GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2023 AUDITED
Twelve-Month Period Ended
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
Cost of Sales
Cost of sales decreased 22% from Ps. 39,684 million in the twelve-month period ended
Gross Profit
Gross profit of the Company in the twelve-month period ended
Operating Expenses
Selling, general and administrative expenses decreased 6% from Ps. 2,456 million in the twelve-month period ended
Other Expenses (Income) net
The company recorded other net income of Ps. 72 million in the twelve-month period ended
Operating Income
Operating income decreased 37% from Ps. 12,091 million for the twelve-month period ended
EBITDA
The EBITDA of the Company decreased 35% from Ps. 13,207 million in the twelve-month prior ended
Consolidated |
|
|
|
|
|
Million |
|
Twelve-month period ended |
|||
|
|
2023 |
|
2022 |
|
Net income (loss) |
|
|
4,283 |
|
7,703 |
Loss attributable to noncontrolling interests |
|
|
(8) |
|
(2) |
Net income (loss) |
|
|
4,275 |
|
7,701 |
Depreciation and amortization |
|
|
1,035 |
|
1,117 |
Income taxes |
|
|
1,740 |
|
3,300 |
Financial results income (loss) |
|
|
1,588 |
|
1,089 |
EBITDA |
|
|
8,638 |
|
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 |
|
|
8,638 |
|
13,207 |
Comprehensive Financial Cost
Comprehensive financial cost in the twelve-month period ended
Income Taxes
The Company have recorded an expense net tax of Ps. 1,740 million in the twelve-month period ended
Net Income (loss)
As a result of the foregoing, net income decreased by 44% from Ps. 7,703 million net profits in the twelve-month period ended
Liquidity and Capital Resources
As of
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. 8,738 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
Cost of Sales
Cost of sales decreased to Ps. 6,795 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 78% 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 6% 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 decreased 15% to Ps. 1,943 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 22% respectively.
Operating Expenses
Selling, general and administrative expenses increased 51% to Ps. 730 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 8% respectively.
Other Expenses (Income) net
The company recorded other net expenses of Ps. 286 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. 927 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 11% y 19% for the fourth quarter and third quarter of 2023 respectively.
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. 1,140 million for the fourth quarter of 2023, as a result a net income of Ps. 462 million, less minority stake of Ps. 4 million, plus income taxes of Ps. 199 million, plus comprehensive financial cost of Ps. 270 million, plus depreciation of Ps. 213 million.
Consolidated |
|
|
|||||
Million |
|
Comparative fourth quarter vs third quarter 2023 |
|||||
|
|
4Q 2023 |
|
|
3Q 2023 |
||
Net income (loss) |
|
|
462 |
|
|
|
1,802 |
Loss attributable to noncontrolling interests |
|
|
(4) |
|
|
|
(2) |
Net income (loss) |
|
|
458 |
|
|
|
1,800 |
Depreciation and Amortization |
|
|
213 |
|
|
|
264 |
Income taxes |
|
|
199 |
|
|
|
298 |
Financial results income (loss) |
|
|
270 |
|
|
|
(283) |
EBITDA |
|
|
1,140 |
|
|
|
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 |
|
|
1,140 |
|
|
|
2,079 |
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2023 was a net expense of Ps. 270 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. 386 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. 677 million in the fourth quarter of 2023. Net other financial income was recorded for Ps. 21 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 expense of Ps. 199 million for the fourth quarter of 2023, (including an expense tax deferred of Ps. 53 million).
Net Income (loss)
As a result of the foregoing, the Company recorded a net income of Ps. 462 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 decreased 14% from Ps. 10,147 million for the fourth quarter of 2022 to Ps. 8,738 million 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
Cost of Sales
Cost of sales decreased 9% from Ps. 7,441 million in the fourth quarter of 2022 compared to Ps. 6,795 million for the fourth quarter of 2023. With respect to sales, the cost of sales represented 78% during the fourth quarter of 2023 and 73% during the fourth quarter of 2022. The average cost of steel products decreased 9% in the fourth quarter of 2023 versus the fourth quarter of 2022.
Gross Profit
Gross profit for the fourth quarter of 2023 decreased 28% from Ps. 2,706 million in the fourth quarter of 2022 compared to Ps. 1,943 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 22% of the fourth quarter of 2023.
Operating Expenses
Selling, general and administrative expenses belog from Ps. 732 million in the fourth quarter of 2022 compared to Ps. 730 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 8% 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. 286 million for the fourth quarter of 2023.
Operating (Loss) Income
Operating income was of Ps. 927 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 11%, 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 1,140 million in the fourth quarter of 2023 as a result a net income of Ps. 462 million, less minority stake of Ps. 4 million, plus income taxes of Ps. 199 million, plus comprehensive financial cost of Ps. 270 million, plus depreciation of Ps. 213 million.
