Grupo Simec(US:SIM) Prnewswire·2024-10-29 16:18Core 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]