GUADALAJARA, Mexico,
Feb. 9, 2021 /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, 2020 and December 31, 2019.
Twelve-Month Period Ended December 31,
2020 compared to Twelve-Month Period Ended December 31, 2019
Net Sales
Net sales increased 5% by the combination
of higher shipments of finished steel products and a higher average
sales price by 1% compared the same period of 2019, the sales
increased from Ps. 34,171 million in the twelve-month period ended
December 31, 2019 to Ps. 35,957
million in the same period of 2020. Shipments of finished steel
products increased 4% to 2 million 441 thousand tons in the
twelve-month period ended December 31,
2020 compared to 2 million 349 thousand tons in the same
period of 2019. Total sales outside of Mexico on the twelve-month period ended
December 31, 2020 increased 7% to Ps.
17,871 million compared with Ps. 16,736 million in the same period
of 2019. Total sales in Mexico
increased 4% from Ps. 17,435 million in the twelve-month period
ended December 31, 2019 to Ps. 18,086
million in the same period of 2020. The increase of 5% in sales is
due to a higher average sales price and higher volume of
shipments.
Cost of Sales
Cost of sales decreased 3% from Ps.
30,067 million in the twelve-month period ended December 31, 2019 to Ps. 29,236 million in the
same period of 2020. Cost of sales as a percentage of net sales
represented, 81% for 2020 and 2019 88%. The average cost of
finished steel produced in the twelve-month period ended
December 31, 2020 compared to the
same period of 2019 decreased 6% due to higher costs of some
supplies at year end.
Gross Profit
Gross profit of the Company in the
twelve-month period ended December 31,
2020 was of Ps. 6,721 million compared to Ps. 4,104 million
in the same period of 2019. Gross profit as a percentage of net
sales represented 19% and 12% for the 2020 and 2019 periods
respectively.
Operating Expenses
Selling, general and administrative
expenses increased 11% from Ps. 1,637 million in the twelve-month
period ended December 31, 2019 to Ps.
1,814 million in the same period of 2020. Selling, general and
administrative expenses as a percentage of net sales represented 5%
for both periods.
Other Expenses (Income) net
The company recorded
other net expenses of Ps. 137 million in the twelve-month period
ended December 31, 2019 compared to
other net income of Ps. 555 million in the same period of 2020.
Operating Income
Operating income increased 134% from
Ps. 2,330 million for the twelve-month period ended December 31, 2019 to Ps. 5,462 million in the
same period of 2020. Operating income as a percentage of net sales
represented 15% and 7% for the 2020 and 2019 periods
respectively.
EBITDA
The EBITDA of the Company increased 96% from Ps. 3,439 million in
the twelve-month prior ended December
31, of 2019, generating a net loss of Ps. 1,636, less
minority stake of Ps. 4, plus income taxes of Ps. 3,276, plus
comprehensive financial cost of Ps. 694, plus depreciation of Ps.
1,109 to Ps. 6,729 million in the same period of 2020 as a result a
net income of Ps. 4,180, less minority stake of Ps. 2, plus
income taxes of Ps. 1,335, less comprehensive financial cost of Ps.
51, plus depreciation of 1,267.
|
|
|
Consolidated
Million
|
|
Twelve-month
period ended December 31,
|
|
|
2020
|
|
|
2019
|
Net income
(loss)
attributable to Vale's
stockholders
|
|
|
4,180
|
|
|
|
(1,636)
|
Loss attributable
to
noncontrolling interests
|
|
|
(2)
|
|
|
|
(4)
|
Net income
(loss)
|
|
|
4,178
|
|
|
|
(1,640)
|
Depreciation,
depletion and
amortization
|
|
|
1,267
|
|
|
|
1,109
|
Income
taxes
|
|
|
1,335
|
|
|
|
3,276
|
Financial results
income (loss)
|
|
|
(51)
|
|
|
|
694
|
EBITDA
|
|
|
6,729
|
|
|
|
3,439
|
|
|
|
|
|
|
|
|
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
|
|
|
6,729
|
|
|
|
3,439
|
Comprehensive Financial Cost
Comprehensive
financial cost in the twelve-month period ended December 31, 2020 represented a net income of Ps.
51 million compared with a net expense of Ps. 694 million in the
same period of 2019. The net interest was an income of Ps. 59
million in 2020 compared with a net income of Ps. 91 million in the
twelve-month period ended December 31,
2019. As a result, we registered a net exchange loss of Ps.
8 million in the twelve-month period ended December 31, 2020 compared with a net exchange
loss of Ps. 785 million in the same period of 2019, reflecting a
5.63% increase in the value of the peso versus the dollar in the
twelve-month period ended December 31,
2020 compared to December 31,
2019.
