Financial Performance - Net sales decreased by 23% to Ps. 24,828 million in the first nine months of 2024 from Ps. 32,401 million in the same period of 2023, with shipments of finished steel products down 6% to 1,536 thousand tons [2]. - Cost of sales decreased by 23% to Ps. 18,625 million in the first nine months of 2024, maintaining a cost of sales percentage of 75% of net sales for both periods [3]. - Gross profit fell by 23% to Ps. 6,203 million in the first nine months of 2024, with a gross margin of 25% for both periods [4]. - Operating income decreased by 33% to Ps. 4,440 million in the first nine months of 2024, representing 18% of net sales compared to 21% in the same period of 2023 [7]. - EBITDA decreased by 31% to Ps. 5,189 million in the first nine months of 2024 from Ps. 7,499 million in the same period of 2023 [8]. - Net income increased by 125% to Ps. 8,587 million in the first nine months of 2024, up from Ps. 3,821 million in the same period of 2023 [12]. - Total revenue for the current year reached 24,827,746 thousand pesos, a decrease from 32,401,468 thousand pesos in the previous year, representing a decline of approximately 23.1% [47]. - Net income for the current period was 8,587,182 thousand pesos, significantly higher than 4,282,906 thousand pesos in the previous period, marking an increase of about 100.5% [47]. - Gross profit for the current quarter was 6,202,579 thousand pesos, compared to 8,095,865 thousand pesos in the previous year, indicating a decrease of approximately 23.4% [47]. - Operating profit for the current year was reported at 5,584,062 thousand pesos, down from 8,715,160 thousand pesos in the previous year, reflecting a decline of around 36.8% [48]. - Basic earnings per share for the current quarter were 17.25 pesos, up from 6.33 pesos in the previous year, representing an increase of approximately 172.5% [47]. - Total comprehensive income for the current year was 7,719,704 thousand pesos, compared to 2,589,414 thousand pesos in the previous year, an increase of about 197.5% [48]. - Profit before income tax increased to 9,347,050 thousand pesos from 5,357,891 thousand pesos, representing a growth of 74.1% year-over-year [52]. - Total sales for the first nine months of 2024 were Ps. 24,828 million, a decrease of 23% compared to Ps. 32,401 million in the same period of 2023 [37]. Expenses and Costs - Selling, general and administrative expenses rose by 16% to Ps. 1,834 million in the first nine months of 2024, representing 7% of net sales [5]. - Selling, general and administrative expenses increased by 16% from Ps. 1,587 million in Jan-Sep 2023 to Ps. 1,834 million in Jan-Sep 2024 [37]. - Cost per ton decreased by 18% from Ps. 14,820 in Jan-Sep 2023 to Ps. 12,126 in Jan-Sep 2024 [37]. - Comprehensive financial cost showed an income of Ps. 4,907 million in the first nine months of 2024, compared to an expense of Ps. 1,318 million in the same period of 2023 [10]. Cash Flow and Liquidity - Cash flows from operating activities showed a net outflow of 4,195,055 thousand pesos, compared to a net outflow of 2,594,816 thousand pesos in the previous year, indicating a worsening cash flow situation [52]. - Net cash flows from investing activities improved to a net outflow of 388,221 thousand pesos from a net outflow of 558,909 thousand pesos, reflecting better management of investment expenditures [52]. - Cash and cash equivalents at the end of the period increased to 28,267,462 thousand pesos from 23,509,444 thousand pesos, marking a rise of 20.5% [52]. - The company reported a net balance of Ps. 21,253,460 thousand in its monetary foreign currency position, with monetary assets totaling Ps. 33,595,190 thousand and liabilities amounting to Ps. 12,341,730 thousand [151]. - The company achieved a current assets to current liabilities ratio of 3.72 times, indicating strong liquidity [154]. - Total liabilities to total assets ratio stands at 0.18, well below the 0.60 threshold [154]. - Operating income plus non-cash items is 483.02 times, significantly exceeding the 2.0 times requirement [154]. Assets and Liabilities - Total assets increased to Ps. 74,847 million in the current quarter from Ps. 66,787 million in the previous year [41]. - Cash and cash equivalents rose to Ps. 28,267 million from Ps. 23,584 million year-over-year [41]. - Total liabilities increased to Ps. 17,409 million from Ps. 16,982 million year-over-year [41]. - The total equity attributable to owners of the parent increased to 57,411,794 thousand pesos, up from 49,780,624 thousand pesos, reflecting a growth of 15.3% [59]. - The company reported a significant