GUADALAJARA, Mexico, Oct. 27,
2022 /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,
2022.
Comparative first nine months of 2022 vs. first nine months
of 2021
Net Sales
Net sales of the Company increased to
Ps. 44,012 million in the first nine months of 2022 compared to Ps.
42,736 million in the first nine months of 2021. Shipments of
finished steel products decreased 12% to 1 million 720 thousand
tons in the first nine months of 2022 compared to 1 million 954
thousand tons in the first nine months of 2021. Total sales outside
of Mexico in the first nine months
of 2022 decreased 2% to Ps. 20,812 million compared to Ps. 21,297
million in the same period of 2021. Mexican sales increased 8% from
Ps. 21,439 million in the first nine months of 2021 to Ps. 23,200
million in the same period of 2022. The increase in sales for the
first nine months of 2022 is due to an increase in the average
selling price in 17% and with a lower volume of shipments compared
to the first nine months of 2021.
Cost of Sales
Cost of sales increased 5% from
Ps. 30,823 million in the first nine months of 2021, to Ps. 32,243
million in the first nine months of 2022. Cost of sales as a
percentage of net sales represented 73% in the first nine months of
2022 while in the first nine months of 2021 represented 72%. Cost
of sales by steel ton increased approximately 19% in the first nine
months of 2022 over the same period of 2021 due to a higher price
in inputs, mainly steel scrap.
Gross Profit
Gross profit of the Company for
the first nine months of 2022 decreased 1% from Ps. 11,913 million
in the first nine months of 2021, to Ps. 11,769 million in the
first nine months of 2022. Marginal profit as percentage of net
sales in the first nine months of 2022 was of 27% while in the
first nine months of 2021 was of 28%. The decrease in gross profit
is due to a lower volume shipped.
General, Selling and Administrative
Expenses
Selling, general and administrative expenses
increased 16%, to Ps. 1,725 million in the first nine months of
2022 from Ps. 1,492 million in the same period of 2021, selling,
general and administrative expenses represented 4% to the 2022 and
3% to the 2021 of the net sales for both periods.
Other Income (Expenses,) net
The Company
recorded other income net for Ps. 7 million during the first nine
months of 2022 while in the same period of 2021 the other expenses
net by this concept was of Ps. 50 million.
Operating Income
Operating income decreased 3%
to Ps. 10,051 million for the first nine months of 2022 compared to
Ps. 10,371 million in the first nine months of 2021. Operating
income as percentage of net sales was 23% in the first nine months
of 2022 and 24% in the same period of 2021. The decrease in
operating income is due to a lower volume shipped during the nine
months ended September 30, 2022
compared to the same period in 2021.
Ebitda
The Ebitda decreased 3%, from Ps. 11,257
million in the first nine months of 2021 as a result of a net
income of Ps. 8,290 million, plus minority stake of Ps. 1 million,
plus income taxes of Ps. 2,305 million, less comprehensive
financial cost of Ps. 225 million, plus depreciation of Ps. 886
million to Ps 10,885 million in the same period 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.
Consolidated
|
|
|
Million
|
|
Comparative first
nine months of 2022 vs first nine months of 2021,
|
|
|
2022
|
|
|
2021
|
Net income
(loss)
|
|
|
8,037
|
|
|
|
8,290
|
Loss attributable to
noncontrolling interests
|
|
|
|
|
|
|
1
|
Net income
(loss)
|
|
|
8,037
|
|
|
|
8,291
|
Depreciation, depletion
and amortization
|
|
|
834
|
|
|
|
886
|
Income taxes
|
|
|
1,950
|
|
|
|
2,305
|
Financial results
income (loss)
|
|
|
64
|
|
|
|
(225)
|
EBITDA
|
|
|
10,885
|
|
|
|
11,257
|
|
|
|
|
|
|
|
|
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
|
|
|
10,885
|
|
|
|
11,257
|
Comprehensive Financial Cost
Comprehensive
financial cost for the first nine months of 2022 represented an
expense of Ps. 64 million compared with an income of Ps. 225
million for the first nine months of 2021. The net interest income
was of Ps. 103 million for the first nine months of 2022, compared
with a net interest expense of Ps. 35 million in the same period of
2021. Likewise, we record an exchange expense of Ps. 198 million in
the first nine months of 2022 compared with an exchange income of
Ps. 260 million in the first nine months of 2021, 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 of
Ps.1,950 million for the net income tax during the first nine
months of 2022, (includes a deferred expense tax of Ps. 47 million)
compared with an expense of Ps. 2,305 million of income tax for the
first nine months of 2021 (includes a deferred expense tax of Ps.
97 million).
Net Income
As a result of the foregoing, the
Company recorded an decrease in net income of 3% to pass of Ps.
