GUADALAJARA, MEXICO, May 6, 2024
/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, 2023 Audited and December 31, 2022 Audited.
Twelve-Month Period Ended December 31,
2023 compared to Twelve-Month Period Ended December 31, 2022.
Net Sales
Net sales decreased 24% by the combination shipments of finished
steel products and a lower average sales price by 21% compared the
same period of 2022, the sales decreased from Ps. 54,159 million in
the twelve-month period ended December 31,
2022 to Ps. 41,139 million in the same period of 2023.
Shipments of finished steel products decreased 4% to 2 million 176
thousand tons in the twelve-month period ended December 31, 2023 compared to 2 million 255
thousand tons in the same period of 2022. Total sales outside of
Mexico on the twelve-month period
ended December 31, 2023 decreased 31%
to Ps. 16,814 million compared with Ps. 24,515 million in the same
period of 2022. Total sales in Mexico decreased 18% from Ps. 29,644 million
in the twelve-month period ended December
31, 2022 to Ps. 24,325 million in the same period of 2023.
The decrease of 4% in sales and to a lower average sales price
21%.
Cost of Sales
Cost of sales decreased 22% from Ps. 39,684 million in the
twelve-month period ended December 31,
2022 to Ps. 31,100 million in the same period of 2023. Cost
of sales as a percentage of net sales represented, 76% for 2023 and
2022 73%. The average cost of finished steel produced in the
twelve-month period ended December 31,
2023 compared to the same period of 2022 decreased 19%
mainly due to the volume shipped and due to scrap cost and to lower
costs of some supplies during the year.
Gross Profit
Gross profit of the Company in the twelve-month period ended
December 31, 2023 was of Ps. 10,039
million compared to Ps. 14,475 million in the same period of 2022.
Gross profit as a percentage of net sales represented 24% and 27%
for the 2023 and 2022 periods respectively.
Operating Expenses
Selling, general and administrative expenses decreased 6% from
Ps. 2,456 million in the twelve-month period ended December 31, 2022 to Ps. 2,317 million in the
same period of 2023. Selling, general and administrative expenses
as a percentage of net sales represented 5% during the twelve-month
period ended December 31, 2022 and 6%
in the same period of 2023.
Other Expenses (Income) net
The company recorded other net income of Ps. 72 million in the
twelve-month period ended December 31,
2022 compared to other net expenses of Ps. 119 million in
the same period of 2023.
Operating Income
Operating income decreased 37% from Ps. 12,091 million for the
twelve-month period ended December 31,
2022 to Ps. 7,603 million in the same period of 2023.
Operating income as a percentage of net sales represented 18% and
22% for the 2023 and 2022 periods respectively.
EBITDA
The EBITDA of the Company decreased 35% from Ps. 13,207 million
in the twelve-month prior ended December
31, of 2022, as a result a net income of Ps. 7,703, less
minority stake of Ps. 2 million, plus income taxes of Ps. 3,300,
plus comprehensive financial cost of Ps. 1,089 million, plus
depreciation of Ps. 1,117 million, to Ps. 8,638 million in the same
period of 2023 as a result a net income of Ps. 4,283, less minority
stake of Ps. 8 million, plus income taxes of Ps. 1,740 million,
plus comprehensive financial cost of Ps. 1,588 million, plus
depreciation of 1,035 million.
|
Consolidated
|
|
|
|
|
|
|
Million
|
|
Twelve-month period
ended December 31,
|
|
|
2023
|
|
2022
|
|
Net income
(loss)
|
|
|
4,283
|
|
7,703
|
|
Loss attributable to
noncontrolling interests
|
|
|
(8)
|
|
(2)
|
|
Net income
(loss)
|
|
|
4,275
|
|
7,701
|
|
Depreciation and
amortization
|
|
|
1,035
|
|
1,117
|
|
Income taxes
|
|
|
1,740
|
|
3,300
|
|
Financial results
income (loss)
|
|
|
1,588
|
|
1,089
|
|
EBITDA
|
|
|
8,638
|
|
13,207
|
|
|
|
|
|
|
|
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
|
|
|
8,638
|
|
13,207
|
Comprehensive Financial Cost
Comprehensive
financial cost in the twelve-month period ended December 31, 2023 represented a net expense of
Ps. 1,588 million compared with a net expense of Ps. 1,089 million
in the same period of 2022. The net interest was an income of Ps.
