GUADALAJARA, Mexico, Oct. 25,
2023 /PRNewswire/ -- Grupo
Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today
its results of operations for the nine-month period ended
September 30, 2023.
Comparative first nine months of 2023 vs. first nine months
of 2022
Net Sales
Net sales of the Company decreased to Ps. 32,401 million in the
first nine months of 2023 compared to Ps. 44,012 million in the
first nine months of 2022. Shipments of finished steel products
decreased 5% to 1 million 640 thousand tons in the first nine
months of 2023 compared to 1 million 720 thousand tons in the first
nine months of 2022. Total sales outside of Mexico in the first nine months of 2023
decreased 35% to Ps. 13,571 million compared to Ps. 20,812 million
in the same period of 2022. Mexican sales decreased 19% from Ps.
23,200 million in the first nine months of 2022 to Ps. 18,830
million in the same period of 2023. The decrease in sales for the
first nine months of 2023 is due to a decrease in the average
selling price in 23% and with a lower volume of shipments compared
to the first nine months of 2022.
Cost of Sales
Cost of sales decreased 25% from Ps. 32,243 million in the first
nine months of 2022, to Ps. 24,305 million in the first nine months
of 2023. Cost of sales as a percentage of net sales represented 75%
in the first nine months of 2023 while in the first nine months of
2022 represented 73%. Cost of sales by steel ton decreased
approximately 21% in the first nine months of 2023 over the same
period of 2022 due to a lower price in inputs, mainly steel
scrap.
Gross Profit
Gross profit of the Company for the first nine months of 2023
decreased 31% from Ps. 11,769 million in the first nine months of
2022, to Ps. 8,096 million in the first nine months of 2023.
Marginal profit as percentage of net sales in the first nine months
of 2023 was of 25% while in the first nine months of 2022 was of
27%. The decrease in gross profit is due to a decrease in the
average selling price and with a lower volume of shipments compared
to the first nine months of 2022.
General, Selling and Administrative Expenses
Selling, general and administrative expenses decreased 8%, to Ps.
1,587 million in the first nine months of 2023 from Ps. 1,725
million in the same period of 2022, selling, general and
administrative expenses represented 5% to the 2023 and 4% to the
2022 of the net sales for both periods.
Other Income (Expenses,) net
The Company recorded other income net for Ps. 167 million during
the first nine months of 2023 while in the same period of 2022 the
other income net by this concept was of Ps. 7 million.
Operating Income
Operating income decreased 34% to Ps. 6,676 million for the
first nine months of 2023 compared to Ps. 10,051 million in the
first nine months of 2022. Operating income as percentage of net
sales was 21% in the first nine months of 2023 and 23% in the same
period of 2022. The decrease in operating income is due to a lower
average sales price and to a lower volume shipped during the nine
months ended September 30, 2023
compared to the same period in 2022.
Ebitda
The Ebitda decreased 31%, from Ps. 10,885 million in the first nine
months of 2022 as a result of a net income of Ps. 8,037 million,
plus income taxes of Ps. 1,950 million, plus comprehensive
financial cost of Ps. 64 million, plus depreciation of Ps. 834
million to Ps 7,499 million in the same period of 2023 as a result
of a net income of Ps. 3,821 million, less minority stake of Ps. 4
million, plus income taxes of Ps. 1,541 million, plus comprehensive
financial cost of Ps. 1,318 million, plus depreciation of Ps. 823
million.
|
Consolidated
|
Comparative first
nine months of 2023 vs first nine months of 2022,
|
|
Million
|
|
2023
|
|
2022
|
|
Net income
(loss)
|
3,821
|
|
8,037
|
|
Loss attributable
to
|
(4)
|
|
|
|
|
noncontrolling
interests
|
|
Net income
(loss)
|
3,817
|
|
8,037
|
|
Depreciation,
depletion, and
amortization
|
823
|
|
834
|
|
Income taxes
|
1,541
|
1,950
|
|
Financial results
income
(loss)
|
1,318
|
|
64
|
|
EBITDA
|
7,499
|
10,885
|
|
|
|
|
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
|
7,499
|
|
10,885
|
Comprehensive Financial Cost
Comprehensive financial cost for the first nine months of 2023
represented an expense of Ps. 1,318 million compared with an
expense of Ps. 64 million for the first nine months of 2022. The
net interest income was of Ps. 392 million for the first nine
months of 2023, compared with a net interest income of Ps. 103
million in the same period of 2022. Likewise, we record an exchange
loss of Ps. 1,754 million in the first nine months of 2023 compared
with an exchange loss of Ps. 198 million in the first nine months
of 2022, and other financial income for Ps 44 million for the first
nine months of 2023 compared to Ps 31 million in the same period
last year 2022, dividends earned on purchase of shares.
