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GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2023 AUDITED

Tuesday, February 27, 2024 12:31 PM | PR Newswire via QuoteMedia

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GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2023 AUDITED
GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2023 AUDITED

PR Newswire

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

Cision 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.

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