GUADALAJARA, Mexico, Feb. 27, 2025 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE:SIM) ("Simec") announced today its results of operations for the twelve-month period ended December 31, 2024 and December 31, 2023 Audited.

Twelve-Month Period Ended December 31, 2024 compared to Twelve-Month Period Ended December 31, 2023.

Net Sales

Net sales decreased 18% by the combination of less shipments of finished steel products (6%) and a lower average sales price of 13% compared the same period of 2023, the sales decreased from Ps. 41,139 million in the twelve-month period ended December 31, 2023 to Ps. 33,658 million in the same period of 2024. Shipments of finished steel products decreased 6% to 2 million 056 thousand tons in the twelve-month period ended December 31, 2024 compared to 2 million 176 thousand tons in the same period of 2023. Total sales outside of Mexico on the twelve-month period ended December 31, 2024 decreased 8% to Ps. 15,388 million compared with Ps. 16,814 million in the same period of 2023. Total sales in Mexico decreased 25% from Ps. 24,325 million in the twelve-month period ended December 31, 2023 to Ps. 18,270 million in the same period of 2024.

Cost of Sales

Cost of sales decreased 18% from Ps. 31,100 million in the twelve-month period ended December 31, 2023 to Ps. 25,468 million in the same period of 2024. Cost of sales as a percentage of net sales represented, 76% for both periods 2024 and 2023. The average cost of finished steel produced in the twelve-month period ended December 31, 2024 compared to the same period of 2023 decreased 13% mainly due to lower scrap cost.

Gross Profit

Gross profit of the Company in the twelve-month period ended December 31, 2024 was of Ps. 8,190 million compared to Ps. 10,039 million in the same period of 2023. Gross profit as a percentage of net sales represented 24% for both periods 2024 and 2023.

Operating Expenses

Selling, general and administrative expenses increased 7% from Ps. 2,317 million in the twelve-month period ended December 31, 2023 to Ps. 2,487 million in the same period of 2024. Selling, general and administrative expenses as a percentage of net sales represented 6% during the twelve-month period ended December 31, 2023 and 7% in the same period of 2024.

Other Expenses (Income) net

The company recorded other net expenses of Ps. 119 million in the twelve-month period ended December 31, 2023 compared to other net income of Ps. 127 million in the same period of 2024.

Operating Income

Operating income decreased 23% from Ps. 7,603 million for the twelve-month period ended December 31, 2023 to Ps. 5,830 million in the same period of 2024. Operating income as a percentage of net sales represented 17% and 18% for the 2024 and 2023 periods respectively.

EBITDA

The EBITDA of the Company decreased 21% from Ps. 8,638 million in the twelve-month prior ended December 31, of 2023, (result of a net income of Ps. 4,283, less minority stake of Ps. 8 million, plus income taxes of Ps. 1,740 million, plus comprehensive financial cost of Ps. 1,588 million, plus depreciation of Ps. 1,035 million), to Ps. 6,864 million in the same period of 2024 (result a net income of Ps. 11,475, less minority stake of Ps. 2 million, plus income taxes of Ps. 987 million, less comprehensive financial income of Ps. 6,630 million, plus depreciation of 1,034 million).

Consolidated
Million	Twelve-month period ended December 31,
	2024		2023
Net income (loss)		11,475		4,283
Loss attributable to noncontrolling interests		(2)		(8)
Net income (loss)		11,473		4,275
Depreciation and amortization		1,034		1,035
Income taxes		987		1,740
Financial results (income) loss		(6,630)		1,588
EBITDA		6,864		8,638

Items to reconciled adjusted EBITDA
Equity results and other results in associates and joint ventures		0		0
Dividends received and interest from associates and joint ventures (i)		0		0
Impairment and disposal of non-current assets		0		0
Adjusted EBITDA		6,864		8,638

Comprehensive Financial Cost

Comprehensive financial cost in the twelve-month period ended December 31, 2024 represented a net income of Ps. 6,630 million compared with a net expense of Ps. 1,588 million in the same period of 2023. The net interest was an income of Ps. 1,612 million in 2024 compared with a net income of Ps. 778 million in the twelve-month period ended December 31, 2023. As a result, we registered a net exchange income of Ps. 4,950 million in the twelve-month period ended December 31, 2024 compared with a net exchange loss of Ps. 2,431 million in the same period of 2023, net other financial income was recorded for Ps. 68 million for the period 2024 compared to the Ps. 65 million of other financial income for the period 2023.