778 million in 2023 compared with a net income of Ps. 197 million
in the twelve-month period ended December
31, 2022. As a result, we registered a net exchange loss of
Ps. 2,431 million in the twelve-month period ended December 31, 2023 compared with a net exchange
loss of Ps. 700 million in the same period of 2022, net other
financial income was recorded for Ps. 65 million for the period
2023 compared to the Ps. 586 million of other financial expenses
for the period 2022.
Income Taxes
The Company have recorded an expense net
tax of Ps. 1,740 million in the twelve-month period ended
December 31, 2023 (including the
expense of deferred tax of Ps. 45 million) compared with a net
expense tax of Ps. 3,300 million in the same period of 2022
(including the tax deferred expense of Ps. 150 million).
Net Income (loss)
As a result of the foregoing, net
income decreased by 44% from Ps. 7,703 million net profits in the
twelve-month period ended December 31,
2022 to Ps. 4,283 million a result net income in the same
period of 2023.
Liquidity and Capital Resources
As of December 31, 2023, Simec's total consolidated
debt consisted of U.S. $302,000 of 8
7/8% medium-term notes ("MTN's") due 1998, Ps. 5.1 million (accrued
interest on December 31, 2023 was
U.S. $812,916 or Ps. 13.7
million). As of December 31,
2022, Simec's total consolidated debt consisted of U.S.
$302,000 of 8 7/8% medium-term notes
("MTN's") due 1998, Ps. 5.8 million (accrued interest on
December 31, 2022 was U.S.
$694,987, or Ps. 13.5 million).
Comparative fourth quarter 2023 vs third quarter 2023
Net Sales
Net sales decreased
from Ps. 9,454 million in the third quarter of 2023 to Ps. 8,738
million for the fourth quarter of 2023. Sales in tons increased
from 531 thousand ton in the third quarter of 2023 to 536 thousand
ton in the fourth quarter of the same period, an increase of 1%.
Total sales outside of Mexico for
the fourth quarter of 2023 decreased 18% from Ps. 3,932 million in
the third quarter to Ps. 3,243 million in the four quarter of 2023.
Sales in Mexico decreased to Ps.
5,495 million in the fourth quarter of 2023 compared Ps. 5,522
million in the third quarter of 2023 and decreased of 0.49%. Prices
of finished products sold in the fourth quarter of 2023 decreased
8% compared with the third quarter of the same period.
Cost of Sales
Cost of sales decreased to Ps.
6,795 million in the fourth quarter of 2023 compared to Ps. 7,177
million for the third quarter of 2023. With respect to sales, in
the fourth quarter of 2023, the cost of sales represented 78% in
the fourth quarter of 2023, compared to 76% in the third quarter of
the same period. The average cost of sales by ton decreased of 6%
in the fourth quarter of 2023 versus the third quarter of 2023.
Gross Profit
Gross profit of the Company for
the fourth quarter of 2023 decreased 15% to Ps. 1,943 million
compared to Ps. 2,277 million in the third quarter of 2023. The
gross profit as a percentage of net sales for the third and fourth
quarter of 2023 was of 24% and 22% respectively.
Operating Expenses
Selling, general and
administrative expenses increased 51% to Ps. 730 million in the
fourth quarter of 2023 compared to Ps. 485 million for the third
quarter of 2023. Selling, general and administrative expenses as a
percentage of net sales for the third and fourth quarter of 2023
was of 5% and 8% respectively.
Other Expenses (Income) net
The company
recorded other net expenses of Ps. 286 million in the fourth
quarter of 2023 compared to other net income of Ps. 24 million for
the third quarter of 2023.