increase in retained earnings, with unappropriated earnings rising to 50,972,036 thousand pesos from 42,384,854 thousand pesos, an increase of 20.5% [59]. Shareholder Activities - The company repurchased 36,493,310 shares, an increase from 36,023,685 shares in the previous year, indicating a rise of about 1.3% [43]. - The company repurchased shares worth 86,861 thousand pesos during the period, compared to 69,491 thousand pesos in the previous year, indicating an increase in share buyback activity [55]. Financial Instruments and Risk Management - The Company uses derivative financial instruments to manage exposure to natural gas price fluctuations, recognizing gains or losses in income unless designated as hedging instruments [135]. - The effective portion of changes in the fair value of designated derivatives is recognized in other comprehensive income, while ineffective portions are recognized immediately in income [138]. - The Company employs exchange contracts or swaps to mitigate risks associated with natural gas price fluctuations, impacting operating costs [136]. - Hedge accounting is discontinued when the hedging relationship is reversed or the hedging instrument no longer meets criteria, with cumulative gains or losses remaining in equity until the forecast transaction is recognized [141]. - The Company assesses the effectiveness of hedging instruments periodically, considering them highly effective if they offset changes in fair value or cash flows between 80% and 125% [138]. Accounting Policies - The company recognizes contingent liabilities and assets in accordance with IAS 37, with corresponding gains or losses recorded in the utility [78]. - The company’s accounting policies include the capitalization of borrowing costs directly attributable to the acquisition or construction of qualifying assets [98]. - Current income tax is based on fiscal profits and cash flows, with liabilities computed using enacted tax rates [109]. - Deferred tax assets and liabilities are recognized for temporary differences, with assets recognized only if future taxable profits are probable [110]. - Earnings per share are calculated by dividing net income attributable to controlling interest by the weighted average shares outstanding [111].

Core Points - A liquid steel spill occurred at Grupo Simec's plant in Apizaco, Tlaxcala, resulting in loss of human lives and temporarily halting operations [1] - The company expresses deep regret over the incident and is currently investigating the causes of the accident [1] Company Impact - The incident has led to a temporary paralysis of operations at the affected plant, which may impact production and financial performance in the short term [1] - The loss of employees is a significant concern for the company, potentially affecting employee morale and public perception [1]

Core Insights - Grupo Simec reported a significant decrease in net sales and shipments of finished steel products for the first nine months of 2024 compared to the same period in 2023, with net sales dropping by 23% to Ps. 24,828 million and shipments decreasing by 6% to 1,536 thousand tons [3][37] - Despite the decline in sales, the company experienced a remarkable increase in net income, which rose by 125% to Ps. 8,587 million in the first nine months of 2024 [13][37] Financial Performance - **Net Sales**: Decreased to Ps. 24,828 million in the first nine months of 2024 from Ps. 32,401 million in the same period of 2023, with a 19% decrease in sales outside Mexico and a 26% decrease in Mexican sales [3][37] - **Cost of Sales**: Decreased by 23% to Ps. 18,625 million in the first nine months of 2024, with the average cost of sales per ton dropping approximately 18% due to lower input prices [4][37] - **Gross Profit**: Decreased by 23% to Ps. 6,203 million, maintaining a gross profit margin of 25% for both periods [5][37] - **Operating Income**: Decreased by 33% to Ps. 4,440 million, with operating income as a percentage of net sales falling from 21% to 18% [8][37] - **EBITDA**: Decreased by 31% to Ps. 5,189 million compared to Ps. 7,499 million in the first nine months of 2023 [9][37] - **Net Income**: Increased by 125% to Ps. 8,587 million from Ps. 3,821 million in the first nine months of 2023 [10][37] Expenses and Other Income - **Selling, General and Administrative Expenses**: Increased by 16% to Ps. 1,834 million, representing 7% of net sales in 2024 compared to 5% in 2023 [6][37] - **Other Income (Expenses), net**: Decreased to Ps. 71 million in the first nine months of 2024 from Ps. 167 million in the same period of 2023 [7][37] Quarterly