GUADALAJARA, Mexico, April 20, 2023 /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, 2022 Audited and December 31, 2021 Audited.
Twelve-Month Period Ended December 31, 2022 Audited compared to Twelve-Month Period Ended December 31, 2021 Audited
Net Sales
Net sales decreased 3% by the combination shipments of finished steel products and a higher average sales price by 8% compared the same period of 2021, the sales decreased from Ps. 55,620 million in the twelve-month period ended December 31, 2021 to Ps. 54,159 million in the same period of 2022. Shipments of finished steel products decreased 10% to 2 million 255 thousand tons in the twelve-month period ended December 31, 2022 compared to 2 million 504 thousand tons in the same period of 2021. Total sales outside of Mexico on the twelve-month period ended December 31, 2022 decreased 11 to Ps. 24,515 million compared with Ps. 27,576 million in the same period of 2021. Total sales in Mexico increased 6% from Ps. 28,044 million in the twelve-month period ended December 31, 2021 to Ps. 29,644 million in the same period of 2022. The decrease of 3% in sales is due to a higher average sales price and lower volume of shipments.
Cost of Sales
Cost of sales decreased 1% from Ps. 39,968 million in the twelve-month period ended December 31, 2021 to Ps. 39,684 million in the same period of 2022. Cost of sales as a percentage of net sales represented, 73% for 2022 and 2021 72%. The average cost of finished steel produced in the twelve-month period ended December 31, 2022 compared to the same period of 2021 increased 10% 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, 2022 was of Ps. 14,475 million compared to Ps. 15,652 million in the same period of 2021. Gross profit as a percentage of net sales represented 27% and 28% for the 2022 and 2021 periods respectively.
Operating Expenses
Selling, general and administrative expenses increased 20% from Ps. 2,043 million in the twelve-month period ended December 31, 2021 to Ps. 2,456 million in the same period of 2022. Selling, general and administrative expenses as a percentage of net sales represented 4% during the twelve-month period ended December 31, 2021 and 5% in the same period of 2022.
Other Expenses (Income) net
The company recorded other net expenses of Ps. 77 million in the twelve-month period ended December 31, 2021 compared to other net income of Ps. 72 million in the same period of 2022.
Operating Income
Operating income decreased 11% from Ps. 13,532 million for the twelve-month period ended December 31, 2021 to Ps. 12,091 million in the same period of 2022. Operating income as a percentage of net sales represented 22% and 24% for the 2022 and 2021 periods respectively.
EBITDA
The EBITDA of the Company decreased 10% from Ps. 14,707 million in the twelve-month prior ended December 31, 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 million, plus depreciation of Ps. 1,175 million. to Ps. 13,207 million in the same period 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 million, plus comprehensive financial cost of Ps. 1,089 million, plus depreciation of 1,117 million.
Consolidated | |||||||
Million | Twelve-month period ended December 31, | ||||||
2022 | 2021 | ||||||
Net income (loss) | 7,703 | 9,444 | |||||
Loss attributable to noncontrolling interests | (2) | 2 | |||||
Net income (loss) | 7,701 | 9,446 | |||||
Depreciation and amortization | 1,117 | 1,175 | |||||
Income taxes | 3,300 | 4,390 | |||||
Financial results income (loss) | 1,089 | (304) | |||||
EBITDA | 13,207 | 14,707 | |||||
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 | 13,207 | 14,707 | |||||
Comprehensive Financial Cost
Comprehensive financial cost in the twelve-month period ended December 31, 2022 represented a net expense of Ps. 1,089 million compared with a net income of Ps. 304 million in the same period of 2021. The net interest was an income of Ps. 197 million in 2022 compared with a net expense of Ps. 21 million in the twelve-month period ended December 31, 2021 . As a result, we registered a net exchange loss of Ps. 700 million in the twelve-month period ended December 31, 2022 compared with a net exchange profit of Ps. 325 million in the same period of 2021, net other financial expense was recorded for Ps. 586 million for the period.