8,290 million in the first nine months of 2021 to Ps. 8,037 million
of the same periods of 2022.
Liquidity and Capital Resources
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). At December 31,
2021, Simec's total consolidated debt consisted of U.S.
$ 302,000 of 8 7/8% medium-term notes
("MTN's") due 1998, or Ps. 6.2 million (accrued interest on
December 31, 2021 was U.S.
$ 671,400, or Ps. 13.8 million).
Comparative third quarter of 2022 vs. second quarter of
2022
Net Sales
Net sales of the Company decreased to
pass of Ps. 15,547 million during the second quarter of 2022 to Ps.
13,433 million in the third quarter of 2022. Shipments of finished
steel products decreased to 541 thousand tons in the third quarter
of 2022 from 556 thousand tons in the second quarter of the same
year. Total sales outside of Mexico in the third quarter of 2022 decreased
10% to get to Ps. 6,559 million compared to Ps. 7,276 million of
the second quarter of the same year. Mexican sales in the third
quarter of 2022 decreased to Ps. 6,874 million compared to Ps.
8,271 million in the second quarter of the same year. The average
selling price decreased 11% in the third quarter of 2022 compared
to the second quarter of the same year.
Cost of Sales
Cost of sales decreased to P s.
10,271 million in the third quarter of 2022 from
Ps.10,783 million in the second quarter of 2022. Cost of sales
as a percentage of net sales represented 76% in the third quarter
of 2022 and 69% in the second quarter of the same year. The cost of
sales decrease 5% in the third quarter of 2022 compared to the
second quarter of the same year, due mainly to a decrease of some
supplies for the manufacture of steel and a lower volume of
shipments.
Gross Profit
Gross profit of the Company for
the third quarter of 2022 decreased 34% to pass of Ps. 4,764
million in the second quarter of 2022 to Ps. 3,162 million in the
third quarter of same year. Gross profit as a percentage of net
sales in the third quarter of 2022 was of 24% compared to 31% in
the second quarter of the same year. The decreased in the gross
profit is due to decrease in average selling price and the
lowe volume shipped in the third quarter compared to the second
quarter of 2022.
General, Selling and Administrative
Expenses
Selling, general and administrative expenses
decreased 3% to of Ps. 595 million in the third quarter of 2022
from Ps. 612 million the second quarter of the same year, and as
percentage of net sales represented 4% for both periods quarter of
the same year.
Other (Expenses) Income, net
The Company
recorded other income net for Ps. 5 million during the third
quarter of 2022 compared to other income net for Ps. 2 million in
the second quarter of 2022.
Operating Income
The Operating income was of
Ps. 2,572 million in the third quarter of 2022 compared to Ps.
4,154 million in the second quarter of the same year. Operating
income as percentage of net sales represented 19% for the third
quarter of 2022 and 27% for the second quarter of 2022.
Ebitda
The Ebitda show a decrease of 35%, to
pass of Ps 4,424 million in the second quarter of 2022 as a result
of a net income of Ps. 3,604 million, plus income taxes of Ps. 693
million, less comprehensive financial cost of Ps. 143 million, plus
depreciation of Ps. 270 million to Ps. 2,857 million in the third
quarter of the same year 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.
Consolidated
|
|
|
Million
|
|
Comparative third
quarter of 2022 vs second quarter of 2022,
|
|
|
Third quarter
2022
|
|
|
Second quarter
2022
|
Net income
(loss)
|
|
|
1,940
|
|
|
|
3,604
|
Loss attributable to
noncontrolling interests
|
|
|
(1)
|
|
|
|
|
Net income
(loss)
|
|
|
1,939
|
|
|
|
3,604
|
Depreciation, depletion
and amortization
|
|
|
285
|
|
|
|
270
|
Income taxes
|
|
|
798
|
|
|
|
693
|
Financial results
income (loss)
|
|
|
(165)
|
|
|
|
(143)
|
EBITDA
|
|
|
2,857
|
|
|
|
4,424
|
|
|
|
|
|
|
|
|
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
|
|
|
2,857
|
|
|
|
4,424
|
Comprehensive Financial Cost
Comprehensive
financial cost of the Company in the third quarter of 2022
represented an income of Ps. 165 million compared with an income of
Ps. 143 million for the second 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 net interest
expense of 29 million in the second quarter of the same year. Also,
we record a net exchange income of Ps. 30 million in the third
quarter of 2022 compared a net exchange income of Ps. 172 million
in the second quarter of the same year, 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 have been recorded Ps.
798 million of expense tax during the third quarter of 2022,
(includes a deferred expense tax of Ps. 60 million) compared with
the Ps. 693 million of expense for the second quarter of the same
year, (includes a deferred income tax of Ps. 5 million).
