GUADALAJARA, Mexico, July 20,
2023 /PRNewswire/ -- Grupo
Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today
its results of operations for the sixth-month period ended
June 30th, 2023.
Comparative first six months of 2023 vs. first six months of
2022
Net Sales
Net sales of the Company decreased
from Ps. 30,579 million in the first half of 2022 to Ps. 22,947
million in the first half of 2023. Shipments decreased 6% from
1,179 thousand tons in the first half of 2022 to 1,109 thousand
tons in the first half of 2023. Total sales outside of Mexico in the first half of 2023 decreased 32%
to Ps. 9,639 million compared to Ps. 14,252 million in the first
half of 2022. Mexican sales decreased 18% from Ps. 16,327 million
in the first half of 2022 to Ps. 13,308 million in the first half
of 2023. Sales decreased for the first half of 2023 compared to the
first half of 2022, is due to the combined of decrease in the
average sales price of 20% and decrease in the volume of shipments
approximately of 70 thousand tons that represent an 6%.
Cost of Sales
Cost of sales decreased 22% from
Ps. 21,972 million in the first half of 2022, to Ps. 17,128 million
in the first half of 2023. Cost of sales as a percentage of net
sales represented 75% in the first half of 2023 while in the first
half of 2022 represented 72%. Cost of sales decreased due to mix
products and a lower volume of products shipped, and scrap steel
cost.
Gross Profit
Gross profit of the Company
for the first half of 2023 decreased 32% from Ps. 8,607
million in the first half of 2022, to Ps. 5,819 million in the
first half of 2023. Gross profit as percentage of net sales in the
first half of 2023 was of 25%, while in the first half of 2022 was
of 28%. The gross profit between both periods is given by for less
products shipped and lower average price.
Selling, General and Administrative
Expense
Selling, general and administrative expense
decreased 2%, from Ps. 1,130 million in the first half of 2022 to
Ps. 1,102 million in the same period 2023, selling, general and
administrative expense represented 4% of the net sales in the
second quarter of 2022 and 5% in the second quarter of 2023.
Other Income (Expenses), net
The Company
recorded other income net for Ps. 143 million in the first
half of 2023 million compared to other income net Ps. 2 million in
the same period of 2022.
Operating Income
Operating income decreased 35%
from Ps. 7,479 million for the first half of 2022 compared to Ps.
4,860 million in the first half of 2023. Operating income as
percentage of net sales was 21% in the first half of 2023 compared
to 24% in the same period of 2022. The decrease in operating profit
is mainly due to the for less of products shipped and lower sales
prices.
Ebitda
The Ebitda amounted to Ps. 8,029 million
in the first half of 2022 as a result of a net income of Ps. 6,098
million, plus minority stake of Ps. 1 million, plus income taxes of
Ps.1,152 million, plus comprehensive financial cost of Ps. 228
million, plus depreciation of Ps. 550 million to Ps 5,419
million in the first semester of 2023 as a result a net income of
Ps. 2,019 million, less minority stake of Ps. 3 million, plus
income taxes of Ps. 1,244 million, plus comprehensive financial
cost of Ps. 1,600 million, plus depreciation of Ps. 559
million.
|
Consolidated
|
|
|
|
|
Million
|
|
Comparative first
six months of 2023 vs first six months of 2022,
|
|
|
2023
|
|
|
2022
|
|
Net income
(loss)
|
|
|
2,019
|
|
|
|
6,098
|
|
Loss attributable to
noncontrolling interests
|
|
|
(3)
|
|
|
|
1
|
|
Net income
(loss)
|
|
|
2,016
|
|
|
|
6,099
|
|
Depreciation, depletion
and amortization
|
|
|
559
|
|
|
|
550
|
|
Income taxes
|
|
|
1,244
|
|
|
|
1,152
|
|
Financial results
income (loss)
|
|
|
1,600
|
|
|
|
228
|
|
EBITDA
|
|
|
5,419
|
|
|
|
8,029
|
|
|
|
|
|
|
|
|
|
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
|
|
|
0
|
|
|
|
0
|
|
Impairment and disposal
of non-current assets
|
|
|
0
|
|
|
|
0
|
|
Adjusted
EBITDA
|
|
|
5,419
|
|
|
|
8,029
|
Comprehensive Financial Cost
Comprehensive financial cost for the first half of 2023 represented
an expense of Ps. 1,600 million compared with an expense of Ps. 228
million for the first half of 2022. The comprehensive financial
cost is comprised by the exchange loss of Ps. 2,009 million in the
first half of 2023 compared with an exchange loss of Ps. 228
million in the first half of 2022. Likewise, the Company recorded a
net income interest of Ps. 365 million for the first half of 2023
compared with a net expenses interest of Ps. 1 million in 2022, in
the first half of 2023 there is a record of other financial income
for Ps. 44 million.