Income Taxes
The Company have recorded an expense net tax of Ps. 3,300 million in the twelve-month period ended December 31, 2022 (including the expenses of deferred tax of Ps. 150 million) compared with a net expense tax of Ps. 4,390 million in the same period of 2021 (including the tax deferred expense of Ps. 571 million).
Net Income (loss)
As a result of the foregoing, net income decreased by 18% from Ps. 9,444 million net profit in the twelve-month period ended December 31, 2021 to Ps. 7,703 million a result net income in the same period of 2022.
Liquidity and Capital Resources
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). 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).
Comparative fourth quarter 2022 vs third quarter 2022
Net Sales
Net sales decreased from Ps. 13,433 million in the third quarter of 2022 to Ps. 10,147 million for the fourth quarter of 2022. Sales in tons decreased from 541 thousand ton in the third quarter of 2022 to 535 thousand ton in the fourth quarter of the same period, a decreased of 1%. Total sales outside of Mexico for the fourth quarter of 2022 decreased 44% from Ps. 6,559 million in the third quarter to Ps. 3,704 million in the four quarter of 2022. Sales in Mexico decreased to Ps. 6,443 million in the fourth quarter of 2022 compared Ps. 6,874 million in the third quarter of 2022 and decreased of 6%. Prices of finished products sold in the fourth quarter of 2022 decreased 24% compared with the third quarter of the same period.
Cost of Sales
Cost of sales decreased to Ps. 7,441 million in the fourth quarter of 2022 compared to Ps. 10,271 million for the third quarter of 2022. With respect to sales, in the fourth quarter of 2022, the cost of sales represented 73% in the fourth quarter of 2022, compared to 76% in the third quarter of the same period. The average cost of sales by ton decreased of 27% in the fourth quarter of 2022 versus the third quarter of 2022.
Gross Profit
Gross profit of the Company for the fourth quarter of 2022 decreased 14% to Ps. 2,706 million compared to Ps. 3,162 million in the third quarter of 2022. The gross profit as a percentage of net sales for the third and fourth quarter of 2022 was of 24% and 27% respectively.
Operating Expenses
Selling, general and administrative expenses increased 23% to Ps. 732 million in the fourth quarter of 2022 compared to Ps. 595 million for the third quarter of 2022. Selling, general and administrative expenses as a percentage of net sales for the third and fourth quarter of 2022 was of 4% and 7% respectively.
Other Expenses (Income) net
The company recorded other net income of Ps. 65 million in the fourth quarter of 2022 compared to other net income of Ps. 5 million for the third quarter of 2022.
Operating (Loss) Income
Operating income was of Ps. 2,039 million in the fourth quarter of 2022 compared to an operating income of Ps. 2,572 million in the third quarter of 2022. The operating income as a percentage of net sales represented 19% and 20% for the third quarter and fourth quarter periods respectively.
EBITDA
The EBITDA was Ps. 2,857 million in the third quarter of 2022 as a result a net income of Ps. 1,940 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 798 million, less comprehensive financial cost of Ps. 165 million, plus depreciation of Ps. 285million, compared to Ps. 2,322 million for 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.
| Consolidated | |||||||
Million | Comparative fourth quarter vs third quarter 2022 | ||||||
4Q 2022 | 3Q 2022 | ||||||
Net income (loss) | (334) | 1,940 | |||||
Loss attributable to noncontrolling interests | (2) | (1) | |||||
Net income (loss) | (336) | 1,939 | |||||
Depreciation and Amortization | 283 | 285 | |||||
Income taxes | 1,349 | 798 | |||||
Financial results income (loss) | 1,026 | (165) | |||||
EBITDA | 2,322 | 2,857 | |||||
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 | 2,322 | 2,857 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2022 was a net expense of Ps. 1,026 million compared with a net income of Ps. 165 million for the third quarter of 2022. The net interest income the fourth quarter was Ps. 93 million compared with a net income of Ps. 104 million in the third quarter of 2022. At same time we registered an exchange net profit of Ps. 30 million in the third quarter of 2022 compared with an exchange net loss of Ps. 502 million in the fourth quarter of 2022. Net other financial income was recorded for Ps. 31 million in the third quarter compared to Ps. 617 million in the fourth quarter of 2022
Income Taxes
Income Taxes for the third quarter of 2022 had an expense net tax of Ps. 798 million (including an expense tax deferred for Ps. 60 million) compared to an expense 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 loss of Ps. 334 million in the fourth quarter of 2022 compared to Ps. 1,940 million of net income in the third quarter of 2022.
