GUADALAJARA, Mexico, Oct. 29,
2024 /PRNewswire/ -- Grupo
Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today
its results of operations for the nine-month period ended
September 30, 2024.
Comparative first nine months of 2024 vs. first nine months
of 2023
Net Sales
Net sales of the Company decreased to
Ps. 24,828 million in the first nine months of 2024 compared to Ps.
32,401 million in the first nine months of 2023. Shipments of
finished steel products decreased 6% to 1 million 536 thousand tons
in the first nine months of 2024 compared to 1 million 640 thousand
tons in the first nine months of 2023. Total sales outside of
Mexico in the first nine months of
2024 decreased 19% to Ps. 10,979 million compared to Ps. 13,571
million in the same period of 2023. Mexican sales decreased 26%
from Ps. 18,830 million in the first nine months of 2023 to Ps.
13,849 million in the same period of 2024. The decrease in sales
for the first nine months of 2024 is due to a decrease in the
average selling price in 18% and with a lower volume of shipments
compared to the first nine months of 2023.
Cost of Sales
Cost of sales decreased 23% from
Ps. 24,305 million in the first nine months of 2023, to Ps. 18,625
million in the first nine months of 2024. Cost of sales as a
percentage of net sales represented 75% in the first nine months of
2023 y 2024 in both periods, the average cost of sale by steel ton
decreased approximately 18% in the first nine months of 2024 over
the same period of 2023 due to a lower price in inputs, mainly
steel scrap.
Gross Profit
Gross profit of the Company for
the first nine months of 2024 decreased 23% from Ps. 8,096 million
in the first nine months of 2023, to Ps. 6,203 million in the first
nine months of 2024. Marginal profit as percentage of net sales in
the first nine months of 2024 y 2023 was of 25% in both periods.
The decrease in gross profit is due to a decrease in the average
selling price, with a lower volume of shipments and a decrease in
the price of scrap compared to of 2023.
General, Selling and Administrative
Expenses
Selling, general and administrative expenses
increased 16%, to Ps. 1,834 million in the first nine months of
2024 from Ps. 1,587 million in the same period of 2023, selling,
general and administrative expenses represented 7% to the 2024 and
5% to the 2023 of the net sales for both periods.
Other Income (Expenses,) net
The Company
recorded other income net for Ps. 71 million during the first nine
months of 2024 while in the same period of 2023 the other income
net by this concept was of Ps. 167 million.
Operating Income
Operating income decreased 33%
to Ps. 4,440 million for the first nine months of 2024 compared to
Ps. 6,676 million in the first nine months of 2023. Operating
income as percentage of net sales was 18% in the first nine months
of 2024 and 21% in the same period of 2023. The decrease in
operating income is due to a lower average sales price and to a
lower volume shipped during the nine months ended September 30, 2024 compared to the same period in
2023.
Ebitda
The Ebitda decreased 31%, from Ps. 7,499
million in the first nine months of 2023 as a result of a net
income of Ps. 3,821 million, less minority stake of Ps. 4 million,
plus income taxes of Ps. 1,541 million, plus comprehensive
financial cost of Ps. 1,318 million, plus depreciation of Ps. 823
million to Ps 5,189 million in the same period of 2024 as a result
of a net income of Ps. 8,587 million, less minority stake of Ps. 2
million, plus income taxes of Ps. 762 million, less comprehensive
financial cost of Ps. 4,907 million, plus depreciation of Ps. 749
million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative first
nine months of 2024 vs first nine months of 2023,
|
|
|
2024
|
|
|
2023
|
|
Net income
(loss)
|
|
|
8,587
|
|
|
|
3,821
|
|
Loss attributable to
noncontrolling interests
|
|
|
(2)
|
|
|
|
(4)
|
|
Net income
(loss)
|
|
|
8,585
|
|
|
|
3,817
|
|
Depreciation,
depletion, and amortization
|
|
|
749
|
|
|
|
823
|
|
Income taxes
|
|
|
762
|
|
|
|
1,541
|
|
Financial results
income (loss)
|
|
|
(4,907)
|
|
|
|
1,318
|
|
EBITDA
|
|
|
5,189
|
|
|
|
7,499
|
|
|
|
|
|
|
|
|
|
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
|
|
|
5,189
|
|
|
|
7,499
|
Comprehensive Financial Cost
Comprehensive
financial cost for the first nine months of 2024 represented an
income of Ps. 4,907 million compared with an expense of Ps. 1,318
million for the first nine months of 2023. The net interest income
was of Ps. 1,066 million for the first nine months of 2024,
compared with a net interest income of Ps. 392 million in the same
period of 2023. Likewise, we record an exchange income of Ps. 3,799
million in the first nine months of 2024 compared with an exchange
loss of Ps. 1,754 million in the first nine months of 2023, and
other financial income for Ps 42 million for the first nine months
of 2024, dividends earned on purchase of shares, compared with
other financial income for Ps. 44 million in the same period of the
previous year.
