GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2024.
Grupo Simec (NYSE: SIM) reported its financial results for FY2024, showing mixed performance. Net sales decreased 18% to Ps. 33,658 million, driven by a 6% reduction in steel shipments and a 13% lower average sales price compared to 2023.
Despite challenges, net income surged 168% to Ps. 11,475 million in 2024 from Ps. 4,283 million in 2023. EBITDA decreased 21% to Ps. 6,864 million. The company maintained a gross profit margin of 24%, while operating income declined 23% to Ps. 5,830 million.
Geographic performance showed domestic sales in Mexico dropping 25% to Ps. 18,270 million, while international sales decreased 8% to Ps. 15,388 million. The company benefited from lower scrap costs and recorded a significant comprehensive financial income of Ps. 6,630 million, largely due to exchange rate gains.
Grupo Simec (NYSE: SIM) ha riportato i suoi risultati finanziari per l'anno fiscale 2024, mostrando una performance mista. Le vendite nette sono diminuite del 18% a Ps. 33.658 milioni, a causa di una riduzione del 6% nelle spedizioni di acciaio e di un prezzo medio di vendita inferiore del 13% rispetto al 2023.
Nonostante le sfide, l'utile netto è aumentato del 168% a Ps. 11.475 milioni nel 2024, rispetto ai Ps. 4.283 milioni del 2023. L'EBITDA è diminuito del 21% a Ps. 6.864 milioni. L'azienda ha mantenuto un margine di profitto lordo del 24%, mentre l'utile operativo è calato del 23% a Ps. 5.830 milioni.
Le performance geografiche hanno mostrato un calo delle vendite nazionali in Messico del 25% a Ps. 18.270 milioni, mentre le vendite internazionali sono diminuite dell'8% a Ps. 15.388 milioni. L'azienda ha beneficiato di costi inferiori per il rottame e ha registrato un significativo reddito finanziario complessivo di Ps. 6.630 milioni, principalmente grazie ai guadagni da cambio.
Grupo Simec (NYSE: SIM) reportó sus resultados financieros para el año fiscal 2024, mostrando un desempeño mixto. Las ventas netas disminuyeron un 18% a Ps. 33,658 millones, impulsadas por una reducción del 6% en los envíos de acero y un precio promedio de venta un 13% más bajo en comparación con 2023.
A pesar de los desafíos, el ingreso neto se disparó un 168% a Ps. 11,475 millones en 2024, desde Ps. 4,283 millones en 2023. El EBITDA disminuyó un 21% a Ps. 6,864 millones. La empresa mantuvo un margen de utilidad bruta del 24%, mientras que el ingreso operativo cayó un 23% a Ps. 5,830 millones.
El desempeño geográfico mostró que las ventas nacionales en México cayeron un 25% a Ps. 18,270 millones, mientras que las ventas internacionales disminuyeron un 8% a Ps. 15,388 millones. La empresa se benefició de menores costos de chatarra y registró un ingreso financiero integral significativo de Ps. 6,630 millones, en gran parte debido a ganancias por tipo de cambio.
Grupo Simec (NYSE: SIM)는 2024 회계연도의 재무 결과를 보고하며 혼합된 성과를 보여주었습니다. 순매출은 2023년 대비 18% 감소하여 Ps. 33,658백만에 이르렀으며, 이는 철강 출하량이 6% 감소하고 평균 판매 가격이 13% 낮아진 데 기인합니다.
어려움에도 불구하고, 순이익은 2024년에 Ps. 11,475백만으로 168% 급증했으며, 2023년의 Ps. 4,283백만에서 증가했습니다. EBITDA는 21% 감소하여 Ps. 6,864백만에 이르렀습니다. 회사는 24%의 총 이익률을 유지했으나, 운영 이익은 23% 감소하여 Ps. 5,830백만에 이르렀습니다.
지리적 성과는 멕시코의 국내 판매가 25% 감소하여 Ps. 18,270백만에 이르렀고, 국제 판매는 8% 감소하여 Ps. 15,388백만에 이르렀습니다. 회사는 낮은 스크랩 비용의 혜택을 받았으며, 환율 차익으로 인해 Ps. 6,630백만의 상당한 포괄적 재무 수익을 기록했습니다.