Income Taxes
The Company recorded an expense of
Ps. 1,244 million for the net income tax during the first half of
2023, (comprised for a current expense tax of Ps. 1,243 million and
expense for deferred tax of Ps. 1 million) compared with an expense
of Ps. 1,152 million to the first half of 2022 (comprised for a
current expense tax of Ps. 1,165 million and income for deferred
tax of Ps. 13 million).
Net Income
As a result of the foregoing, the
Company recorded a decrease in net income of 67% to pass of Ps.
6,098 million in the first half of 2022 to Ps. 2,019 million in the
same period of 2023.
Comparative second quarter of 2023 vs. first quarter of
2023
Net Sales
Net sales of the Company decreased
21% in the second quarter of 2023 compared to the first quarter of
the same period, to pass of Ps. 12,825 million during the first
quarter of 2023 to Ps. 10,122 million in the second quarter of
2023. Shipments of finished steel products decreased from 604
thousand tons in the first quarter of 2023 to 505 thousand tons in
the second quarter of the same year. Total sales outside of
Mexico in the second quarter of
2023 decreased 14% to get to Ps. 4,458 million compared to Ps.
5,181 million of the first quarter of the same year. Domestic sales
decreased from Ps. 7,644 million in the first quarter of 2023 to
Ps. 5,664 million in the second quarter of the same year. The sales
decreased mainly a lower shipped by 99 thousand tons compared with
the first quarter that represent a 16% and decrease in the average
sales price in 6%.
Cost of Sales
Cost of sales decreased 22% from
Ps. 9,618 million in the first quarter of 2023 to Ps. 7,510 million
in the second quarter of 2023. Cost of sales as a percentage of net
sales represented 75% for the first quarter of 2023 compared to 74%
in the second quarter of the same year, the average cost of sales
by ton records a decrease between both quarters of 7%.
Gross Profit
Gross profit of the Company for
the second quarter of 2023 decreased 19% to pass of Ps. 3,207
million in the first quarter of 2023 to Ps. 2,612 million in the
second quarter of same year. Gross profit as a percentage of net
sales represented 25% for the first quarter of 2023 compared to 26%
in the second quarter of the same year. The gross profit in the
second quarter of 2023 it originates from a lower average sale
price.
Selling, General and Administrative
Expense
Selling, general and administrative expense
decreased 12%, from Ps. 587 million in the first quarter of 2023 to
Ps. 515 million in the second quarter of the same year, and as
percentage of net sales represented 5% in the first quarter of 2023
compared to 5% in the second quarter of the same year.
Other (Expenses) Income, net
The Company
recorded other income net for Ps. 85 million during the second
quarter of 2023 compared to other income net for Ps. 58 million in
the first quarter of 2023.
Operating Income
Operating income decreased
19%, of Ps. 2,678 million in the first quarter of 2023 compared to
Ps. 2,182 million of the second quarter of the same year. Operating
income as percentage of net sales was 21% for the first quarter of
2023 compared to 22% for the second quarter of the same year. The
operating income is due mainly to a lower average sale price.
