Grupo Simec(US:SIM)2024-02-28 00:24Financial 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].