GUADALAJARA, Mexico,
July 23, 2018 /PRNewswire/ --
Grupo Simec, S.A.B. de C.V. (NYSE:
SIM) ("Simec") announced today its results of operations for the
sixth-month period ended June 30th,
2018.
Comparative first six months of 2018 vs. first six months of
2017
Net Sales
Net sales of the Company increased
from Ps. 15,082 million in the first half of 2017 to Ps. 17,022
million in the first half of 2018. Shipments increased 1% from
1,084 thousand tons in the first half of 2017 to 1,092 thousand
tons in the first half of 2018. Total sales outside of Mexico in the first half of 2018 increased 2%
to Ps. 6,988 million compared to Ps. 6,855 million in the first
half of 2017. Mexican sales increased 22% from Ps. 8,227 million in
the first half of 2017 to Ps. 10,034 million in the first half of
2018. Sales increased for the first half of 2018 compared to the
first half of 2017, is due to the combined of increased in the
average sales price of 12% and increase in the volume of shipments
approximately of 8 thousand tons that represent a 1%.
Cost of Sales
Cost of sales increased 14% from
Ps. 12,297 million in the first half of 2017, to Ps. 14,045 million
in the first half of 2018. Cost of sales as a percentage of net
sales represented 83% in the first half of 2018 while in the first
half of 2017 represented 82%. Cost of sales increased due to mix
products and the higher volume of products shipped.
Gross Profit
Gross profit of the Company for
the first half of 2018 increased 7% from Ps. 2,785 million in the
first half of 2017, to Ps. 2,977 million in the first half of 2018.
Gross profit as percentage of net sales in the first half of 2018
was of 17%, while in the first half of 2017 was of 18%. The gross
profit between both periods is given by better mix products shipped
and better average sales price.
Selling, General and Administrative Expense
Selling, general and administrative expense decreased 25%, from Ps.
739 million in the first half of 2017 to Ps. 554 million in the
same period 2018, selling, general and administrative expense
represented 5% of the net sales in the second quarter of 2017 and
3% in the second quarter of 2018.
Other Income (Expenses,) net
The Company
recorded other income net for Ps. 20 million in the first half of
2018 million compared to other expenses Ps. 13 million in the same
period of 2017.
Operating Income
Operating income increased
20% from Ps. 2,033 million for the first half of 2017 compared to
Ps. 2,443 million in the first half of 2018. Operating income as
percentage of net sales was 14% in the first half of 2018 compared
to 13% in the same period of 2017. The increase in operating income
is due to better average sales price and the mix of products
shipped.
Ebitda
The Ebitda amounted to Ps. 2,784
million in the first half of 2017 as a result of a net income
of Ps. 1,294 million, plus minority stake of Ps. 38 million, less
income taxes of Ps. 51 million, plus comprehensive financial cost
of Ps. 752 million, plus depreciation of Ps. 751 million to Ps
2,969 million in the first quarter of 2018 as a result a net income
of Ps. 1,656 million, less minority stake of Ps. 22 million, plus
income taxes of Ps. 283 million, plus comprehensive financial cost
of Ps. 526 million, plus depreciation of Ps. 526 million.
Comprehensive Financial Cost
Comprehensive financial cost for the first half of 2018 represented
an expense of Ps.526 million compared with an expense of Ps. 752
million for the first half of 2017. The comprehensive financial
cost is comprised by the exchange loss of Ps. 504 million in the
first half of 2018 compared with an exchange loss of Ps. 750
million in the first half of 2017. Likewise the Company recorded a
net expense interest of Ps. 22 million for the first half of 2018
compared with a net expense interest of Ps.2 million in 2017.
Income Taxes
The Company recorded an expense
of Ps. 283 million for the net income tax during the first half of
2018, (comprised for a current expense tax of Ps. 143 million and
an expense for deferred income tax of Ps. 140 million) compared
with an income of Ps. 51 million to the first half of 2017
(comprised for a current expense tax of Ps. 71 million and an
income for deferred income tax of Ps. 122 million).
Net Income
As a result of the foregoing, the
Company recorded an increase in net income of 28% to pass of Ps.
1,294 million in the first half of 2017 to Ps. 1,656 million of the
same period of 2018.
