GUADALAJARA, Mexico,
July 13, 2021 /PRNewswire/
-- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced
today its results of operations for the sixth-month period ended
June 30th, 2021.
Comparative first six months of 2021 vs. first six months of
2020
Net Sales
Net sales of the Company increased from Ps. 16,096 million in
the first half of 2020 to Ps. 28,613 million in the first half of
2021. Shipments increased 18% from 1,162 thousand tons in the first
half of 2020 to 1,369 thousand tons in the first half of 2021.
Total sales outside of Mexico in
the first half of 2021 increased 77% to Ps. 14,458 million compared
to Ps. 8,168 million in the first half of 2020. Mexican sales
increased 79% from Ps. 7,928 million in the first half of 2020 to
Ps. 14,155 million in the first half of 2021. Sales increased for
the first half of 2021 compared to the first half of 2020, is due
to the combined of increase in the average sales price of 51% and
increase in the volume of shipments approximately of 207 thousand
tons that represent an 18%.
Cost of Sales
Cost of sales increased 59% from Ps. 13,173 million in the first
half of 2020, to Ps. 20,909 million in the first half of 2021. Cost
of sales as a percentage of net sales represented 73% in the first
half of 2021 while in the first half of 2020 represented 82%. Cost
of sales increased due to mix products and a higher volume of
products shipped.
Gross Profit
Gross profit of the Company for the first half of 2021 increased
164% from Ps. 2,923 million in the first half of 2020, to Ps. 7,704
million in the first half of 2021. Gross profit as percentage of
net sales in the first half of 2021 was of 27%, while in the first
half of 2020 was of 18%. The gross profit between both periods is
given by better mix products shipped and higher average price.
Selling, General and Administrative Expense
Selling, general and administrative expense increased 13%, from
Ps. 867 million in the first half of 2020 to Ps. 984 million in the
same period 2021, selling, general and administrative expense
represented 5% of the net sales in the second quarter of 2020 and
3% in the second quarter of 2021.
Other Income (Expenses,) net
The Company recorded other expense net for Ps. 30 million in the
first half of 2021 million compared to other income Ps. 160 million
in the same period of 2020.
Operating Income
Operating income increased 202% from Ps. 2,216 million for the
first half of 2020 compared to Ps. 6,690 million in the first half
of 2021. Operating income as percentage of net sales was 23% in the
first half of 2021 compared to 14% in the same period of 2020. The
increase in operating profit is mainly due to the mix of products
shipped and higher sales prices.
Ebitda
The Ebitda amounted to Ps. 2,851 million in the first semester
of 2020 as a result of a net income of Ps. 2,460 million, less
minority stake of Ps. 3 million, plus income taxes of Ps. 951
million, less comprehensive financial cost of Ps. 1,193 million,
plus depreciation of Ps. 636 million to Ps 7,283 million in the
first semester of 2021 as a result a net income of Ps. 4,977
million, plus minority stake of Ps. 1 million, plus income taxes of
Ps. 1,631 million, plus comprehensive financial cost of Ps. 81
million, plus depreciation of Ps. 593 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative first
six months of 2021 vs first six months of 2020,
|
|
|
2021
|
|
|
2020
|
|
Net income (loss)
attributable to Vale's stockholders
|
|
|
4,977
|
|
|
|
2,460
|
|
Loss attributable to
noncontrolling interests
|
|
|
1
|
|
|
|
(3)
|
|
Net income
(loss)
|
|
|
4,978
|
|
|
|
2,457
|
|
Depreciation,
depletion and amortization
|
|
|
593
|
|
|
|
636
|
|
Income
taxes
|
|
|
1,631
|
|
|
|
951
|
|
Financial results
income (loss)
|
|
|
81
|
|
|
|
(1,193)
|
|
EBITDA
|
|
|
7,283
|
|
|
|
2,851
|
|
|
|
|
|
|
|
|
|
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
|
|
|
7,283
|
|
|
|
2,851
|
Comprehensive Financial Cost
Comprehensive financial cost for the first half of 2021
represented an expense of Ps. 81 million compared with an income of
Ps. 1,193 million for the first half of 2020. The comprehensive
financial cost is comprised by the exchange loss of Ps. 55 million
in the first half of 2021 compared with an exchange income of Ps.
