Grupo Simec Stock Price, News & Analysis

Grupo Simec (NYSE: SIM) reported its operational results for the first nine months of 2022. Net sales rose to Ps. 44,012 million, up from Ps. 42,736 million in 2021, driven by a 17% increase in average selling prices, despite a 12% decrease in shipment volumes. Costs of sales also increased to Ps. 32,243 million. Gross profit dipped 1% to Ps. 11,769 million. Year-to-date, net income fell by 3% to Ps. 8,037 million. In Q3 2022, net sales decreased by 5% compared to Q3 2021, with a significant drop in operating income and EBITDA by 30% and 28%, respectively.

On Sept. 28, 2022, Grupo Simec issued a warning regarding fraudulent investment schemes circulating on the internet. The company clarified that the only legitimate method to invest in Grupo Simec is via the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (BIVA). The firm strongly advises potential investors to consult their brokerage houses to verify any investment offers. Grupo Simec disclaims any responsibility for losses incurred due to these fraudulent activities.

Grupo Simec, S.A.B. de C.V. (NYSE: SIM) reported a 23% increase in net income for the first half of 2022, totaling Ps. 6,098 million, up from Ps. 4,977 million in 2021. Despite a 14% decline in shipments, net sales rose 7% to Ps. 30,579 million, driven by a 24% increase in average sales prices. Cost of sales increased 5% year-over-year, while gross profit surged 12% to Ps. 8,607 million. Operating income also saw a 12% growth to Ps. 7,479 million. Selling, general, and administrative expenses rose 15%, but EBITDA grew 10% to Ps. 8,029 million.

Grupo Simec (NYSE: SIM) reported a strong performance for the twelve-month period ending December 31, 2021, with net sales rising 55% to Ps. 55,620 million, driven by a 51% increase in average sales prices and a 3% rise in shipments. Gross profit surged 135% to Ps. 15,652 million, improving its gross margin to 28%. Operating income increased 161% to Ps. 13,532 million, and net income jumped 238% to Ps. 9,444 million. However, Q4 2021 saw a decline in net sales and profit compared to Q3 2021 due to lower shipments and pricing volatility.

Grupo Simec (NYSE: SIM) reported a 16% increase in gross profit for Q1 2022, totaling Ps. 3,842 million, driven by a 23% rise in average sales prices. Net sales grew 12.5% year-over-year to Ps. 15,032 million, although shipments of steel finished goods fell by 9% to 623,000 tons. The cost of sales also rose by 11% to Ps. 11,190 million, marking a 74% of net sales ratio. Net income decreased 6% year-over-year to Ps. 2,494 million. Despite challenges, the company’s operating income improved 18% to Ps. 3,325 million, reflecting a healthy market dynamic.

Grupo Simec (NYSE: SIM) reported a strong performance for the twelve-month period ending December 31, 2021, with net sales increasing by 55% to Ps. 55,622 million compared to Ps. 35,869 million in 2020. The growth was attributed to higher shipments and a 51% rise in average sales prices. Gross profit surged 133% to Ps. 15,498 million, while net income skyrocketed 246% to Ps. 10,227 million. Despite these impressive gains, fourth-quarter sales dipped 9% sequentially, reflecting challenges in the market.

Grupo Simec reported impressive results for the nine months ending September 30, 2021, with net sales surging 66% to Ps. 42,736 million, up from Ps. 25,739 million in 2020. Sales outside of Mexico soared 64%, while domestic sales rose 68%. Gross profit skyrocketed by 144% to Ps. 11,913 million, driven by a 56% increase in average selling prices and a 6% rise in shipment volumes. Net income climbed 139% to Ps. 8,290 million, and operating income jumped 174% to Ps. 10,371 million. However, costs also increased significantly, with expenses and costs rising substantially compared to the previous year.

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.