Comparative second quarter of 2018 vs. first quarter of
2018
Net Sales
Net sales of the Company increased
14% in the second quarter of 2018 compared to the first quarter of
the same period, to pass of Ps. 7,949 million during the first
quarter of 2018 to Ps. 9,073 million in the second quarter of 2018.
Shipments of finished steel products increased 1% from 530 thousand
tons in the first quarter of 2018 to 537 thousand tons in the
second quarter of the same year. Total sales outside of
Mexico in the second quarter of
2018 increased 11% to get to Ps. 3,681 million compared to Ps.
3,307 million of the first quarter of the same year. Domestic sales
show an increase of 16% from Ps. 4,642 million in the first quarter
of 2018 to Ps. 5,392 million in the second quarter of the same
year. The sales mainly increased due to a greater shipped by 7
thousand tons compared with the first quarter that represent a 1%
and a better sales price in 13%.
Cost of Sales
Cost of sales increased 22% from
Ps. 6,339 million in the first quarter of 2018 to Ps. 7,706 million
in the second quarter of 2018. Cost of sales as a percentage of net
sales represented 80% for the first quarter of 2018 compared to 85%
in the second quarter of the same year, the average cost of sales
by ton record an increase between both quarters of 20%.
Gross Profit
Gross profit of the Company for
the second quarter of 2018 decreased 15% to pass of Ps. 1,610
million in the first quarter of 2018 to Ps. 1,367 million in the
second quarter of same year. Gross profit as a percentage of net
sales represented 20% for the first quarter of 2018 compared to 15%
in the second quarter of the same year. The gross profit in the
second quarter of 2018 is caused by a higher cost in purchase of
supplies.
Selling, General and Administrative Expense
Selling, general and administrative expense increased 3%, from Ps.
273 million in the first quarter of 2018 to Ps. 281 million in the
second quarter of the same year, and as percentage of net sales
represented 3% for both periods.
Other (Expenses) Income, net
The Company
recorded other income net for Ps. 43 million during the second
quarter of 2018 compared to other expenses net for Ps. 23 million
in the first quarter of 2018.
Operating Income
Operating income decreased
14%, of Ps. 1,314 million in the first quarter of 2018 compared to
Ps. 1,129 million of the second quarter of the same year. Operating
income as percentage of net sales was 17% for the first quarter of
2018 compared to 12% for the second quarter of the same year. The
operating income is due mainly to a increase in the purchase of
certain supplies.
Ebitda
The Ebitda amounted to Ps. 1,582
million in the first quarter of 2018 as a result of a net income of
Ps. 974 million, plus minority stake of Ps. 17 million, plus income
taxes of Ps. 10 million, plus comprehensive financial cost of Ps.
313 million, plus depreciation of Ps. 268 million to Ps 1,387
million in the second quarter of 2018 as a result of a net income
of Ps. 682 million, less minority stake of Ps. 40 million, plus
income taxes of Ps. 274 million, plus comprehensive financial cost
of Ps. 213 million, plus depreciation of Ps. 258 million.
Comprehensive Financial Cost
Comprehensive
financial cost of the Company in the second quarter of 2018
represented an expense of Ps. 213 million compared with of Ps. 313
million for the first quarter of 2018. The comprehensive financial
cost is comprised for the net interest expense of Ps. 31 million in
the second quarter of 2018, while in the first quarter was a net
income of Ps. 9 million. Likewise we record a net exchange loss of
Ps. 182 million in the second quarter of 2018 compared a net
exchange loss of Ps. 322 million in the first quarter of the same
year.
Income Taxes
The Company have been recorded an
expense of Ps. 274 million of income tax during the second quarter
of 2018, (comprised for an expense by current income tax of Ps. 118
million and an expense for deferred tax of Ps. 156 million)
compared with the Ps. 10 million of expense for the first quarter
of the same year, (comprised for a current expense tax of Ps. 26
million and of an income for deferred tax of Ps. 16 million).
Net Income
As a result of the foregoing, the
Company recorded a decrease of 30% from a net income of Ps. 974
million in the first quarter of 2018 compared to a net income of
Ps. 682 million for the second quarter of 2018.
Liquidity and Capital Resources
As of June 30th, 2018, 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 June 30th, 2018 was U.S.
$654,000, or Ps. 13.0 million).
As of December 31, 2017, 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 December 31, 2017 was U.S. $640,000, or Ps. 12.6 million).