Income Taxes

The Company recorded an expense net tax of Ps. 987 million in the twelve-month period ended December 31, 2024 (including the income of deferred tax of Ps. 370 million) compared with a net expense tax of Ps. 1,740 million in the same period of 2023 (including the tax deferred expense of Ps. 45 million).

Net Income (loss)

As a result of the foregoing, net income increased by 168% from Ps. 4,283 million net profits in the twelve-month period ended December 31, 2023 to Ps. 11,475 million of net income in the same period of 2024.

Liquidity and Capital Resources

As of December 31, 2024, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 6.2 million (accrued interest on December 31, 2024 was U.S. $841,577 or Ps. 17.3 million). As of December 31, 2023, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.1 million (accrued interest on December 31, 2023 was U.S. $812,916, or Ps. 13.7 million).

Comparative fourth quarter 2024 vs third quarter 2024

Net Sales

Net sales increased from Ps. 8,549 million in the third quarter of 2024 to Ps. 8,830 million for the fourth quarter of 2024. Sales in tons remained stable from 521 thousand ton in the third quarter of 2024 to 520 thousand ton in the fourth quarter of the same period. Total sales outside of Mexico for the fourth quarter of 2024 increased 19% from Ps. 3,691 million in the third quarter to Ps. 4,410 million in the four quarter of 2024. Sales in Mexico decreased 9% to Ps. 4,420 million in the fourth quarter of 2024 compared Ps. 4,858 million in the third quarter of 2024. Prices of finished products sold in the fourth quarter of 2024 increased 3% compared with the third quarter of the same period.

Cost of Sales

Cost of sales increased to Ps. 6,843 million in the fourth quarter of 2024 compared to Ps. 6,393 million for the third quarter of 2024. With respect to sales, in the fourth quarter of 2024, the cost of sales represented 77% in the fourth quarter of 2024, compared to 75% in the third quarter of the same period. The average cost of sales by ton increase of 7% in the fourth quarter of 2024 versus the third quarter of 2024.

Gross Profit

Gross profit of the Company for the fourth quarter of 2024 decreased 8% to Ps. 1,987 million compared to Ps. 2,156 million in the third quarter of 2024. The gross profit as a percentage of net sales for the third and fourth quarter of 2024 was of 25% and 23% respectively.

Operating Expenses

Selling, general and administrative expenses decreased 1% to Ps. 654 million in the fourth quarter of 2024 compared to Ps. 658 million for the third quarter of 2024. Selling, general and administrative expenses as a percentage of net sales for the third quarter of 2024 was of 8% compared to 7% in the fourth quarter 2024.

Other Expenses (Income) net

The company recorded other net income of Ps. 56 million in the fourth quarter of 2024 compared to other net income of Ps. 26 million for the third quarter of 2024.

Operating (Loss) Income

Operating income was of Ps. 1,389 million in the fourth quarter of 2024 compared to an operating income of Ps. 1,524 million in the third quarter of 2024. The operating income as a percentage of net sales represented 16% y 18% for the fourth quarter and third quarter of 2024 respectively.

EBITDA

The EBITDA was Ps. 1,776 million in the third quarter of 2024 (result a net income of Ps. 3,152 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 471 million, less comprehensive financial income of Ps. 2,098 million, plus depreciation of Ps. 252 million), compared to Ps. 1,673 million for the fourth quarter of 2024, (result of net income of Ps. 2,888 million, plus income taxes of Ps. 225 million, less comprehensive financial income of Ps. 1,724 million, plus depreciation of Ps. 284 million).

Consolidated
Million	Comparative fourth quarter vs third quarter 2024
	4Q 2024		3Q 2024
Net income (loss)		2,888		3,152
Loss attributable to noncontrolling interests		0		(1)
Net income (loss)		2,888		3,151
Depreciation and Amortization		284		252
Income taxes		225		471
Financial results (income) loss		(1,724)		(2,098)
EBITDA		1,673		1,776

Items to reconciled adjusted EBITDA
Equity results and other results in associates and joint ventures		0		0
Dividends received and interest from associates and joint ventures (i)		0		0
Impairment and disposal of non-current assets		0		0
Adjusted EBITDA		1,673		1,776

Comprehensive Financial Income (Cost)

Comprehensive financial income for the fourth quarter for 2024 was a net income of Ps. 1,724 million compared with a net income of Ps. 2,098 million for the third quarter of 2024. The net interest income the fourth quarter was Ps. 548 million compared with a net income of Ps. 329 million in the third quarter of 2024. At same time we registered an exchange net profit of Ps. 1,769 million in the third quarter of 2024 compared with an exchange net income of Ps. 1,150 million in the fourth quarter of 2024. Net other financial income was recorded for Ps. 26 million in the fourth quarter of 2024.

