GUADALAJARA, Mexico, April 28,
2022 /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,
2022.
Comparative first quarter of 2022 vs. first quarter of
2021
Net Sales
The net sales of the company
increased derived from a higher sales price. Sales passed from Ps.
13,355 million in the first quarter of 2021 to Ps. 15,032 million
in the same period of 2022. Shipments of steel finished goods
decreased 9% from 682 thousand tons in the first quarter of 2021
compared to 623 thousand tons in the same period of 2022. Total
sales outside of Mexico in the
first quarter of 2022 increased 4% to reach Ps. 6,976 million
compared to Ps. 6,691 million in the same period of 2021. The
Mexican sales increased 21% from Ps. 6,664 million in the first
quarter of 2021 to Ps. 8,056 million in the same period of 2022.
The increase in sales can be explained, from the average sales
price per ton of steel finished goods increased 23% in the first
quarter of 2022 compared with the same period of 2021.
Cost of Sales
The cost of sales increased
from Ps. 10,055 million in the first quarter of 2021 to Ps. 11,190
million in the same period of 2022. Cost of sales as a percentage
of net sales in the first quarter of 2022 and 2021 represented 74%
and 75% respectively. The average cost of sales per ton of steel
finished goods increased 22% in the first quarter of 2022 compared
to the same period of 2021.
Gross Profit
The gross profit of the
company increased 16% from Ps. 3,300 million in 2021 to Ps. 3,842
million in the same period of 2022. Gross profit as a percentage of
net sales in the first quarter of 2022 and 2021 represented 26% and
25% respectively. The increase in gross profit is due to explained
from the average sales price per ton of steel finished goods in the
first quarter of 2022 compared with the same period of 2021.
General, Sales and administrative
Expenses
General, selling and administrative
expenses increased 9%, from Ps.475 million in the first quarter of
2021 to Ps. 518 million in the same period of 2022 and representing
4% of net sales in 2021 compared to 3% for the period 2022.
Other Expenses (Income) net
The company
recorded other income net of Ps. 1 million in the first quarter of
2022 compared to other expenses net of Ps. 13 million in the same
period of 2021.
Operating Income
The operating income
increased from Ps. 2,812 million for the first quarter of 2021
compared to Ps. 3,325 million in the same period of 2022. Operating
income as a percentage of net sales was 22% in the first quarter of
2022 compared to 21% in the same period of 2021. The increase in
operating income is from the average sales price per ton of steel
finished goods in the first quarter of 2022 compared with the same
period of 2021.
EBITDA
The EBITDA of the Company was of Ps.
3,113 million for the first quarter of 2021, as a result of a net
income of Ps. 2,644 million, plus income taxes of Ps. 391 million,
less comprehensive financial cost of Ps. 224 million, plus
depreciation of Ps. 302 million to Ps 3,605 million in the same
period of 2022 as a result of a net income of Ps. 2,494 million,
plus income taxes of Ps. 460 million, plus comprehensive financial
cost of Ps. 371 million, plus depreciation of Ps. 280.
Consolidated
|
|
|
Million
|
|
Comparative first
quarter of 2022 vs first quarter of 2021,
|
|
|
2022
|
|
|
2021
|
Net income
(loss)
|
|
|
2,494
|
|
|
|
2,644
|
Loss attributable to
noncontrolling interests
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
2494
|
|
|
|
2,644
|
Depreciation and
amortization
|
|
|
280
|
|
|
|
302
|
Income taxes
|
|
|
460
|
|
|
|
391
|
Financial results
income (loss)
|
|
|
371
|
|
|
|
(224)
|
EBITDA
|
|
|
3,605
|
|
|
|
3,113
|
|
|
|
|
|
|
|
|
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
|
|
|
3,605
|
|
|
|
3,113
|
Comprehensive Financial Cost
The
Comprehensive financial cost in the first quarter of 2022
represented a net expense of Ps. 371 million compared with a net
income of Ps.224 million in the same period of 2021. Net interest
was an income of Ps. 29 million in the first quarter of 2022
compared with a net expense of Ps. 16 million in the same period of
2021. At the same time, Simec registered an exchange loss of Ps.
400 million in the first quarter of 2022 compared with an exchange
income of Ps.240 million in the same period of 2021.
