GUADALAJARA, Mexico, April 25, 2024 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the three-month period ended March 31, 2024.
Comparative first quarter of 2024 vs. first quarter of 2023
Net Sales
The net sales of the company decreased derived from a less sales price. Sales passed from Ps. 12,825 million in the first quarter of 2023 to Ps. 7,885 million in the same period of 2024. Shipments of steel finished goods decreased 21% from 604 thousand tons in the first quarter of 2023 compared to 479 thousand tons in the same period of 2024. Total sales outside of Mexico in the first quarter of 2024 decreased 29% to reach Ps. 3,694 million compared to Ps. 5,181 million in the same period of 2023. The Mexican sales decreased 45% from Ps. 7,644 million in the first quarter of 2023 to Ps. 4,191 million in the same period of 2024. The decrease in sales can be explained, from mainly due to a lower volume of tons shipped and the average sales price per ton of steel finished goods decreased 22% in the first quarter of 2024 compared with the same period of 2023.
Cost of Sales
The cost of sales decreased from Ps. 9,618 million in the first quarter of 2023 to Ps. 5,876 million in the same period of 2024. Cost of sales as a percentage of net sales in the first quarter of 2024 and 2023 represented 75% for both periods. The average cost of sales per ton of steel finished goods decreased 23% in the first quarter of 2024 compared to the same period of 2023.
Gross Profit
The gross profit of the company decreased 37% from Ps. 3,207 million in 2023 to Ps. 2,009 million in the same period of 2024. Gross profit as a percentage of net sales in the first quarter of 2024 and 2023 represented 25% for both periods. The decrease in gross profit is caused by a lower Volume of tons shipped in the first quarter of 2024 compared with the same period of 2023.
General, Sales and administrative Expenses
General, selling, and administrative expenses increased 1%, from Ps.587 million in the first quarter of 2023 to Ps. 595 million in the same period of 2024 and representing 5% of net sales in 2023 compared to 8% for the period 2024.
Other Expenses (Income) net
The company recorded other income net of Ps. 5 million in the first quarter of 2024 compared to other income net of Ps. 58 million in the same period of 2023.
Operating Income
The operating income decreased from Ps. 2,678 million for the first quarter of 2023 compared to Ps. 1,419 million in the same period of 2024. Operating income as a percentage of net sales was 18% in the first quarter of 2024 compared to 21% in the same period of 2023. The decrease in operating income is primarily due to a lower volume of tons shipped and a lower average selling price in the first quarter of 2024 compared to the same period in 2023.
EBITDA
The EBITDA of the Company was of Ps. 2,959 million for the first quarter of 2023, as a result of a net income of Ps. 1,033 million, less minority stake of Ps. 2 million, plus income taxes of Ps. 531 million, plus comprehensive financial cost of Ps. 1,116 million, plus depreciation of Ps. 281 million to Ps 1,668 million in the same period of 2024 as a result of a net income of Ps. 1,456 million, plus income taxes of Ps. 110 million, less comprehensive financial cost of Ps. 147 million, plus depreciation of Ps. 249.
Consolidated | |||||||
Million | Comparative first quarter of 2024 vs first quarter of 2023, | ||||||
2024 | 2023 | ||||||
Net income (loss) | 1,456 | 1,033 | |||||
Loss attributable to noncontrolling interests | (2) | ||||||
Net income (loss) | 1,456 | 1,031 | |||||
Depreciation and amortization | 249 | 281 | |||||
Income taxes | 110 | 531 | |||||
Financial results income (loss) | (147) | 1,116 | |||||
EBITDA | 1,668 | 2,959 | |||||
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 | 1,668 | 2,959 | |||||
Comprehensive Financial Cost
The Comprehensive financial cost in the first quarter of 2024 represented a net income of Ps. 147 million compared with a net expense of Ps.1,116 million in the same period of 2023. Net interest was an income of Ps. 250 million in the first quarter of 2024 compared with a net income of Ps. 190 million in the same period of 2023. At the same time, Simec registered an exchange loss of Ps. 103 million in the first quarter of 2024 compared with an exchange loss of Ps.1,306 million in the same period of 2023.
