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 twelve-month period ended December 31,
2021 and December 31,
2020.
Twelve-Month Period Ended December 31,
2021 compared to Twelve-Month Period Ended December 31, 2020
Net Sales
Net sales increased 55% by the
combination of higher shipments of finished steel products and a
higher average sales price by 51% compared the same period of 2020,
the sales increased from Ps. 35,869 million in the twelve-month
period ended December 31, 2020 to Ps.
55,620 million in the same period of 2021. Shipments of finished
steel products increased 3% to 2 million 504 thousand tons in the
twelve-month period ended December 31,
2021 compared to 2 million 441 thousand tons in the same
period of 2020. Total sales outside of Mexico on the twelve-month period ended
December 31, 2021 increased 55% to
Ps. 27,576 million compared with Ps. 17,746 million in the same
period of 2020. Total sales in Mexico increased 55% from Ps. 18,123 million
in the twelve-month period ended December
31, 2020 to Ps. 28,044 million in the same period of 2021.
The increase of 55% in sales is due to a higher average sales price
and higher volume of shipments.
Cost of Sales
Cost of sales increased 37% from
Ps. 29,212 million in the twelve-month period ended December 31, 2020 to Ps. 39,968 million in the
same period of 2021. Cost of sales as a percentage of net sales
represented, 72% for 2021 and 2020 81%. The average cost of
finished steel produced in the twelve-month period ended
December 31, 2021 compared to the
same period of 2020 increased 33% mainly due to scrap cost and to
higher costs of some supplies at year end.
Gross Profit
Gross profit of the Company in the
twelve-month period ended December 31,
2021 was of Ps. 15,652 million compared to Ps. 6,657 million
in the same period of 2020. Gross profit as a percentage of net
sales represented 28% and 19% for the 2021 and 2020 periods
respectively.
Operating Expenses
Selling, general and
administrative expenses increased 1% from Ps. 2,019 million in the
twelve-month period ended December 31,
2020 to Ps. 2,043 million in the same period of 2021.
Selling, general and administrative expenses as a percentage of net
sales represented 6% during the twelve-month period ended
December 31, 2020 and 4% in the same
period of 2021.
Other Expenses (Income) net
The company recorded
other net income of Ps. 547 million in the twelve-month period
ended December 31, 2020 compared to
other net expenses of Ps. 77 million in the same period of
2021.
Operating Income
Operating income increased 161%
from Ps. 5,185 million for the twelve-month period ended
December 31, 2020 to Ps. 13,532
million in the same period of 2021. Operating income as a
percentage of net sales represented 24% and 14% for the 2021 and
2020 periods respectively.
EBITDA
The EBITDA of the Company increased 122% from Ps. 6,637 million in
the twelve-month prior ended December
31, of 2020, as a result a net income of Ps. 2,798, plus
income taxes of Ps. 2,078, plus comprehensive financial cost of Ps.
309, plus depreciation of Ps. 1,452 to Ps. 14,707 million in the
same period of 2021 as a result a net income of Ps. 9,444, plus
minority stake of Ps. 2 million, plus income taxes of Ps. 4,390,
less comprehensive financial cost of Ps. 304, plus depreciation of
1,175.
