Grupo Simec Announces Results of Operations for the First Six Months of 2021
Grupo Simec reported robust financial results for the first half of 2021, with net sales soaring 78% to Ps. 28,613 million, driven by a significant 18% increase in shipments to 1,369 thousand tons. Gross profit surged 164% to Ps. 7,704 million, raising the gross profit margin from 18% to 27%. Operating income also jumped 202% to Ps. 6,690 million. However, comprehensive financial costs shifted from a gain of Ps. 1,193 million in 2020 to an expense of Ps. 81 million in 2021, reflecting a challenging financial environment.
- Net sales increased 78% to Ps. 28,613 million in 1H 2021.
- Gross profit rose 164% to Ps. 7,704 million, improving the margin to 27%.
- Operating income grew 202% to Ps. 6,690 million.
- Total shipments increased by 18% to 1,369 thousand tons.
- Comprehensive financial costs transitioned from a gain of Ps. 1,193 million in 2020 to an expense of Ps. 81 million in 2021.
- Other net expenses were recorded at Ps. 30 million compared to income of Ps. 160 million in the previous year.
GUADALAJARA, Mexico, July 13, 2021 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the sixth-month period ended June 30th, 2021.
Comparative first six months of 2021 vs. first six months of 2020
Net Sales
Net sales of the Company increased from Ps. 16,096 million in the first half of 2020 to Ps. 28,613 million in the first half of 2021. Shipments increased
Cost of Sales
Cost of sales increased
Gross Profit
Gross profit of the Company for the first half of 2021 increased
Selling, General and Administrative Expense
Selling, general and administrative expense increased
Other Income (Expenses,) net
The Company recorded other expense net for Ps. 30 million in the first half of 2021 million compared to other income Ps. 160 million in the same period of 2020.
Operating Income
Operating income increased
Ebitda
The Ebitda amounted to Ps. 2,851 million in the first semester of 2020 as a result of a net income of Ps. 2,460 million, less minority stake of Ps. 3 million, plus income taxes of Ps. 951 million, less comprehensive financial cost of Ps. 1,193 million, plus depreciation of Ps. 636 million to Ps 7,283 million in the first semester of 2021 as a result a net income of Ps. 4,977 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 1,631 million, plus comprehensive financial cost of Ps. 81 million, plus depreciation of Ps. 593 million.
Consolidated | |||||||
Million | Comparative first six months of 2021 vs first six months of 2020, | ||||||
2021 | 2020 | ||||||
Net income (loss) attributable to Vale's stockholders | 4,977 | 2,460 | |||||
Loss attributable to noncontrolling interests | 1 | (3) | |||||
Net income (loss) | 4,978 | 2,457 | |||||
Depreciation, depletion and amortization | 593 | 636 | |||||
Income taxes | 1,631 | 951 | |||||
Financial results income (loss) | 81 | (1,193) | |||||
EBITDA | 7,283 | 2,851 | |||||
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 | 7,283 | 2,851 |
Comprehensive Financial Cost
Comprehensive financial cost for the first half of 2021 represented an expense of Ps. 81 million compared with an income of Ps. 1,193 million for the first half of 2020. The comprehensive financial cost is comprised by the exchange loss of Ps. 55 million in the first half of 2021 compared with an exchange income of Ps. 1,148 million in the first half of 2020. Likewise, the Company recorded a net expense interest of Ps. 26 million for the first half of 2021 compared with a net income interest of Ps. 45 million in 2020.
Income Taxes
The Company recorded an expense of Ps. 1,631 million for the net income tax during the first half of 2021, (comprised for a current expense tax of Ps. 1,610 million and expense for deferred tax of Ps. 21 million) compared with an expense of Ps. 951 million to the first half of 2020 (comprised for a current expense tax of Ps. 954 million and income for deferred tax of Ps. 3 million).
Net Income
As a result of the foregoing, the Company recorded an increase in net income of
Comparative second quarter of 2021 vs. first quarter of 2021
Net Sales
Net sales of the Company increased
Cost of Sales
Cost of sales increased
Gross Profit
Gross profit of the Company for the second quarter of 2021 increased
Selling, General and Administrative Expense
Selling, general and administrative expense increased
Other (Expenses) Income, net
The Company recorded other expenses net for Ps. 17 million during the second quarter of 2021 compared to other expenses net for Ps. 13 million in the first quarter of 2021.