Income Taxes
The Company have recorded an expense net
tax of Ps. 1,335 million in the twelve-month period ended
December 31, 2020 (including the
income of deferred tax of Ps. 22 million) compared with a net
expense tax of Ps. 3,276 million in the same period of 2019
(including the tax deferred expense of Ps. 202 million).
Net Income (loss) (After Minority Interest)
As a
result of the foregoing, net income increased by 356% from Ps.
1,636 million net loss in the twelve-month period ended
December 31, 2019 to Ps. 4,180
million a result net income in the same period of 2020.
Liquidity and Capital Resources
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). As of December 31,
2019, Simec's total consolidated debt consisted of U.S.
$302,000 of 8 7/8% medium-term notes
("MTN's") due 1998, Ps. 5.7 million (accrued interest on
December 31, 2019 was U.S.
$676,758, or Ps. 12.8 million).
Comparative fourth quarter 2020 vs third quarter 2020
Net
Sales
Net sales increased from Ps. 9,643 million in the third quarter of
2020 to Ps. 10,218 million for the fourth quarter of 2020. Sales in
tons decreased from 676 thousand ton in the third quarter of 2020
to 602 thousand ton in the fourth quarter of the same period, a
decrease of 11%. Total sales outside of Mexico for the fourth quarter of 2020
increased 1% from Ps. 4,824 million in the third quarter to Ps.
4,878 million in the four quarter of 2020. Sales in Mexico increased to Ps. 5,340 million in the
fourth quarter of 2020 compared Ps. 4,819 million in the third
quarter of 2020 and increase of 11%. Prices of finished products
sold in the fourth quarter of 2020 increased 19% compared with the
third quarter of the same period.
Cost of Sales
Cost of sales increased to Ps. 8,381
million in the fourth quarter of 2020 compared to Ps. 7,682 million
for the third quarter of 2020. With respect to sales, in the fourth
quarter of 2020, the cost of sales represented 82% in the fourth
quarter of 2020, compared to 80% in the third quarter of the same
period. The average cost of sales by ton increased 23% in the
fourth quarter of 2020 versus the third quarter of 2020.
Gross Profit
Gross profit of the Company for the
fourth quarter of 2020 decreased 6% to Ps. 1,837 million compared
to Ps. 1,961 million in the third quarter of 2020. The gross profit
as a percentage of net sales for the third and fourth quarter of
2020 was of 20% and 18% respectively.
Operating Expenses
Selling, general and administrative
expenses increased 11% to Ps. 498 million in the fourth quarter of
2020 compared to Ps. 449 million for the third quarter of 2020.
Selling, general and administrative expenses as a percentage of net
sales for the third and fourth quarter of 2020 were of 5% for both
periods
Other Expenses (Income) net
The company recorded
other net income of Ps. 339 million in the fourth quarter of 2020
compared to other net income of Ps. 56 million for the third
quarter of 2020.
Operating (Loss) Income
Operating income was of Ps.
1,678 million in the fourth quarter of 2020 compared to an
operating income of Ps. 1,568 million in the third quarter of 2020.
The operating income as a percentage of net sales represented 16%
for both periods.
EBITDA
The EBITDA was Ps. 1,891 million in the third quarter of
2020 as a result a net income of Ps. 1,003, less minority
stake of Ps. 1 million, plus income taxes of Ps. 352, plus
comprehensive financial cost of Ps. 214, plus depreciation of Ps.
323 compared to Ps. 1,987 million for the fourth quarter of 2020,
as a result a net income of Ps. 717, plus minority stake of Ps. 2
million, plus income taxes of Ps. 31, plus comprehensive financial
cost of Ps. 928, plus depreciation of Ps. 309.
|
|
|
Consolidated
Million
|
|
Comparative fourth
quarter vs third quarter 2020
|
|
|
4Q
2020
|
|
|
3Q
2020
|
Net income
(loss)
attributable to Vale's
stockholders
|
|
|
717
|
|
|
|
1,003
|
Loss attributable
to
noncontrolling interests
|
|
|
2
|
|
|
|
(1)
|
Net income
(loss)
|
|
|
719
|
|
|
|
1,002
|
Depreciation,
depletion and
amortization
|
|
|
309
|
|
|
|
323
|
Income
taxes
|
|
|
31
|
|
|
|
352
|
Financial results
income
(loss)
|
|
|
928
|
|
|
|
214
|
EBITDA
|
|
|
1,987
|
|
|
|
1,891
|
|
|
|
|
|
|
|
|
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
|
|
|
1,987
|
|
|
|
1,891
|
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2020 was a
net expense of Ps. 928 million compared with a net expense of Ps.
214 million for the third quarter of 2020. The net interest income
the fourth quarter was Ps. 20 million compared with a net expense
of Ps. 6 million in the third quarter of 2020. At same time we
registered an exchange net loss of Ps. 208 million in the third
quarter of 2020 compared with an exchange net loss of Ps. 948
million in the fourth quarter of 2020.