Performance - **Third Quarter Net Sales**: Increased to Ps. 8,549 million from Ps. 8,394 million in the second quarter of 2024, but decreased by 10% compared to Ps. 9,454 million in the third quarter of 2023 [15][26] - **Third Quarter Gross Profit**: Increased by 6% to Ps. 2,156 million from Ps. 2,038 million in the second quarter of 2024, with a gross profit margin of 25% [17][38] - **Third Quarter Operating Income**: Increased slightly to Ps. 1,524 million from Ps. 1,498 million in the second quarter of 2024, but decreased from Ps. 1,816 million in the third quarter of 2023 [20][31] - **Third Quarter EBITDA**: Increased by 2% to Ps. 1,776 million from Ps. 1,747 million in the second quarter of 2024, but decreased by 15% compared to Ps. 2,079 million in the third quarter of 2023 [21][32] Comprehensive Financial Cost - **Comprehensive Financial Cost**: In the first nine months of 2024, the company recorded a net income of Ps. 4,907 million compared to an expense of Ps. 1,318 million in the same period of 2023, driven by significant exchange income [11][37]

Core Points - Emerita Resources Corp. is sponsoring the inaugural Sustainable International Mining Summit (SIM) on October 10, 2024, in Ayamonte, Spain [1] - The summit aims to foster dialogue on sustainable mining practices and the role of mining in the energy transition, hosted by Global Omnium [2] - The agenda includes discussions on Environmental, Social, and Governance practices, featuring international speakers and experts [3] - Emerita emphasizes its commitment to responsible mining and collaboration for sustainability in the industry [4] - Emerita is focused on the acquisition, exploration, and development of mineral properties in Europe, particularly in Spain [5]

Exhibit 99.1 PRESS RELEASE 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 GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2023 AUDITED. GUADALAJARA, MEXICO, May 06th, 2024 - Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the twelve-month period ended December 31, 2023 Audited and December 31, 20 ...

Core Insights - Grupo Simec reported a significant decrease in net sales for the first half of 2024, dropping 29% to Ps. 16,279 million from Ps. 22,947 million in the first half of 2023, attributed to a 22% decrease in average sales price and an 8% decrease in shipment volume [2][12][46] - Despite the decline in sales, the company experienced a remarkable increase in net income, rising 169% to Ps. 5,435 million in the first half of 2024 compared to Ps. 2,019 million in the same period of 2023 [17][46] Sales Performance - Total shipments decreased by 8% from 1,109 thousand tons in the first half of 2023 to 1,015 thousand tons in the first half of 2024 [2][46] - Sales outside of Mexico fell by 24% to Ps. 7,287 million, while domestic sales decreased by 32% to Ps. 8,992 million [2][46] Cost and Profitability - Cost of sales decreased by 29% from Ps. 17,128 million in the first half of 2023 to Ps. 12,232 million in the first half of 2024, maintaining a consistent percentage of 75% of net sales for both periods [7][46] - Gross profit declined by 30% to Ps. 4,047 million in the first half of 2024, with gross profit as a percentage of net sales remaining at 25% for both periods [12][46] Operating Income and EBITDA - Operating income decreased by 40% to Ps. 2,916 million in the first half of 2024, representing 18% of net sales compared to 21% in the first half of 2023 [13][46] - EBITDA fell by 37% to Ps. 3,413 million in the first half of 2024 from Ps. 5,419 million in the same period of 2023 [9][46] Financial Costs and Income Taxes - Comprehensive financial cost shifted to a net income of Ps. 2,809 million in the first half of 2024, compared to an expense of Ps. 1,600 million in the first half of 2023, primarily due to exchange income [15][46] - Income tax expense decreased significantly to Ps. 291 million in the first half of 2024 from Ps. 1,244 million in the first half of 2023 [16][46] Quarterly Performance - In the second quarter of 2024, net sales decreased by 17% to Ps. 8,394 million compared to Ps. 10,122 million in the second quarter of 2023, while shipments of finished steel increased by 6% [21][46] - Cost of sales in the second quarter of 2024 decreased by 15% to Ps. 6,356 million, with gross profit declining by 22% to Ps. 2,038 million [22][23][46] Summary of Key Financial Metrics - For the first half of 2024: - Net sales: Ps. 16,279 million [46] - Gross profit: Ps. 4,047 million [46] - Operating income: Ps. 2,916 million [46] - Net income: Ps. 5,435 million [46] - For the second quarter of 2024: - Net sales: Ps. 8,394 million [46] - Gross profit: Ps. 2,038 million [46] - Operating income: Ps. 1,498 million [42][46]

