GUADALAJARA,
Mexico, Feb. 27, 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.
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. 41,217
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. 16,891 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. 24,326 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 23% from Ps. 39,684
million in the twelve-month period ended December 31, 2022 to Ps. 30,588 million in the
same period of 2023. Cost of sales as a percentage of net sales
represented, 74% 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 20% 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. 10,629 million compared to Ps. 14,475
million in the same period of 2022. Gross profit as a percentage of
net sales represented 26% and 27% for the 2023 and 2022 periods
respectively.
Operating Expenses
Selling, general and administrative
expenses decreased 4% from Ps. 2,456 million in the twelve-month
period ended December 31, 2022 to Ps.
2,348 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 income of
Ps. 104 million in the same period of 2023.
Operating Income
Operating income decreased 31% from Ps.
12,091 million for the twelve-month period ended December 31, 2022 to Ps. 8,385 million in the
same period of 2023. Operating income as a percentage of net sales
represented 20% and 22% for the 2023 and 2022 periods
respectively.
EBITDA
The EBITDA of the Company decreased 29%
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. 9,412
million in the same period of 2023 as a result a net income of Ps.
5,186, less minority stake of Ps. 6 million, plus income taxes of
Ps. 1,305 million, plus comprehensive financial cost of Ps. 1,900
million, plus depreciation of 1,027 million.
|
Consolidated
|
|
|
|
Million
|
|
Twelve-month period ended December
31,
|
|
|
2023
|
|
|
2022
|
|
Net income (loss)
|
|
|
5,186
|
|
|
|
7,703
|
|
Loss attributable to
noncontrolling interests
|
|
|
(6)
|
|
|
|
(2)
|
|
Net income (loss)
|
|
|
5,180
|
|
|
|
7,701
|
|
Depreciation and
amortization
|
|
|
1,027
|
|
|
|
1,117
|
|
Income taxes
|
|
|
1,305
|
|
|
|
3,300
|
|
Financial results
income (loss)
|
|
|
1,900
|
|
|
|
1,089
|
|
EBITDA
|
|
|
9,412
|
|
|
|
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
|
|
|
9,412
|
|
|
|
13,207
|
Comprehensive Financial
Cost
Comprehensive financial cost in the
twelve-month period ended December 31,
2023 represented a net expense of Ps. 1,900 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. 574 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. 2,541 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. 67 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. 1,305 million in the twelve-month period ended
December 31, 2023 (including the
income of deferred tax of Ps. 144 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 33% from Ps. 7,703 million net profit in the
twelve-month period ended December 31,
2022 to Ps. 5,186 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. 8,815 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 16% from Ps. 3,932 million in the third quarter to
Ps. 3,320 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. 6,282
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 71% 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 13% 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 increased 11% to Ps. 2,533 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 29% respectively.
Operating Expenses
Selling, general and administrative
expenses increased 57% to Ps. 761 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 9%
respectively.
Other Expenses (Income)
net
The company recorded other net expenses of
Ps. 63 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. 1,709 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 19% for both
periods.
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. 1,914 million for the fourth quarter of 2023, as a result 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.
|
Consolidated
|
|
|
|
Million
|
|
Comparative fourth quarter vs third quarter
2023
|
|
|
4Q 2023
|
|
|
3Q 2023
|
|
Net income (loss)
|
|
|
1,365
|
|
|
|
1,802
|
|
Loss attributable to
noncontrolling interests
|
|
|
(2)
|
|
|
|
(2)
|
|
Net income (loss)
|
|
|
1,363
|
|
|
|
1,800
|
|
Depreciation
and
Amortization
|
|
|
205
|
|
|
|
264
|
|
Income taxes
|
|
|
(236)
|
|
|
|
298
|
|
Financial results
income (loss)
|
|
|
582
|
|
|
|
(283)
|
|
EBITDA
|
|
|
1,914
|
|
|
|
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
|
|
|
1,914
|
|
|
|
2,079
|
Comprehensive Financial Income
(Cost)
Comprehensive financial cost for the fourth
quarter for 2023 was a net expense of Ps. 582 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. 181 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. 787 million in the fourth quarter of 2023. Net other
financial income was recorded for Ps. 24 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 income of Ps. 236
million for the fourth quarter of 2023, (including an income tax
deferred of Ps. 136 million).
Net Income (loss)
As a result of the foregoing, the Company
recorded a net income of Ps. 1,365 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 13% from Ps. 10,147
million for the fourth quarter of 2022 to Ps. 8,815million 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 10% from Ps.
3,704 million for the fourth quarter of 2022 to Ps. 3,320 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 13%, compared to the same
period of 2022.
Cost of Sales
Cost of sales decreased 16% from Ps. 7,441
million in the fourth quarter of 2022 compared to Ps. 6,282 million
for the fourth quarter of 2023. With respect to sales, the cost of
sales represented 71% during the fourth quarter of 2023 and 73%
during the fourth quarter of 2022. The average cost of steel
products decreased 16% in the fourth quarter of 2023 versus the
fourth quarter of 2022.
