GUADALAJARA, Mexico, April 25,
2024 /PRNewswire/ -- Grupo
Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today
its results of operations for the three-month period ended
March 31, 2024.
Comparative first quarter of 2024 vs. first quarter of
2023
Net Sales
The net sales of the company
decreased derived from a less sales price. Sales passed from Ps.
12,825 million in the first quarter of 2023 to Ps. 7,885 million in
the same period of 2024. Shipments of steel finished goods
decreased 21% from 604 thousand tons in the first quarter of 2023
compared to 479 thousand tons in the same period of 2024. Total
sales outside of Mexico in the
first quarter of 2024 decreased 29% to reach Ps. 3,694 million
compared to Ps. 5,181 million in the same period of 2023. The
Mexican sales decreased 45% from Ps. 7,644 million in the first
quarter of 2023 to Ps. 4,191 million in the same period of 2024.
The decrease in sales can be explained, from mainly due to a lower
volume of tons shipped and the average sales price per ton of steel
finished goods decreased 22% in the first quarter of 2024 compared
with the same period of 2023.
Cost of Sales
The cost of sales decreased from
Ps. 9,618 million in the first quarter of 2023 to Ps. 5,876 million
in the same period of 2024. Cost of sales as a percentage of net
sales in the first quarter of 2024 and 2023 represented 75% for
both periods. The average cost of sales per ton of steel finished
goods decreased 23% in the first quarter of 2024 compared to the
same period of 2023.
Gross Profit
The gross profit of the company
decreased 37% from Ps. 3,207 million in 2023 to Ps. 2,009 million
in the same period of 2024. Gross profit as a percentage of net
sales in the first quarter of 2024 and 2023 represented 25% for
both periods. The decrease in gross profit is caused by a lower
Volume of tons shipped in the first quarter of 2024 compared with
the same period of 2023.
General, Sales and administrative
Expenses
General, selling, and administrative expenses
increased 1%, from Ps.587 million in the first quarter of 2023 to
Ps. 595 million in the same period of 2024 and representing 5% of
net sales in 2023 compared to 8% for the period 2024.
Other Expenses (Income) net
The company
recorded other income net of Ps. 5 million in the first quarter of
2024 compared to other income net of Ps. 58 million in the same
period of 2023.
Operating Income
The operating income decreased
from Ps. 2,678 million for the first quarter of 2023 compared to
Ps. 1,419 million in the same period of 2024. Operating income as a
percentage of net sales was 18% in the first quarter of 2024
compared to 21% in the same period of 2023. The decrease in
operating income is primarily due to a lower volume of tons shipped
and a lower average selling price in the first quarter of 2024
compared to the same period in 2023.
EBITDA
The EBITDA of the Company was of Ps. 2,959
million for the first quarter of 2023, as a result of a net income
of Ps. 1,033 million, less minority stake of Ps. 2 million, plus
income taxes of Ps. 531 million, plus comprehensive financial cost
of Ps. 1,116 million, plus depreciation of Ps. 281 million to Ps
1,668 million in the same period of 2024 as a result of a net
income of Ps. 1,456 million, plus income taxes of Ps. 110 million,
less comprehensive financial cost of Ps. 147 million, plus
depreciation of Ps. 249.
|
Consolidated
|
|
|
|
Million
|
|
Comparative first
quarter of 2024 vs first quarter of 2023,
|
|
|
2024
|
|
|
2023
|
|
Net income
(loss)
|
|
|
1,456
|
|
|
|
1,033
|
|
Loss attributable to
noncontrolling interests
|
|
|
|
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
1,456
|
|
|
|
1,031
|
|
Depreciation and
amortization
|
|
|
249
|
|
|
|
281
|
|
Income taxes
|
|
|
110
|
|
|
|
531
|
|
Financial results
income (loss)
|
|
|
(147)
|
|
|
|
1,116
|
|
EBITDA
|
|
|
1,668
|
|
|
|
2,959
|
|
|
|
|
|
|
|
|
|
Items to reconciled
adjusted EBITDA
|
|
|
|
|
|
|
|
|
Equity results and
other results in associates and joint ventures
|
|
|
0
|
|
|
|
0
|
|
Dividends received and
interest from associates and joint ventures (i)
|
|
|
0
|
|
|
|
0
|
|
Impairment and disposal
of non-current assets
|
|
|
0
|
|
|
|
0
|
|
Adjusted
EBITDA
|
|
|
1,668
|
|
|
|
2,959
|
Comprehensive Financial Cost
The
Comprehensive financial cost in the first quarter of 2024
represented a net income of Ps. 147 million compared with a net
expense of Ps.1,116 million in the same period of 2023. Net
interest was an income of Ps. 250 million in the first quarter of
2024 compared with a net income of Ps. 190 million in the same
period of 2023. At the same time, Simec registered an exchange loss
of Ps. 103 million in the first quarter of 2024 compared with an
exchange loss of Ps.1,306 million in the same period of 2023.