Income Taxes
Income Taxes recorded an expense of Ps. 110 million in the first quarter of 2024 (including the benefits of Ps. 8 million of deferred income taxes), compared to an expense of Ps.531 million in the same period of 2023.
Net Income (loss)
As a result of the foregoing, net income increases to Ps. 1,456 million in the first quarter of 2024 from Ps. 1,033 million in the same period of previous year.
Financial Situation, Liquidity and Capital Resources
As of March 31, 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. 5.0 million (accrued interest on March 31, 2024 was U.S. $820 or Ps. 13.7 million). As of March 31, 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. 5.5 million (accrued interest on March 31, 2023 was U.S. $696 or Ps. 12.6 million).
Comparative first quarter of 2024 vs. fourth quarter of 2023
Net Sales
The net sales of the company decreased 11% comparing Ps. 8,815 million in the fourth quarter of 2023 to Ps. 7,885 million in the first quarter of 2024. The tons sales decreased 11%, from 536 thousand tons in the fourth quarter of 2023 compared to 479 thousand tons in the first quarter of 2024. Total sales outside of Mexico in the first quarter of 2024 increased 11% from Ps. 3,320 million on the last quarter of 2023 compared to Ps. 3,694 million in the first quarter of 2024. The Mexican sales decreased 24% from Ps. 5,495 million in the fourth quarter of 2023 to Ps. 4,191 million in the first quarter of 2024. The decrease mainly due to a lower volume shipped, in the first quarter of 2024 compared with the fourth quarter of 2023.
Cost of Sales
Cost of sales decreased 6% from Ps. 6,282 million in the fourth quarter of 2023 to Ps. 5,876 million in the first quarter of 2024. Cost of sales as a percentage of net sales in the first quarter of 2024 represented 75% and in the last quarter of 2023 cost of sales represented 71%. The average cost of finished steel products in the first quarter of 2024 increased 5% compared to the fourth quarter of 2023 as a result of an increased on the cost of raw materials.
Gross Profit
Gross profit of the company for the first quarter of 2024 decreased to Ps. 2,009 million in 2024 from Ps. 2,533 million in the last quarter of 2023. Gross profit as a percentage of net sales in the first quarter of 2024 was 25% and for the last period of 2023 was 29%. The decrease in gross profit is due to a lower volume of shipments on the first quarter of 2024 compared with the last quarter of 2023.
General, Sales and administrative Expenses
General selling, and administrative expenses decreased to Ps. 595 million in the first quarter of 2024 compared to Ps. 761 million in the fourth quarter of 2023, representing 8% for the period of the first quarter 2024 and 9% for the period of the fourth quarter 2023.
Other Expenses (Income) net
The company recorded other net income of Ps. 5 million in the first quarter of 2024 compared to other net expenses of Ps. 63 million in the fourth quarter of 2023.
Operating Income Operating income decreased 17% to Ps. 1,419 million for the first quarter of 2024 compared to Ps. 1,709 million in the last quarter of 2023. Operating income as a percentage of net sales was 18% in the first quarter of 2024, compared to 19% in the last quarter of 2023. The decrease in operating income is due to the decrease in production and volume of shipments, in the first quarter of 2024 compared with the fourth quarter of 2023.
EBITDA
The EBITDA of the Company was of 1,914 million for the fourth quarter of 2023, as a result of a net income of Ps. 1,365 million, less minority stake of Ps. 2 million, less income taxes of Ps. 236 million, plus comprehensive financial cost of Ps. 582 million, plus depreciation of Ps. 205 million to Ps 1,668 million in the first quarter of 2024 as a result of a net income of Ps. 1,456 million, plus income taxes of Ps. 110 million, less comprehensive financial cost of Ps. 147 million, plus depreciation of Ps. 249.