1,148 million in the first half of 2020. Likewise, the Company
recorded a net expense interest of Ps. 26 million for the first
half of 2021 compared with a net income interest of Ps. 45 million
in 2020.
Income Taxes
The Company recorded an expense of Ps. 1,631 million for the net
income tax during the first half of 2021, (comprised for a current
expense tax of Ps. 1,610 million and expense for deferred tax of
Ps. 21 million) compared with an expense of Ps. 951 million to the
first half of 2020 (comprised for a current expense tax of Ps. 954
million and income for deferred tax of Ps. 3 million).
Net Income
As a result of the foregoing, the Company recorded an increase
in net income of 102% to pass of Ps. 2,460 million in the first
half of 2020 to Ps. 4,977 million in the same period of 2021.
Comparative second quarter of 2021 vs. first quarter of
2021
Net Sales
Net sales of the Company increased 14% in the second quarter of
2021 compared to the first quarter of the same period, to pass of
Ps. 13,355 million during the first quarter of 2021 to Ps. 15,258
million in the second quarter of 2021. Shipments of finished steel
products increased from 682 thousand tons in the first quarter of
2021 to 687 thousand tons in the second quarter of the same year.
Total sales outside of Mexico in
the second quarter of 2021 increased 16% to get to Ps. 7,767
million compared to Ps. 6,691 million of the first quarter of the
same year. Domestic sales increased from Ps. 6,664 million in the
first quarter of 2021 to Ps. 7,491 million in the second quarter of
the same year. The sales increased mainly higher shipped by 5
thousand tons compared with the first quarter that represent a 1%
and an income sales price in 13%.
Cost of Sales
Cost of sales increased 8% from Ps. 10,055 million in the first
quarter of 2021 to Ps. 10,854 million in the second quarter of
2021. Cost of sales as a percentage of net sales represented 75%
for the first quarter of 2021 compared to 71% in the second quarter
of the same year, the average cost of sales by ton record an
increase between both quarters of 7%.
Gross Profit
Gross profit of the Company for the second quarter of 2021
increased 33% to pass of Ps. 3,300 million in the first quarter of
2021 to Ps. 4,404 million in the second quarter of same year. Gross
profit as a percentage of net sales represented 25% for the first
quarter of 2021 compared to 29% in the second quarter of the same
year. The gross profit in the second quarter of 2021 it originates
from a higher average sale.
Selling, General and Administrative Expense
Selling, general and administrative expense increased 7%, from
Ps. 475 million in the first quarter of 2021 to Ps. 509 million in
the second quarter of the same year, and as percentage of net sales
represented 4% in the first quarter of 2021 compared to 3% in the
second quarter of the same year.
Other (Expenses) Income, net
The Company recorded other expenses net for Ps. 17 million
during the second quarter of 2021 compared to other expenses net
for Ps. 13 million in the first quarter of 2021.
Operating Income
Operating income increased 38%, of Ps. 2,812 million in the
first quarter of 2021 compared to Ps. 3,878 million of the second
quarter of the same year. Operating income as percentage of net
sales was 21% for the first quarter of 2021 compared to 25% for the
second quarter of the same year. The operating income is due mainly
to a better average sale price.
Ebitda
The Ebitda amounted to Ps. 3,113 million in the first quarter of
2021 as a result of a net income of Ps. 2,644 million, less
minority stake of Ps. 0 million, plus income taxes of Ps. 391
million, less comprehensive financial cost of Ps. 223 million, plus
depreciation of Ps. 301 million to Ps 4,170 million in the second
quarter of 2021 as a result of a net income of Ps. 2,333 million,
plus minority stake of Ps. 1 million, plus income taxes of Ps.
