GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2024.

Core Insights - Grupo Simec reported a significant decrease in net sales by 18% for the twelve-month period ended December 31, 2024, compared to the same period in 2023, primarily due to reduced shipments and lower average sales prices [2][39] - Despite the decline in sales, the company achieved a remarkable increase in net income by 168%, rising from Ps. 4,283 million in 2023 to Ps. 11,475 million in 2024 [13][39] Financial Performance - Net Sales: Decreased from Ps. 41,139 million in 2023 to Ps. 33,658 million in 2024, with a 6% drop in shipments and a 13% decline in average sales price [2][39] - Cost of Sales: Reduced by 18% from Ps. 31,100 million in 2023 to Ps. 25,468 million in 2024, maintaining a consistent cost of sales percentage at 76% for both years [3][39] - Gross Profit: Declined from Ps. 10,039 million in 2023 to Ps. 8,190 million in 2024, with gross profit as a percentage of net sales remaining at 24% [4][39] - Operating Expenses: Increased by 7% from Ps. 2,317 million in 2023 to Ps. 2,487 million in 2024, with operating expenses as a percentage of net sales rising from 6% to 7% [5][39] - Operating Income: Decreased by 23% from Ps. 7,603 million in 2023 to Ps. 5,830 million in 2024, with operating income as a percentage of net sales at 17% for 2024 compared to 18% for 2023 [7][39] - EBITDA: Fell by 21% from Ps. 8,638 million in 2023 to Ps. 6,864 million in 2024 [8][39] Other Financial Metrics - Comprehensive Financial Cost: Shifted from a net expense of Ps. 1,588 million in 2023 to a net income of Ps. 6,630 million in 2024, driven by improved net interest income and a significant net exchange income [11][39] - Income Taxes: Tax expense decreased from Ps. 1,740 million in 2023 to Ps. 987 million in 2024, reflecting a deferred tax income of Ps. 370 million in 2024 [12][39] - Liquidity and Capital Resources: Total consolidated debt remained stable, with medium-term notes due 1998 and accrued interest showing slight variations between 2023 and 2024 [14][39] Quarterly Performance - Fourth Quarter 2024 vs. Third Quarter 2024: Net sales increased from Ps. 8,549 million to Ps. 8,830 million, with total sales outside Mexico rising by 19% [15][26] - Fourth Quarter 2024 vs. Fourth Quarter 2023: Net sales increased by 1% from Ps. 8,738 million to Ps. 8,830 million, while sales in Mexico decreased by 20% [26][38] - Operating Income: Improved from Ps. 927 million in Q4 2023 to Ps. 1,389 million in Q4 2024, with operating income as a percentage of net sales rising from 11% to 16% [31][38]