Consolidated | |||||||
Million | Comparative first quarter of 2024 vs fourth quarter of 2023, | ||||||
2024 | 2023 | ||||||
Net income (loss) | 1,456 | 1,365 | |||||
Loss attributable to noncontrolling interests | (2) | ||||||
Net income (loss) | 1,456 | 1,363 | |||||
Depreciation and amortization | 249 | 205 | |||||
Income taxes | 110 | (236) | |||||
Financial results income (loss) | (147) | 582 | |||||
EBITDA | 1,668 | 1,914 | |||||
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 | 1,668 | 1,914 | |||||
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter of 2024 represented a net income of Ps. 147 million compared with a net expense of Ps. 582 million in the fourth quarter of 2023. Net interest income of the first quarter of 2024 was of Ps. 250 million compared with an interest net income of Ps. 181 million in the last quarter of 2023. Likewise, an exchange less of 103 million was recorded in the first quarter of 2024 against an exchange less of Ps. 787 million in the last quarter of 2023. In the fourth quarter of 2023, other net financial income was recorded for Ps. 24 million.
Income Taxes
Income Taxes recorded an expense of Ps. 110 million in the first quarter of 2024 (including Ps. 8 million of deferred expense taxes), compared with an income of Ps. 236 million in the fourth quarter of 2023 (including Ps. 136 million of deferred income taxes).
Net Income (loss)
As a result of the foregoing, the net income of the first quarter of 2024 is of Ps. 1,456 million compared net income Ps. 1,365 million of the fourth quarter 2023.
Quarter | |||||
(millions of pesos) | 1Q'24 | 4Q '23 | 1Q 23 | 1Q'24vs | 1Q'24 vs |
Sales | 7,885 | 8,815 | 12,825 | (11 %) | (39 %) |
Cost of Sales | 5,876 | 6,282 | 9,618 | (6 %) | (39 %) |
Gross Profit | 2,009 | 2,533 | 3,207 | (21 %) | (37 %) |
Selling, General and Adm. Expenses | 595 | 761 | 587 | (22 %) | 1 % |
Other Income (Expenses), net | 5 | (63) | 58 | (108 %) | (91 %) |
Operating Profit | 1,419 | 1,709 | 2,678 | (17 %) | (47 %) |
EBITDA | 1,668 | 1,914 | 2,959 | (13 %) | (44 %) |
Net Income | 1,456 | 1,365 | 1,033 | 7 % | 41 % |
Sales Outside Mexico | 3,694 | 3,320 | 5,181 | 11 % | (29 %) |
Sales in Mexico | 4,191 | 5,495 | 7,644 | (24 %) | (45 %) |
Total Sales (Tons) | 479 | 536 | 604 | (11 %) | (21 %) |
Cost per Ton | 12,267 | 11,720 | 15,924 | 5 % | (23 %) |
Product | Thousands of Tons Jan-Mar 2024 | Millions of Pesos Jan-Mar 2024 | Average Price per Ton Jan-Mar 2024 | Thousands of Tons Oct-Dec 2023 | Millions of Pesos Oct-Dec 2023 | Average Price per Ton Oct-Dec 2023 | Thousands of Tons Jan-Mar 2023 | Millions of Pesos Jan-Mar 2023 | Average Price per Ton Jan-Mar 2023 |
Commercial Profiles | 352 | 5,435 | 15,440 | 383 | 6,053 | 15,804 | 425 | 8,583 | 20,195 |
Special Profiles | 127 | 2,450 | 19,291 | 153 | 2,762 | 18,052 | 179 | 4,242 | 23,698 |
Total | 479 | 7,885 | 16,461 | 536 | 8,815 | 16,446 | 604 | 12,825 | 21,233 |
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 | |
52 33 3770 6734 |
SOURCE Grupo Simec, S.A.B. de C.V.