Grupo Simec (NYSE: SIM) a publié ses résultats financiers pour l'exercice 2024, affichant une performance mitigée. Les ventes nettes ont diminué de 18% pour atteindre Ps. 33.658 millions, en raison d'une réduction de 6% des expéditions d'acier et d'un prix de vente moyen inférieur de 13% par rapport à 2023.
Malgré les défis, le bénéfice net a augmenté de 168% pour atteindre Ps. 11.475 millions en 2024, contre Ps. 4.283 millions en 2023. L'EBITDA a diminué de 21% pour s'établir à Ps. 6.864 millions. L'entreprise a maintenu une marge brute de 24%, tandis que le résultat opérationnel a chuté de 23% pour atteindre Ps. 5.830 millions.
La performance géographique a montré que les ventes domestiques au Mexique ont chuté de 25% pour atteindre Ps. 18.270 millions, tandis que les ventes internationales ont diminué de 8% pour atteindre Ps. 15.388 millions. L'entreprise a bénéficié de coûts de ferraille plus bas et a enregistré un revenu financier global significatif de Ps. 6.630 millions, principalement en raison des gains de change.
Grupo Simec (NYSE: SIM) hat seine finanziellen Ergebnisse für das Geschäftsjahr 2024 veröffentlicht und zeigt eine gemischte Leistung. Der Nettoumsatz sank um 18% auf Ps. 33.658 Millionen, bedingt durch einen Rückgang der Stahlverkäufe um 6% und einen um 13% niedrigeren durchschnittlichen Verkaufspreis im Vergleich zu 2023.
Trotz der Herausforderungen stieg der Nettogewinn um 168% auf Ps. 11.475 Millionen im Jahr 2024, verglichen mit Ps. 4.283 Millionen im Jahr 2023. Das EBITDA sank um 21% auf Ps. 6.864 Millionen. Das Unternehmen hielt eine Bruttogewinnmarge von 24%, während das Betriebsergebnis um 23% auf Ps. 5.830 Millionen zurückging.
Die geografische Leistung zeigte, dass die Inlandsverkäufe in Mexiko um 25% auf Ps. 18.270 Millionen sanken, während die internationalen Verkäufe um 8% auf Ps. 15.388 Millionen zurückgingen. Das Unternehmen profitierte von niedrigeren Schrottkosten und verzeichnete ein erhebliches umfassendes finanzielles Einkommen von Ps. 6.630 Millionen, hauptsächlich aufgrund von Wechselkursgewinnen.
- Net income surged 168% to Ps. 11,475 million
- Significant financial income of Ps. 6,630 million from exchange gains
- Maintained stable gross profit margin at 24%
- Lower production costs due to decreased scrap prices
- Net sales declined 18% to Ps. 33,658 million
- Steel shipments decreased 6% to 2.056 million tons
- EBITDA dropped 21% to Ps. 6,864 million
- Operating income decreased 23% to Ps. 5,830 million
- Domestic sales in Mexico fell 25%
Insights
Grupo Simec's 2024 financial results present a complex picture of operational challenges masked by significant currency gains. The steel manufacturer reported an 18% decline in annual revenue to
The company's domestic Mexican market deteriorated significantly, with sales dropping
Despite maintaining consistent gross margins at
Q4 2024 showed potential stabilization with revenue increasing
Simec maintains minimal debt, providing financial flexibility, but investors should focus on the core operational metrics rather than the currency-enhanced bottom line. The substantial impact of foreign exchange movements on 2024 results indicates significant exposure to currency volatility, which could create earnings instability in future periods regardless of operational performance.
Grupo Simec's 2024 results reflect the cyclical downturn affecting the global steel industry, with performance metrics revealing both market-wide pressures and company-specific challenges. The
The stark divergence between Simec's geographic markets is particularly telling. The
Despite volume and price pressures, Simec maintained its gross margin at
The sequential improvement in Q4 2024, with prices increasing
Looking ahead, Simec's minimal debt provides financial resilience during this cyclical trough, but the company faces ongoing challenges from structural overcapacity in global steel markets and potential shifts in trade flows following recent changes in regional trade policies. The company's ability to reverse the substantial domestic market share losses will be important for any sustainable recovery beyond currency-driven financial gains.