Ebitda
The Ebitda amounted to Ps. 2,959 million
in 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
2,460 million in the second quarter of 2023 as a result of a net
income of Ps. 987 million, less minority stake of Ps. 2 million,
plus income taxes of Ps. 712 million, plus comprehensive financial
cost of Ps. 484 million, plus depreciation of Ps. 279 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative second
quarter of 2023 vs first quarter of 2023,
|
|
|
Second
quarter
|
|
|
First
quarter
|
|
Net income
(loss)
|
|
|
987
|
|
|
|
1,033
|
|
Loss attributable to
noncontrolling interests
|
|
|
(2)
|
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
985
|
|
|
|
1,031
|
|
Depreciation, depletion
and amortization
|
|
|
279
|
|
|
|
281
|
|
Income taxes
|
|
|
712
|
|
|
|
531
|
|
Financial results
income (loss)
|
|
|
484
|
|
|
|
1,116
|
|
EBITDA
|
|
|
2,460
|
|
|
|
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
|
|
|
0
|
|
|
|
0
|
|
Impairment and disposal
of non-current assets
|
|
|
0
|
|
|
|
0
|
|
Adjusted
EBITDA
|
|
|
2,460
|
|
|
|
2,959
|
Comprehensive Financial Cost
Comprehensive
financial cost of the Company in the second quarter of 2023
represented an expense of Ps. 484 million compared with of Ps.
1,116 million an expense for the first quarter of 2023. The
comprehensive financial cost is comprised for the net interest
income of Ps. 175 million in the second quarter of 2023, while in
the first quarter was a net income of Ps. 190 million. Likewise, we
recorded a net exchange loss of Ps. 703 million in the second
quarter of 2023 compared a net exchange loss Ps. 1,306 million in
the first quarter of the same year, in the second quarter of 2023
there is a record of other financial income for Ps. 44 million.
Income Taxes
The Company have been recorded an
expense of Ps. 712 million of income tax during the second quarter
of 2023, (comprised for an expense by current tax of Ps. 711
million and an expense for deferred tax of Ps. 1 million) compared
with the Ps. 531 million of expense for the first quarter of the
same year, (comprised for an expense by current tax of Ps. 531
million).
Net Income
As a result of the foregoing, the
Company recorded a decrease of 5% from a net income of Ps. 1,033
million in the first quarter of 2023 compared to a net income of
Ps. 987 million for the second quarter of 2023.
Liquidity and Capital Resources
As of June 30th, 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. 5.2 million (accrued interest on June 30th, 2023 was U.S. $697,000, or Ps. 11.9 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, or Ps. 5.8 million (accrued interest on December 31, 2022 was U.S. $695,000, or Ps. 13.5 million).
Comparative second quarter of 2023 vs. second quarter of
2022
Net Sales
Net sales of the Company decreased
35% from Ps. 15,547 million during the second quarter of 2022 to
Ps. 10,122 million in the second quarter of 2023. Sales in tons of
finished steel decreased 9% from 556 thousand tons in the second
quarter of 2022 compared with 505 thousand tons in the second
quarter of 2023. Sales outside of Mexico in the second quarter of 2023 decreased
39% from Ps. 7,276 million in the second quarter of 2022 to Ps.
4,458 million in the second quarter of 2023. Domestic sales
decreased 32% from Ps. 8,271 million in the second quarter of 2022
to Ps. 5,664 million in the second quarter of 2023. The decrease in
sales in the second quarter of 2023 compared to the second quarter
of 2022 is due to a decrease in the average sales price of 28% and
a decrease in the volume of shipments approximately of 51 thousand
of tons that represents 9%.
Cost of Sales
Cost of sales decreased 30% in
the second quarter of 2023 compared to the second quarter of 2022
from Ps. 10,783 million in the second quarter of 2022 to Ps. 7,510
million in the second quarter of 2023. With respect to sales, the
cost of sales of the second quarter of 2023 represented 74%
compared to 69% for the second quarter of 2022. The average cost of
sales by ton of steel products decreased 23% in the second quarter
of 2023 versus the second quarter of 2022, due to the cost of
certain raw materials mainly scrap and the lower volume
shipped.
Gross (Loss) Profit
Gross profit of the Company
for the second quarter of 2023 amount to Ps. 2,612 million compared
to Ps. 4,764 million in the second quarter of 2022, this
represented a decrease of 45% between both periods. Gross profit as
a percentage of net sales for the second quarter of 2023 was 26%
compared to 31% of the second quarter of 2022. The decrease in
gross profit is mainly due to a lower average sales price and a for
less volume shipped, in the second quarter of 2023 compared to the
second quarter of 2022.