Income Taxes
Income Taxes recorded an
expense of Ps. 460 million in the first quarter of 2022 (including
the income of Ps. 7 million of deferred income taxes) compared to
an expense of Ps.391 million in the same period of 2021 (including
the benefits of Ps. 8 million of deferred income taxes).
Net Income (loss)
As a result of the
foregoing, net income decreases 6% to Ps. 2,494 million in the
first quarter of 2022 from Ps. 2,644 million in the same period of
previous year.
Financial Situation, Liquidity and Capital
Resources As of March 31,
2022, Simec's total consolidated debt consisted of U.S.
$302,000 of 8 7/8% medium-term notes
("MTN's") due 1998, or Ps. 6.0 million (accrued interest on
March 31, 2022 was U.S. $676 or Ps. 13.4 million). As of
March 31, 2021, Simec's total
consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's")
due 1998, or Ps. 6.2 million (accrued interest on March 31, 2021 was U.S. $650 or Ps. 13.4 million).
Comparative first quarter of 2022 vs. fourth quarter of
2021
Net Sales
The net sales of the company
increased 17% comparing Ps. 12,884 million in the fourth quarter of
2021 to Ps. 15,032 million in the first quarter of 2022. The tons
sales increased 13%, from 550 thousand tons in the fourth quarter
of 2021 compared to 623 thousand tons in the first quarter of 2022.
Total sales outside of Mexico in
the first quarter of 2022 increased 11% from Ps. 6,279 million on
the last quarter of 2021 compared to Ps. 6,976 million in the first
quarter of 2022. The Mexican sales increased 22% from Ps. 6,605
million in the fourth quarter of 2021 to Ps. 8,056 million in the
first quarter of 2022. The increase mainly due to a greater volume
shipped, better average sales price per ton, increased 3%, in the
first quarter of 2022 compared with the fourth quarter of 2021.
Cost of Sales
Cost of sales increased 22%
from Ps. 9,145 million in the fourth quarter of 2021 to Ps. 11,190
million in the first quarter of 2022. Cost of sales as a percentage
of net sales in the first quarter of 2022 represented 74% and in
the last quarter of 2021 cost of sales represented 71%. The average
cost of finished steel products in the first quarter of 2022
increased 8% compared to the fourth quarter of 2021 as a result of
an increased on the cost of raw materials.
Gross Profit
Gross profit of the company
for the first quarter of 2022 increased to Ps. 3,842 million in
2022 from Ps. 3,739 million in the last quarter of 2021. Gross
profit as a percentage of net sales in the first quarter of 2022
was 26% and for the last period of 2021 was 29%. The increase in
gross profit is due to a better average sales price and volume of
shipments on the first quarter of 2022 compared with the last
quarter of 2021.
General, Sales and administrative
Expenses
General, selling and administrative
expenses decreased to Ps. 518 million in the first quarter of 2022
compared to Ps. 551 million in the fourth quarter of 2021,
representing 3% for the period of the first quarter 2022 and 4% for
the period of the fourth quarter 2021.
Other Expenses (Income) net
The company
recorded other net income of Ps. 1 million in the first quarter of
2022 compared to other net expense of Ps. 27 million in the fourth
quarter of 2021.
Operating Income
Operating income increased 5%
to Ps. 3,325 million for the first quarter of 2022 compared to Ps.
3,161 million in the last quarter of 2021. Operating income as a
percentage of net sales was 22% in the first quarter of 2022,
compared to 25% in the last quarter of 2021. The increase in
operating income is due to the increase in production and volume of
shipments, in the first quarter of 2022 compared with the fourth
quarter of 2021.
EBITDA
The EBITDA of the Company was of 3,450
million for the fourth quarter of 2021, as a result of a net income
of Ps. 1,154 million, plus minority stake of Ps. 1 million, plus
income taxes of Ps. 2,085 million, less comprehensive financial
cost of Ps. 79 million, plus depreciation of Ps. 289 million to Ps
3,605 million in the first quarter of 2022 as a result of a net
income of Ps. 2,494 million, plus income taxes of Ps. 460 million,
plus comprehensive financial cost of Ps. 371 million, plus
depreciation of Ps. 280.