Gross Profit
Gross profit for the fourth quarter of 2023
decreased 6% from Ps. 2,706 million in the fourth quarter of 2022
compared to Ps. 2,533 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 29% of the fourth quarter of
2023.
Operating Expenses
Selling, general and administrative
expenses increased 4% from Ps. 732 million in the fourth quarter of
2022 compared to Ps. 761 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 9% 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. 63 million for the fourth quarter of
2023.
Operating (Loss) Income
Operating income was of Ps. 1,709 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 19%, 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 1,914 million in the fourth quarter of 2023 as a result 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.
|
Consolidated
|
|
|
|
Million
|
|
Comparative fourth quarter vs fourth
quarter
|
|
|
2023
|
|
|
2022
|
|
Net income (loss)
|
|
|
1,365
|
|
|
|
(334)
|
|
Loss attributable to
noncontrolling interests
|
|
|
(2)
|
|
|
|
(2)
|
|
Net income (loss)
|
|
|
1,363
|
|
|
|
(336)
|
|
Depreciation
and
Amortization
|
|
|
205
|
|
|
|
283
|
|
Income taxes
|
|
|
(236)
|
|
|
|
1,349
|
|
Financial results
income (loss)
|
|
|
582
|
|
|
|
1,026
|
|
EBITDA
|
|
|
1,914
|
|
|
|
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
|
|
|
1,914
|
|
|
|
2,322
|
Comprehensive Financial Income
(Cost)
Comprehensive financial cost for the fourth
quarter of 2023 was a net expense of Ps. 582 million compared with
a net expense of Ps 1,026 million in the fourth quarter of 2022.
Net interest income was of Ps. 181 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. 787 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. 24 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 income net taxes
for the fourth quarter of 2023 of Ps. 236 million (including an
income of deferred tax of Ps. 136 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. 1,365 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
|
41,217
|
|
54,159
|
|
(24 %)
|
|
Cost of
Sales
|
30,588
|
|
39,684
|
|
(23 %)
|
|
Gross Profit
|
10,629
|
|
14,475
|
|
(27 %)
|
|
Selling, General and
Administrative Expense
|
2,348
|
|
2,456
|
|
(4 %)
|
|
Other Income
(Expenses), net
|
104
|
|
72
|
|
44 %
|
|
Operating
Profit
|
8,385
|
|
12,091
|
|
(31 %)
|
|
EBITDA
|
9,412
|
|
13,207
|
|
(29 %)
|
|
Net
income
|
5,186
|
|
7,703
|
|
(33 %)
|
|
Sales Outside
Mexico
|
16,891
|
|
24,515
|
|
(31 %)
|
|
Sales in
Mexico
|
24,326
|
|
29,644
|
|
(18 %)
|
|
Total Sales
(Tons)
|
2,176
|
|
2,255
|
|
(4 %)
|
|
Cost by ton
|
14,057
|
|
17,598
|
|
(20 %)
|
|
Quarter
|
|
|
|
|
|
|
(million of pesos)
|
4Q'23
|
3Q '23
|
4Q '22
|
4Q´23vs
3Q´23
|
4Q´23 vs
4Q '22
|
|
Sales
|
8,815
|
9,454
|
10,147
|
(7 %)
|
(13 %)
|
|
Cost of
Sales
|
6,282
|
7,177
|
7,441
|
(12 %)
|
(16 %)
|
|
Gross Profit
|
2,533
|
2,277
|
2,706
|
11 %
|
(6 %)
|
|
Selling, General and
Adm. Expenses
|
761
|
485
|
732
|
57 %
|
4 %
|
|
Other Income
(Expenses), net
|
(63)
|
24
|
65
|
(363 %)
|
(197 %)
|
|
Operating
Profit
|
1,709
|
1,816
|
2,039
|
(6 %)
|
(16 %)
|
|
EBITDA
|
1,914
|
2,079
|
2,322
|
(8 %)
|
(18 %)
|
|
Net Income
|
1,365
|
1,802
|
(334)
|
(24 %)
|
(509 %)
|
|
Sales Outside
Mexico
|
3,320
|
3,932
|
3,704
|
(16 %)
|
(10 %)
|
|
Sales in
Mexico
|
5,495
|
5,522
|
6,443
|
(0 %)
|
(15 %)
|
|
Total Sales
(Tons)
|
536
|
531
|
535
|
1 %
|
0 %
|
|
Cost per Ton
|
11,720
|
13,516
|
13,908
|
(13 %)
|
(16 %)
|
|
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
|
13,101
|
21,945
|
723
|
20,073
|
27,763
|
|
Commercial Profiles
|
1,579
|
28,116
|
17,806
|
1,532
|
34,086
|
22,249
|
|
Total Tons
|
2,176
|
41,217
|
18,942
|
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
|
2,762
|
18,052
|
155
|
3,468
|
22,374
|
150
|
3,571
|
23,807
|
|
Commercial Profiles
|
383
|
6,053
|
15,804
|
376
|
5,986
|
15,920
|
385
|
6,576
|
17,081
|
|
Total Tons
|
536
|
8,815
|
16,446
|
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-302073017.html
SOURCE Grupo Simec, S.A.B. de
C.V.