GUADALAJARA, Mexico,
Oct. 28, 2021 /PRNewswire/ --
Grupo Simec, S.A.B. de C.V. (NYSE:
SIM) ("Simec") announced today its results of operations for the
nine-month period ended September 30,
2021.
Comparative first nine months of 2021 vs. first nine months
of 2020
Net Sales
Net sales of the Company increased to
Ps. 42,736 million in the first nine months of 2021 compared to Ps.
25,739 million in the first nine months of 2020. Shipments of
finished steel products increased 6% to 1 million 954 thousand tons
in the first nine months of 2021 compared to 1million 839 thousand
tons in the first nine months of 2020. Total sales outside of
Mexico in the first nine months of
2021 increased 64% to Ps. 21,297 million compared to Ps. 12,993
million in the same period of 2020. Mexican sales increased 68%
from Ps. 12,746 million in the first nine months of 2020 to Ps.
21,439 million in the same period of 2021. The increase in sales
for the first nine months of 2021 is due to an increase in the
average selling price in 56% and with a higher volume of shipments
compared to the first nine months of 2020 (115 thousand tons
equivalent to 6% increase).
Cost of Sales
Cost of sales increased 48% from
Ps. 20,855 million in the first nine months of 2020, to Ps. 30,823
million in the first nine months of 2021. Cost of sales as a
percentage of net sales represented 72% in the first nine months of
2021 while in the first nine months of 2020 represented 81%. Cost
of sales by steel ton increased approximately 39% in the first nine
months of 2021 over the same period of 2020 due to a higher price
in inputs. Mainly steel scrap.
Gross Profit
Gross profit of the Company for
the first nine months of 2021 increased 144% from Ps. 4,884 million
in the first nine months of 2020, to Ps. 11,913 million in the
first nine months of 2021. Marginal profit as percentage of net
sales in the first nine months of 2021 was of 28% while in the
first nine months of 2020 was of 19%. The increase in gross profit
is due to a better average sale price and a higher volume
shipped.
General, Selling and Administrative
Expense
Selling, general and administrative expenses
increased 13%, to Ps. 1,492 million in the first nine months of
2021 from Ps. 1,316 million in the same period of 2020, selling,
general and administrative expenses represented 3% to the 2021 and
5% to the 2020 of the net sales for both periods.
Other Income (Expenses,) net
The Company
recorded other expenses net for Ps. 50 million during the first
nine months of 2021 while in the same period of 2020 the other
income net by this concept was of Ps. 216 million.
Operating Income
Operating income increased
174% to Ps. 10,371 million for the first nine months of 2021
compared to Ps. 3,784 million in the first nine months of 2020.
Operating income as percentage of net sales was 24% in the first
nine months of 2021 and 15% in the same period of 2020. The
increase in operating income is due to a better average price and a
higher volume shipped during the nine months ended September 30, 2021 compared to the same period in
2020.
Ebitda
The Ebitda increased 137%, from Ps.
4,742 million in the first nine months of 2020 as a result of a net
income of Ps. 3,463 million, less minority stake of Ps. 3 million,
plus income taxes of Ps. 1,303 million, less comprehensive
financial cost of Ps. 979 million, plus depreciation of Ps. 958
million to Ps 11,257 million in the same period of 2021 as a result
of a net income of Ps. 8,290 million, plus minority stake of Ps. 1
million, plus income taxes of Ps. 2,305 million, less comprehensive
financial cost of Ps. 225 million, plus depreciation of Ps.
886.