Financial Performance - Net sales decreased by 38% from Ps. 12,825 million in Q1 2023 to Ps. 7,885 million in Q1 2024, with shipments of finished steel goods down 21%[2] - Gross profit fell by 37% from Ps. 3,207 million in Q1 2023 to Ps. 2,009 million in Q1 2024, maintaining a gross profit margin of 25% for both periods[4] - Operating income decreased by 47% from Ps. 2,678 million in Q1 2023 to Ps. 1,419 million in Q1 2024, with operating income as a percentage of net sales dropping from 21% to 18%[7] - EBITDA declined by 44% from Ps. 2,959 million in Q1 2023 to Ps. 1,668 million in Q1 2024[8] - Net income increased to Ps. 1,456 million in Q1 2024 from Ps. 1,033 million in Q1 2023, reflecting a growth of 41%[12] - Total sales outside of Mexico decreased by 29% to Ps. 3,694 million in Q1 2024 compared to Ps. 5,181 million in Q1 2023[2] - The average sales price per ton of finished steel goods decreased by 22% in Q1 2024 compared to Q1 2023[2] - 1Q'24 sales decreased by 11% compared to 4Q'23, totaling 7,885 million pesos, and decreased by 39% compared to 1Q'23[26] - Gross profit for 1Q'24 was 2,009 million pesos, down 21% from 4Q'23 and down 37% from 1Q'23[26] - Net income increased by 7% in 1Q'24, reaching 1,456 million pesos, compared to 1,365 million pesos in 4Q'23, and up 41% from 1Q'23[26] - Sales outside Mexico rose by 11% in 1Q'24, totaling 3,694 million pesos, while sales in Mexico fell by 24% to 4,191 million pesos[26] - Total sales volume in tons decreased by 11% in 1Q'24, totaling 479 thousand tons, and decreased by 21% compared to 1Q'23[26] Expenses and Costs - General, selling, and administrative expenses rose by 1% from Ps. 587 million in Q1 2023 to Ps. 595 million in Q1 2024, representing 8% of net sales[5] - Selling, general and administrative expenses decreased by 22% in 1Q'24, totaling 595 million pesos, compared to 761 million pesos in 4Q'23[26] - Cost per ton increased by 5% in 1Q'24, reaching 12,267 pesos, compared to 11,720 pesos in 4Q'23, and decreased by 23% from 15,924 pesos in 1Q'23[26] Income Taxes and Financial Costs - Income taxes recorded an expense of Ps. 110 million in Q1 2024, significantly lower than the Ps. 531 million expense in Q1 2023[11] - Comprehensive financial cost improved to a net income of Ps. 147 million in Q1 2024 from a net expense of Ps. 1,116 million in Q1 2023[10] - The company reported a significant reduction in finance costs, which fell to 103,799 thousand pesos from 1,330,552 thousand pesos in the previous year[33] Assets and Equity - Total assets reached $68.68 billion, with current assets at $45.51 billion[29] - Cash and cash equivalents amounted to $24.07 billion, reflecting a strong liquidity position[29] - Total non-current assets were reported at $23.17 billion, indicating a stable asset base[29] - The company holds net receivables of $6.39 billion, showcasing effective credit management[29] - Inventories are valued at $10.68 billion, which is crucial for operational efficiency[29] - The company has $1.40 billion in property, plant, and equipment, essential for production capabilities[29] - Goodwill stands at $1.81 billion, reflecting past acquisitions and market positioning[29] - Total equity increased to $51,308,412 from $50,022,475, reflecting a growth of approximately 2.56%[30] - Retained earnings increased to 44,056,885 thousand pesos by December 31, 2023, up from 39,134,651 thousand pesos at the end of 2022, indicating improved profitability[41] Employee and Shareholder Information - The number of employees increased to 1,404 from 1,414, showing a slight decrease of 0.7%[31] - The total number of executives increased to 55 from 52, reflecting a growth of approximately 5.8%[31] - The company repurchased 36,148,360 shares, up from 36,023,685, reflecting an increase of approximately 0.35%[31] Future Outlook and Strategic Initiatives - Future guidance indicates expected revenue growth of 10% for the next quarter, driven by new product launches[29] - The company plans to expand its market presence through strategic acquisitions in emerging markets[29] - The company continues to focus on strategic growth through potential acquisitions and market expansion in the steel industry[42] Accounting and Reporting Standards - The company operates under International Financial Reporting Standards (IFRS), ensuring transparency and consistency in financial reporting[45] - The company has maintained a consistent approach to accounting policies across its subsidiaries, ensuring alignment in financial reporting practices[44] - The company has adopted IFRS-1 for the preparation of its financial statements, ensuring compliance with international accounting standards[64] Financial Ratios and Position - The company has a total liability of 11,565,763 thousand pesos, with short-term liabilities at 11,564,499 thousand pesos[130] - Current monetary assets are reported at 30,410,707 thousand pesos[130] - The company has current assets to current liabilities ratio of 3.37 times, indicating strong liquidity[134] - Total liabilities to total assets ratio stands at 0.25, which is below the 0.60 threshold[134]

