Rotoplas (BMV: AGUA) registered a 3.4 percent net sales increase in 4Q16, recording MX$1.44 billion (US$ 70.5 million) compared to MX$1.39 billion (US$68 million) in 4Q15 due to the new revenue stream from a contract it signed with the Mexican government.
This came in spite of the company’s net income dropping MX$70 million (US$34.3 million) to 108 million (US$52.9) in 4Q16 from MX$115 million (US$56.8 million) in 4Q15.
The company’s more profitable solutions in 2016 allowed it to maintain its financial stability through the uncertain economic environment. This boosted its sales in Mexico from MX$976 million(US$46.8 million) in 4Q16 from MX$880 million (US$43.1 million) in the comparable
period last year.
The company’s individual solutions saw sales grow 17.8 percent but due to the depreciation of the pesos against the dollar, raw material costs surged by 35 percent, reducing Rotoplas’ profit margin.
In November 2016, S&P gave Rotoplas a rating of mxAA- in its long-term national scale.
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