|
Consolidated
|
|
|
|
Million
|
|
Comparative first
nine months of 2021 vs first nine months of 2020,
|
|
|
2021
|
|
|
2020
|
|
Net income (loss)
attributable to Vale's stockholders
|
|
|
8,290
|
|
|
|
3,463
|
|
Loss attributable to
noncontrolling interests
|
|
|
1
|
|
|
|
(3)
|
|
Net income
(loss)
|
|
|
8,291
|
|
|
|
(3,460)
|
|
Depreciation,
depletion and amortization
|
|
|
886
|
|
|
|
958
|
|
Income
taxes
|
|
|
2,305
|
|
|
|
1,303
|
|
Financial results
income (loss)
|
|
|
(225)
|
|
|
|
(979)
|
|
EBITDA
|
|
|
11,257
|
|
|
|
4,742
|
|
|
|
|
|
|
|
|
|
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
|
|
|
11,257
|
|
|
|
4,742
|
Comprehensive Financial Cost
Comprehensive
financial cost for the first nine months of 2021 represented an
income of Ps. 225 million compared with an income of Ps. 979
million for the first nine months of 2020. The net interest expense
was of Ps. 35 million for the first nine months of 2021, compared
with a net interest income of Ps. 39 million in the same period of
2020. Likewise, we record an exchange income of Ps. 260 million in
the first nine months of 2021 compared with an exchange income of
Ps. 940 million in the first nine months of 2020 due to the
increased slip in the exchange rate of the Ps. against the dollar
of 2.82% in the first nine months of 2021.
Income Taxes
The Company recorded an expense of
Ps.2,305 million for the net income tax during the first nine
months of 2021, (includes a deferred expense tax of Ps. 97 million)
compared with an expense of Ps. 1,303 million of income tax for the
first nine months of 2020 (includes a deferred expense tax of Ps.
15 million).
Net Income
As a result of the foregoing, the
Company recorded an increase in net income of 139% to pass of Ps.
3,463 million in the first nine months of 2020 to Ps. 8,290 million
of the same periods of 2021.
Liquidity and Capital Resources
At September 30, 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. 6.2 million
(accrued interest on September 30,
2021 was U.S. $ 664,000, or
Ps. 13.6 million). At 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. 6.0 million (accrued interest on
December 31, 2020 was U.S.
$ 640,000, or Ps. 12.8 million).
Comparative third quarter of 2021 vs. second quarter of
2021
Net Sales
Net sales of the Company
decreased to pass of Ps. 15,258 million during the second quarter
of 2021 to Ps. 14,122 million in the third quarter of 2021.
Shipments of finished steel products decreased to 585 thousand tons
in the third quarter of 2021 from 687 thousand tons in the second
quarter of the same year. Total sales outside of Mexico in the third quarter of 2021 decreased
12% to get to Ps. 7,767 million compared to Ps. 6,838 million of
the second quarter of the same year. Mexican sales in the third
quarter of 2021 decreased to Ps. 7,284 million compared to Ps.
7,491 million in the second quarter of the same year. The average
selling price increased 9% in the third quarter of 2021 compared to
the second quarter of the same year.
Cost of Sales
Cost of sales decreased to P s.
9,913 million in the third quarter of 2021 from
Ps.10,854 million in the second quarter of 2021. Cost of sales
as a percentage of net sales represented 70% in the third quarter
of 2021 and 71% in the second quarter of the same year. The cost of
sales by ton increase 7% in the third quarter of 2021 compared to
the second quarter of the same year, due mainly to a increase of
some supplies for the manufacture of steel.
Gross Profit
Gross profit of the Company for
the third quarter of 2021 decreased 4% to pass of Ps. 4,404 million
in the second quarter of 2021 to Ps. 4,209 million in the third
quarter of same year. Gross profit as a percentage of net sales in
the third quarter of 2021 was of 30% compared to 29% in the second
quarter of the same year. The decreased in the gross profit is due
to the lowest volume shipped in the third quarter compared to the
second quarter of 2021.
General, Selling and Administrative
Expense
Selling, general and administrative expense
remained to of Ps. 509 million in the second quarter of 2021 to Ps.
508 million in the third quarter of the same year, and as
percentage of net sales represented 3% in the second quarter and 4%
in the third quarter of the same year.
Other (Expenses) Income, net
The Company
recorded other expenses net for Ps. 20 million during the third
quarter of 2021 compared to other expenses net for Ps. 17 million
in the second quarter of 2021.
Operating Income
The Operating income was of
Ps. 3,681 million in the third quarter of 2021 compared to Ps.
3,878 million in the second quarter of the same year. Operating
income as percentage of net sales represented 26% for the third
quarter of 2021 and 25% for the second quarter of 2021.