1,240 million, plus comprehensive financial cost of Ps. 304
million, plus depreciation of Ps. 292 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative second
quarter of 2021 vs first quarter of 2021,
|
|
|
2021
|
|
|
2020
|
|
Net income (loss)
attributable to Vale's stockholders
|
|
|
2,333
|
|
|
|
2,644
|
|
Loss attributable to
noncontrolling interests
|
|
|
1
|
|
|
|
|
|
Net income
(loss)
|
|
|
2,334
|
|
|
|
2,644
|
|
Depreciation,
depletion and amortization
|
|
|
292
|
|
|
|
301
|
|
Income
taxes
|
|
|
1,240
|
|
|
|
391
|
|
Financial results
income (loss)
|
|
|
304
|
|
|
|
(223)
|
|
EBITDA
|
|
|
4,170
|
|
|
|
3,113
|
|
|
|
|
|
|
|
|
|
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
|
|
|
4,170
|
|
|
|
3,113
|
Comprehensive Financial Cost
Comprehensive financial cost of the Company in the second
quarter of 2021 represented an expense of Ps. 304 million compared
with of Ps. 223 million an income for the first quarter of 2021.
The comprehensive financial cost is comprised for the net interest
expense of Ps. 9 million in the second quarter of 2021, while in
the first quarter was a net expense of Ps. 17 million. Likewise, we
recorded a net exchange loss of Ps. 295 million in the second
quarter of 2021 compared a net exchange income Ps. 240 million in
the first quarter of the same year.
Income Taxes
The Company have been recorded an expense of Ps. 1,240 million
of income tax during the second quarter of 2021, (comprised for an
expense by current tax of Ps. 1,210 million and an expense for
deferred tax of Ps. 30 million) compared with the Ps. 391 million
of expense for the first quarter of the same year, (comprised for
an expense by current tax of Ps. 399 million and income for
deferred tax of Ps. 8 million).
Net Income
As a result of the foregoing, the Company recorded a decrease of
12% from a net income of Ps. 2,644 million in the first quarter of
2021 compared to a net income of Ps. 2,333 million for the second
quarter of 2021.
Liquidity and Capital Resources
As of June 30th, 2021, Simec's
total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's")
due 1998, or Ps. 6.0 million (accrued interest on June 30th, 2021 was U.S. $654,000, or Ps. 13.0 million). As of
December 31, 2020, Simec's total
consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's")
due 1998, or Ps. 6.02 million (accrued interest on December 31, 2020 was U.S. $640,000, or Ps. 12.8 million).
Comparative second quarter of 2021 vs. second quarter of
2020
Net Sales
Net sales of the Company increased 101% from Ps. 7,596 million
during the second quarter of 2020 to Ps. 15,258 million in the
second quarter of 2021. Sales in tons of finished steel increased
27% from 540 thousand tons in the second quarter of 2020 compared
with 687 thousand tons in the second quarter of 2021. Sales outside
of Mexico in the second quarter of
2021 increased 91% from Ps. 4,072 million in the second quarter of
2020 to Ps. 7,767 million in the second quarter of 2021. Domestic
sales increased 113% from Ps. 3,524 million in the second quarter
of 2020 to Ps. 7,491 million in the second quarter of 2021. The
increase in sales in the second quarter of 2021 compared to the
second quarter of 2020 is due to an increase in the average sales
price of 58% and a increase in the volume of shipments
approximately of 147 thousand of tons that represents 27%.
Cost of Sales
Cost of sales increased 75% in the second quarter of 2021
compared to the second quarter of 2020 from Ps. 6,213 million in
the second quarter of 2020 to Ps. 10,854 million in the second
quarter of 2021. With respect to sales, the cost of sales of the
second quarter of 2021 represented 71% compared to 82% for the
second quarter of 2020. The average cost of sales by ton of steel
products increased 37% in the second quarter of 2021 versus the
second quarter of 2020, due to the cost of certain raw materials
mainly scrap and electrodes and the volume shipped.