Consolidated
|
|
|
Million
|
|
Twelve-month period
ended December 31,
|
|
|
2021
|
|
|
2020
|
Net income
(loss)
|
|
|
9,444
|
|
|
|
2,798
|
Loss attributable to
noncontrolling interests
|
|
|
2
|
|
|
|
0
|
Net income
(loss)
|
|
|
9,446
|
|
|
|
2,798
|
Depreciation and
amortization
|
|
|
1,175
|
|
|
|
1,452
|
Income taxes
|
|
|
4,390
|
|
|
|
2,078
|
Financial results
income (loss)
|
|
|
(304)
|
|
|
|
309
|
EBITDA
|
|
|
14,707
|
|
|
|
6,637
|
|
|
|
|
|
|
|
|
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
|
|
|
14,707
|
|
|
|
6,637
|
Comprehensive Financial Cost
Comprehensive
financial cost in the twelve-month period ended December 31, 2021 represented a net income
of Ps. 304 million compared with a net expense
of Ps. 309 million in the same period of 2020. The net
interest was an expense of Ps. 21 million in 2021
compared with a net income of Ps. 54 million in the
twelve-month period ended December 31,
2020. As a result, we registered a net exchange profit
of Ps. 325 million in the twelve-month period ended
December 31, 2021 compared with a net
exchange loss of Ps. 363 million in the same period of
2020, reflecting a 2.91% increase in the value of the peso versus
the dollar in the twelve-month period ended December 31, 2021 compared to December 31, 2020.
Income Taxes
The Company have recorded an
expense net tax of Ps. 4,390 million in the twelve-month period
ended December 31, 2021 (including
the expenses of deferred tax of Ps. 571 million) compared with a
net expense tax of Ps. 2,078 million in the same period of 2020
(including the tax deferred expense of Ps. 247 million).
Net Income (loss)
As a result of the foregoing,
net income increased by 238% from Ps. 2,798 million net profits in
the twelve-month period ended December 31,
2020 to Ps. 9,444 million a result net income in the same
period of 2021.
Liquidity and Capital Resources
As of
December 31, 2021, Simec's total
consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's")
due 1998, Ps. 6.2 million (accrued interest on December 31, 2021 was U.S. $671,437 or Ps. 13.8 million). As of
December 31, 2020, Simec's total
consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's")
due 1998, Ps. 6.0 million (accrued interest on December 31, 2020 was U.S. $640,393, or Ps. 12.8 million).
Comparative fourth quarter 2021 vs third quarter 2021
Net Sales
Net sales decreased from Ps. 14,122
million in the third quarter of 2021 to Ps. 12,884 million for the
fourth quarter of 2021. Sales in tons decreased from 585 thousand
ton in the third quarter of 2021 to 550 thousand ton in the fourth
quarter of the same period, a decreased of 6%. Total sales outside
of Mexico for the fourth quarter
of 2021 decreased 8% from Ps. 6,838 million in the third quarter to
Ps. 6,279 million in the four quarter of 2021. Sales in
Mexico decreased to Ps. 6,605
million in the fourth quarter of 2021 compared Ps. 7,284 million in
the third quarter of 2021 and decreased of 9%. Prices of finished
products sold in the fourth quarter of 2021 decreased 3% compared
with the third quarter of the same period.
Cost of Sales
Cost of sales decreased to Ps.
9,145 million in the fourth quarter of 2021 compared to Ps. 9,913
million for the third quarter of 2021. With respect to sales, in
the fourth quarter of 2021, the cost of sales represented 71% in
the fourth quarter of 2021, compared to 70% in the third quarter of
the same period. The average cost of sales by ton decreased of 2%
in the fourth quarter of 2021 versus the third quarter of 2021.
Gross Profit
Gross profit of the Company for the
fourth quarter of 2021 decreased 11% to Ps. 3,739 million compared
to Ps. 4,209 million in the third quarter of 2021. The gross profit
as a percentage of net sales for the third and fourth quarter of
2021 was of 30% and 29% respectively.
Operating Expenses
Selling, general and
administrative expenses increased 8% to Ps. 551 million in the
fourth quarter of 2021 compared to Ps. 508 million for the third
quarter of 2021. Selling, general and administrative expenses as a
percentage of net sales for the third and fourth quarter of 2021
was of 4% and 4% respectively.
Other Expenses (Income) net
The company recorded
other net expenses of Ps. 27 million in the fourth quarter of 2021
compared to other net expenses of Ps. 20 million for the third
quarter of 2021.