Income Taxes
The Company recorded an expense of
Ps.762 million for during the first nine months of 2024, (includes
a deferred income tax of Ps. 88 million) compared with an expense
of Ps. 1,541 million for the first nine months of 2023 (includes a
deferred income tax of Ps. 8 million).
Net Income
As a result of the foregoing, the
Company recorded a increase in net income of 125% to pass of Ps.
3,821 million in the first nine months of 2023 to Ps. 8,587 million
of the same periods of 2024.
Liquidity and Capital
Resources
At September 30,
2024, Simec's total consolidated debt consisted of U.S.
$ 302,000 of 8 7/8% medium-term notes
("MTN's") due 1998, or Ps. 5.9 million (accrued interest on
September 30, 2024 was U.S.
$ 985,000, or Ps. 16.4
million). At September 30,
2023, Simec's total consolidated debt consisted of U.S.
$ 302,000 of 8 7/8% medium-term notes
("MTN's") due 1998, or Ps. 5.3 million (accrued interest on
September 30, 2023 was U.S.
$ 806,000, or Ps. 14.2 million).
Comparative third quarter of 2024 vs. second quarter of
2024
Net Sales
Net sales of the Company increased to
pass of Ps. 8,394 million during the second quarter of 2024 to Ps.
8,549 million in the third quarter of 2024. Shipments of finished
steel products decreased to 521 thousand tons in the third quarter
of 2024 from 536 thousand tons in the second quarter of the same
year. Total sales outside of Mexico in the third quarter of 2024 increased
3% to get to Ps. 3,593 million compared to Ps. 3,691 million of the
second quarter of the same year. Mexican sales in the third quarter
of 2024 increased to Ps. 4,858 million compared to Ps. 4,801
million in the second quarter of the same year. The average selling
price increased 5% in the third quarter of 2024 compared to the
second quarter of the same year.
Cost of Sales
Cost of sales increased to P s.
6,393 million in the third quarter of 2024 from Ps.6,356 million in
the second quarter of 2024. Cost of sales as a percentage of net
sales represented 75% in the third quarter of 2024 and 76% in the
second quarter of the same year. The cost of sales increase 3% in
the third quarter of 2024 compared to the second quarter of the
same year, due mainly to a decrease of some supplies for the
manufacture of steel.
Gross Profit
Gross profit of the Company for
the third quarter of 2024 increased 6% to pass of Ps. 2,038 million
in the second quarter of 2024 to Ps. 2,156 million in the third
quarter of same year. Gross profit as a percentage of net sales in
the third quarter of 2024 was of 25% compared to 24% in the second
quarter of the same year. The increased in the gross profit is due
to increase in the average price in the third quarter compared to
the second quarter of 2024.
General, Selling and Administrative
Expenses
Selling, general and administrative expenses
increased 13% to of Ps. 658 million in the third quarter of 2024
from Ps. 580 million the second quarter of the same year, and as
percentage of net sales represented 8% for the third quarter of
2024 compared to 7% for the second quarter of the same year.
Other (Expenses) Income, net
The Company
recorded other income net for Ps. 26 million during the third
quarter of 2024 compared to other income net for Ps. 40 million in
the second quarter of 2024.