Income Taxes
Income Taxes recorded an expense
of Ps. 110 million in the first quarter of 2024 (including the
benefits of Ps. 8 million of deferred income taxes), compared to an
expense of Ps.531 million in the same period of 2023.
Net Income (loss)
As a result of the
foregoing, net income increases to Ps. 1,456 million in the first
quarter of 2024 from Ps. 1,033 million in the same period of
previous year.
Financial Situation, Liquidity and Capital
Resources
As of March 31,
2024, Simec's total consolidated debt consisted of U.S.
$302,000 of 8 7/8% medium-term notes
("MTN's") due 1998, or Ps. 5.0 million (accrued interest on
March 31, 2024 was U.S. $820 or Ps. 13.7 million). As of
March 31, 2023, Simec's total
consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's")
due 1998, or Ps. 5.5 million (accrued interest on March 31, 2023 was U.S. $696 or Ps. 12.6 million).
Comparative first quarter of 2024 vs. fourth quarter of
2023
Net Sales
The net sales of the company
decreased 11% comparing Ps. 8,815 million in the fourth quarter of
2023 to Ps. 7,885 million in the first quarter of 2024. The tons
sales decreased 11%, from 536 thousand tons in the fourth quarter
of 2023 compared to 479 thousand tons in the first quarter of 2024.
Total sales outside of Mexico in
the first quarter of 2024 increased 11% from Ps. 3,320 million on
the last quarter of 2023 compared to Ps. 3,694 million in the first
quarter of 2024. The Mexican sales decreased 24% from Ps. 5,495
million in the fourth quarter of 2023 to Ps. 4,191 million in the
first quarter of 2024. The decrease mainly due to a lower volume
shipped, in the first quarter of 2024 compared with the fourth
quarter of 2023.
Cost of Sales
Cost of sales decreased 6% from
Ps. 6,282 million in the fourth quarter of 2023 to Ps. 5,876
million in the first quarter of 2024. Cost of sales as a percentage
of net sales in the first quarter of 2024 represented 75% and in
the last quarter of 2023 cost of sales represented 71%. The average
cost of finished steel products in the first quarter of 2024
increased 5% compared to the fourth quarter of 2023 as a result of
an increased on the cost of raw materials.
Gross Profit
Gross profit of the company for
the first quarter of 2024 decreased to Ps. 2,009 million in 2024
from Ps. 2,533 million in the last quarter of 2023. Gross profit as
a percentage of net sales in the first quarter of 2024 was 25% and
for the last period of 2023 was 29%. The decrease in gross profit
is due to a lower volume of shipments on the first quarter of 2024
compared with the last quarter of 2023.
General, Sales and administrative
Expenses
General selling, and administrative expenses
decreased to Ps. 595 million in the first quarter of 2024 compared
to Ps. 761 million in the fourth quarter of 2023, representing 8%
for the period of the first quarter 2024 and 9% for the period of
the fourth quarter 2023.
Other Expenses (Income) net
The company
recorded other net income of Ps. 5 million in the first quarter of
2024 compared to other net expenses of Ps. 63 million in the fourth
quarter of 2023.
Operating Income Operating income decreased 17% to
Ps. 1,419 million for the first quarter of 2024 compared to Ps.
1,709 million in the last quarter of 2023. Operating income as a
percentage of net sales was 18% in the first quarter of 2024,
compared to 19% in the last quarter of 2023. The decrease in
operating income is due to the decrease in production and volume of
shipments, in the first quarter of 2024 compared with the fourth
quarter of 2023.
EBITDA
The EBITDA of the Company was of 1,914 million
for the fourth quarter of 2023, as a result of a net income of Ps.
1,365 million, less minority stake of Ps. 2 million, less income
taxes of Ps. 236 million, plus comprehensive financial cost of Ps.
582 million, plus depreciation of Ps. 205 million to Ps 1,668
million in the first quarter of 2024 as a result of a net income of
Ps. 1,456 million, plus income taxes of Ps. 110 million, less
comprehensive financial cost of Ps. 147 million, plus depreciation
of Ps. 249.