Comparative second quarter of 2018 vs. second quarter of
2017
Net Sales
Net sales of the Company increased
27% from Ps. 7,159 million during the second quarter of 2017 to Ps.
9,073 million in the second quarter of 2018. Sales in tons of
finished steel increased 3% from 521 thousand tons in the second
quarter of 2017 compared with 537 thousand tons in the second
quarter of 2018. Sales outside of Mexico in the second quarter of 2018 increased
17% from Ps. 3,152 million in the second quarter of 2017 to Ps.
3,681 million in the second quarter of 2018. Domestic sales
increased 35% from Ps. 4,007 million in the second quarter of 2017
to Ps. 5,392 million in the second quarter of 2018. The increase in
sales in the second quarter of 2018 compared to the second quarter
of 2017 is due to an increase in the average sales price of 23% and
an increase in the volume of shipments approximately of 16 thousand
of tons that represent 3%.
Cost of Sales
Cost of sales increased 30% in
the second quarter of 2018 compared to the second quarter of 2017
from Ps. 5,949 million in the second quarter of 2017 to Ps. 7,706
million in the second quarter of 2018. With respect to sales, the
cost of sales of the second quarter of 2018 represented 85%
compared to 83% for the second quarter of 2017. The average cost of
sales by ton of steel products increased 26% in the second quarter
of 2018 versus the second quarter of 2017, due to the cost of
certain raw materials mainly scrap, electric power and
electrodes.
Gross (Loss) Profit
Gross profit of the
Company for the second quarter of 2018 amount to Ps. 1,367 million
compared to Ps. 1,210 million in the second quarter of 2017, this
represented an increase of 13% between both periods. Gross profit
as a percentage of net sales for the second quarter of 2018 was 15%
compared to 17% of the second quarter of 2017. The increase in
gross profit is mainly due to a higher average price of sales and a
higher volume of shipments in the second quarter of 2018 compared
with the second quarter of 2017.
Selling, General and Administrative Expense
The selling, general and administrative expenses decreased 20% in
the second quarter of 2018 from Ps. 350 million in the second
quarter of 2017 to Ps. 281 million in the second quarter of 2018.
Selling, general and administrative expense as a percentage of net
sales represented 3% in the second quarter of 2018 compared to 5%
of the second quarter of 2017.
Other Income (Expenses), net
The company
recorded other income net of Ps. 43 million in the second quarter
of 2018 compared with other expenses net of Ps. 14 million for the
second quarter of 2017.
Operating (Loss) Income
Operating income
amounted to Ps. 1,129 million in the second quarter 2018 compared
to Ps. 846 million in the second quarter of 2017, this represent
33% of increase between both quarters. The operating income as a
percentage of net sales was 12% in both periods. The increase in
the operating income is due to the higher volume shipment, better
average sales price and a decrease of selling, general and
administrative expense.
Ebitda
The Ebitda amounted to Ps. 1,201
million in the second quarter of 2017 as a result of a net income
of Ps. 614 million, less minority stake of Ps. 1 million, plus
income taxes of Ps. 12 million, plus comprehensive financial cost
of Ps. 221 million, plus depreciation of Ps. 355 million to Ps
1,387 million in the second quarter of 2018 as a result of a net
income of Ps. 682 million, less minority stake of Ps. 40 million,
plus income taxes of Ps. 274 million, plus comprehensive financial
cost of Ps. 213 million, plus depreciation of Ps. 258 million.
Comprehensive Financial Cost
Comprehensive financial cost of the Company for the second quarter
of 2018 represented a net expense of Ps. 213 million compared with
a net expense of Ps. 221 million for the second quarter of 2017.
The comprehensive financial cost is comprised for the net interest
expense of Ps. 31 million in the second quarter of 2018, compared
to a net interest income of Ps. 1 million for the same period of
2017. Also record an exchange loss of Ps. 182 million in the second
quarter of 2018 and an exchange loss of Ps. 220 million in the
second quarter of 2017.
Income Taxes
The company recorded an expense
of Ps. 274 million of income tax in the second quarter of 2018,
(comprised by current expense tax of Ps. 118 million and an expense
for deferred tax of Ps. 156 million) compared to an expense accrual
of Ps. 12 million for income tax for the second quarter of 2017,
(comprised by current expense tax of Ps. 64 million and an income
for deferred tax of Ps. 52 million).