Operating Income
Operating income increased
Ebitda
The Ebitda amounted to Ps. 3,113 million in the first quarter of 2021 as a result of a net income of Ps. 2,644 million, less minority stake of Ps. 0 million, plus income taxes of Ps. 391 million, less comprehensive financial cost of Ps. 223 million, plus depreciation of Ps. 301 million to Ps 4,170 million in the second quarter of 2021 as a result of a net income of Ps. 2,333 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 1,240 million, plus comprehensive financial cost of Ps. 304 million, plus depreciation of Ps. 292 million.
Consolidated | |||||||
Million | Comparative second quarter of 2021 vs first quarter of 2021, | ||||||
2021 | 2020 | ||||||
Net income (loss) attributable to Vale's stockholders | 2,333 | 2,644 | |||||
Loss attributable to noncontrolling interests | 1 | ||||||
Net income (loss) | 2,334 | 2,644 | |||||
Depreciation, depletion and amortization | 292 | 301 | |||||
Income taxes | 1,240 | 391 | |||||
Financial results income (loss) | 304 | (223) | |||||
EBITDA | 4,170 | 3,113 | |||||
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 | 4,170 | 3,113 |
Comprehensive Financial Cost
Comprehensive financial cost of the Company in the second quarter of 2021 represented an expense of Ps. 304 million compared with of Ps. 223 million an income for the first quarter of 2021. The comprehensive financial cost is comprised for the net interest expense of Ps. 9 million in the second quarter of 2021, while in the first quarter was a net expense of Ps. 17 million. Likewise, we recorded a net exchange loss of Ps. 295 million in the second quarter of 2021 compared a net exchange income Ps. 240 million in the first quarter of the same year.
Income Taxes
The Company have been recorded an expense of Ps. 1,240 million of income tax during the second quarter of 2021, (comprised for an expense by current tax of Ps. 1,210 million and an expense for deferred tax of Ps. 30 million) compared with the Ps. 391 million of expense for the first quarter of the same year, (comprised for an expense by current tax of Ps. 399 million and income for deferred tax of Ps. 8 million).
Net Income
As a result of the foregoing, the Company recorded a decrease of
Liquidity and Capital Resources
As of June 30th, 2021, Simec's total consolidated debt consisted of U.S.
Comparative second quarter of 2021 vs. second quarter of 2020
Net Sales
Net sales of the Company increased
Cost of Sales
Cost of sales increased
Gross (Loss) Profit
Gross profit of the Company for the second quarter of 2021 amount to Ps. 4,404 million compared to Ps. 1,383 million in the second quarter of 2020, this represented an increase of
Selling, General and Administrative Expense
The selling, general and administrative expenses increased
Other Income (Expenses), net
The company recorded other expenses net of Ps. 17 million in the second quarter of 2021 compared with other income net of Ps. 58 million for the second quarter of 2020.
Operating (Loss) Income
Operating income amounted to Ps. 3.878 million in the second quarter 2021 compared to Ps. 1.005 million in the second quarter of 2020, this represented
Ebitda
The Ebitda amounted to Ps. 1,325 million in the second quarter of 2020 as a result of a net income of Ps. 546 million, less minority stake of Ps. 16 million, plus income taxes of Ps. 373 million, plus comprehensive financial cost of Ps. 69 million, plus depreciation of Ps. 321 million to Ps 4,170 million in the second quarter of 2021 as a result of a net income of Ps. 2,333 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 1,240 million, plus comprehensive financial cost of Ps. 304 million, plus depreciation of Ps. 292 million.
Consolidated | |||||||
Million | Comparative second quarter of 2021 vs second quarter of 2020, | ||||||
2021 | 2020 | ||||||
Net income (loss) attributable to Vale's stockholders | 2,333 | 546 | |||||
Loss attributable to noncontrolling interests | 1 | 16 | |||||
Net income (loss) | 2,334 | 562 | |||||
Depreciation, depletion and amortization | 292 | 321 | |||||
Income taxes | 1,240 | 373 | |||||
Financial results income (loss) | 304 | 69 | |||||
EBITDA | 4,170 | 1,325 | |||||
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 | 4,170 | 1,325 |
Comprehensive Financial Cost
Comprehensive financial cost of the Company for the second quarter of 2021 represented a net expense of Ps. 304 million compared with a net expense of Ps. 69 million for the second quarter of 2020. The comprehensive financial cost is comprised for the net interest expense of Ps. 9 million in the second quarter of 2021, compared to a net interest income of Ps. 1 million for the same period of 2020. Also record an exchange loss of Ps. 295 million in the second quarter of 2021 and an exchange loss of Ps. 70 million in the second quarter of 2020.