Comparative fourth quarter 2022 vs fourth quarter 2021
Net Sales
Net sales decreased 21% from Ps. 12,884 million for the fourth quarter of 2021 to Ps. 10,147million for the fourth quarter of 2022. Sales in tons of finished steel in the fourth quarter of 2021 were 550 thousand tons versus to 535 thousand tons in the fourth quarter of 2022. Total sales outside of Mexico decreased 41% from Ps. 6,279 million for the fourth quarter of 2021 to Ps. 3,704 million in the fourth quarter of 2022. Sales in Mexico decreased 2% from Ps. 6,605 million in the fourth quarter of 2021 to Ps. 6,443 million in the fourth quarter of 2022. The average sales prices of finished products sold in the fourth quarter of 2022 decreased 19%, compared to the same period of 2021.
Cost of Sales
Cost of sales decreased 19% from Ps. 9,145 million in the fourth quarter of 2021 compared to Ps. 7,441 million for the fourth quarter of 2022. With respect to sales, the cost of sales represented 73% during the fourth quarter of 2022 and 71% during the fourth quarter of 2021. The average cost of steel products decreased 16% in the fourth quarter of 2022 versus the fourth quarter of 2021.
Gross Profit
Gross profit for the fourth quarter of 2022 decreased 28% from Ps. 3,739 million in the fourth quarter of 2021 compared to Ps. 2,706 million in the fourth quarter of 2022. The gross profit as a percentage of net sales represented 29% for the fourth quarter of 2021 compared to 27% of the fourth quarter of 2022.
Operating Expenses
Selling, general and administrative expenses increased 33% from Ps. 551 million in the fourth quarter of 2021 compared to Ps. 732 million for the fourth quarter of 2022. Selling, general and administrative expenses as a percentage of net sales represented 4% for the fourth quarter of 2021 and 7% for the fourth quarter of 2022.
Other Expenses (Income) net
The company recorded other expense net of Ps. 27 million in the fourth quarter of 2021 compared with other income net of Ps. 65 million for the fourth quarter of 2022.
Operating (Loss) Income
Operating income was of Ps. 2,039 million in the fourth quarter of 2022 compared to an operating profit of Ps. 3,161 million in the fourth quarter of 2021. The operating income as a percentage of net sales in the fourth quarter of 2022 was 20%, compared to an operating income of 25% in the fourth quarter of 2021.
EBITDA
The EBITDA was Ps. 3,450 million in the fourth quarter of 2021 as a result a net profit of Ps. 1,154 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 2,085 million, less comprehensive financial cost of Ps. 79 million, plus depreciation of Ps. 289 million, compared to a profit of 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.
Consolidated | |||||||
Million | Comparative fourth quarter vs fourth quarter | ||||||
2022 | 2021 | ||||||
Net income (loss) | (334) | 1,154 | |||||
Loss attributable to noncontrolling interests | (2) | 1 | |||||
Net income (loss) | (336) | 1,155 | |||||
Depreciation and Amortization | 283 | 289 | |||||
Income taxes | 1,349 | 2,085 | |||||
Financial results income (loss) | 1,026 | (79) | |||||
EBITDA | 2,322 | 3,450 | |||||
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 | 2,322 | 3,450 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2022 was a net expense of Ps. 1,026 million compared with a net income of Ps 79 million in the fourth quarter of 2021. Net interest income was of Ps. 93 million in the fourth quarter of 2022 compared with a net interest income of Ps. 14 million in the fourth quarter of 2021. At same time we registered a net exchange loss of Ps. 502 million in the fourth quarter of 2022 compared with an exchange profit of Ps. 65 million in the fourth quarter of 2021. Net other financial income was recorded for Ps. 617 million in the fourth quarter of 2022.
