Grupo Simec(US:SIM)2024-07-23 01:57Financial Performance - Net sales decreased by 24% from Ps. 54,159 million in 2022 to Ps. 41,139 million in 2023, with a 21% drop in average sales price and a 4% decrease in shipments of finished steel products [3]. - Gross profit fell to Ps. 10,039 million in 2023, down 31% from Ps. 14,475 million in 2022, representing 24% of net sales compared to 27% in the previous year [5]. - Operating income decreased by 37% from Ps. 12,091 million in 2022 to Ps. 7,603 million in 2023, accounting for 18% of net sales versus 22% in 2022 [8]. - EBITDA declined by 35% from Ps. 13,207 million in 2022 to Ps. 8,638 million in 2023 [9]. - Net income decreased by 44% from Ps. 7,703 million in 2022 to Ps. 4,283 million in 2023 [13]. - Total sales for the year 2023 were Ps. 41,139 million, down 24% from Ps. 54,159 million in 2022 [37]. - The cost of sales for 2023 was Ps. 31,100 million, a reduction of 22% compared to Ps. 39,684 million in 2022 [37]. - The company reported a net profit of Ps. 462 million in Q4 2023, compared to a net loss of Ps. 334 million in Q4 2022 [36]. - EBITDA for Q4 2023 was Ps. 1,140 million, a decrease of 51% from Ps. 2,322 million in Q4 2022 [33]. - Net income for the period was $4,282,906, a decrease of 44.7% compared to $7,703,466 in the previous year [41]. - Total comprehensive income for the current year was 1,900,131 thousand pesos, compared to 6,121,977 thousand pesos in the previous year [48]. Sales and Revenue - Total sales outside of Mexico dropped by 31% to Ps. 16,814 million in 2023, while total sales in Mexico decreased by 18% to Ps. 24,325 million [3]. - Sales in Mexico for 2023 were Ps. 24,325 million, down 18% from Ps. 29,644 million in 2022 [37]. - Total domestic sales amounted to $24,324,933, with 1,181 units sold [151]. - Total foreign sales reached $14,350,351, with 910 units sold [151]. - The total sales volume across all categories was 2,176 units, generating $41,139,248 in revenue [151]. Expenses and Costs - Selling, general and administrative expenses decreased by 6% from Ps. 2,456 million in 2022 to Ps. 2,317 million in 2023, representing 6% of net sales [6]. - Comprehensive financial cost increased to a net expense of Ps. 1,588 million in 2023 from Ps. 1,089 million in 2022, with a net exchange loss of Ps. 2,431 million [11]. - The average cost of finished steel produced decreased by 19% in 2023 compared to 2022, primarily due to lower scrap costs and supply expenses [4]. - The company recorded other net expenses of Ps. 119 million in 2023, compared to other net income of Ps. 72 million in 2022 [7]. - The company reported a foreign currency translation loss of $(2,628,704) compared to a gain of $30,825 in the previous year [41]. Assets and Liabilities - Total assets amounted to 66,787.67 million pesos, with current assets at 43,553.88 million pesos [40]. - Cash and cash equivalents were reported at 23,584.43 million pesos, while short-term investments were at 0 [40]. - Total non-current assets reached 23,233.73 million pesos, with accounts receivable net at 0 [40]. - The company reported total liabilities of 0, indicating a strong balance sheet position [40]. - The total current liabilities amounted to $12,970,871, with a significant portion attributed to trade payables of $7,443,322 [41]. - The company has no non-current liabilities reported, indicating a focus on short-term financial management [145]. Equity and Shareholder Information - Total equity increased to $49,805,465, up from $47,994,376, reflecting a growth of approximately 3.77% year-over-year [41]. - Retained earnings increased to $38,101,948 from $28,398,482, representing a growth of 34.2% [41]. - The company repurchased 36,023,685 shares, up from 35,573,326 shares, reflecting an increase of 1.25% [42]. - The company reported a foreign currency translation loss of 2,663,542 thousand pesos for the current year [48]. - The company has 497,709,214 shares representing its capital stock [154]. Operational Efficiency - The company has current assets to current liabilities ratio of 3.37 times, indicating strong liquidity [148]. - Total liabilities to total assets ratio stands at 0.19, which is below the 0.60 threshold [148]. - Operating income plus non-cash items is 5,618.84 times, demonstrating robust operational efficiency [148]. Compliance and Reporting Standards - The company operates under International Financial Reporting Standards (IFRS), ensuring compliance with global accounting standards [61]. - The financial statements are prepared on a historical cost basis, with certain financial instruments valued at fair value [63]. - The company has made adjustments to its financial statements to align with IFRS requirements, reflecting a commitment to transparency and accuracy [59]. - The company follows IFRS for financial reporting, with early adoption of IFRS-1 for foreign subsidiaries [80]. Employee and Benefit Information - Employee benefits rose to $185,174, compared to $169,375 in the previous year, indicating an increase of 9.4% [41]. - The number of employees decreased to 1,414 from 1,850, a decline of 23.5% [42]. Investment and Growth Strategy - The company continues to evaluate its business acquisitions and investments, ensuring that they align with its strategic objectives [67]. - The company has significant investments in associates and joint ventures, with ownership stakes ranging from 99.41% to 100% in various subsidiaries [141].