Operating Income
The Operating income was of
Ps. 1,524 million in the third quarter of 2024 compared to Ps.
1,498 million in the second quarter of the same year. Operating
income as percentage of net sales represented 18% for the third
quarter of 2024 and for the second quarter of 2024.
Ebitda
The Ebitda show a increase of 2%, to
pass of Ps 1,747 million in the second quarter of 2024 as a result
of a net income of Ps. 3.979 million, plus income taxes of Ps. 181
million, less comprehensive financial cost of Ps. 2,662 million,
plus depreciation of Ps. 249 million to Ps. 1,776 million in the
third quarter of the same year as a result of a net income of Ps.
3,152 million, less minority stake of Ps. 1 million, plus income
taxes of Ps. 471 million, less comprehensive financial cost of Ps.
2,098 million, plus depreciation of Ps. 252 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative third
quarter of 2024 vs second quarter of 2024,
|
|
|
Third quarter
2024
|
|
|
Second quarter
2024
|
|
Net income
(loss)
|
|
|
3,152
|
|
|
|
3.979
|
|
Loss attributable to
noncontrolling interests
|
|
|
(1)
|
|
|
|
0
|
|
Net income
(loss)
|
|
|
3,151
|
|
|
|
3,979
|
|
Depreciation, depletion
and amortization
|
|
|
252
|
|
|
|
249
|
|
Income taxes
|
|
|
471
|
|
|
|
181
|
|
Financial results
income (loss)
|
|
|
(2,098)
|
|
|
|
(2,662)
|
|
EBITDA
|
|
|
1,776
|
|
|
|
1,747
|
|
|
|
|
|
|
|
|
|
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
|
|
|
1,776
|
|
|
|
1,747
|
Comprehensive Financial Cost
Comprehensive
financial cost of the Company in the third quarter of 2024
represented an income of Ps. 2,098 million compared with an income
of Ps. 2,662 million for the second quarter of 2024. The
comprehensive financial cost is comprised for the net interest
income of Ps. 329 million in the third quarter of 2024 compared to
net interest income of 487 million in the second quarter of the
same year. Also, we record a net exchange income of Ps. 1,769
million in the third quarter of 2024 compared a net exchange income
of Ps. 2,133 million in the second quarter of the same year, and
other financial income for Ps 42 million in the second quarter of
2023, dividends earned on purchase of shares.
Income Taxes
The Company have been recorded Ps.
471 million of expense tax during the third quarter of 2024,
(includes a deferred expense tax of Ps. 33 million) compared with
the Ps. 181 million of expense for the second quarter of the same
year, (includes a deferred income tax of Ps. 113 million).
Net Income
As a result of the foregoing, the
Company recorded a net income of Ps. 3,152 million in the third
quarter of 2024 compared to a net income of Ps. 3,979 million for
the second quarter of 2024.
Comparative third quarter of 2024 vs. third
quarter of 2023
Net Sales
Net sales of the Company decreased
10% from Ps. 9,454 million during the third quarter of 2023 to Ps.
8,549 million in the third quarter of 2024. Sales in tons of
finished steel decreased to 521 thousand tons in the third quarter
of 2024 from 531 thousand tons in the third quarter of 2023. Sales
outside of Mexico decreased 6%
from Ps. 3,932 million in the third quarter of 2023 to Ps. 3,691
million in the third quarter of 2024. Mexican sales decreased 12%
from Ps. 5,522 million in the third quarter of 2023 to Ps. 4,858
million in the third quarter of 2024. The average sales price
decreased approximately 8% in the third quarter of 2024, compared
to the same period of 2023.
Cost of Sales
Cost of sales decreased 11%
in the third quarter of 2024 compared to the third quarter of 2023
from Ps. 7,177 million in the third quarter of 2023 to Ps. 6,393
million in the third quarter of 2024. With respect to sales, the
cost of sales of the third quarter of 2023 represented 76% compared
to 75% for the third quarter of 2024. The average cost of raw
materials used to produce steel products decreased in 9%, due to a
decrease of raw materials prices, mainly steel scrap.