Income Taxes
The company recorded an expense of Ps. 1,240 million of expense tax in the second quarter of 2021, (comprised by current expense tax of Ps. 1,210 million and an expense for deferred tax of Ps. 30 million) compared to an expense accrual of Ps. 373 million for income tax for the second quarter of 2020, (comprised by current expense tax of Ps. 364 million and an income for deferred tax of Ps. 9 million).
Net Income (Loss)
As a result of the foregoing, the Company recorded a net income of Ps. 2,333 million in the second quarter of 2021 compared to Ps. 546 million for the second quarter of 2020, an increase of
(millions of pesos) | 1H '21 | 1H '20 | Year 21 VS '20 | ||
Sales | 28,613 | 16,096 | |||
Cost of Sales | 20,909 | 13,173 | |||
Gross Profit | 7,704 | 2,923 | |||
Selling, General and Administrative Expense | 984 | 867 | |||
Other Income (Expenses), net | (30) | 160 | ( | ||
Operating Profit | 6,690 | 2,216 | |||
EBITDA | 7,283 | 2,851 | |||
Net income | 4,977 | 2,460 | |||
Sales Outside Mexico | 14,458 | 8,168 | |||
Sales in Mexico | 14,155 | 7,928 | |||
Total Sales (Tons) | 1,369 | 1,162 |
Quarter | |||||
(millions of pesos) | 2Q'21 | 1Q '21 | 2Q '20 | 2Q´21vs 1Q´21 | 2Q´21 vs 2Q '20 |
Sales | 15,258 | 13,355 | 7,596 | ||
Cost of Sales | 10,854 | 10,055 | 6,213 | ||
Gross Profit | 4,404 | 3,300 | 1,383 | ||
Selling, General and Adm. Expenses | 509 | 475 | 436 | ||
Other Income (Expenses), net | (17) | (13) | 58 | ( | |
Operating Profit | 3,878 | 2,812 | 1,005 | ||
EBITDA | 4,170 | 3,113 | 1,325 | ||
Net Income | 2,333 | 2,644 | 546 | ( | |
Sales Outside Mexico | 7,767 | 6,691 | 4,072 | ||
Sales in Mexico | 7,491 | 6,664 | 3,524 | ||
Total Sales (Tons) | 687 | 682 | 540 |
Product | Thousands of Tons Jan-Jun 2021 | Millions of Pesos Jan-Jun 2021 | Average Price per Ton Jan-Jun 2021 | Thousands of Tons Jan – Jun 2020 | Millions of Pesos Jan- Jun 2020 | Average Price per Ton Jan-Jun 2020 |
Commercial Profiles | 880 | 17,473 | 19,856 | 806 | 9,952 | 12,347 |
Special Profiles | 489 | 11,140 | 22,781 | 356 | 6,144 | 17,258 |
Total | 1,369 | 28,613 | 20,901 | 1,162 | 16,096 | 13,852 |
Product | Thousands of Tons Apr-Jun 2021 | Millions of Pesos Apr-Jun 2021 | Average Price per Ton Apr-Jun 2021 | Thousands of Tons Jan – Mar 2021 | Millions of Pesos Jan- Mar 2021 | Average Price per Ton Jan-Mar 2021 | Thousands of Tons Apr-Jun 2020 | Millions of Pesos Apr-Jun 2020 | Average Price per Ton Apr-Jun 2020 |
Commercial Profiles | 445 | 9,358 | 21,029 | 435 | 8,114 | 18,653 |
408 | 5,172 | 12,676 |
Special Profiles | 242 | 5,900 | 24,380 | 247 | 5,241 | 21,219 |
132 | 2,424 | 18,363 |
Total | 687 | 15,258 | 22,210 | 682 | 13,355 | 19,582 | 540 | 7,596 | 14,066 |
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.
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