Gross (Loss) Profit
Gross profit of the Company for the second quarter of 2021
amount to Ps. 4,404 million compared to Ps. 1,383 million in the
second quarter of 2020, this represented an increase of 218%
between both periods. Gross profit as a percentage of net sales for
the second quarter of 2021 was 29% compared to 18% of the second
quarter of 2020. The increase in gross profit is mainly due to a
higher average sales price and a higher volume shipped, in the
second quarter of 2021 compared to the second quarter of 2020.
Selling, General and Administrative Expense
The selling, general and administrative expenses increased 17%
in the second quarter of 2021 from Ps. 436 million in the second
quarter of 2020 to Ps. 509 million in the second quarter of 2021.
Selling, general and administrative expense as a percentage of net
sales represented 3% in the second quarter of 2021 compared to 6%
of the second quarter of 2020.
Other Income (Expenses), net
The company recorded other expenses net of Ps. 17 million in the
second quarter of 2021 compared with other income net of Ps. 58
million for the second quarter of 2020.
Operating (Loss) Income
Operating income amounted to Ps. 3.878 million in the second
quarter 2021 compared to Ps. 1.005 million in the second quarter of
2020, this represented 389% of increase between both quarters. The
operating income as a percentage of net sales was 25% for the
second quarter of 2021, compared to 13% of the second quarter of
2020. The increase in operating profit is due to a higher average
sale price.
Ebitda
The Ebitda amounted to Ps. 1,325 million in the second quarter
of 2020 as a result of a net income of Ps. 546 million, less
minority stake of Ps. 16 million, plus income taxes of Ps. 373
million, plus comprehensive financial cost of Ps. 69 million, plus
depreciation of Ps. 321 million to Ps 4,170 million in the second
quarter of 2021 as a result of a net income of Ps. 2,333 million,
plus minority stake of Ps. 1 million, plus income taxes of Ps.
1,240 million, plus comprehensive financial cost of Ps. 304
million, plus depreciation of Ps. 292 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative second
quarter of 2021 vs second quarter of 2020,
|
|
|
2021
|
|
|
2020
|
|
Net income (loss)
attributable to Vale's stockholders
|
|
|
2,333
|
|
|
|
546
|
|
Loss attributable to
noncontrolling interests
|
|
|
1
|
|
|
|
16
|
|
Net income
(loss)
|
|
|
2,334
|
|
|
|
562
|
|
Depreciation,
depletion and amortization
|
|
|
292
|
|
|
|
321
|
|
Income
taxes
|
|
|
1,240
|
|
|
|
373
|
|
Financial results
income (loss)
|
|
|
304
|
|
|
|
69
|
|
EBITDA
|
|
|
4,170
|
|
|
|
1,325
|
|
|
|
|
|
|
|
|
|
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
|
|
|
4,170
|
|
|
|
1,325
|
Comprehensive Financial Cost
Comprehensive financial cost of the Company for the second
quarter of 2021 represented a net expense of Ps. 304 million
compared with a net expense of Ps. 69 million for the second
quarter of 2020. The comprehensive financial cost is comprised for
the net interest expense of Ps. 9 million in the second quarter of
2021, compared to a net interest income of Ps. 1 million for the
same period of 2020. Also record an exchange loss of Ps. 295
million in the second quarter of 2021 and an exchange loss of Ps.
70 million in the second quarter of 2020.
Income Taxes
The company recorded an expense of Ps. 1,240 million of expense
tax in the second quarter of 2021, (comprised by current expense
tax of Ps. 1,210 million and an expense for deferred tax of Ps. 30
million) compared to an expense accrual of Ps. 373 million for
income tax for the second quarter of 2020, (comprised by current
expense tax of Ps. 364 million and an income for deferred tax of
Ps. 9 million).
Net Income (Loss)
As a result of the foregoing, the Company recorded a net income
of Ps. 2,333 million in the second quarter of 2021 compared to Ps.