Financial Performance - Net sales decreased by 24% from Ps. 54,159 million in 2022 to Ps. 41,217 million in 2023, with a 21% drop in average sales price[3]. - Shipments of finished steel products decreased by 4% to 2,176 thousand tons in 2023 compared to 2,255 thousand tons in 2022[3]. - Gross profit decreased from Ps. 14,475 million in 2022 to Ps. 10,629 million in 2023, representing 26% of net sales in 2023 compared to 27% in 2022[5]. - Operating income fell by 31% from Ps. 12,091 million in 2022 to Ps. 8,385 million in 2023, accounting for 20% of net sales in 2023[8]. - EBITDA decreased by 29% from Ps. 13,207 million in 2022 to Ps. 9,412 million in 2023[9]. - Net income decreased by 33% from Ps. 7,703 million in 2022 to Ps. 5,186 million in 2023[13]. - Total sales for the year 2023 were Ps. 41,217 million, a decrease of 24% compared to Ps. 54,159 million in 2022[38]. - The cost of sales for 2023 was Ps. 30,588 million, down 23% from Ps. 39,684 million in 2022[38]. - The company recorded a net profit of Ps. 1,365 million in Q4 2023, compared to a net loss of Ps. 334 million in Q4 2022[37]. - EBITDA for Q4 2023 was Ps. 1,914 million, down 18% from Ps. 2,322 million in Q4 2022[34]. - Revenue for the current quarter reached 8,815,349 thousand pesos, a decrease of 13.1% compared to 10,147,374 thousand pesos in the previous year[46]. - Gross profit for the current quarter was 2,532,661 thousand pesos, down from 2,706,412 thousand pesos, reflecting a gross margin of 28.7%[46]. - Operating profit for the current quarter was 1,708,873 thousand pesos, a decline of 16.2% from 2,039,431 thousand pesos in the previous year[46]. - Net profit for the current quarter was 5,179,801 thousand pesos, compared to 1,363,055 thousand pesos in the previous year, indicating a significant increase[48]. - Total comprehensive income for the current quarter was 2,190,042 thousand pesos, compared to a loss of 341,242 thousand pesos in the previous year[48]. Expenses and Costs - Comprehensive financial cost increased to a net expense of Ps. 1,900 million in 2023 from Ps. 1,089 million in 2022[11]. - Selling, general and administrative expenses decreased by 4% from Ps. 2,456 million in 2022 to Ps. 2,348 million in 2023[6]. - Comprehensive financial cost for Q4 2023 was a net expense of Ps. 582 million, significantly reduced from Ps. 1,026 million in Q4 2022[35]. - Income taxes for Q4 2023 were recorded at Ps. 236 million, a substantial decrease from Ps. 1,349 million in Q4 2022[36]. - Finance costs increased to 804,107 thousand pesos in the current quarter from 1,263,722 thousand pesos in the previous year, reflecting a rise in interest expenses[46]. Sales and Market Performance - Total sales outside of Mexico decreased by 31% to Ps. 16,891 million in 2023 compared to Ps. 24,515 million in 2022[3]. - Sales outside Mexico for 2023 were Ps. 16,891 million, a decrease of 31% from Ps. 24,515 million in 2022[38]. - Total domestic sales amounted to $24,325,625, with a volume of 1,181 units sold[150]. - Total foreign sales reached $14,464,882, with a volume of 910 units sold[150]. - The total sales from foreign subsidiaries were $2,426,310, with a volume of 85 units sold[150]. - The total consolidated sales for the quarter were $41,216,817[150]. Assets and Liabilities - Total assets reached $68.02 billion, with current assets at $44.83 billion[41]. - Total liabilities were recorded at $44.82 billion, indicating a significant leverage position[41]. - Total non-current assets were valued at $23.19 billion, with net receivables at $5.79 billion[41]. - The company has $1.08 billion in goodwill, reflecting its acquisitions strategy[41]. - The total equity stood at $23.20 billion, showcasing a strong capital base[41]. - The company has total liabilities amounting to 11,999,456 thousand pesos, with short-term liabilities at 11,884,766 thousand pesos[144]. - The total current and non-current liabilities are reported as 7,749,478 thousand pesos[144]. - Grupo Simec's total liabilities to