Income Taxes
The Company recorded an expense of Ps.1,541 million for during the
first nine months of 2023, (includes a deferred income tax of Ps. 8
million) compared with an expense of Ps. 1,950 million for the
first nine months of 2022 (includes a deferred expense tax of Ps.
47 million).
Net Income
As a result of the foregoing, the Company recorded a decrease in
net income of 52% to pass of Ps. 8,037 million in the first nine
months of 2022 to Ps. 3,821 million of the same periods of
2023.
Liquidity and Capital Resources
At September 30, 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. 5.3 million (accrued interest on September 30, 2023 was U.S. $ 806,000, or Ps.
14.2 million). At September 30,
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. 6.1 million (accrued interest on
September 30, 2022 was U.S.
$ 691,000, or Ps. 14.0 million).
Comparative third quarter of 2023 vs. second quarter of
2023
Net Sales
Net sales of the Company decreased to pass of Ps. 10,122 million
during the second quarter of 2023 to Ps. 9,454 million in the third
quarter of 2023. Shipments of finished steel products increased to
531 thousand tons in the third quarter of 2023 from 505 thousand
tons in the second quarter of the same year. Total sales outside of
Mexico in the third quarter of
2023 decreased 12% to get to Ps. 3,932 million compared to Ps.
4,458 million of the second quarter of the same year. Mexican sales
in the third quarter of 2023 decreased to Ps. 5,522 million
compared to Ps. 5,664 million in the second quarter of the same
year. The average selling price decreased 11% in the third quarter
of 2023 compared to the second quarter of the same year.
Cost of Sales
Cost of sales decreased to P s. 7,177 million in the third quarter
of 2023 from Ps.7,510 million in the second quarter of 2023. Cost
of sales as a percentage of net sales represented 76% in the third
quarter of 2023 and 74% in the second quarter of the same year. The
cost of sales decrease 9% in the third quarter of 2023 compared to
the second quarter of the same year, due mainly to a decrease of
some supplies for the manufacture of steel.
Gross Profit
Gross profit of the Company for the third quarter of 2023 decreased
13% to pass of Ps. 2,612 million in the second quarter of 2023 to
Ps. 2,277 million in the third quarter of same year. Gross profit
as a percentage of net sales in the third quarter of 2023 was of
24% compared to 26% in the second quarter of the same year. The
decreased in the gross profit is due to decrease in average selling
price in the third quarter compared to the second quarter of
2023.
General, Selling and Administrative Expenses
Selling, general and administrative expenses decreased 6% to of Ps.
485 million in the third quarter of 2023 from Ps. 515 million the
second quarter of the same year, and as percentage of net sales
represented 5% for both periods quarter of the same year.
Other (Expenses) Income, net
The Company recorded other income net for Ps. 24 million during the
third quarter of 2023 compared to other income net for Ps. 85
million in the second quarter of 2023.
Operating Income
The Operating income was of Ps. 1,816 million in the third quarter
of 2023 compared to Ps. 2,182 million in the second quarter of the
same year. Operating income as percentage of net sales represented
19% for the third quarter of 2023 and 22% for the second quarter of
2023.
Ebitda
The Ebitda show a decrease of 15%, to pass of 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 to Ps. 2,079 million
in the third quarter of the same year as a result of 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.
|
Consolidated
|
Comparative third
quarter of 2023 vs second quarter of 2023,
|
|
Million
|
|
Third quarter
2023
|
|
Second quarter
2023
|
|
Net income
(loss)
|
1,802
|
|
987
|
|
Loss attributable
to
noncontrolling
interests
|
(2)
|
|
(2)
|
|
Net income
(loss)
|
1,800
|
|
985
|
|
Depreciation, depletion
and
amortization
|
264
|
|
279
|
|
Income taxes
|
298
|
712
|
|
Financial results
income (loss)
|
(283)
|
|
484
|
|
EBITDA
|
2,079
|
2,460
|
|
|
|
|
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
|
2,079
|
|
2,460
|
Comprehensive Financial Cost
Comprehensive financial cost of the Company in the third quarter of
2023 represented an income of Ps. 283 million compared with an
expense of Ps. 484 million for the second quarter of 2023. The
comprehensive financial cost is comprised for the net interest
income of Ps. 28 million in the third quarter of 2023 compared to
net interest income of 175 million in the second quarter of the
same year. Also, we record a net exchange income of Ps. 255 million
in the third quarter of 2023 compared a net exchange loss of Ps.
703 million in the second quarter of the same year, and other
financial income for Ps 44 million in the second quarter of 2022,
dividends earned on purchase of shares.