Twelve-Month Period Ended December 31, 2024 compared to Twelve-Month Period Ended December 31, 2023.
Net Sales
Net sales decreased
Cost of Sales
Cost of sales decreased
Gross Profit
Gross profit of the Company in the twelve-month period ended December 31, 2024 was of Ps. 8,190 million compared to Ps. 10,039 million in the same period of 2023. Gross profit as a percentage of net sales represented
Operating Expenses
Selling, general and administrative expenses increased
Other Expenses (Income) net
The company recorded other net expenses of Ps. 119 million in the twelve-month period ended December 31, 2023 compared to other net income of Ps. 127 million in the same period of 2024.
Operating Income
Operating income decreased
EBITDA
The EBITDA of the Company decreased
Consolidated | |||||||
Million | Twelve-month period ended December 31, | ||||||
2024 | 2023 | ||||||
Net income (loss) | 11,475 | 4,283 | |||||
Loss attributable to noncontrolling interests | (2) | (8) | |||||
Net income (loss) | 11,473 | 4,275 | |||||
Depreciation and amortization | 1,034 | 1,035 | |||||
Income taxes | 987 | 1,740 | |||||
Financial results (income) loss | (6,630) | 1,588 | |||||
EBITDA | 6,864 | 8,638 | |||||
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 | 6,864 | 8,638 | |||||
Comprehensive Financial Cost
Comprehensive financial cost in the twelve-month period ended December 31, 2024 represented a net income of Ps. 6,630 million compared with a net expense of Ps. 1,588 million in the same period of 2023. The net interest was an income of Ps. 1,612 million in 2024 compared with a net income of Ps. 778 million in the twelve-month period ended December 31, 2023. As a result, we registered a net exchange income of Ps. 4,950 million in the twelve-month period ended December 31, 2024 compared with a net exchange loss of Ps. 2,431 million in the same period of 2023, net other financial income was recorded for Ps. 68 million for the period 2024 compared to the Ps. 65 million of other financial income for the period 2023.
Income Taxes
The Company recorded an expense net tax of Ps. 987 million in the twelve-month period ended December 31, 2024 (including the income of deferred tax of Ps. 370 million) compared with a net expense tax of Ps. 1,740 million in the same period of 2023 (including the tax deferred expense of Ps. 45 million).
Net Income (loss)
As a result of the foregoing, net income increased by
Liquidity and Capital Resources
As of December 31, 2024, Simec's total consolidated debt consisted of
Comparative fourth quarter 2024 vs third quarter 2024
Net Sales
Net sales increased from Ps. 8,549 million in the third quarter of 2024 to Ps. 8,830 million for the fourth quarter of 2024. Sales in tons remained stable from 521 thousand ton in the third quarter of 2024 to 520 thousand ton in the fourth quarter of the same period. Total sales outside of
Cost of Sales
Cost of sales increased to Ps. 6,843 million in the fourth quarter of 2024 compared to Ps. 6,393 million for the third quarter of 2024. With respect to sales, in the fourth quarter of 2024, the cost of sales represented
Gross Profit
Gross profit of the Company for the fourth quarter of 2024 decreased
Operating Expenses
Selling, general and administrative expenses decreased
Other Expenses (Income) net
The company recorded other net income of Ps. 56 million in the fourth quarter of 2024 compared to other net income of Ps. 26 million for the third quarter of 2024.
Operating (Loss) Income
Operating income was of Ps. 1,389 million in the fourth quarter of 2024 compared to an operating income of Ps. 1,524 million in the third quarter of 2024. The operating income as a percentage of net sales represented
EBITDA
The EBITDA was Ps. 1,776 million in the third quarter of 2024 (result a net income of Ps. 3,152 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 471 million, less comprehensive financial income of Ps. 2,098 million, plus depreciation of Ps. 252 million), compared to Ps. 1,673 million for the fourth quarter of 2024, (result of net income of Ps. 2,888 million, plus income taxes of Ps. 225 million, less comprehensive financial income of Ps. 1,724 million, plus depreciation of Ps. 284 million).