Net Income
As a result of the foregoing, the
Company recorded a net income of Ps. 1,940 million in the third
quarter of 2022 compared to a net income of Ps. 3,604 million for
the second quarter of 2022.
Comparative third quarter of 2022 vs. third
quarter of 2021
Net Sales
Net sales of the Company decreased 5%
from Ps. 14,122 million during the third quarter of 2021 to Ps.
13,433 million in the third quarter of 2022. Sales in tons of
finished steel decreased to 541 thousand tons in the third quarter
of 2022 from 585 thousand tons in the third quarter of 2021. Sales
outside of Mexico decreased 4%
from Ps. 6,838 million in the third quarter of 2021 to Ps. 6,559
million in the third quarter of 2022. Mexican sales decreased 6%
from Ps. 7,284 million in the third quarter of 2021 to Ps. 6,874
million in the third quarter of 2022. The average sales price
increased approximately 3% in the third quarter of 2022, compared
to the same period of 2021.
Cost of Sales
Cost of sales increased 4% in the
third quarter of 2022 compared to the third quarter of 2021 from
Ps. 9,913 million in the third quarter of 2021 to Ps. 10,271
million in the third quarter of 2022. With respect to sales, the
cost of sales of the third quarter of 2021 represented 70% compared
to 76% for the third quarter of 2022. The average cost of raw
materials used to produce steel products increased in 12%, due to
an increase of raw materials prices, mainly steel scrap.
Gross (Loss) Profit
Gross profit of the Company
for the third quarter of 2022 decreased 25% from Ps. 4,209 million
in the third quarter of 2021 compared to Ps. 3,162 million in the
third quarter of 2022. Gross profit as a percentage of net sales
for the third quarter of 2022 was 24% compared to 30% of the third
quarter of 2021. The decrease due mainly to a increase of some
supplies for the manufacture of steel and with a lower volume of
shipments.
General, Selling and Administrative
Expenses
The selling, general and administrative
expenses increased 17% in the third quarter of 2022 to Ps. 595
million in the third quarter of 2022 from Ps. 508 million in the
third quarter of 2021. Selling, general and administrative expense
as a percentage of net sales represented 4% for both periods
quarter 2022 and 2021.
Other Income (Expenses), net
The company
recorded other income net of Ps. 5 million in the third quarter of
2022 compared with other expense net of Ps. 20 million for the
third quarter of 2021.
Operating (Loss) Income
Operating income
decreased from Ps. 3,681 million in the third quarter of 2021
compared to Ps. 2,572 million in the third quarter of 2022, this
represents 30% of decrease between both quarters. The operating
income as a percentage of net sales was 19% for the third quarter
of 2022 compared to 26% for the third quarter of 2021.The decrease
in the operating profit is due to a lower volume shipped, to
increased costs and expenses.
Ebitda
The Ebitda of the Company decreased 28%
from Ps 3,974 million in the third quarter of 2021 as a result of a
net income of Ps. 3,313 million, plus income taxes of Ps. 674
million, less comprehensive financial cost of Ps. 306 million, plus
depreciation of Ps. 293 million to Ps. 2,857 million of the same
period 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.
Consolidated
|
|
|
Million
|
|
Comparative third
quarter of 2022 vs third quarter of 2021,
|
|
|
Third quarter
2022
|
|
|
Third quarter
2021
|
Net income
(loss)
|
|
|
1,940
|
|
|
|
3,313
|
Loss attributable to
noncontrolling interests
|
|
|
(1)
|
|
|
|
|
Net income
(loss)
|
|
|
1,939
|
|
|
|
3,313
|
Depreciation, depletion
and amortization
|
|
|
285
|
|
|
|
293
|
Income taxes
|
|
|
798
|
|
|
|
674
|
Financial results
income (loss)
|
|
|
(165)
|
|
|
|
(306)
|
EBITDA
|
|
|
2,857
|
|
|
|
3,974
|
|
|
|
|
|
|
|
|
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
|
|
|
2,857
|
|
|
|
3,974
|
Comprehensive Financial Cost
Comprehensive
financial cost of the Company for the third quarter of 2022
represented a net income of Ps. 165 million compared with an income
of Ps. 306 million for the third quarter of 2021. The comprehensive
financial cost is comprised for the net interest expense of Ps. 9
million in the third quarter of 2021, compared to a net interest
income of Ps. 104 million for the same period of 2022. Also record
an exchange income of Ps. 315 million in the third quarter of 2021
and an exchange income of Ps. 30 million in the third quarter of
2022, 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. 798 million in the third quarter of 2022, (includes a
deferred expense tax of Ps. 60 million) compared to an expense tax
of Ps. 674 million for the third quarter of 2021, (includes an
accrual of deferred expense tax of Ps. 75 million).