total assets ratio is 0.26, which is below the 0.60 threshold[147]. - The current assets to current liabilities ratio is 3.29 times, indicating strong liquidity[146]. Shareholder Information - Total equity increased to $50,095,376 from $47,994,376, reflecting a growth of approximately 4.6% year-over-year[42]. - Shares repurchased totaled -4,355,320, slightly higher than -4,266,278 from the previous period[42]. - The company repurchased 36,023,685 shares, an increase from 35,573,326 shares in the previous year[46]. - The company repurchased shares amounting to 89,042 thousand pesos, slightly down from 90,129 thousand pesos in the previous year[53]. - The balance of retained earnings at the end of 2023 was reported at 43,287,744 thousand pesos, reflecting the company's accumulated performance[55]. Future Outlook and Strategy - The company is focusing on market expansion and new product development to drive future growth[41]. - Future guidance indicates a projected revenue growth of 10% year-over-year[41]. - The company plans to invest in new technologies and strategic partnerships to enhance its competitive edge[41]. Compliance and Accounting Practices - The company has maintained a consistent approach to its financial statements under IFRS, ensuring transparency and compliance with international standards[59]. - The company follows the average cost method for inventory valuation, ensuring that the cost does not exceed the market value or net realizable value[83]. - Current income tax is based on fiscal profits, differing from reported profits due to timing differences in tax treatment[102]. - Deferred tax assets and liabilities are recognized for temporary differences, with assets recognized only if future taxable profits are probable[103]. - Earnings per share are calculated by dividing net income attributable to controlling interest by the weighted average of common shares outstanding[104]. - Financial assets are classified into categories based on their nature and purpose, with loans and receivables stated at amortized cost[114]. Currency and Exchange Rates - The exchange rate for the Mexican peso against the U.S. dollar as of December 31, 2023, is 16.8935[79]. - Grupo Simec reported a net balance of 15,965,439 thousand pesos in its monetary foreign currency position as of Q4 2023[144]. Employee and Workforce Information - The number of employees decreased to 1,414 from 1,850 in the previous year, indicating a reduction in workforce[46]. - Employee benefits increased to $185,491 from $169,375, marking an increase of about 9.0%[42].

Exhibit 99.1 PRESS RELEASE 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 GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS OF 2023 GUADALAJARA, MEXICO, October 25, 2023- 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, 2023. Comparative first nine months of 2023 vs. first nine ...

Financial Performance - Net sales decreased by 25% from Ps. 30,579 million in the first half of 2022 to Ps. 22,947 million in the first half of 2023, with shipments down 6% to 1,109 thousand tons[2] - Cost of sales decreased by 22% from Ps. 21,972 million in the first half of 2022 to Ps. 17,128 million in the first half of 2023, representing 75% of net sales in 2023 compared to 72% in 2022[3] - Gross profit fell by 32% from Ps. 8,607 million in the first half of 2022 to Ps. 5,819 million in the first half of 2023, with gross profit as a percentage of net sales at 25%[4] - Operating income decreased by 35% from Ps. 7,479 million in the first half of 2022 to Ps. 4,860 million in the first half of 2023, representing 21% of net sales[7] - EBITDA dropped by 32% from Ps. 8,029 million in the first half of 2022 to Ps. 5,419 million in the first half of 2023[9] - Net income decreased by 67% from Ps. 6,098 million in the first half of 2022 to Ps. 2,019 million in the first half of 2023[13] Quarterly Performance - In the second quarter of 2023, net sales decreased by 21% compared to the first quarter, from Ps. 12,825 million to Ps. 10,122 million[14] - Gross profit for the second quarter of 2023 decreased by 19% to Ps. 2,612 million from Ps. 3,207 million in the first quarter[16] - Net sales in the second quarter of 2023 decreased by 35% compared to the second quarter of 2022, from Ps. 15,547 million to Ps. 10,122 million[28] - Operating income fell to Ps. 2,182 million in Q2 2023, a 47% decrease from Ps. 4,154 million in Q2 2022, with operating income as a percentage of net sales dropping from 27% to 22%[33] - Net income decreased by 73% to Ps. 987 million in Q2 2023 from Ps. 3,604 million in Q2 2022[40] - EBITDA declined to Ps. 