Consolidated | |||||||
Million | Comparative fourth quarter vs third quarter 2024 | ||||||
4Q 2024 | 3Q 2024 | ||||||
Net income (loss) | 2,888 | 3,152 | |||||
Loss attributable to noncontrolling interests | 0 | (1) | |||||
Net income (loss) | 2,888 | 3,151 | |||||
Depreciation and Amortization | 284 | 252 | |||||
Income taxes | 225 | 471 | |||||
Financial results (income) loss | (1,724) | (2,098) | |||||
EBITDA | 1,673 | 1,776 | |||||
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 | 1,673 | 1,776 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial income for the fourth quarter for 2024 was a net income of Ps. 1,724 million compared with a net income of Ps. 2,098 million for the third quarter of 2024. The net interest income the fourth quarter was Ps. 548 million compared with a net income of Ps. 329 million in the third quarter of 2024. At same time we registered an exchange net profit of Ps. 1,769 million in the third quarter of 2024 compared with an exchange net income of Ps. 1,150 million in the fourth quarter of 2024. Net other financial income was recorded for Ps. 26 million in the fourth quarter of 2024.
Income Taxes
Income Taxes for the third quarter of 2024 had an expense net tax of Ps. 471 million (including an expense tax deferred for Ps. 33 million) compared to an expense of Ps. 225 million for the fourth quarter of 2024, (including an income tax deferred of Ps. 282 million).
Net Income (loss)
As a result of the foregoing, the Company recorded a net income of Ps. 2,888 million in the fourth quarter of 2024 compared to Ps. 3,152 million of net income in the third quarter of 2024.
Comparative fourth quarter 2024 vs fourth quarter 2023
Net Sales
Net sales increased
Cost of Sales
Cost of sales increased
Gross Profit
Gross profit for the fourth quarter of 2024 increased
Operating Expenses
Selling, general and administrative expenses decreased
Other Expenses (Income) net
The company recorded other expenses net of Ps. 286 million in the fourth quarter of 2023 compared with other income net of Ps. 56 million for the fourth quarter of 2024.
Operating (Loss) Income
Operating income was of Ps. 1,389 million in the fourth quarter of 2024 compared to an operating profit of Ps. 927 million in the fourth quarter of 2023. The operating income as a percentage of net sales in the fourth quarter of 2024 was
EBITDA
The EBITDA was Ps. 1,140 million in the fourth quarter of 2023 (result of 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), compared to EBITDA of Ps 1,673 million in the fourth quarter of 2024 (result of net income of Ps. 2,888 million, plus income taxes of Ps. 225 million, less comprehensive financial income of Ps. 1,724 million, plus depreciation of Ps. 284 million).
Consolidated | |||||||
Million | Comparative fourth quarter vs fourth quarter | ||||||
2024 | 2023 | ||||||
Net income (loss) | 2,888 | 462 | |||||
Loss attributable to noncontrolling interests | 0 | (4) | |||||
Net income (loss) | 2,888 | 458 | |||||
Depreciation and Amortization | 284 | 213 | |||||
Income taxes | 225 | 199 | |||||
Financial results (income) loss | (1,724) | 270 | |||||
EBITDA | 1,673 | 1,140 | |||||
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 | 1,673 | 1,140 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2024 was a net income of Ps. 1,724 million compared with a net expense of Ps 270 million in the fourth quarter of 2023. Net interest income was of Ps. 548 million in the fourth quarter of 2024 compared with a net interest income of Ps. 386 million in the fourth quarter of 2023. At same time we registered a net exchange income of Ps. 1,150 million in the fourth quarter of 2024 compared with an exchange loss of Ps. 677 million in the fourth quarter of 2023. Net other financial income was recorded for Ps. 26 million in the fourth quarter of 2024, compared to the Ps. 21 million of other financial income for the period 2023.
Income Taxes
The Company recorded a net taxes expense for the fourth quarter of 2024 of Ps. 225 million (including an income of deferred tax of Ps. 282 million), compared to a net tax expense of Ps. 199 million for the fourth quarter of 2023, (including a tax deferred expense of Ps. 53 million).
Net Income (loss)
As a result of the foregoing, the Company recorded a net profit of Ps. 2,888 million in the fourth quarter of 2024 compared to Ps. 462 million of net profit in the fourth quarter of 2023.