Operating (Loss) Income
Operating income was of
Ps. 927 million in the fourth quarter of 2023 compared to an
operating income of Ps. 1,816 million in the third quarter of 2023.
The operating income as a percentage of net sales represented 11% y
19% for the fourth quarter and third quarter of 2023
respectively.
EBITDA
The EBITDA was Ps. 2,079 million in the third quarter of
2023 as a result a net income of Ps. 1,802 million, less minority
stake of Ps. 2 million, plus income taxes of Ps. 298 million, less
comprehensive financial cost of Ps. 283 million, plus depreciation
of Ps. 264 million, compared to Ps. 1,140 million for the fourth
quarter of 2023, as a result a net income of Ps. 462 million,
less minority stake of Ps. 4 million, plus income taxes of Ps. 199
million, plus comprehensive financial cost of Ps. 270 million, plus
depreciation of Ps. 213 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative fourth
quarter vs third quarter 2023
|
|
|
4Q
2023
|
|
|
3Q
2023
|
|
Net income
(loss)
|
|
|
462
|
|
|
|
1,802
|
|
Loss attributable to
noncontrolling interests
|
|
|
(4)
|
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
458
|
|
|
|
1,800
|
|
Depreciation
and
Amortization
|
|
|
213
|
|
|
|
264
|
|
Income taxes
|
|
|
199
|
|
|
|
298
|
|
Financial results
income (loss)
|
|
|
270
|
|
|
|
(283)
|
|
EBITDA
|
|
|
1,140
|
|
|
|
2,079
|
|
|
|
|
|
|
|
|
|
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
|
|
|
1,140
|
|
|
|
2,079
|
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2023 was a
net expense of Ps. 270 million compared with a net income of Ps.
283 million for the third quarter of 2023. The net interest income
the fourth quarter was Ps. 386 million compared with a net income
of Ps. 28 million in the third quarter of 2023. At same time we
registered an exchange net profit of Ps. 255 million in the third
quarter of 2023 compared with an exchange net loss of Ps. 677
million in the fourth quarter of 2023. Net other financial income
was recorded for Ps. 21 million in the fourth quarter of 2023.
Income Taxes
Income Taxes for the third quarter
of 2023 had an expense net tax of Ps. 298 million (including an
income tax deferred for Ps. 8 million) compared to an expense of
Ps. 199 million for the fourth quarter of 2023, (including an
expense tax deferred of Ps. 53 million).
Net Income (loss)
As a result of the foregoing,
the Company recorded a net income of Ps. 462 million in the fourth
quarter of 2023 compared to Ps. 1,802 million of net income in the
third quarter of 2023.
Comparative fourth quarter 2023 vs fourth quarter 2022
Net Sales
Net sales decreased 14% from Ps. 10,147
million for the fourth quarter of 2022 to Ps. 8,738 million for the
fourth quarter of 2023. Sales in tons of finished steel in the
fourth quarter of 2022 were 535 thousand tons versus to 536
thousand tons in the fourth quarter of 2023. Total sales outside of
Mexico decreased 12% from Ps.
3,704 million for the fourth quarter of 2022 to Ps. 3,243 million
in the fourth quarter of 2023. Sales in Mexico decreased 15% from Ps. 6,443 million in
the fourth quarter of 2022 to Ps. 5,495 million in the fourth
quarter of 2023. The average sales prices of finished products sold
in the fourth quarter of 2023 decreased 14%, compared to the same
period of 2022.
Cost of Sales
Cost of sales decreased 9% from Ps.
7,441 million in the fourth quarter of 2022 compared to Ps. 6,795
million for the fourth quarter of 2023. With respect to sales, the
cost of sales represented 78% during the fourth quarter of 2023 and
73% during the fourth quarter of 2022. The average cost of steel
products decreased 9% in the fourth quarter of 2023 versus the
fourth quarter of 2022.
Gross Profit
Gross profit for the fourth quarter of
2023 decreased 28% from Ps. 2,706 million in the fourth quarter of
2022 compared to Ps. 1,943 million in the fourth quarter of 2023.