2,460 million in Q2 2023, down 44% from Ps. 4,424 million in Q2 2022[36] Financial Costs and Income - Comprehensive financial cost increased significantly to Ps. 1,600 million in the first half of 2023 from Ps. 228 million in the first half of 2022, primarily due to an exchange loss of Ps. 2,009 million[10] - Comprehensive financial cost for Q2 2023 was a net expense of Ps. 484 million, compared to a net income of Ps. 143 million in Q2 2022, driven by an exchange loss of Ps. 703 million[37] - Finance costs increased significantly to 2,048,810 thousand pesos in the current quarter from 282,175 thousand pesos in the previous year, indicating a rise in financial expenses[48] - The company reported a loss on foreign exchange of 2,008,806 thousand pesos in the current quarter, compared to a loss of 227,668 thousand pesos in the previous year[48] Assets and Liabilities - Total assets as of the current quarter were Ps. 66,773,506 thousand, a slight decrease from Ps. 67,632,903 thousand in the previous year[44] - Total liabilities decreased from Ps. 19,638,527 thousand in the previous year to Ps. 17,925,863 thousand in the current quarter[44] - The company has current assets to current liabilities ratio of 3.29 times, indicating strong liquidity[148] - Total liabilities to total assets ratio stands at 0.27, which is below the 0.60 threshold[148] - The company’s total liabilities amount to 11,809,083 thousand pesos, with short-term liabilities at 11,734,344 thousand pesos[143] Equity and Earnings - Net profit attributable to owners of the parent for the current quarter was 2,019,248 thousand pesos, compared to 986,545 thousand pesos in the same quarter last year, marking a 104.5% increase[48] - Basic earnings per share for the current quarter were 4.05 pesos, up from 1.98 pesos in the previous year[48] - Total comprehensive income for the current quarter was 894,083 thousand pesos, compared to 195,669 thousand pesos in the previous year[49] - Retained earnings increased to 38,101,948 thousand pesos from 28,398,482 thousand pesos year-over-year, reflecting a strong accumulation of profits[48] - Total equity attributable to owners of the parent rose to 48,816,595 thousand pesos, up from 47,956,729 thousand pesos in the previous year[48] Operational Insights - The company operates primarily in the manufacture and sale of special bar quality (SBQ) steel products for the automotive and construction industries in Mexico, the USA, and Canada[59] - The number of employees decreased to 1,575 from 1,850 in the previous year, indicating a reduction in workforce[48] - The company has significant investments in property, plant, and equipment, with current investments totaling 1,353,689 thousand pesos[53] Cash Flow and Investments - Net cash flows from operating activities decreased to 456,927 thousand pesos from 3,458,997 thousand pesos year-over-year[53] - Cash and cash equivalents at the end of the period are 20,860,744 thousand pesos, down from 21,546,386 thousand pesos at the beginning of the period[53] - The company reported a net cash outflow from investing activities of 452,122 thousand pesos, slightly higher than the previous year's outflow of 447,931 thousand pesos[53] - The company repurchased shares worth 40,816 thousand pesos during the current period, compared to 38,459 thousand pesos in the previous period[55] Accounting Policies - The company’s financial statements are prepared in accordance with IFRS, with the functional currency being the Mexican peso[80] - Revenue is recognized when risks and benefits of inventories are transferred to customers, typically coinciding with product delivery[137] - Earnings per share are calculated by dividing net income attributable to controlling interest by the weighted average of common shares outstanding[108] - Financial assets are classified into categories based on their nature and purpose, with loans and receivables stated at amortized cost[118] Foreign Exchange and Hedging - The exchange rate for the Mexican peso against the U.S. dollar was 17.1187 as of June 30, 2023, a decrease from 20.1927 on September 30, 2022[82] - The Company uses derivative financial instruments to manage exposure to natural gas price fluctuations, recognizing gains or losses in income unless designated as hedging instruments[131] - The effective portion of changes in the fair value of designated derivatives is recognized in other comprehensive income, while ineffective portions are recognized immediately in income[134] - The Company has discontinued hedge accounting when the hedging relationship is reversed or no longer meets criteria[137]