Income Taxes
Income Taxes for the third quarter of
2020 had an expense net tax of Ps. 352 million (including an
expenses tax deferred for Ps. 18 million) compared to an expense of
Ps. 31 million for the fourth quarter of 2020, (including an income
tax deferred of Ps. 37 million).
Net Income (loss)
As a result of the foregoing, the
Company had a net income of Ps. 717 million in the fourth quarter
of 2020 compared to Ps. 1,003 million of net income in the third
quarter of 2020.
Comparative fourth quarter 2020 vs fourth quarter 2019
Net Sales
Net sales increased 40% from Ps. 7,315
million for the fourth quarter of 2019 to Ps. 10,218 million for
the fourth quarter of 2020. Sales in tons of finished steel in the
fourth quarter of 2019 were 570 thousand tons versus to 602
thousand tons in the fourth quarter of 2020. Total sales outside of
Mexico increased 39% from Ps.
3,497 million for the fourth quarter of 2019 to Ps. 4,878 million
in the fourth quarter of 2020. Sales in Mexico increased 40% from Ps. 3,818 million in
the fourth quarter of 2019 to Ps. 5,340 million in the fourth
quarter of 2020. The average sales prices of finished products sold
in the fourth quarter of 2020 increased 32%, compared to the same
period of 2019.
Cost of Sales
Cost of sales increased 23% from Ps.
6,835 million in the fourth quarter of 2019 compared to Ps. 8,381
million for the fourth quarter of 2020. With respect to sales, the
cost of sales represented 82% during the fourth quarter of 2020 and
93% during the fourth quarter of 2019. The average cost of steel
products increased 16% in the fourth quarter of 2020 versus the
fourth quarter of 2019.
Gross Profit
Gross profit for the fourth quarter of
2020 increased 283% from Ps. 480 million in the fourth quarter of
2019 compared to Ps. 1,837 million in the fourth quarter of 2020.
The gross profit as a percentage of net sales represented 7% for
the fourth quarter of 2019 compared to 18% of the fourth quarter of
2020.
Operating Expenses
Selling, general and administrative
expenses decreased 6% from Ps. 530 million in the fourth quarter of
2019 compared to Ps. 498 million for the fourth quarter of 2020.
Selling, general and administrative expenses as a percentage of net
sales represented 7% for the fourth quarter of 2019 and 5% for the
fourth quarter of 2020.
Other Expenses (Income) net
The company recorded
other expenses net of Ps. 298 million in the fourth quarter of 2019
compared with other income net of Ps. 339 million for the fourth
quarter of 2020.
Operating (Loss) Income
Operating income was of Ps.
1,678 million in the fourth quarter of 2020 compared to an
operating loss of Ps. 348 million in the fourth quarter of 2019.
The operating income as a percentage of net sales in the fourth
quarter of 2020 was 16%, compared to an operating loss of -5% in
the fourth quarter of 2019.
EBITDA
The EBITDA was Ps. -42 million in the fourth
quarter of 2019 as a result a net loss of Ps. 3,229, plus minority
stake of Ps. 124, plus income taxes of Ps. 2,970, less
comprehensive financial cost of Ps. 213, plus depreciation of Ps.
306 compared to a profit of Ps 1,987 million in the fourth quarter
of 2020 as a result a net income of Ps. 717, plus minority stake of
Ps. 2 million, plus income taxes of Ps. 31, plus comprehensive
financial cost of Ps. 928, plus depreciation of Ps. 309.
|
|
|
Consolidated
Million
|
|
Comparative fourth
quarter vs fourth quarter
|
|
|
2020
|
|
|
2019
|
Net income
(loss)
attributable to Vale's
stockholders
|
|
|
717
|
|
|
|
(3,229)
|
Loss attributable
to
noncontrolling interests
|
|
|
2
|
|
|
|
124
|
Net income
(loss)
|
|
|
719
|
|
|
|
(3,105)
|
Depreciation,
depletion and
amortization
|
|
|
309
|
|
|
|
306
|
Income
taxes
|
|
|
31
|
|
|
|
2,970
|
Financial results
income
(loss)
|
|
|
928
|
|
|
|
(213)
|
EBITDA
|
|
|
1,987
|
|
|
|
(42)
|
|
|
|
|
|
|
|
|
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
|
|
|
1,987
|
|
|
|
(42)
|
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2020 was a
net expense of Ps. 928 million compared with a net income of Ps 213
million in the fourth quarter of 2019. Net interest income was of
Ps. 20 million in the fourth quarter of 2020 compared with a net
interest expense of Ps. 40 million in the fourth quarter of 2019.
At same time we registered a net exchange loss of Ps. 948 million
in the fourth quarter of 2020 compared with an exchange income of
Ps. 253 million in the fourth quarter of 2019.