The gross profit as a percentage of net sales represented 27% for
the fourth quarter of 2022 compared to 22% of the fourth quarter of
2023.
Operating Expenses
Selling, general and
administrative expenses belog from Ps. 732 million in the fourth
quarter of 2022 compared to Ps. 730 million for the fourth quarter
of 2023. Selling, general and administrative expenses as a
percentage of net sales represented 7% for the fourth quarter of
2022 and 8% for the fourth quarter of 2023.
Other Expenses (Income) net
The company recorded
other income net of Ps. 65 million in the fourth quarter of 2022
compared with other expenses net of Ps. 286 million for the fourth
quarter of 2023.
Operating (Loss) Income
Operating income was of Ps.
927 million in the fourth quarter of 2023 compared to an operating
profit of Ps. 2,039 million in the fourth quarter of 2022. The
operating income as a percentage of net sales in the fourth quarter
of 2023 was 11%, compared to an operating income of 20% in the
fourth quarter of 2022.
EBITDA
The EBITDA was Ps. 2,322 million in the fourth
quarter of 2022 as a result a net loss of Ps. 334 million, less
minority stake of Ps. 2 million, plus income taxes of Ps. 1,349
million, plus comprehensive financial cost of Ps. 1,026 million,
plus depreciation of Ps. 283 million, compared to a profit of Ps
1,140 million in the fourth quarter of 2023 as a result a net
income of Ps. 462 million, less minority stake of Ps. 4 million,
plus income taxes of Ps. 199 million, plus comprehensive financial
cost of Ps. 270 million, plus depreciation of Ps. 213 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative fourth
quarter vs fourth quarter
|
|
|
2023
|
|
|
2022
|
|
Net income
(loss)
|
|
|
462
|
|
|
|
(334)
|
|
Loss attributable to
noncontrolling interests
|
|
|
(4)
|
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
458
|
|
|
|
(336)
|
|
Depreciation
and
Amortization
|
|
|
213
|
|
|
|
283
|
|
Income taxes
|
|
|
199
|
|
|
|
1,349
|
|
Financial results
income (loss)
|
|
|
270
|
|
|
|
1,026
|
|
EBITDA
|
|
|
1,140
|
|
|
|
2,322
|
|
|
|
|
|
|
|
|
|
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
|
|
|
1,140
|
|
|
|
2,322
|
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2023 was a
net expense of Ps. 270 million compared with a net expense of Ps
1,026 million in the fourth quarter of 2022. Net interest income
was of Ps. 386 million in the fourth quarter of 2023 compared with
a net interest income of Ps. 93 million in the fourth quarter of
2022. At same time we registered a net exchange loss of Ps. 677
million in the fourth quarter of 2023 compared with an exchange
loss of Ps. 502 million in the fourth quarter of 2022. Net other
financial income was recorded for Ps. 21 million in the fourth
quarter of 2023, compared to the Ps. 617 million of other financial
expenses for the period 2022.
Income Taxes
The Company recorded an expense net
taxes for the fourth quarter of 2023 of Ps. 199 million (including
an expense of deferred tax of Ps. 53 million), compared to an
expense net tax of Ps. 1,349 million for the fourth quarter of
2022, (including an expense tax deferred of Ps. 102 million).
Net Income (loss)
As a result of the foregoing, the
Company recorded a net profit of Ps. 462 million in the fourth
quarter of 2023 compared to Ps. 334 million of net loss in the
fourth quarter of 2022.
