

• The AGUA Sustainable Bond maturing in 2027 will be refinanced well in advance, and debt levels are being actively managed.

• Regional integration improved execution, with Mexico and Central America unified, and the U.S. and Argentina focusing on profitability and operational efficiency.

Sustainability and ESG leadership

• Sustainability is embedded in operations, with international frameworks adopted, expanded ESG disclosures, and executive responsibility shared between CFO and CSO.

• Environmental achievements include a 25% reduction in water intensity, 11% drop in Scope 1 and 2 CO2 intensity, and renewable energy use rising from 2% to 28%.

• The company published third-party verified environmental product declarations and SDG impact disclosures, and set 2030 targets: 42% reduction in Scope 1 and 2 GHG, 25% in Scope 3, 15% less freshwater extraction per ton produced, and 70% recycling of non-hazardous waste.

• 30% of CapEx will be allocated to sustainable projects from 2026-2030, with goals to reach 40% women in management, engage 80% of critical suppliers in sustainability, and provide sanitation access to 1.5 million people by 2030.

• Recognized by S&P Global, CDP, and included in major ESG indices, the company’s sustainability strategy now centers on the AGUA framework: Action for the environment, Generation of value, Uplifting well-being, and Allyship in sustainability.