Net Income (Loss)
As a result of the foregoing,
the Company recorded a net income of Ps. 1,940 million in the third
quarter of 2022 compared to a net income of Ps. 3,313 million for
the same period of 2021.
(millions of
pesos)
|
Jan - Sep
'22
|
|
Jan - Sep
'21
|
|
Year 22 vs
'21
|
Sales
|
44,012
|
|
42,736
|
|
3 %
|
Cost of
Sales
|
32,243
|
|
30,823
|
|
5 %
|
Gross Profit
|
11,769
|
|
11,913
|
|
(1 %)
|
Selling, General and
Administrative Expense
|
1,725
|
|
1,492
|
|
16 %
|
Other Income
(Expenses), net
|
7
|
|
(50)
|
|
(114 %)
|
Operating
Profit
|
10,051
|
|
10,371
|
|
(3 %)
|
EBITDA
|
10,885
|
|
11,257
|
|
(3 %)
|
Net
income
|
8,037
|
|
8,290
|
|
(3 %)
|
Sales Outside
Mexico
|
20,812
|
|
21,297
|
|
(2 %)
|
Sales in
Mexico
|
23,200
|
|
21,439
|
|
8 %
|
Total Sales
(Tons)
|
1,720
|
|
1,954
|
|
(12 %)
|
Cost by ton
|
18,746
|
|
15,774
|
|
19 %
|
Quarter
|
|
|
|
|
|
(millions of
pesos)
|
3Q'22
|
2Q
'22
|
3Q
'21
|
3Q´22vs
2Q´22
|
3Q´22 vs
3Q '21
|
Sales
|
13,433
|
15,547
|
14,122
|
(14 %)
|
(5 %)
|
Cost of
Sales
|
10,271
|
10,783
|
9,913
|
(5 %)
|
4 %
|
Gross Profit
|
3,162
|
4,764
|
4,209
|
(34 %)
|
(25 %)
|
Selling, General and
Adm. Expenses
|
595
|
612
|
508
|
(3 %)
|
17 %
|
Other Income
(Expenses), net
|
5
|
2
|
(20)
|
150 %
|
(125 %)
|
Operating
Profit
|
2,572
|
4,154
|
3,681
|
(38 %)
|
(30 %)
|
EBITDA
|
2,857
|
4,424
|
3,974
|
(35 %)
|
(28 %)
|
Net Income
|
1,940
|
3,604
|
3,313
|
(46 %)
|
(41 %)
|
Sales Outside
Mexico
|
6,559
|
7,276
|
6,838
|
(10 %)
|
(4 %)
|
Sales in
Mexico
|
6,874
|
8,271
|
7,284
|
(17 %)
|
(6 %)
|
Total Sales
(Tons)
|
541
|
556
|
585
|
(3 %)
|
(8 %)
|
Cost per
Tons
|
18,985
|
19,394
|
16,945
|
(2 %)
|
12 %
|
Product
|
Thousands of
Tons
Jan-Sep
2022
|
Millions of
Pesos
Jan-Sep
2022
|
Average Price per
Ton
Jan-Sep
2022
|
Thousands of
Tons
Jan –
Sep
2021
|
Millions of
Pesos
Jan-
Sep
2021
|
Average Price per
Ton
Jan-Sep
2021
|
Special
Profiles
|
573
|
16,502
|
28,799
|
714
|
17,116
|
23,972
|
Commercial
Profiles
|
1,147
|
27,510
|
23,984
|
1,240
|
25,620
|
20,661
|
Total
|
1,720
|
44,012
|
25,588
|
1,954
|
42,736
|
21,871
|
Product
|
Thousands of
Tons
Jul-Sep
2022
|
Millions of
Pesos
Jul-Sep
2022
|
Average Price per
Ton
Jul-Sep
2022
|
Thousands of
Tons
Apr-Jun
2022
|
Millions of
Pesos
Apr-Jun
2022
|
Average Price per
Ton
Apr-Jun
2022
|
Thousands of
Tons
Jul-Sep
2021
|
Millions of
Pesos
Jul-Sep
2021
|
Average Price per
Ton
Jul-Sep
2021
|
Special
Profiles
|
170
|
4,706
|
27,682
|
193
|
6,070
|
31,451
|
225
|
5,976
|
26,560
|
Commercial
Profiles
|
371
|
8,727
|
23,523
|
363
|
9,477
|
26,107
|
360
|
8,146
|
22,628
|
|
|
|
|
|
|
|
|
|
|
Total
|
541
|
13,433
|
24,830
|
556
|
15,547
|
27,962
|
585
|
14,122
|
24,140
|
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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content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-nine-months-of-2022-301661557.html
SOURCE Grupo Simec, S.A.B. de
C.V.