546 million for the second quarter of 2020, an increase of 327%
between both quarters.
|
(millions of
pesos)
|
1H
'21
|
|
1H
'20
|
|
Year 21 VS
'20
|
|
Sales
|
28,613
|
|
16,096
|
|
78%
|
|
Cost of
Sales
|
20,909
|
|
13,173
|
|
59%
|
|
Gross
Profit
|
7,704
|
|
2,923
|
|
164%
|
|
Selling, General and
Administrative Expense
|
984
|
|
867
|
|
13%
|
|
Other Income
(Expenses), net
|
(30)
|
|
160
|
|
(119%)
|
|
Operating
Profit
|
6,690
|
|
2,216
|
|
202%
|
|
EBITDA
|
7,283
|
|
2,851
|
|
155%
|
|
Net
income
|
4,977
|
|
2,460
|
|
102%
|
|
Sales Outside
Mexico
|
14,458
|
|
8,168
|
|
77%
|
|
Sales in
Mexico
|
14,155
|
|
7,928
|
|
79%
|
|
Total Sales
(Tons)
|
1,369
|
|
1,162
|
|
18%
|
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
2Q'21
|
1Q
'21
|
2Q
'20
|
2Q´21vs
1Q´21
|
2Q´21 vs 2Q
'20
|
|
Sales
|
15,258
|
13,355
|
7,596
|
14%
|
101%
|
|
Cost of
Sales
|
10,854
|
10,055
|
6,213
|
8%
|
75%
|
|
Gross
Profit
|
4,404
|
3,300
|
1,383
|
33%
|
218%
|
|
Selling, General and
Adm. Expenses
|
509
|
475
|
436
|
7%
|
17%
|
|
Other Income
(Expenses), net
|
(17)
|
(13)
|
58
|
31%
|
(129%)
|
|
Operating
Profit
|
3,878
|
2,812
|
1,005
|
38%
|
286%
|
|
EBITDA
|
4,170
|
3,113
|
1,325
|
34%
|
215%
|
|
Net Income
|
2,333
|
2,644
|
546
|
(12%)
|
327%
|
|
Sales Outside
Mexico
|
7,767
|
6,691
|
4,072
|
16%
|
91%
|
|
Sales in
Mexico
|
7,491
|
6,664
|
3,524
|
12%
|
113%
|
|
Total Sales
(Tons)
|
687
|
682
|
540
|
1%
|
27%
|
|
Product
|
Thousands of
Tons
Jan-Jun
2021
|
Millions of
Pesos Jan-Jun 2021
|
Average Price per
Ton
Jan-Jun
2021
|
Thousands of
Tons
Jan – Jun
2020
|
Millions of
Pesos Jan- Jun 2020
|
Average Price per
Ton
Jan-Jun
2020
|
|
Commercial
Profiles
|
880
|
17,473
|
19,856
|
806
|
9,952
|
12,347
|
|
Special
Profiles
|
489
|
11,140
|
22,781
|
356
|
6,144
|
17,258
|
|
|
|
|
|
|
|
|
Total
|
1,369
|
28,613
|
20,901
|
1,162
|
16,096
|
13,852
|
|
|
|
|
|
|
|
|
Product
|
Thousands of
Tons
Apr-Jun
2021
|
Millions of
Pesos Apr-Jun 2021
|
Average Price per
Ton
Apr-Jun
2021
|
Thousands of
Tons
Jan –
Mar
2021
|
Millions of
Pesos Jan- Mar
2021
|
Average Price per
Ton
Jan-Mar
2021
|
Thousands of Tons
Apr-Jun
2020
|
Millions of Pesos
Apr-Jun 2020
|
Average Price per
Ton Apr-Jun
2020
|
|
Commercial
Profiles
|
445
|
9,358
|
21,029
|
435
|
8,114
|
18,653
|
408
|
5,172
|
12,676
|
|
Special
Profiles
|
242
|
5,900
|
24,380
|
247
|
5,241
|
21,219
|
132
|
2,424
|
18,363
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
687
|
15,258
|
22,210
|
682
|
13,355
|
19,582
|
540
|
7,596
|
14,066
|
|
|
|
|
|
|
|
|
|
|
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 1025
52 33 3770 6734
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content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-six-months-of-2021-301333101.html
SOURCE Grupo Simec, S.A.B. de
C.V.