Ebitda
The Ebitda show an decrease of 5%, to
pass of 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 to Ps. 3,974 million in the third quarter of the same year
as a result of a net income of Ps. 3,313 million, plus income taxes
of Ps. 674 million, less comprehensive financial cost of Ps. 306
million, plus depreciation of Ps. 293 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative third
quarter of 2021 vs second quarter of 2021,
|
|
|
Third quarter
2021
|
|
|
Second quarter
2021
|
|
Net income (loss)
attributable to Vale's stockholders
|
|
|
3,313
|
|
|
|
2,333
|
|
Loss attributable to
noncontrolling interests
|
|
|
|
|
|
|
1
|
|
Net income
(loss)
|
|
|
3,313
|
|
|
|
2,334
|
|
Depreciation,
depletion and amortization
|
|
|
293
|
|
|
|
292
|
|
Income
taxes
|
|
|
674
|
|
|
|
1,240
|
|
Financial results
income (loss)
|
|
|
(306)
|
|
|
|
304
|
|
EBITDA
|
|
|
3,974
|
|
|
|
4,170
|
|
|
|
|
|
|
|
|
|
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
|
|
|
3,974
|
|
|
|
4,170
|
Comprehensive Financial Cost
Comprehensive financial cost of the Company in the third quarter of
2021 represented an income of Ps. 306 million compared with an
expense of Ps. 304 million for the second quarter of 2021. The
comprehensive financial cost is comprised for: the net interest
expense of Ps. 9 million in the third quarter of 2021 compared to
net interest expense of 9 million in the second quarter of the same
year. Also, we record a net exchange income of Ps. 315 million in
the third quarter of 2021 compared a net exchange loss of Ps. 295
million in the second quarter of the same year.
Income Taxes
The Company have been recorded Ps.
674 million of expense tax during the third quarter of 2021,
(includes a deferred expense tax of Ps. 75 million) compared with
the Ps. 1,240 million of expense for the second quarter of the same
year, (includes a deferred expense tax of Ps. 30 million).
Net Income
As a result of the foregoing, the
Company recorded a net income of Ps. 3,313 million in the third
quarter of 2021 compared to a net income of Ps. 2,333 million for
the second quarter of 2021.
Comparative third quarter of 2021 vs. third quarter of
2020
Net Sales
Net sales of the Company
increased 46% from Ps. 9,643 million during the third quarter of
2020 to Ps. 14,122 million in the third quarter of 2021. Sales in
tons of finished steel decreased to 585 thousand tons in the third
quarter of 2021 from 676 thousand tons in the third quarter of
2020. Sales outside of Mexico
increased 42% from Ps. 4,824 million in the third quarter of 2020
to Ps. 6,838 million in the third quarter of 2021. Mexican sales
increased 51% from Ps. 4,819 million in the third quarter of 2020
to Ps. 7,284 million in the third quarter of 2021. The average
sales price increased approximately 69% in the third quarter of
2021, compared to the same period of 2020.
Cost of Sales
Cost of sales increased 29% in
the third quarter of 2021 compared to the third quarter of 2020
from Ps. 7,682 million in the third quarter of 2020 to Ps. 9,913
million in the third quarter of 2021. With respect to sales, the
cost of sales of the third quarter of 2020 represented 80% compared
to 70% for the third quarter of 2021. The average cost of raw
materials used to produce steel products increased in 49%, due to
an increase of raw materials prices. Mainly steel scrap.
Gross (Loss) Profit
Gross profit of the Company
for the third quarter of 2021 increased 115% from Ps. 1,961 million
in the third quarter of 2020 compared to Ps. 4,209 million in the
third quarter of 2021. Gross profit as a percentage of net sales
for the third quarter of 2021 was 30% compared to 20% of the third
quarter of 2020. The increase in gross profit is due to a better
average sales price.
General, Selling and Administrative Expense
The
selling, general and administrative expense increased 13% in the
third quarter of 2021 to Ps. 508 million in the third quarter of
2021 from Ps. 449 million in the third quarter of 2020. Selling,
general and administrative expense as a percentage of net sales
represented 4% in the third quarter of 2021 and 5% in the third
quarter of 2020.
Other Income (Expenses), net
The company
recorded other expense net of Ps. 20 million in the third quarter
of 2021 compared with other income net of Ps. 56 million for the
third quarter of 2020.