Net Income (Loss)
As a result of the
foregoing, the Company recorded a net income of Ps.682 million in
the second quarter of 2018 compared to Ps. 614 million for the
second quarter of 2017, an increase of 11% between both
quarters.
|
(millions of
pesos)
|
1H
'18
|
|
1H
'17
|
|
Year 18 VS
'17
|
|
Sales
|
17,022
|
|
15,082
|
|
13%
|
|
Cost of
Sales
|
14,045
|
|
12,297
|
|
14%
|
|
Gross
Profit
|
2,977
|
|
2,785
|
|
7%
|
|
Selling, General and
Administrative Expense
|
554
|
|
739
|
|
(25%)
|
|
Other Income
(Expenses), net
|
20
|
|
-13
|
|
(254%)
|
|
Operating
Profit
|
2,443
|
|
2,033
|
|
20%
|
|
EBITDA
|
2,969
|
|
2,784
|
|
7%
|
|
Net
Income
|
1,656
|
|
1,294
|
|
28%
|
|
Sales Outside
Mexico
|
6,988
|
|
6,855
|
|
2%
|
|
Sales in
Mexico
|
10,034
|
|
8,227
|
|
22%
|
|
Total Sales
(Tons)
|
1,092
|
|
1,084
|
|
1%
|
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
2Q'18
|
1Q
'18
|
2Q
'17
|
2Q'18 vs
1Q'18
|
2Q'18 vs
2Q '17
|
|
Sales
|
9,073
|
7,949
|
7,159
|
14%
|
27%
|
|
Cost of
Sales
|
7,706
|
6,339
|
5,949
|
22%
|
30%
|
|
Gross
Profit
|
1,367
|
1,610
|
1,210
|
(15%)
|
13%
|
|
Selling, General and
Adm. Expenses
|
281
|
273
|
350
|
3%
|
(20%)
|
|
Other Income
(Expenses), net
|
43
|
-23
|
(14)
|
(287%)
|
(407%)
|
|
Operating
Profit
|
1,129
|
1,314
|
846
|
(14%)
|
33%
|
|
EBITDA
|
1,387
|
1,582
|
1,201
|
(12%)
|
15%
|
|
Net Income
|
682
|
974
|
614
|
(30%)
|
11%
|
|
Sales Outside
Mexico
|
3,681
|
3,307
|
3,152
|
11%
|
17%
|
|
Sales in
Mexico
|
5,392
|
4,642
|
4,007
|
16%
|
35%
|
|
Total Sales
(Tons)
|
537
|
530
|
521
|
1%
|
3%
|
|
Product
|
Thousands
of Tons
Jan-Jun
2018
|
Million of
Pesos
Jan-Jun
2018
|
Average
Price per
Ton
Jan-Jun
2018
|
Thousands
of Tons
Jan – Jun
2017
|
Million of
Pesos
Jan- Jun
2017
|
Average
Price per
Ton
Jan-Jun
2017
|
|
Commercial
Profiles
|
645
|
8,303
|
12,873
|
643
|
7,234
|
11,250
|
|
Special
Profiles
|
447
|
8,719
|
19,505
|
441
|
7,848
|
17,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
1,092
|
17,022
|
15,588
|
1,084
|
15,082
|
13,913
|
|
Product
|
Thousands
of Tons
Apr-Jun
2018
|
Million of
Pesos
Apr-Jun
2018
|
Average
Price per
Ton
Apr-Jun
2018
|
Thousands
of Tons
Jan –
Mar
2018
|
Million of
Pesos
Jan- Mar
2018
|
Average
Price per
Ton
Jan-Mar
2018
|
Thousands
of Tons
Apr-Jun
2017
|
Million of
Pesos
Apr-Jun
2017
|
Average
Price per
Ton
Apr-Jun
2017
|
|
Commercial
Profiles
|
339
|
4,888
|
14,419
|
325
|
4,151
|
12,772
|
308
|
3,358
|
10,903
|
|
Special
Profiles
|
198
|
4,185
|
21,136
|
205
|
3,798
|
18,527
|
213
|
3,801
|
17,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
537
|
9,073
|
16,896
|
530
|
7,949
|
14,998
|
521
|
7,159
|
13,741
|
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: Sergio Vigil González
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.