Income Taxes
The Company have been recorded Ps. 298 million of expense tax
during the third quarter of 2023, (includes a deferred income tax
of Ps. 8 million) compared with the Ps. 712 million of expense for
the second quarter of the same year, (includes a deferred expense
tax of Ps. 1 million).
Net Income
As a result of the foregoing, the Company recorded a net income of
Ps. 1,802 million in the third quarter of 2023 compared to a net
income of Ps. 987 million for the second quarter of 2023.
Comparative third quarter of 2023 vs. third quarter of
2022
Net Sales
Net sales of the Company decreased 30% from Ps. 13,433 million
during the third quarter of 2022 to Ps. 9,454 million in the third
quarter of 2023. Sales in tons of finished steel decreased to 531
thousand tons in the third quarter of 2023 from 541 thousand tons
in the third quarter of 2022. Sales outside of Mexico decreased 40% from Ps. 6,559 million in
the third quarter of 2022 to Ps. 3,932 million in the third quarter
of 2023. Mexican sales decreased 20% from Ps. 6,874 million in the
third quarter of 2022 to Ps. 5,522 million in the third quarter of
2023. The average sales price decreased approximately 28% in the
third quarter of 2023, compared to the same period of 2022.
Cost of Sales
Cost of sales decreased 30% in the third quarter of 2023 compared
to the third quarter of 2022 from Ps. 10,271 million in the third
quarter of 2022 to Ps. 7,177 million in the third quarter of 2023.
With respect to sales, the cost of sales of the third quarter of
2022 represented 76% compared to 76% for the third quarter of 2023.
The average cost of raw materials used to produce steel products
decreased in 29%, due to a decrease of raw materials prices, mainly
steel scrap.
Gross (Loss) Profit
Gross profit of the Company for the third quarter of 2023 decreased
28% from Ps. 3,162 million in the third quarter of 2022 compared to
Ps. 2,277 million in the third quarter of 2023. Gross profit as a
percentage of net sales for the third quarter of 2023 was 24%
compared to 24% of the third quarter of 2022. The decrease in gross
profit originates mainly from a lower average sales price and a
decrease in prices of some inputs.
General, Selling and Administrative Expenses
The selling, general and administrative expenses decreased 18% in
the third quarter of 2023 to Ps. 485 million in the third quarter
of 2023 from Ps. 595 million in the third quarter of 2022. Selling,
general and administrative expense as a percentage of net sales
represented 5% periods quarter 2023 compared to 4% for the third
quarter of 2022.
Other Income (Expenses), net
The company recorded other income net of Ps. 24 million in the
third quarter of 2023 compared with other income net of Ps. 5
million for the third quarter of 2022.
Operating (Loss) Income
Operating income decreased from Ps. 2,572 million in the third
quarter of 2022 compared to Ps. 1,816 million in the third quarter
of 2023, this represents 29% of decrease between both quarters. The
operating income as a percentage of net sales was 19% in both
periods of 2022 and 2023. The decrease in operating income is due
to a lower average sales price and a decrease in the price of some
inputs.
Ebitda
The Ebitda of the Company decreased 27% from Ps 2,857 million in
the third quarter of 2022 as a result of 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. 285 million to Ps. 2,079 million
of the same period of 2023, as a result of 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.
|
Consolidated
|
Comparative third quarter of 2023 vs third quarter of
2022,
|
|
Million
|
|
Third quarter
2023
|
Third quarter
2022
|
|
Net income
(loss)
|
1,802
|
1,940
|
|
Loss attributable
to
noncontrolling interests
|
(2)
|
(1)
|
|
Net income
(loss)
|
1,800
|
1,939
|
|
Depreciation, depletion
and
amortization
|
264
|
285
|
|
Income taxes
|
298
|
798
|
|
Financial results
income
(loss)
|
(283)
|
(165)
|
|
EBITDA
|
2,079
|
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
|
2,079
|
2,857
|
Comprehensive Financial Cost
Comprehensive financial cost of the Company for the third quarter
of 2023 represented a net income of Ps. 283 million compared with
an income of Ps. 165 million for the third quarter of 2022. The
comprehensive financial cost is comprised for the net interest
income of Ps. 104 million in the third quarter of 2022, compared to
a net interest income of Ps. 28 million for the same period of
2023. Also record an exchange income of Ps. 30 million in the third
quarter of 2022 and an exchange income of Ps. 255 million in the
third quarter of 2023, and other financial income for Ps 31 million
was recorded as of September 30,
2022, dividends earned on purchase of shares.
Income Taxes
The company recorded an expense tax for Ps. 298 million in the
third quarter of 2023, (includes a deferred income tax of Ps. 8
million) compared to an expense tax of Ps. 798 million for the
third quarter of 2022, (includes an accrual of deferred expense tax
of Ps. 60 million).