Income Taxes
The Company recorded an expense net taxes for the fourth quarter of 2022 of Ps. 1,349 million (including an expense of deferred tax of Ps. 102 million), compared to an expense net tax of Ps. 2,085 million for the fourth quarter of 2021, (including an expense tax deferred of Ps. 475 million).
Net Income (loss)
As a result of the foregoing, the Company recorded a net loss of Ps. 334 million in the fourth quarter of 2022 compared to Ps. 1,154 million of net profit in the fourth quarter of 2021.
(million of pesos) | Jan - Dec '22 | Jan - Dec '21 | Year 22 vs | ||
Sales | 54,159 | 55,620 | (3 %) | ||
Cost of Sales | 39,684 | 39,968 | (1 %) | ||
Gross Profit | 14,475 | 15,652 | (8 %) | ||
Selling, General and Administrative Expense | 2,456 | 2,043 | 20 % | ||
Other Income (Expenses), net | 72 | (77) | (194 %) | ||
Operating Profit | 12,091 | 13,532 | (11 %) | ||
EBITDA | 13,207 | 14,707 | (10 %) | ||
Net income | 7,703 | 9,444 | (18 %) | ||
Sales Outside Mexico | 24,515 | 27,576 | (11 %) | ||
Sales in Mexico | 29,644 | 28,044 | 6 % | ||
Total Sales (Tons) | 2,255 | 2,504 | (10 %) | ||
Cost by ton | 17,598 | 15,962 | 10 % |
Quarter | |||||
(million of pesos) | 4Q'22 | 3Q '22 | 4Q '21 | 4Q'22vs | 4Q'22 vs |
Sales | 10,147 | 13,433 | 12,884 | (24 %) | (21 %) |
Cost of Sales | 7,441 | 10,271 | 9,145 | (28 %) | (19 %) |
Gross Profit | 2,706 | 3,162 | 3,739 | (14 %) | (28 %) |
Selling, General and Adm. Expenses | 732 | 595 | 551 | 23 % | 33 % |
Other Income (Expenses), net | 65 | 5 | (27) | 1200 % | (341 %) |
Operating Profit | 2,039 | 2.572 | 3,161 | (21 %) | (35 %) |
EBITDA | 2,322 | 2,857 | 3,450 | (19 %) | (33 %) |
Net Income | (334) | 1,940 | 1,154 | (117 %) | (129 %) |
Sales Outside Mexico | 3,704 | 6,559 | 6,279 | (44 %) | (41 %) |
Sales in Mexico | 6,443 | 6,874 | 6,605 | (6 %) | (2 %) |
Total Sales (Tons) | 535 | 541 | 550 | (1 %) | (3 %) |
Cost per Ton | 13,908 | 18,985 | 16,627 | (27 %) | (16 %) |
Product | Thousands of Jan-Dec 2022 | Millions of | Average Price Jan-Dec 2022 | Thousands of Jan - Dec | Millions of | Average Price Jan-Dec 2021 |
Special Profiles | 723 | 20,073 | 27,763 | 907 | 22,459 | 24,762 |
Commercial Profiles | 1,532 | 34,086 | 22,249 | 1,597 | 33,161 | 20,765 |
Total Tons | 2,255 | 54,159 | 24,017 | 2,504 | 55,620 | 22,212 |
Product | Thousands Oct-Dec 2022 | Millions of | Average Oct-Dec 2022 | Thousands Jul-Sep 2022 | Millions of 2022 | Average Jul-Sep 2022 | Thousands 2021 | Millions | Average 2021 |
Special Profiles | 150 | 3,571 | 23,807 | 170 | 4,706 | 27,682 | 193 | 5,343 | 27,684 |
Commercial Profiles | 385 | 6,576 | 17,081 | 371 | 8,727 | 23,523 | 357 | 7,541 | 21,123 |
Total Tons | 535 | 10,147 | 18,966 | 541 | 13,433 | 24,830 | 550 | 12,884 | 23,425 |
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 |
SOURCE Grupo Simec, S.A.B. de C.V.
