Grupo Simec(US:SIM) Prnewswire·2024-07-22 20:46Core 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]