Gross (Loss) Profit
Gross profit of the Company
for the third quarter of 2024 decreased 5% from Ps. 2,277 million
in the third quarter of 2023 compared to Ps. 2,156 million in the
third quarter of 2024. Gross profit as a percentage of net sales
for the third quarter of 2024 was 25% compared to 24% of the third
quarter of 2023. The decrease in gross profit originates mainly
from a lower average sales price.
General, Selling and Administrative
Expenses
The selling, general and administrative
expenses increased 36% in the third quarter of 2024 to Ps. 658
million in the third quarter of 2024 from Ps. 485 million in the
third quarter of 2023. Selling, general and administrative expense
as a percentage of net sales represented 8% periods quarter 2024
compared to 5% for the third quarter of 2023.
Other Income (Expenses), net
The company
recorded other income net of Ps. 26 million in the third quarter of
2024 compared with other income net of Ps. 24 million for the third
quarter of 2023.
Operating (Loss) Income
Operating income
decreased from Ps. 1,816 million in the third quarter of 2023
compared to Ps. 1,524 million in the third quarter of 2024, this
represents 16% of decrease between both quarters. The operating
income as a percentage of net sales was 19% for the third quarter
of 2023 and 18% for the third quarter of 2024. The decrease in
operating profit is due to a lower average sales price and an
increase in selling expenses.
Ebitda
The Ebitda of the Company decreased 15%
from Ps 2,079 million in the third quarter of 2023 as a result of 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 to Ps. 1,776 million of the same period of 2024, as a
result of a net income of Ps. 3,152 million, less minority stake of
Ps. 1 million, plus income taxes of Ps. 471 million, less
comprehensive financial cost of Ps. 2,098 million, plus
depreciation of Ps. 252 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative third
quarter of 2024 vs third quarter of 2023,
|
|
|
Third quarter
2024
|
|
|
Third quarter
2023
|
|
Net income
(loss)
|
|
|
3,152
|
|
|
|
1,802
|
|
Loss attributable to
noncontrolling interests
|
|
|
(1)
|
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
3,151
|
|
|
|
1,800
|
|
Depreciation, depletion
and amortization
|
|
|
252
|
|
|
|
264
|
|
Income taxes
|
|
|
471
|
|
|
|
298
|
|
Financial results
income (loss)
|
|
|
(2,098)
|
|
|
|
(283)
|
|
EBITDA
|
|
|
1,776
|
|
|
|
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
|
|
|
1,776
|
|
|
|
2,079
|
Comprehensive Financial
Cost
Comprehensive financial cost of the Company for the
third quarter of 2024 represented a net income of Ps. 2,098 million
compared with an income of Ps. 283 million for the third quarter of
2023. The comprehensive financial cost is comprised for the net
interest income of Ps. 28 million in the third quarter of 2023,
compared to a net interest income of Ps. 329 million for the same
period of 2024. Also record an exchange income of Ps. 255 million
in the third quarter of 2023 and an exchange income of Ps. 1,769
million in the third quarter of 2024.
Income Taxes
The company recorded an expense
tax for Ps. 471 million in the third quarter of 2024, (includes a
deferred expense tax of Ps. 33 million) compared to an expense tax
of Ps. 298 million for the third quarter of 2023, (includes an
accrual of deferred income tax of Ps. 8 million).
Net Income (Loss)
As a result of the foregoing,
the Company recorded a net income of Ps. 3,152 million in the third
quarter of 2024 compared to a net income of Ps. 1,802 million for
the same period of 2023.