Net Income (Loss)
As a result of the foregoing, the Company recorded a net income of
Ps. 1,802 million in the third quarter of 2023 compared to a net
income of Ps. 1,940 million for the same period of 2022.
|
(millions of
pesos)
|
Jan - Sep
'23
|
|
Jan - Sep
'22
|
|
Year 23
vs
'22
|
|
Sales
|
32,401
|
|
44,012
|
|
(26 %)
|
|
Cost of
Sales
|
24,305
|
|
32,243
|
|
(25 %)
|
|
Gross Profit
|
8,096
|
|
11,769
|
|
(31 %)
|
|
Selling, General and
Administrative Expense
|
1,587
|
|
1,725
|
|
(8 %)
|
|
Other Income
(Expenses), net
|
167
|
|
7
|
|
(2286 %)
|
|
Operating
Profit
|
6,676
|
|
10,051
|
|
(34 %)
|
|
EBITDA
|
7,499
|
|
10,885
|
|
(31 %)
|
|
Net income
|
3,821
|
|
8,037
|
|
(52 %)
|
|
Sales Outside
Mexico
|
13,571
|
|
20,812
|
|
(35 %)
|
|
Sales in
Mexico
|
18,830
|
|
23,200
|
|
(19 %)
|
|
Total Sales
(Tons)
|
1,640
|
|
1,720
|
|
(5 %)
|
|
Cost by ton
|
14,820
|
|
18,746
|
|
(21 %)
|
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
3Q'23
|
2Q
'23
|
3Q
'22
|
3Q´23vs
2Q´23
|
3Q´23 vs
3Q '22
|
|
Sales
|
9,454
|
10,122
|
13,433
|
(7 %)
|
(30 %)
|
|
Cost of
Sales
|
7,177
|
7,510
|
10,271
|
(4 %)
|
(30 %)
|
|
Gross Profit
|
2,277
|
2,612
|
3,162
|
(13 %)
|
(28 %)
|
|
Selling, General and
Adm. Expenses
|
485
|
515
|
595
|
(6 %)
|
(18 %)
|
|
Other Income
(Expenses), net
|
24
|
85
|
5
|
(72 %)
|
380 %
|
|
Operating
Profit
|
1,816
|
2,182
|
2,572
|
(17 %)
|
(29 %)
|
|
EBITDA
|
2,079
|
2,460
|
2,857
|
(15 %)
|
(27 %)
|
|
Net Income
|
1,802
|
987
|
1,940
|
83 %
|
(7 %)
|
|
Sales Outside
Mexico
|
3,932
|
4,458
|
6,559
|
(12 %)
|
(40 %)
|
|
Sales in
Mexico
|
5,522
|
5,664
|
6,874
|
(3 %)
|
(20 %)
|
|
Total Sales
(Tons)
|
531
|
505
|
541
|
5 %
|
(2 %)
|
|
Cost per
Tons
|
13,516
|
14,871
|
18,985
|
(9 %)
|
(29 %)
|
|
Product
|
Thousands of
Tons
Jan-Sep
2023
|
Millions of
Pesos
Jan-Sep 2023
|
Average Price
per Ton
Jan-Sep
2023
|
Thousands
of
Tons
Jan –
Sep
2022
|
Millions
of
Pesos
Jan-
Sep
2022
|
Average Price
per Ton
Jan-Sep
2022
|
|
Special
Profiles
|
479
|
10,795
|
22,537
|
573
|
16,502
|
28,799
|
|
Commercial
Profiles
|
1,161
|
21,606
|
18,610
|
1,147
|
27,510
|
23,984
|
|
Total
|
1,640
|
32,401
|
19,757
|
1,720
|
44,012
|
25,588
|
|
Product
|
Thousands of
Tons
Jul-Sep
2023
|
Millions of
Pesos
Jul-Sep
2023
|
Average
Price
per
Ton
Jul-Sep
2023
|
Thousands of
Tons
Apr-Jun
2023
|
Millions of
Pesos
Apr-Jun
2023
|
Average
Price perTon
Apr-Jun
2023
|
Thousands
of
Tons
Jul-Sep
2022
|
Millions of
Pesos
Jul-Sep
2022
|
Average
Price per
Ton
Jul-Sep
2022
|
|
Special
Profiles
|
155
|
3,468
|
22,374
|
151
|
3,549
|
23,503
|
170
|
4,706
|
27,682
|
|
Commercial
Profiles
|
376
|
5,986
|
15,920
|
354
|
6,573
|
18,568
|
371
|
8,727
|
23,523
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
531
|
9,454
|
17,804
|
505
|
10,122
|
20,044
|
541
|
13,433
|
24,830
|
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 1000
52 33 3770 6734
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content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-nine-months-of-2023-301967996.html
SOURCE Grupo Simec, S.A.B. de
C.V.