Operating (Loss) Income
Operating income was of
Ps. 3,161 million in the fourth quarter of 2021 compared to an
operating income of Ps. 3,681 million in the third quarter of 2021.
The operating income as a percentage of net sales represented 26%
and 25% for the third quarter and fourth quarter periods
respectively.
EBITDA
The EBITDA was Ps. 3,974 million in the third quarter of
2021 as a result a net income of Ps. 3,313, plus income taxes of
Ps. 674, less comprehensive financial cost of Ps. 306, plus
depreciation of Ps. 293 compared to Ps. 3,450 million for the
fourth quarter of 2021, as a result a net profit of Ps. 1,154, plus
minority stake of Ps. 1 million, plus income taxes of Ps. 2,085,
less comprehensive financial cost of Ps. 79, plus depreciation of
Ps. 289.
Consolidated
|
|
|
Million
|
|
Comparative fourth
quarter vs third quarter 2021
|
|
|
4Q
2021
|
|
|
3Q
2021
|
Net income
(loss)
|
|
|
1,154
|
|
|
|
3,313
|
Loss attributable to
noncontrolling interests
|
|
|
1
|
|
|
|
0
|
Net income
(loss)
|
|
|
1,155
|
|
|
|
3,313
|
Depreciation
and
amortization
|
|
|
289
|
|
|
|
293
|
Income taxes
|
|
|
2,085
|
|
|
|
674
|
Financial results
income (loss)
|
|
|
(79)
|
|
|
|
(306)
|
EBITDA
|
|
|
3,450
|
|
|
|
3,974
|
|
|
|
|
|
|
|
|
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
|
|
|
3,450
|
|
|
|
3,974
|
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2021 was a
net income of Ps. 79 million compared with a net income of Ps. 306
million for the third quarter of 2021. The net interest income the
fourth quarter was Ps. 14 million compared with a net expense of
Ps. 9 million in the third quarter of 2021. At same time we
registered an exchange net profit of Ps. 315 million in the third
quarter of 2021 compared with an exchange net profit of Ps. 65
million in the fourth quarter of 2021.
Income Taxes
Income Taxes for the third quarter
of 2021 had an expense net tax of Ps. 674 million (including an
expenses tax deferred for Ps. 75 million) compared to an expense of
Ps. 2,085 million for the fourth quarter of 2021, (including an
expenses tax deferred of Ps. 475 million).
Net Income (loss)
As a result of the foregoing,
the Company recorded a net profit of Ps. 1,154 million in the
fourth quarter of 2021 compared to Ps. 3,313 million of net income
in the third quarter of 2021.
Comparative fourth quarter 2021 vs fourth quarter 2020
Net Sales
Net sales increased 27% from Ps.
10,130 million for the fourth quarter of 2020 to Ps. 12,884 million
for the fourth quarter of 2021. Sales in tons of finished steel in
the fourth quarter of 2020 were 602 thousand tons versus to 550
thousand tons in the fourth quarter of 2021. Total sales outside of
Mexico increased 32% from Ps.
4,753 million for the fourth quarter of 2020 to Ps. 6,279 million
in the fourth quarter of 2021. Sales in Mexico increased 23% from Ps. 5,377 million in
the fourth quarter of 2020 to Ps. 6,605 million in the fourth
quarter of 2021. The average sales prices of finished products sold
in the fourth quarter of 2021 increased 39%, compared to the same
period of 2020.
Cost of Sales
Cost of sales increased 9% from
Ps. 8,356 million in the fourth quarter of 2020 compared to Ps.
9,145 million for the fourth quarter of 2021. With respect to
sales, the cost of sales represented 71% during the fourth quarter
of 2021 and 82% during the fourth quarter of 2020. The average cost
of steel products increased 20% in the fourth quarter of 2021
versus the fourth quarter of 2020.