Selling, General and Administrative Expense
The
selling, general and administrative expenses decreased 16% in the
second quarter of 2023 from Ps. 612 million in the second quarter
of 2022 to Ps. 515 million in the second quarter of 2023. Selling,
general and administrative expense as a percentage of net sales
represented 5% in the second quarter of 2023 compared to 4% of the
second quarter of 2022.
Other Income (Expenses), net
The company
recorded other income net of Ps. 85 million in the second quarter
of 2023 compared with other income net of Ps. 2 million for the
second quarter of 2022.
Operating (Loss) Income
Operating income
amounted to Ps. 2,182 million in the second quarter 2023 compared
to Ps. 4,154 million in the second quarter of 2022, this
represented 47% of decrease between both quarters. The operating
income as a percentage of net sales was 22% for the second quarter
of 2023, compared to 27% of the second quarter of 2022. The
decrease in operating profit is due to a lower average sale
price.
Ebitda
The Ebitda amounted to Ps. 4,424 million
in the second quarter of 2022 as a result of a net income of Ps.
3,604 million, plus income taxes of Ps. 693 million, less
comprehensive financial cost of Ps. 143 million, plus depreciation
of Ps. 270 million to Ps 2,460 million in the second quarter
of 2023 as a result of a net income of Ps. 987 million,
less minority stake of Ps. 2 million, plus income taxes
of Ps. 712 million, plus comprehensive financial cost of Ps. 484
million, plus depreciation of Ps. 279 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative second
quarter of 2023 vs second quarter of 2022,
|
|
|
2023
|
|
|
2022
|
|
Net income
(loss)
|
|
|
987
|
|
|
|
3,604
|
|
Loss attributable to
noncontrolling interests
|
|
|
(2)
|
|
|
|
0
|
|
Net income
(loss)
|
|
|
985
|
|
|
|
3,604
|
|
Depreciation, depletion
and amortization
|
|
|
279
|
|
|
|
270
|
|
Income taxes
|
|
|
712
|
|
|
|
693
|
|
Financial results
income (loss)
|
|
|
484
|
|
|
|
(143)
|
|
EBITDA
|
|
|
2,460
|
|
|
|
4,424
|
|
|
|
|
|
|
|
|
|
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
|
|
|
0
|
|
|
|
0
|
|
Impairment and disposal
of non-current assets
|
|
|
0
|
|
|
|
0
|
|
Adjusted
EBITDA
|
|
|
2,460
|
|
|
|
4,424
|
Comprehensive Financial Cost
Comprehensive financial cost of the Company for the second quarter
of 2023 represented a net expense of Ps. 484 million compared with
a net income of Ps. 143 million for the second quarter of 2022. The
comprehensive financial cost is comprised for the net interest
income of Ps. 175 million in the second quarter of 2023, compared
to a net interest expense of Ps. 29 million for the same period of
2022. Also record an exchange loss of Ps. 703 million in the second
quarter of 2023 and an exchange income of Ps. 172 million in the
second quarter of 2022 in the second quarter of 2023 there is a
record of other financial income for Ps. 44 million.
Income Taxes
The company recorded an expense of
Ps. 712 million of expense tax in the second quarter of 2023,
(comprised by current expense tax of Ps. 711 million and an expense
for deferred tax of Ps. 1 million) compared to an expense
accrual of Ps. 693 million for income tax for the second quarter of
2022, (comprised by current expense tax of Ps. 698 million and an
income for deferred tax of Ps. 5 million).