Consolidated |
|
|
|||||
Million |
|
Comparative fourth quarter vs fourth quarter |
|||||
|
|
2023 |
|
|
2022 |
||
Net income (loss) |
|
|
462 |
|
|
|
(334) |
Loss attributable to noncontrolling interests |
|
|
(4) |
|
|
|
(2) |
Net income (loss) |
|
|
458 |
|
|
|
(336) |
Depreciation and Amortization |
|
|
213 |
|
|
|
283 |
Income taxes |
|
|
199 |
|
|
|
1,349 |
Financial results income (loss) |
|
|
270 |
|
|
|
1,026 |
EBITDA |
|
|
1,140 |
|
|
|
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 |
|
|
1,140 |
|
|
|
2,322 |
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2023 was a net expense of Ps. 270 million compared with a net expense of Ps 1,026 million in the fourth quarter of 2022. Net interest income was of Ps. 386 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. 677 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. 21 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 expense net taxes for the fourth quarter of 2023 of Ps. 199 million (including an expense of deferred tax of Ps. 53 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. 462 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 |
Sales |
41,139 |
|
54,159 |
|
(24 %) |
Cost of Sales |
31,100 |
|
39,684 |
|
(22 %) |
Gross Profit |
10,039 |
|
14,475 |
|
(31 %) |
Selling, General and Administrative Expense |
2,317 |
|
2,456 |
|
(6 %) |
Other Income (Expenses), net |
(119) |
|
72 |
|
(265 %) |
Operating Profit |
7,603 |
|
12,091 |
|
(37 %) |
EBITDA |
8,638 |
|
13,207 |
|
(35 %) |
Net income |
4,283 |
|
7,703 |
|
(44 %) |
Sales Outside Mexico |
16,814 |
|
24,515 |
|
(31 %) |
Sales in |
24,325 |
|
29,644 |
|
(18 %) |
Total Sales (Tons) |
2,176 |
|
2,255 |
|
(4 %) |
Cost by ton |
14,292 |
|
17,598 |
|
(19 %) |
Quarter |
|
|
|
|
|
(million of pesos) |
4Q'23 |
3Q '23 |
4Q '22 |
4Q´23vs |
4Q´23 vs |
Sales |
8,738 |
9,454 |
10,147 |
(8 %) |
(14 %) |
Cost of Sales |
6,795 |
7,177 |
7,441 |
(5 %) |
(9 %) |
Gross Profit |
1,943 |
2,277 |
2,706 |
(15 %) |
(28 %) |
Selling, General and Adm. Expenses |
730 |
485 |
732 |
51 % |
0 % |
Other Income (Expenses), net |
(286) |
24 |
65 |
(1,292 %) |
(540 %) |
Operating Profit |
927 |
1,816 |
2,039 |
(49 %) |
(55 %) |
EBITDA |
1,140 |
2,079 |
2,322 |
(45 %) |
(51 %) |
Net Income |
462 |
1,802 |
(334) |
(74 %) |
(238 %) |
Sales Outside Mexico |
3,243 |
3,932 |
3,704 |
(18 %) |
(12 %) |
Sales in |
5,495 |
5,522 |
6,443 |
0 % |
(15 %) |
Total Sales (Tons) |
536 |
531 |
535 |
1 % |
0 % |
Cost per Ton |
12,677 |
13,516 |
13,908 |
(6 %) |
(9 %) |
Product |
Thousands of Tons
Jan- |
Millions of Pesos |
Average Price per Ton Jan-Dec 2023 |
Thousands of Tons
Jan – |
Millions of Pesos |
Average Price per Ton Jan-Dec 2022 |
Special Profiles |
597 |
13,139 |
22,008 |
723 |
20,073 |
27,763 |
Commercial Profiles |
1,579 |
28,000 |
17,733 |
1,532 |
34,086 |
22,249 |
Total Tons |
2,176 |
41,139 |
18,906 |
2,255 |
54,159 |
24,017 |
Product |
Thousands of Tons
Oct- |
Millions of Pesos |
Average Price per Ton Oct-Dec 2023 |
Thousands of Tons Jul-Sep 2023 |
Millions of Pesos 2023 |
Average Price per Ton Jul-Sep 2023 |
Thousands of Tons 2022 |
Millions of Pesos |
Average Price per Ton 2022 |
Special Profiles |
153 |
2,800 |
18,301 |
155 |
3,468 |
22,374 |
150 |
3,571 |
23,807 |
Commercial Profiles |
383 |
5,938 |
15,504 |
376 |
5,986 |
15,920 |
385 |
6,576 |
17,081 |
Total Tons |
536 |
8,738 |
16,302 |
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
Calzada Lázaro Cárdenas 601
44440
52 55 1165 1025
52 33 3770 6734
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