(million of pesos) | Jan - Dec '24 | Jan - Dec '23 | Year 24 vs | ||
Sales | 33,658 | 41,139 | (18 %) | ||
Cost of Sales | 25,468 | 31,100 | (18 %) | ||
Gross Profit | 8,190 | 10,039 | (18 %) | ||
Selling, General and Administrative Expense | 2,487 | 2,317 | 7 % | ||
Other Income (Expenses), net | 127 | (119) | N/C | ||
Operating Profit | 5,830 | 7,603 | (23 %) | ||
EBITDA | 6,864 | 8,638 | (21 %) | ||
Net income | 11,475 | 4,283 | 168 % | ||
Sales Outside Mexico | 15,388 | 16,814 | (8 %) | ||
Sales in | 18,270 | 24,325 | (25 %) | ||
Total Sales (Tons Thousands) | 2,056 | 2,176 | (6 %) | ||
Cost per ton (Pesos) | 12,387 | 14,292 | (13 %) |
Quarter | |||||
(million of pesos) | 4Q'24 | 3Q '24 | 4Q '23 | 4Q´24vs | 4Q´24 vs |
Sales | 8,830 | 8,549 | 8,738 | 3 % | 1 % |
Cost of Sales | 6,843 | 6,393 | 6,795 | 7 % | 1 % |
Gross Profit | 1,987 | 2,156 | 1,943 | (8 %) | 2 % |
Selling, General and Adm. Expenses | 654 | 658 | 730 | (1 %) | (10 %) |
Other Income (Expenses), net | 56 | 26 | (286) | 115 % | N/C |
Operating Profit | 1,389 | 1,524 | 927 | (9 %) | 50 % |
EBITDA | 1,673 | 1,776 | 1,140 | (6 %) | 47 % |
Net Income | 2,888 | 3,152 | 462 | (8 %) | 525 % |
Sales Outside Mexico | 4,410 | 3,691 | 3,243 | 19 % | 36 % |
Sales in | 4,420 | 4,858 | 5,495 | (9 %) | (20 %) |
Total Sales (Tons Thousands) | 520 | 521 | 536 | 0 % | (3 %) |
Cost per Ton (pesos) | 13,160 | 12,271 | 12,677 | 7 % | 4 % |
Product | Thousands of Tons Jan-Dec 2024 | Millions of Pesos Jan-Dec 2024 | Average Price per Ton Jan-Dec 2024 | Thousands of Tons Jan – Dec 2023 | Millions of Pesos | Average Price per Ton Jan-Dec 2023 |
Special Bar Quality SBQ | 520 | 10,133 | 19,487 | 597 | 13,139 | 22,008 |
Commercial Profiles | 1,536 | 23,525 | 15,316 | 1,579 | 28,000 | 17,733 |
Total Tons | 2,056 | 33,658 | 16,371 | 2,176 | 41,139 | 18,906 |
Product | Thousands of Tons Oct-Dec 2024 | Millions of Pesos | Average Price per Ton Oct-Dec 2024 | Thousands of Tons Jul-Sep 2024 | Millions of Pesos 2024 | Average Price per Ton Jul-Sep 2024 | Thousands of Tons 2023 | Millions of Pesos | Average Price per Ton 2023 |
Special Bar Quality SBQ | 117 | 2,480 | 21,197 | 153 | 2,939 | 19,209 | 153 | 2,800 | 18,301 |
Commercial Profiles | 403 | 6,350 | 15,757 | 368 | 5,610 | 15,245 | 383 | 5,938 | 15,504 |
Total Tons | 520 | 8,830 | 16,981 | 521 | 8,549 | 16,409 | 536 | 8,738 | 16,302 |
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 1028 |
52 33 3770 6734 |
View original content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-twelve-month-period-ended-december-31-2024-302387803.html
SOURCE Grupo Simec, S.A.B. de C.V.
FAQ
What caused Grupo Simec's (SIM) 18% revenue decline in 2024?
How much did Grupo Simec's (SIM) net income increase in 2024?
What was Grupo Simec's (SIM) EBITDA performance in 2024?
How did Grupo Simec's (SIM) international sales perform in 2024?
What was Grupo Simec's (SIM) operating margin in 2024?