|
Consolidated
|
|
|
|
Million
|
|
Comparative first
quarter of 2024 vs fourth quarter of 2023,
|
|
|
2024
|
|
|
2023
|
|
Net income
(loss)
|
|
|
1,456
|
|
|
|
1,365
|
|
Loss attributable to
noncontrolling interests
|
|
|
|
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
1,456
|
|
|
|
1,363
|
|
Depreciation and
amortization
|
|
|
249
|
|
|
|
205
|
|
Income taxes
|
|
|
110
|
|
|
|
(236)
|
|
Financial results
income (loss)
|
|
|
(147)
|
|
|
|
582
|
|
EBITDA
|
|
|
1,668
|
|
|
|
1,914
|
|
|
|
|
|
|
|
|
|
Items to reconciled
adjusted EBITDA
|
|
|
|
|
|
|
|
|
Equity results and
other results in associates and joint ventures
|
|
|
0
|
|
|
|
0
|
|
Dividends received and
interest from associates and joint ventures (i)
|
|
|
0
|
|
|
|
0
|
|
Impairment and disposal
of non-current assets
|
|
|
0
|
|
|
|
0
|
|
Adjusted
EBITDA
|
|
|
1,668
|
|
|
|
1,914
|
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter of 2024
represented a net income of Ps. 147 million compared with a net
expense of Ps. 582 million in the fourth quarter of 2023. Net
interest income of the first quarter of 2024 was of Ps. 250 million
compared with an interest net income of Ps. 181 million in the last
quarter of 2023. Likewise, an exchange less of 103 million was
recorded in the first quarter of 2024 against an exchange less of
Ps. 787 million in the last quarter of 2023. In the fourth quarter
of 2023, other net financial income was recorded for Ps. 24
million.
Income Taxes
Income Taxes recorded an expense
of Ps. 110 million in the first quarter of 2024 (including Ps. 8
million of deferred expense taxes), compared with an income of Ps.
236 million in the fourth quarter of 2023 (including Ps. 136
million of deferred income taxes).
Net Income (loss)
As a result of the foregoing, the net income of the first
quarter of 2024 is of Ps. 1,456 million compared net income Ps.
1,365 million of the fourth quarter 2023.
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
1Q'24
|
4Q
'23
|
1Q 23
|
1Q´24vs
4Q´23
|
1Q´24 vs
1Q '23
|
|
Sales
|
7,885
|
8,815
|
12,825
|
(11 %)
|
(39 %)
|
|
Cost of
Sales
|
5,876
|
6,282
|
9,618
|
(6 %)
|
(39 %)
|
|
Gross Profit
|
2,009
|
2,533
|
3,207
|
(21 %)
|
(37 %)
|
|
Selling, General and
Adm. Expenses
|
595
|
761
|
587
|
(22 %)
|
1 %
|
|
Other Income
(Expenses), net
|
5
|
(63)
|
58
|
(108 %)
|
(91 %)
|
|
Operating
Profit
|
1,419
|
1,709
|
2,678
|
(17 %)
|
(47 %)
|
|
EBITDA
|
1,668
|
1,914
|
2,959
|
(13 %)
|
(44 %)
|
|
Net Income
|
1,456
|
1,365
|
1,033
|
7 %
|
41 %
|
|
Sales Outside
Mexico
|
3,694
|
3,320
|
5,181
|
11 %
|
(29 %)
|
|
Sales in
Mexico
|
4,191
|
5,495
|
7,644
|
(24 %)
|
(45 %)
|
|
Total Sales
(Tons)
|
479
|
536
|
604
|
(11 %)
|
(21 %)
|
|
Cost per Ton
|
12,267
|
11,720
|
15,924
|
5 %
|
(23 %)
|
|
Product
|
Thousands of
Tons
Jan-Mar
2024
|
Millions of
Pesos Jan-Mar 2024
|
Average Price per
Ton
Jan-Mar
2024
|
Thousands of
Tons
Oct-Dec
2023
|
Millions of
Pesos Oct-Dec
2023
|
Average Price per
Ton
Oct-Dec
2023
|
Thousands of
Tons
Jan-Mar
2023
|
Millions of
Pesos
Jan-Mar 2023
|
Average Price per
Ton
Jan-Mar
2023
|
|
Commercial
Profiles
|
352
|
5,435
|
15,440
|
383
|
6,053
|
15,804
|
425
|
8,583
|
20,195
|
|
Special
Profiles
|
127
|
2,450
|
19,291
|
153
|
2,762
|
18,052
|
179
|
4,242
|
23,698
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
479
|
7,885
|
16,461
|
536
|
8,815
|
16,446
|
604
|
12,825
|
21,233
|
Any forward-looking information contained herein is
inherently subject to various risks, uncertainties and assumptions
which, if incorrect, may cause actual results to vary materially
from those anticipated, expected or estimated. The company assumes
no obligation to update any forward-looking information
contained herein.
|
PRESS
RELEASE
|
Contact: José Luis
Tinajero
|
|
Mario Moreno
Cortez
|
|
Grupo Simec,
S.A.B. de C.V.
|
|
Calzada Lázaro
Cárdenas 601
|
|
44440
Guadalajara, Jalisco, México
|
|
52 55 1165
1025
|
|
52 33 3770
6734
|
View original
content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-quarter-of-2024-ended-march-31-2024-302128112.html
SOURCE Grupo Simec, S.A.B. de
C.V.