|
(millions of
pesos)
|
Jan - Sep
'24
|
|
Jan - Sep
'23
|
|
Year 24 vs
'23
|
|
Sales
|
24,828
|
|
32,401
|
|
(23 %)
|
|
Cost of
Sales
|
18,625
|
|
24,305
|
|
(23 %)
|
|
Gross Profit
|
6,203
|
|
8,096
|
|
(23 %)
|
|
Selling, General and
Administrative Expense
|
1,834
|
|
1,587
|
|
16 %
|
|
Other Income
(Expenses), net
|
71
|
|
167
|
|
(57 %)
|
|
Operating
Profit
|
4,440
|
|
6,676
|
|
(33 %)
|
|
EBITDA
|
5,189
|
|
7,499
|
|
(31 %)
|
|
Net
income
|
8,587
|
|
3,821
|
|
125 %
|
|
Sales Outside
Mexico
|
10,979
|
|
13,571
|
|
(19 %)
|
|
Sales in
Mexico
|
13,849
|
|
18,830
|
|
(26 %)
|
|
Total Sales
(Tons)
|
1,536
|
|
1,640
|
|
(6 %)
|
|
Cost by ton
|
12,126
|
|
14,820
|
|
(18 %)
|
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
3Q'24
|
2Q
'24
|
3Q
'23
|
3Q´24vs
2Q´24
|
3Q´24 vs
3Q '23
|
|
Sales
|
8,549
|
8,394
|
9,454
|
2 %
|
(10 %)
|
|
Cost of
Sales
|
6,393
|
6,356
|
7,177
|
1 %
|
(11 %)
|
|
Gross Profit
|
2,156
|
2,038
|
2,277
|
6 %
|
(5 %)
|
|
Selling, General and
Adm. Expenses
|
658
|
580
|
485
|
13 %
|
36 %
|
|
Other Income
(Expenses), net
|
26
|
40
|
24
|
(35 %)
|
8 %
|
|
Operating
Profit
|
1,524
|
1,498
|
1,816
|
2 %
|
(16 %)
|
|
EBITDA
|
1,776
|
1,747
|
2,079
|
2 %
|
(15 %)
|
|
Net Income
|
3,152
|
3,979
|
1,802
|
(21 %)
|
75 %
|
|
Sales Outside
Mexico
|
3,691
|
3,593
|
3,932
|
3 %
|
(6 %)
|
|
Sales in
Mexico
|
4,858
|
4,801
|
5,522
|
1 %
|
(12 %)
|
|
Total Sales
(Tons)
|
521
|
536
|
531
|
(3 %)
|
(2 %)
|
|
Cost per
Tons
|
12,271
|
11,858
|
13,516
|
3 %
|
(9 %)
|
|
Product
|
Thousands of
Tons
Jan-Sep
2024
|
Millions of
Pesos Jan-Sep
2024
|
Average Price per
Ton
Jan-Sep
2024
|
Thousands of
Tons
Jan – Sep
2023
|
Millions of
Pesos Jan- Sep 2023
|
Average Price per
Ton
Jan-Sep
2023
|
|
Special
Profiles
|
403
|
7,653
|
18,990
|
479
|
10,795
|
22,537
|
|
Commercial
Profiles
|
1,133
|
17,175
|
15,159
|
1,161
|
21,606
|
18,610
|
|
Total
|
1,536
|
24,828
|
16,164
|
1,640
|
32,401
|
19,757
|
|
Product
|
Thousands of
Tons
Jul-Sep
2024
|
Millions of
Pesos Jul-Sep 2024
|
Average Price per
Ton
Jul-Sep
2024
|
Thousands of
Tons
Apr-Jun
2024
|
Millions of
Pesos Apr-Jun
2024
|
Average Price per
Ton
Apr-Jun
2024
|
Thousands of
Tons
Jul-Sep
2023
|
Millions of
Pesos
Jul-Sep 2023
|
Average Price per
Ton
Jul-Sep
2023
|
|
Special
Profiles
|
153
|
2,939
|
19,209
|
144
|
2,638
|
18,319
|
155
|
3,468
|
22,374
|
|
Commercial
Profiles
|
368
|
5,610
|
15,245
|
392
|
5,756
|
14,684
|
376
|
5,986
|
15,920
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
521
|
8,549
|
16,409
|
536
|
8,394
|
15,660
|
531
|
9,454
|
17,804
|
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.
|
PRESS
RELEASE
|
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
|
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52 33 3770
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content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-nine-months-of-2024-302290358.html
SOURCE Grupo Simec, S.A.B. de
C.V.