Consolidated
|
|
|
Million
|
|
Comparative first
quarter of 2022 vs fourth quarter of 2021,
|
|
|
2022
|
|
|
2021
|
Net income
(loss)
|
|
|
2,494
|
|
|
|
1,154
|
Loss attributable to
noncontrolling interests
|
|
|
|
|
|
|
1
|
Net income
(loss)
|
|
|
2,494
|
|
|
|
1,155
|
Depreciation and
amortization
|
|
|
280
|
|
|
|
289
|
Income taxes
|
|
|
460
|
|
|
|
2,085
|
Financial results
income (loss)
|
|
|
371
|
|
|
|
(79)
|
EBITDA
|
|
|
3,605
|
|
|
|
3,450
|
|
|
|
|
|
|
|
|
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
|
|
|
3,605
|
|
|
|
3,450
|
Comprehensive Financial
Cost
Comprehensive financial cost in the
first quarter of 2022 represented a net expense of Ps. 371 million
compared with a net income of Ps. 79 million in the fourth quarter
of 2021. Net interest income of the first quarter of 2022 was of
Ps. 29 million compared with an interest net income of Ps. 14
million in the last quarter of 2021. Likewise, an exchange less of
400 million was recorded in the first quarter of 2022 against an
exchange profit of Ps. 65 million in the last quarter of 2021.
Income Taxes
Income Taxes recorded an
expense of Ps. 460 million in the first quarter of 2022 (including
Ps. 7 million of deferred income taxes) compared with an expense of
Ps. 2,085 million in the fourth quarter of 2021 (including Ps. 475
million of deferred expense taxes).
Net Income (loss)
As a result of the
foregoing, the net income of the first quarter of 2022 is of Ps.
2,494 million compared net income Ps. 1,154 million of the fourth
quarter 2021.
Quarter
|
|
|
|
|
|
(millions of pesos)
|
1Q'22
|
1Q '21
|
4Q 21
|
1Q´22vs
1Q´21
|
1Q´22 vs
4Q '21
|
Sales
|
15,032
|
13,355
|
12,884
|
13%
|
17%
|
Cost of
Sales
|
11,190
|
10,055
|
9,145
|
11%
|
22%
|
Gross Profit
|
3,842
|
3,300
|
3,739
|
16%
|
3%
|
Selling, General and
Adm. Expenses
|
518
|
475
|
551
|
9%
|
(6%)
|
Other Income
(Expenses), net
|
1
|
(13)
|
(27)
|
(108%)
|
(104%)
|
Operating
Profit
|
3,325
|
2,812
|
3,161
|
18%
|
5%
|
EBITDA
|
3,605
|
3,113
|
3,450
|
16%
|
4%
|
Net Income
|
2,494
|
2,644
|
1,154
|
(6%)
|
116%
|
Sales Outside
Mexico
|
6,976
|
6,691
|
6,279
|
4%
|
11%
|
Sales in
Mexico
|
8,056
|
6,664
|
6,605
|
21%
|
22%
|
Total Sales
(Tons)
|
623
|
682
|
550
|
(9%)
|
13%
|
Cost per Ton
|
17,961
|
14,743
|
16,627
|
22%
|
8%
|
Product
|
Thousands
of Tons
Jan-Mar
2022
|
Million of
Pesos
Jan-Mar
2022
|
Average
Price per
Ton
Jan-Mar
2022
|
Thousands
of Tons
Jan-Mar
2021
|
Million of
Pesos
Jan-Mar
2021
|
Average
Price per
Ton
Jan-Mar 2021
|
Thousands
of Tons
Oct-Dec
2021
|
Million of
Pesos
Oct-Dec
2021
|
Average Price
per Ton
Oct-Dec
2021
|
Commercial
Profiles
|
413
|
9,306
|
22,533
|
435
|
8,114
|
18,653
|
357
|
7,541
|
21,123
|
Special
Profiles
|
210
|
5,726
|
27,267
|
247
|
5,241
|
21,219
|
193
|
5,343
|
27,684
|
|
|
|
|
|
|
|
|
|
|
Total
|
623
|
15,032
|
24,128
|
682
|
13,355
|
19,582
|
550
|
12,884
|
23,425
|
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.
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
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SOURCE Grupo Simec, S.A.B. de
C.V.