Income Taxes
The Company recorded an expense
net taxes for the fourth quarter of 2020 of Ps. 31 million
(including an income of deferred tax of Ps. 37 million), compared
to an expense taxes of Ps. 2,970 million for the fourth quarter of
2019, (including an income tax deferred of Ps. 128 million).
Net Income (loss)
As a result of the foregoing, the
Company recorded a net income of Ps. 717 million in the fourth
quarter of 2020 compared to Ps. 3,229 million of net loss in the
fourth quarter of 2019.
(million of
pesos)
|
Jan - Dec
'20
|
|
Jan - Dec
'19
|
|
Year 20 vs
'19
|
Sales
|
35,957
|
|
34,171
|
|
5%
|
Cost of
Sales
|
29,236
|
|
30,067
|
|
(3%)
|
Gross
Profit
|
6,721
|
|
4,104
|
|
64%
|
Selling, General and
Administrative Expense
|
1,814
|
|
1,637
|
|
11%
|
Other Income
(Expenses), net
|
555
|
|
(137)
|
|
505%
|
Operating
Profit
|
5,462
|
|
2,330
|
|
134%
|
EBITDA
|
6,729
|
|
3,439
|
|
96%
|
Net
income
|
4,180
|
|
(1,636)
|
|
356%
|
Sales Outside
Mexico
|
17,871
|
|
16,736
|
|
7%
|
Sales in
Mexico
|
18,086
|
|
17,435
|
|
4%
|
Total Sales
(Tons)
|
2,441
|
|
2,349
|
|
4%
|
Cost by
ton
|
11,977
|
|
12,800
|
|
(6%)
|
Quarter
|
|
|
|
|
|
(million of
pesos)
|
4Q'20
|
3Q
'20
|
4Q
'19
|
4Q´20vs
3Q´20
|
4Q´20 vs
4Q '19
|
Sales
|
10,218
|
9,643
|
7,315
|
6%
|
40%
|
Cost of
Sales
|
8,381
|
7,682
|
6,835
|
9%
|
23%
|
Gross
Profit
|
1,837
|
1,961
|
480
|
(6%)
|
283%
|
Selling, General and
Adm. Expenses
|
498
|
449
|
530
|
11%
|
(6%)
|
Other Income
(Expenses), net
|
339
|
56
|
(298)
|
505%
|
214%
|
Operating
Profit
|
1,678
|
1.568
|
(348)
|
7%
|
582%
|
EBITDA
|
1,987
|
1,891
|
(42)
|
5%
|
4831%
|
Net Income
|
717
|
1,003
|
(3,229)
|
(29%)
|
122%
|
Sales Outside
Mexico
|
4,878
|
4,824
|
3,497
|
1%
|
39%
|
Sales in
Mexico
|
5,340
|
4,819
|
3,818
|
11%
|
40%
|
Total Sales
(Tons)
|
602
|
676
|
570
|
(11%)
|
6%
|
Cost per
Ton
|
13,922
|
11,364
|
11,991
|
23%
|
16%
|
Product
|
Thousands of
Tons
Jan-Dec
2020
|
Millions of
Pesos
Jan-Dec 2020
|
Average Price
per Ton
Jan-Dec
2020
|
Thousands of
Tons
Jan – Dec
2019
|
Millions of
Pesos
Jan- Dec 2019
|
Average Price
per Ton
Jan-Dec
2019
|
Special
Profiles
|
791
|
13,593
|
17,185
|
851
|
15,384
|
18,078
|
Commercial
Profiles
|
1,650
|
22,364
|
13,554
|
1,498
|
18,787
|
12,541
|
Total
Tons
|
2,441
|
35,957
|
14,730
|
2,349
|
34,171
|
14,547
|
Product
|
Thousands
of Tons
Oct-Dec
2020
|
Millions of
Pesos
Oct-Dec 2020
|
Average Price per
Ton
Oct-Dec
2020
|
Thousands of
Tons
Jul-Sep
2020
|
Millions of
Pesos
Jul-Sep
2020
|
Average Price per
Ton
Jul-Sep
2020
|
Thousands of
Tons
Oct-Dec
2019
|
Millions of
Pesos
Oct-Dec 2019
|
Average
Price per Ton
Oct-Dec
2019
|
Special
Profiles
|
220
|
3,898
|
17,718
|
215
|
3,551
|
16,516
|
191
|
3,042
|
15,927
|
Commercial
Profiles
|
382
|
6,320
|
16,545
|
461
|
6,092
|
13,215
|
379
|
4,273
|
11,274
|
Total
Tons
|
602
|
10,218
|
16,973
|
676
|
9,643
|
14,265
|
570
|
7,315
|
12,833
|
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 :
Jose 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.