Gross Profit
Gross profit for the fourth quarter
of 2021 increased 111% from Ps. 1,774 million in the fourth quarter
of 2020 compared to Ps. 3,739 million in the fourth quarter of
2021. The gross profit as a percentage of net sales represented 18%
for the fourth quarter of 2020 compared to 29% of the fourth
quarter of 2021.
Operating Expenses
Selling, general and
administrative expenses decreased 22% from Ps. 704 million in the
fourth quarter of 2020 compared to Ps. 551 million for the fourth
quarter of 2021. Selling, general and administrative expenses as a
percentage of net sales represented 7% for the fourth quarter of
2020 and 4% for the fourth quarter of 2021.
Other Expenses (Income) net
The company recorded
other income net of Ps. 331 million in the fourth quarter of 2020
compared with other expenses net of Ps. 27 million for the fourth
quarter of 2021.
Operating (Loss) Income
Operating income was of
Ps. 3,161 million in the fourth quarter of 2021 compared to an
operating profit of Ps. 1,401 million in the fourth quarter of
2020. The operating income as a percentage of net sales in the
fourth quarter of 2021 was 25%, compared to an operating income of
14% in the fourth quarter of 2020.
EBITDA
The EBITDA was Ps. 1,895 million in the
fourth quarter of 2020 as a result a net loss of Ps. 657, less
minority stake of Ps. 4, plus income taxes of Ps. 774, plus
comprehensive financial cost of Ps. 1,288, plus depreciation of Ps.
494 compared to a profit of Ps 3,450 million in the fourth quarter
of 2021 as a result a net profit of Ps. 1,154, plus minority stake
of Ps. 1 million, plus income taxes of Ps. 2,085, less
comprehensive financial cost of Ps. 79, plus depreciation of Ps.
289.
Consolidated
|
|
|
Million
|
|
Comparative fourth
quarter vs fourth quarter
|
|
|
2021
|
|
|
2020
|
Net income
(loss)
|
|
|
1,154
|
|
|
|
(657)
|
Loss attributable to
noncontrolling interests
|
|
|
1
|
|
|
|
(4)
|
Net income
(loss)
|
|
|
1,155
|
|
|
|
(661)
|
Depreciation
and
amortization
|
|
|
289
|
|
|
|
494
|
Income taxes
|
|
|
2,085
|
|
|
|
774
|
Financial results
income (loss)
|
|
|
(79)
|
|
|
|
1,288
|
EBITDA
|
|
|
3,450
|
|
|
|
1,895
|
|
|
|
|
|
|
|
|
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
|
|
|
3,450
|
|
|
|
1,895
|
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2021 was a
net income of Ps. 79 million compared with a net expense of Ps
1,288 million in the fourth quarter of 2020. Net interest income
was of Ps. 14 million in the fourth quarter of 2021 compared with a
net interest income of Ps. 15 million in the fourth quarter of
2020. At same time we registered a net exchange profit of Ps. 65
million in the fourth quarter of 2021 compared with an exchange
loss of Ps. 1,303 million in the fourth quarter of 2020.
Income Taxes
The Company recorded an expense net
taxes for the fourth quarter of 2021 of Ps. 2,085 million
(including an expense of deferred tax of Ps. 475 million), compared
to an expense net tax of Ps. 774 million for the fourth quarter of
2020, (including an expense tax deferred of Ps. 232 million).
Net Income (loss)
As a result of the foregoing,
the Company recorded a net profit of Ps. 1,154 million in the
fourth quarter of 2021 compared to Ps. 657 million of net loss in
the fourth quarter of 2020.
