GUADALAJARA, Mexico, April 27,
2023 /PRNewswire/ -- Grupo
Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today
its results of operations for the three-month period ended
March 31, 2023.
Comparative first quarter of 2023 vs. first quarter of
2022
Net Sales
The net sales of the company
decreased derived from a less sales price. Sales passed from Ps.
15,032 million in the first quarter of 2022 to Ps. 12,825 million
in the same period of 2023. Shipments of steel finished goods
decreased 3% from 623 thousand tons in the first quarter of 2022
compared to 604 thousand tons in the same period of 2023. Total
sales outside of Mexico in the
first quarter of 2023 decreased 26% to reach Ps. 5,181 million
compared to Ps. 6,976 million in the same period of 2022. The
Mexican sales decreased 5% from Ps. 8,056 million in the first
quarter of 2022 to Ps. 7,644 million in the same period of 2023.
The decrease in sales can be explained, from the average sales
price per ton of steel finished goods decreased 12% in the first
quarter of 2023 compared with the same period of 2022.
Cost of Sales
The cost of sales decreased from
Ps. 11,190 million in the first quarter of 2022 to Ps. 9,618
million in the same period of 2023. Cost of sales as a percentage
of net sales in the first quarter of 2023 and 2022 represented 75%
and 74% respectively. The average cost of sales per ton of steel
finished goods decreased 11% in the first quarter of 2023 compared
to the same period of 2022.
Gross Profit
The gross profit of the company
decreased 17% from Ps. 3,842 million in 2022 to Ps. 3,207 million
in the same period of 2023. Gross profit as a percentage of net
sales in the first quarter of 2023 and 2022 represented 25% and 26%
respectively. The decrease in gross profit is due to explained from
the average sales price per ton of steel finished goods in the
first quarter of 2023 compared with the same period of 2022.
General, Sales and administrative
Expenses
General, selling, and administrative expenses
increased 13%, from Ps.518 million in the first quarter of 2022 to
Ps. 587 million in the same period of 2023 and representing 3% of
net sales in 2022 compared to 5% for the period 2023.
Other Expenses (Income) net
The company
recorded other income net of Ps. 58 million in the first quarter of
2023 compared to other income net of Ps. 1 million in the same
period of 2022.
Operating Income
The operating income decreased
from Ps. 3,325 million for the first quarter of 2022 compared to
Ps. 2,678 million in the same period of 2023. Operating income as a
percentage of net sales was 21% in the first quarter of 2023
compared to 22% in the same period of 2022. The decrease in
operating income is from the average sales price per ton of steel
finished goods in the first quarter of 2023 compared with the same
period of 2022.
EBITDA
The EBITDA of the Company was of Ps. 3,605
million for the first quarter of 2022, as a result of a net income
of Ps. 2,494 million, plus income taxes of Ps. 460 million, plus
comprehensive financial cost of Ps. 371 million, plus depreciation
of Ps. 280 million to Ps 2,959 million in the same period 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.
|
Consolidated
|
|
|
|
Million
|
|
Comparative first
quarter of 2023 vs first quarter of 2022
|
|
|
2023
|
|
|
2022
|
|
Net income
(loss)
|
|
|
1,033
|
|
|
|
2,494
|
|
Loss attributable to
noncontrolling interests
|
|
|
(2)
|
|
|
|
0
|
|
Net income
(loss)
|
|
|
1,031
|
|
|
|
2,494
|
|
Depreciation and
amortization
|
|
|
281
|
|
|
|
280
|
|
Income taxes
|
|
|
531
|
|
|
|
460
|
|
Financial results
income (loss)
|
|
|
1,116
|
|
|
|
371
|
|
EBITDA
|
|
|
2,959
|
|
|
|
3,605
|
|
|
|
|
|
|
|
|
|
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
|
|
|
2,959
|
|
|
|
3,605
|
Comprehensive Financial Cost
The
Comprehensive financial cost in the first quarter of 2023
represented a net expense of Ps. 1,116 million compared with a net
expense of Ps.371 million in the same period of 2022. Net interest
was an income of Ps. 190 million in the first quarter of 2023
compared with a net income of Ps. 29 million in the same period of
2022. At the same time, registered an exchange loss of Ps. 1,306
million in the first quarter of 2023 compared with an exchange loss
of Ps.400 million in the same period of 2022.