Net Income (Loss)
As a result of the foregoing,
the Company recorded a net income of Ps. 987 million in the second
quarter of 2023 compared to Ps. 3,604 million for the second
quarter of 2022, a decrease of 73% between both quarters.
|
(millions of
pesos)
|
1H
'23
|
|
1H
'22
|
|
Year 23 VS
'22
|
|
Sales
|
22,947
|
|
30,579
|
|
(25 %)
|
|
Cost of
Sales
|
17,128
|
|
21,972
|
|
(22 %)
|
|
Gross Profit
|
5,819
|
|
8,607
|
|
(32 %)
|
|
Selling, General and
Administrative Expense
|
1,102
|
|
1,130
|
|
(2 %)
|
|
Other Income
(Expenses), net
|
143
|
|
2
|
|
7050 %
|
|
Operating
Profit
|
4,860
|
|
7,479
|
|
(35 %)
|
|
EBITDA
|
5,419
|
|
8,029
|
|
(33 %)
|
|
Net
income
|
2,019
|
|
6,098
|
|
(67 %)
|
|
Sales Outside
Mexico
|
9,639
|
|
14,252
|
|
(32 %)
|
|
Sales in
Mexico
|
13,308
|
|
16,327
|
|
(18 %)
|
|
Total Sales
(Tons)
|
1,109
|
|
1,179
|
|
(6 %)
|
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
2Q'23
|
1Q
'23
|
2Q
'22
|
2Q´23vs
1Q´23
|
2Q´23 vs
2Q '22
|
|
Sales
|
10,122
|
12,825
|
15,547
|
(21 %)
|
(35 %)
|
|
Cost of
Sales
|
7,510
|
9,618
|
10,783
|
(22 %)
|
(30 %)
|
|
Gross Profit
|
2,612
|
3,207
|
4,764
|
(19 %)
|
(45 %)
|
|
Selling, General and
Adm. Expenses
|
515
|
587
|
612
|
(12 %)
|
(16 %)
|
|
Other Income
(Expenses), net
|
85
|
58
|
2
|
47 %
|
4150 %
|
|
Operating
Profit
|
2,182
|
2,678
|
4,154
|
(19 %)
|
(47 %)
|
|
EBITDA
|
2,460
|
2,959
|
4,424
|
(17 %)
|
(44 %)
|
|
Net Income
|
987
|
1,033
|
3,604
|
(5 %)
|
(73 %)
|
|
Sales Outside
Mexico
|
4,458
|
5,181
|
7,276
|
(14 %)
|
(39 %)
|
|
Sales in
Mexico
|
5,664
|
7,644
|
8,271
|
(26 %)
|
(32 %)
|
|
Total Sales
(Tons)
|
505
|
604
|
556
|
(16 %)
|
(9 %)
|
|
Product
|
Thousands of
Tons
Jan-Jun
2023
|
Millions of
Pesos
Jan-Jun
2023
|
Average Price per
Ton
Jan-Jun
2023
|
Thousands of
Tons
Jan –
Jun
2022
|
Millions of
Pesos
Jan-
Jun
2022
|
Average Price per
Ton
Jan-Jun
2022
|
|
Commercial
Profiles
|
779
|
15,156
|
19,456
|
776
|
18,783
|
24,205
|
|
Special
Profiles
|
330
|
7,791
|
23,609
|
403
|
11,796
|
29,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
1,109
|
22,947
|
20,692
|
1,179
|
30,579
|
25,936
|
|
Product
|
Thousands of
Tons
Apr-Jun
2023
|
Millions of
Pesos
Apr-Jun
2023
|
Average Price per
Ton
Apr-Jun
2023
|
Thousands of
Tons
Jan –
Mar
2023
|
Millions of
Pesos
Jan-
Mar
2023
|
Average Price per
Ton
Jan-Mar
2023
|
Thousands of
Tons
Apr-Jun
2022
|
Millions of
Pesos
Apr-Jun
2022
|
Average Price per
Ton
Apr-Jun
2022
|
|
Commercial
Profiles
|
354
|
6,573
|
18,568
|
425
|
8,583
|
20,195
|
363
|
9,477
|
26,107
|
|
Special
Profiles
|
151
|
3,549
|
23,503
|
179
|
4,242
|
23,698
|
193
|
6,070
|
31,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
505
|
10,122
|
20,044
|
604
|
12,825
|
21,233
|
556
|
15,547
|
27,962
|
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
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content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-six-months-of-2023-301882602.html
SOURCE Grupo Simec, S.A.B. de
C.V.