|
(million of
pesos)
|
Jan - Dec
'23
|
|
Jan - Dec
'22
|
|
Year 23 vs
'22
|
|
Sales
|
41,139
|
|
54,159
|
|
(24 %)
|
|
Cost of
Sales
|
31,100
|
|
39,684
|
|
(22 %)
|
|
Gross Profit
|
10,039
|
|
14,475
|
|
(31 %)
|
|
Selling, General and
Administrative Expense
|
2,317
|
|
2,456
|
|
(6 %)
|
|
Other Income
(Expenses), net
|
(119)
|
|
72
|
|
(265 %)
|
|
Operating
Profit
|
7,603
|
|
12,091
|
|
(37 %)
|
|
EBITDA
|
8,638
|
|
13,207
|
|
(35 %)
|
|
Net
income
|
4,283
|
|
7,703
|
|
(44 %)
|
|
Sales Outside
Mexico
|
16,814
|
|
24,515
|
|
(31 %)
|
|
Sales in
Mexico
|
24,325
|
|
29,644
|
|
(18 %)
|
|
Total Sales
(Tons)
|
2,176
|
|
2,255
|
|
(4 %)
|
|
Cost by ton
|
14,292
|
|
17,598
|
|
(19 %)
|
|
Quarter
|
|
|
|
|
|
|
(million of
pesos)
|
4Q'23
|
3Q
'23
|
4Q
'22
|
4Q´23vs
3Q´23
|
4Q´23 vs
4Q '22
|
|
Sales
|
8,738
|
9,454
|
10,147
|
(8 %)
|
(14 %)
|
|
Cost of
Sales
|
6,795
|
7,177
|
7,441
|
(5 %)
|
(9 %)
|
|
Gross Profit
|
1,943
|
2,277
|
2,706
|
(15 %)
|
(28 %)
|
|
Selling, General and
Adm. Expenses
|
730
|
485
|
732
|
51 %
|
0 %
|
|
Other Income
(Expenses), net
|
(286)
|
24
|
65
|
(1,292 %)
|
(540 %)
|
|
Operating
Profit
|
927
|
1,816
|
2,039
|
(49 %)
|
(55 %)
|
|
EBITDA
|
1,140
|
2,079
|
2,322
|
(45 %)
|
(51 %)
|
|
Net Income
|
462
|
1,802
|
(334)
|
(74 %)
|
(238 %)
|
|
Sales Outside
Mexico
|
3,243
|
3,932
|
3,704
|
(18 %)
|
(12 %)
|
|
Sales in
Mexico
|
5,495
|
5,522
|
6,443
|
0 %
|
(15 %)
|
|
Total Sales
(Tons)
|
536
|
531
|
535
|
1 %
|
0 %
|
|
Cost per Ton
|
12,677
|
13,516
|
13,908
|
(6 %)
|
(9 %)
|
|
Product
|
Thousands of
Tons
Jan-Dec
2023
|
Millions of
Pesos
Jan-Dec 2023
|
Average Price per
Ton
Jan-Dec
2023
|
Thousands of
Tons
Jan – Dec
2022
|
Millions of
Pesos
Jan- Dec 2022
|
Average Price per
Ton
Jan-Dec
2022
|
|
Special
Profiles
|
597
|
13,139
|
22,008
|
723
|
20,073
|
27,763
|
|
Commercial
Profiles
|
1,579
|
28,000
|
17,733
|
1,532
|
34,086
|
22,249
|
|
Total
Tons
|
2,176
|
41,139
|
18,906
|
2,255
|
54,159
|
24,017
|
|
Product
|
Thousands of
Tons
Oct-Dec
2023
|
Millions of
Pesos
Oct-Dec 2023
|
Average Price per
Ton
Oct-Dec
2023
|
Thousands of
Tons
Jul-Sep
2023
|
Millions of
Pesos
Jul-Sep
2023
|
Average Price per
Ton
Jul-Sep
2023
|
Thousands of
Tons
Oct-Dec
2022
|
Millions of
Pesos
Oct-Dec 2022
|
Average Price per
Ton
Oct-Dec
2022
|
|
Special
Profiles
|
153
|
2,800
|
18,301
|
155
|
3,468
|
22,374
|
150
|
3,571
|
23,807
|
|
Commercial
Profiles
|
383
|
5,938
|
15,504
|
376
|
5,986
|
15,920
|
385
|
6,576
|
17,081
|
|
Total
Tons
|
536
|
8,738
|
16,302
|
531
|
9,454
|
17,804
|
535
|
10,147
|
18,966
|
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-31-2023-audited-302137247.html
SOURCE Grupo Simec, S.A.B. de
C.V.