Income Taxes
Income Taxes recorded an expense
of Ps. 531 million in the first quarter of 2023, compared to an
expense of Ps.460 million in the same period of 2022 (including the
benefits of Ps. 7 million of deferred income taxes).
Net Income (loss)
As a result of the
foregoing, net income decreases to Ps. 1,033 million in the first
quarter of 2023 from Ps. 2,494 million in the same period of
previous year.
Financial Situation, Liquidity and Capital Resources
As of March 31, 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. 5.5 million (accrued interest on March 31, 2023 was U.S. $696 or Ps. 12.6 million). As of
March 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. 6.0 million (accrued interest on March 31, 2022 was U.S. $676 or Ps. 13.4 million).
Comparative first quarter of 2023 vs. fourth quarter of
2022
Net Sales
The net sales of the company
increased 26% comparing Ps. 10,147 million in the fourth quarter of
2022 to Ps. 12,825 million in the first quarter of 2023. The tons
sales increased 13%, from 535 thousand tons in the fourth quarter
of 2022 compared to 604 thousand tons in the first quarter of 2023.
Total sales outside of Mexico in
the first quarter of 2023 increased 40% from Ps. 3,704 million on
the last quarter of 2022 compared to Ps. 5,181 million in the first
quarter of 2023. The Mexican sales increased 19% from Ps. 6,443
million in the fourth quarter of 2022 to Ps. 7,644 million in the
first quarter of 2023. The increase mainly due to a greater volume
shipped, better average sales price per ton, increased 12%, in the
first quarter of 2023 compared with the fourth quarter of 2022.
Cost of Sales
Cost of sales increased 29% from
Ps. 7,441 million in the fourth quarter of 2022 to Ps. 9,618
million in the first quarter of 2023. Cost of sales as a percentage
of net sales in the first quarter of 2023 represented 75% and in
the last quarter of 2022 cost of sales represented 73%. The average
cost of finished steel products in the first quarter of 2023
increased 14% compared to the fourth quarter of 2022 as a result of
an increased on the cost of raw materials.
Gross Profit
Gross profit of the company for
the first quarter of 2023 increased to Ps. 3,207 million in 2023
from Ps. 2,706 million in the last quarter of 2022. Gross profit as
a percentage of net sales in the first quarter of 2023 was 25% and
for the last period of 2022 was 27%. The increase in gross profit
is due to a better average sales price and volume of shipments on
the first quarter of 2023 compared with the last quarter of
2022.
General, Sales and administrative
Expenses
General, selling and administrative expenses
decreased to Ps. 587 million in the first quarter of 2023 compared
to Ps. 732 million in the fourth quarter of 2022, representing 5%
for the period of the first quarter 2023 and 7% for the period of
the fourth quarter 2022.
Other Expenses (Income) net
The company
recorded other net income of Ps. 58 million in the first quarter of
2023 compared to other net income of Ps. 65 million in the fourth
quarter of 2022.
Operating Income
Operating income increased
31% to Ps. 2,678 million for the first quarter of 2023 compared to
Ps. 2,039 million in the last quarter of 2022. Operating income as
a percentage of net sales was 21% in the first quarter of 2023,
compared to 20% in the last quarter of 2022. The increase in
operating income is due to the increase in production and volume of
shipments, in the first quarter of 2023 compared with the fourth
quarter of 2022.