Income Taxes

Income Taxes for the third quarter of 2024 had an expense net tax of Ps. 471 million (including an expense tax deferred for Ps. 33 million) compared to an expense of Ps. 225 million for the fourth quarter of 2024, (including an income tax deferred of Ps. 282 million).

Net Income (loss)

As a result of the foregoing, the Company recorded a net income of Ps. 2,888 million in the fourth quarter of 2024 compared to Ps. 3,152 million of net income in the third quarter of 2024.

Comparative fourth quarter 2024 vs fourth quarter 2023

Net Sales

Net sales increased 1% from Ps. 8,738 million for the fourth quarter of 2023 to Ps. 8,830 million for the fourth quarter of 2024. Sales in tons of finished steel in the fourth quarter of 2023 were 536 thousand tons versus to 520 thousand tons in the fourth quarter of 2024. Total sales outside of Mexico increased 36% from Ps. 3,243 million for the fourth quarter of 2023 to Ps. 4,410 million in the fourth quarter of 2024. Sales in Mexico decreased 20% from Ps. 5,495 million in the fourth quarter of 2023 to Ps. 4,420 million in the fourth quarter of 2024. The average sales prices of finished products sold in the fourth quarter of 2024 increased 4%, compared to the same period of 2023.

Cost of Sales

Cost of sales increased 1% from Ps. 6,795 million in the fourth quarter of 2023 compared to Ps. 6,843 million for the fourth quarter of 2024. With respect to sales, the cost of sales represented 77% during the fourth quarter of 2024 and 78% during the fourth quarter of 2023. The average cost of steel products increased 4% in the fourth quarter of 2024 versus the fourth quarter of 2023.

Gross Profit

Gross profit for the fourth quarter of 2024 increased 2% from Ps. 1,943 million in the fourth quarter of 2023 compared to Ps. 1,987 million in the fourth quarter of 2024. The gross profit as a percentage of net sales represented 22% for the fourth quarter of 2023 compared to 23% of the fourth quarter of 2024.

Operating Expenses

Selling, general and administrative expenses decreased 10% belong from Ps. 730 million in the fourth quarter of 2023 compared to Ps. 654 million for the fourth quarter of 2024. Selling, general and administrative expenses as a percentage of net sales for the fourth quarter of 2023 was of 8% compared to 7% in the fourth quarter 2024.

Other Expenses (Income) net

The company recorded other expenses net of Ps. 286 million in the fourth quarter of 2023 compared with other income net of Ps. 56 million for the fourth quarter of 2024.

Operating (Loss) Income

Operating income was of Ps. 1,389 million in the fourth quarter of 2024 compared to an operating profit of Ps. 927 million in the fourth quarter of 2023. The operating income as a percentage of net sales in the fourth quarter of 2024 was 16%, compared to an operating income of 11% in the fourth quarter of 2023.

EBITDA

The EBITDA was Ps. 1,140 million in the fourth quarter of 2023 (result of net income of Ps. 462 million, less minority stake of Ps. 4 million, plus income taxes of Ps. 199 million, plus comprehensive financial cost of Ps. 270 million, plus depreciation of Ps. 213 million), compared to EBITDA of Ps 1,673 million in the fourth quarter of 2024 (result of net income of Ps. 2,888 million, plus income taxes of Ps. 225 million, less comprehensive financial income of Ps. 1,724 million, plus depreciation of Ps. 284 million).

Consolidated
Million	Comparative fourth quarter vs fourth quarter
	2024		2023
Net income (loss)		2,888		462
Loss attributable to noncontrolling interests		0		(4)
Net income (loss)		2,888		458
Depreciation and Amortization		284		213
Income taxes		225		199
Financial results (income) loss		(1,724)		270
EBITDA		1,673		1,140

Items to reconciled adjusted EBITDA
Equity results and other results in associates and joint ventures		0		0
Dividends received and interest from associates and joint ventures (i)		0		0
Impairment and disposal of non-current assets		0		0
Adjusted EBITDA		1,673		1,140

Comprehensive Financial Income (Cost)

Comprehensive financial cost for the fourth quarter of 2024 was a net income of Ps. 1,724 million compared with a net expense of Ps 270 million in the fourth quarter of 2023. Net interest income was of Ps. 548 million in the fourth quarter of 2024 compared with a net interest income of Ps. 386 million in the fourth quarter of 2023. At same time we registered a net exchange income of Ps. 1,150 million in the fourth quarter of 2024 compared with an exchange loss of Ps. 677 million in the fourth quarter of 2023. Net other financial income was recorded for Ps. 26 million in the fourth quarter of 2024, compared to the Ps. 21 million of other financial income for the period 2023.