(million of pesos)
|
Jan - Dec '21
|
|
Jan - Dec '20
|
|
Year 21 vs '20
|
Sales
|
55,620
|
|
35,869
|
|
55%
|
Cost of
Sales
|
39,968
|
|
29,212
|
|
37%
|
Gross Profit
|
15,652
|
|
6,657
|
|
135%
|
Selling, General and
Administrative Expense
|
2,043
|
|
2,019
|
|
1%
|
Other Income
(Expenses), net
|
(77)
|
|
547
|
|
(114%)
|
Operating
Profit
|
13,532
|
|
5,185
|
|
161%
|
EBITDA
|
14,707
|
|
6,637
|
|
122%
|
Net
income
|
9,444
|
|
2,798
|
|
238%
|
Sales Outside
Mexico
|
27,576
|
|
17,746
|
|
55%
|
Sales in
Mexico
|
28,044
|
|
18,123
|
|
55%
|
Total Sales
(Tons)
|
2,504
|
|
2,441
|
|
3%
|
Cost by ton
|
15,962
|
|
11,967
|
|
33%
|
Quarter
|
|
|
|
|
|
(million of pesos)
|
4Q'21
|
3Q '21
|
4Q '20
|
4Q´21 vs 3Q´21
|
4Q´21 vs 4Q '20
|
Sales
|
12,884
|
14,122
|
10,130
|
(9%)
|
27%
|
Cost of
Sales
|
9,145
|
9,913
|
8,356
|
(8%)
|
9%
|
Gross Profit
|
3,739
|
4,209
|
1,774
|
(11%)
|
111%
|
Selling, General and
Adm. Expenses
|
551
|
508
|
704
|
8%
|
(22%)
|
Other Income
(Expenses), net
|
(27)
|
(20)
|
331
|
35%
|
(108%)
|
Operating
Profit
|
3,161
|
3.681
|
1,401
|
(14%)
|
126%
|
EBITDA
|
3,450
|
3,974
|
1,895
|
(13%)
|
82%
|
Net Income
|
1,154
|
3,313
|
(657)
|
(65%)
|
(276%)
|
Sales Outside
Mexico
|
6,279
|
6,838
|
4,753
|
(8%)
|
32%
|
Sales in
Mexico
|
6,605
|
7,284
|
5,377
|
(9%)
|
23%
|
Total Sales
(Tons)
|
550
|
585
|
602
|
(6%)
|
(9%)
|
Cost per Ton
|
16,627
|
16,945
|
13,880
|
(2%)
|
20%
|
Product
|
Thousands of
Tons
Jan-Dec
2021
|
Millions of
Pesos
Jan-Dec
2021
|
Average Price per
Ton
Jan-Dec
2021
|
Thousands of
Tons
Jan – Dec
2020
|
Millions of
Pesos
Jan- Dec
2020
|
Average Price per
Ton
Jan-Dec 2020
|
Special
Profiles
|
907
|
22,459
|
24,762
|
791
|
13,593
|
17,185
|
Commercial
Profiles
|
1,597
|
33,161
|
20,765
|
1,650
|
22,276
|
13,501
|
Total
Tons
|
2,504
|
55,620
|
22,212
|
2,441
|
35,869
|
14,694
|
Product
|
Thousands of
Tons
Oct-Dec
2021
|
Millions of
Pesos
Oct-Dec
2021
|
Average Price per
Ton
Oct-Dec
2021
|
Thousands of
Tons
Jul-Sep
2021
|
Millions of
Pesos
Jul-Sep
2021
|
Average Price per
Ton
Jul-Sep
2021
|
Thousands of
Tons
Oct-Dec
2020
|
Millions of
Pesos
Oct-Dec
2020
|
Average Price per
Ton
Oct-Dec
2020
|
Special
Profiles
|
193
|
5,343
|
27,684
|
225
|
5,976
|
26,560
|
220
|
3,898
|
17,718
|
Commercial
Profiles
|
357
|
7,541
|
21,123
|
360
|
8,146
|
22,628
|
382
|
6,232
|
16,314
|
Total
Tons
|
550
|
12,884
|
23,425
|
585
|
14,122
|
24,140
|
602
|
10,130
|
16,827
|
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
|
View original
content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-twelve-month-period-ended-december-31-2021-audited-301535940.html
SOURCE Grupo Simec, S.A.B. de
C.V.