EBITDA
The EBITDA of the Company was of 2,322 million
for the fourth quarter of 2022, as a result of 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 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.
|
Consolidated
|
|
|
|
Million
|
|
Comparative first
quarter of 2023 vs fourth quarter of 2022
|
|
|
2023
|
|
|
2022
|
|
Net income
(loss)
|
|
|
1,033
|
|
|
|
(334)
|
|
Loss attributable to
noncontrolling interests
|
|
|
(2)
|
|
|
|
(2)
|
|
Net income
(loss)
|
|
|
1,031
|
|
|
|
(336)
|
|
Depreciation and
amortization
|
|
|
281
|
|
|
|
283
|
|
Income taxes
|
|
|
531
|
|
|
|
1,349
|
|
Financial results
income (loss)
|
|
|
1,116
|
|
|
|
1,026
|
|
EBITDA
|
|
|
2,959
|
|
|
|
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
|
|
|
2,959
|
|
|
|
2,322
|
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter of 2023
represented a net expense of Ps. 1,116 million compared with a net
expense of Ps. 1,026 million in the fourth quarter of 2022. Net
interest income of the first quarter of 2023 was of Ps. 190 million
compared with an interest net income of Ps. 93 million in the last
quarter of 2022. Likewise, an exchange less of 1,306 million was
recorded in the first quarter of 2023 against an exchange less of
Ps. 502 million in the last quarter of 2022. In the fourth quarter
of 2022, other net financial expense was recorded for Ps. 617
million.
Income Taxes
Income Taxes recorded an expense
of Ps. 531 million in the first quarter of 2023, compared with an
expense of Ps. 1,349 million in the fourth quarter of 2022
(including Ps. 102 million of deferred expense taxes).
Net Income (loss)
As a result of the
foregoing, the net income of the first quarter of 2023 is of Ps.
1,033 million compared net loss Ps. 334 million of the fourth
quarter 2022.
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
1Q'23
|
1Q
'22
|
4Q 22
|
1Q´23vs
1Q´22
|
1Q´23 vs
4Q '22
|
|
Sales
|
12,825
|
15,032
|
10,147
|
(15 %)
|
26 %
|
|
Cost of
Sales
|
9,618
|
11,190
|
7,441
|
(14 %)
|
29 %
|
|
Gross Profit
|
3,207
|
3,842
|
2,706
|
(17 %)
|
19 %
|
|
Selling, General and
Adm. Expenses
|
587
|
518
|
732
|
13 %
|
(20 %)
|
|
Other Income
(Expenses), net
|
58
|
1
|
65
|
5700 %
|
(11 %)
|
|
Operating
Profit
|
2,678
|
3,325
|
2,039
|
(19 %)
|
31 %
|
|
EBITDA
|
2,959
|
3,605
|
2,322
|
(18 %)
|
27 %
|
|
Net Income
|
1,033
|
2,494
|
(334)
|
(59 %)
|
(409 %)
|
|
Sales Outside
Mexico
|
5,181
|
6,976
|
3,704
|
(26 %)
|
40 %
|
|
Sales in
Mexico
|
7,644
|
8,056
|
6,443
|
(5 %)
|
19 %
|
|
Total Sales
(Tons)
|
604
|
623
|
535
|
(3 %)
|
13 %
|
|
Cost per Ton
|
15,924
|
17,961
|
13,908
|
(11 %)
|
14 %
|
|
Product
|
Thousands of
Tons
Jan-Mar
2023
|
Millions of
Pesos
Jan-Mar
2023
|
Average Price per
Ton
Jan-Mar
2023
|
Thousands of
Tons
Jan-Mar
2022
|
Millions of
Pesos
Jan-Mar
2022
|
Average Price per
Ton
Jan-Mar
2022
|
Thousands of
Tons
Oct-Dec
2022
|
Millions of
Pesos
Oct-Dec
2022
|
Average Price per
Ton
Oct-Dec
2022
|
|
Commercial
Profiles
|
425
|
8,583
|
20,195
|
413
|
9,306
|
22,533
|
385
|
6,576
|
17,081
|
|
Special
Profiles
|
179
|
4,242
|
23,698
|
210
|
5,726
|
27,267
|
150
|
3,571
|
23,807
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
604
|
12,825
|
21,233
|
623
|
15,032
|
24,128
|
550
|
12,884
|
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
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SOURCE Grupo Simec, S.A.B. de
C.V.