Income Taxes

The Company recorded a net taxes expense for the fourth quarter of 2024 of Ps. 225 million (including an income of deferred tax of Ps. 282 million), compared to a net tax expense of Ps. 199 million for the fourth quarter of 2023, (including a tax deferred expense of Ps. 53 million).

Net Income (loss)

As a result of the foregoing, the Company recorded a net profit of Ps. 2,888 million in the fourth quarter of 2024 compared to Ps. 462 million of net profit in the fourth quarter of 2023.

(million of pesos)	Jan - Dec '24	Jan - Dec '23	Year 24 vs '23
Sales	33,658	41,139	(18 %)
Cost of Sales	25,468	31,100	(18 %)
Gross Profit	8,190	10,039	(18 %)
Selling, General and Administrative Expense	2,487	2,317	7 %
Other Income (Expenses), net	127	(119)	N/C
Operating Profit	5,830	7,603	(23 %)
EBITDA	6,864	8,638	(21 %)
Net income	11,475	4,283	168 %
Sales Outside Mexico	15,388	16,814	(8 %)
Sales in Mexico	18,270	24,325	(25 %)
Total Sales (Tons Thousands)	2,056	2,176	(6 %)
Cost per ton (Pesos)	12,387	14,292	(13 %)

Quarter
(million of pesos)	4Q'24	3Q '24	4Q '23	4Q´24vs 3Q´24	4Q´24 vs 4Q '23
Sales	8,830	8,549	8,738	3 %	1 %
Cost of Sales	6,843	6,393	6,795	7 %	1 %
Gross Profit	1,987	2,156	1,943	(8 %)	2 %
Selling, General and Adm. Expenses	654	658	730	(1 %)	(10 %)
Other Income (Expenses), net	56	26	(286)	115 %	N/C
Operating Profit	1,389	1,524	927	(9 %)	50 %
EBITDA	1,673	1,776	1,140	(6 %)	47 %
Net Income	2,888	3,152	462	(8 %)	525 %
Sales Outside Mexico	4,410	3,691	3,243	19 %	36 %
Sales in Mexico	4,420	4,858	5,495	(9 %)	(20 %)
Total Sales (Tons Thousands)	520	521	536	0 %	(3 %)
Cost per Ton (pesos)	13,160	12,271	12,677	7 %	4 %

Product	Thousands of Tons Jan-Dec 2024	Millions of Pesos Jan-Dec 2024	Average Price per Ton Jan-Dec 2024	Thousands of Tons Jan – Dec 2023	Millions of Pesos Jan- Dec 2023	Average Price per Ton Jan-Dec 2023
Special Bar Quality SBQ	520	10,133	19,487	597	13,139	22,008
Commercial Profiles	1,536	23,525	15,316	1,579	28,000	17,733
Total Tons	2,056	33,658	16,371	2,176	41,139	18,906

Product	Thousands of Tons Oct-Dec 2024	Millions of Pesos Oct-Dec 2024	Average Price per Ton Oct-Dec 2024	Thousands of Tons Jul-Sep 2024	Millions of Pesos Jul-Sep 2024	Average Price per Ton Jul-Sep 2024	Thousands of Tons Oct-Dec 2023	Millions of Pesos Oct-Dec 2023	Average Price per Ton Oct-Dec 2023
Special Bar Quality SBQ	117	2,480	21,197	153	2,939	19,209	153	2,800	18,301
Commercial Profiles	403	6,350	15,757	368	5,610	15,245	383	5,938	15,504
Total Tons	520	8,830	16,981	521	8,549	16,409	536	8,738	16,302

Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.

Contact: José Luis Tinajero

Mario Moreno Cortez

Grupo Simec, S.A.B. de C.V.

Calzada Lázaro Cárdenas 601

44440 Guadalajara, Jalisco, México

52 55 1165 1028

52 33 3770 6734

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SOURCE Grupo Simec, S.A.B. de C.V.

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