Operating (Loss) Income
Operating income
increased from Ps. 1,568 million in the third quarter of 2020
compared to Ps. 3,681 million in the third quarter of 2021, this
represent 135% of increase between both quarters. The operating
income as a percentage of net sales was 26% for the third quarter
of 2021 compared to 16% for the third quarter of 2020. The increase
in the operating income is due to higher average price.
Ebitda
The Ebitda of the Company increased 110%
from Ps 1,891 million in the third quarter of 2020 as a result of a
net income of Ps. 1,003 million, less minority stake of Ps. 1
million, plus income taxes of Ps. 352 million, plus comprehensive
financial cost of Ps. 214 million, plus depreciation of Ps. 323
million to Ps. 3,974 million of the same period of 2021, as a
result of a net income of Ps. 3,313 million, plus income taxes of
Ps. 674 million, less comprehensive financial cost of Ps. 306
million, plus depreciation of Ps. 293 million.
|
Consolidated
|
|
|
|
Million
|
|
Comparative third
quarter of 2021 vs third quarter of 2020,
|
|
|
Third quarter
2021
|
|
|
Third quarter
2020
|
|
Net income (loss)
attributable to Vale's stockholders
|
|
|
3,313
|
|
|
|
1,003
|
|
Loss attributable to
noncontrolling interests
|
|
|
|
|
|
|
(1)
|
|
Net income
(loss)
|
|
|
3,313
|
|
|
|
1,002
|
|
Depreciation,
depletion and amortization
|
|
|
293
|
|
|
|
323
|
|
Income
taxes
|
|
|
674
|
|
|
|
352
|
|
Financial results
income (loss)
|
|
|
(306)
|
|
|
|
214
|
|
EBITDA
|
|
|
3,974
|
|
|
|
1,891
|
|
|
|
|
|
|
|
|
|
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
|
|
|
3,974
|
|
|
|
1,891
|
Comprehensive Financial Cost
Comprehensive financial cost of the Company for the third quarter
of 2021 represented a net income of Ps. 306 million compared with
an expense of Ps. 214 million for the third quarter of 2020. The
comprehensive financial cost is comprised for: the net interest
expense of Ps. 6 million in the third quarter of 2020, compared to
a net interest expense of Ps. 9 million for the same period of
2021. Also record an exchange loss of Ps. 208 million in the third
quarter of 2020 and an exchange income of Ps. 315 million in the
third quarter of 2021.
Income Taxes
The company recorded an expense
tax for Ps. 674 million in the third quarter of 2021, (includes a
deferred expense tax of Ps. 75 million) compared to an expense tax
of Ps. 352 million for the third quarter of 2020, (includes an
accrual of deferred income tax of Ps. 18 million).
Net Income (Loss)
As a result of the foregoing,
the Company recorded a net income of Ps. 3,313 million in the third
quarter of 2021 compared to a net income of Ps. 1,003 million for
the same period of 2020.
|
(millions of
pesos)
|
Jan - Sep
'21
|
|
Jan - Sep
'20
|
|
Year 21 vs
'20
|
|
Sales
|
42,736
|
|
25,739
|
|
66%
|
|
Cost of
Sales
|
30,823
|
|
20,855
|
|
48%
|
|
Gross
Profit
|
11,913
|
|
4,884
|
|
144%
|
|
Selling, General and
Administrative Expense
|
1,492
|
|
1,316
|
|
13%
|
|
Other Income
(Expenses), net
|
(50)
|
|
216
|
|
(123%)
|
|
Operating
Profit
|
10,371
|
|
3,784
|
|
174%
|
|
EBITDA
|
11,257
|
|
4,742
|
|
137%
|
|
Net
income
|
8,290
|
|
3,463
|
|
139%
|
|
Sales Outside
Mexico
|
21,297
|
|
12,993
|
|
64%
|
|
Sales in
Mexico
|
21,439
|
|
12,746
|
|
68%
|
|
Total Sales
(Tons)
|
1,954
|
|
1,839
|
|
6%
|
|
Cost by
ton
|
15,774
|
|
11,340
|
|
39%
|
|
Quarter
|
|
|
|
|
|
|
(millions of
pesos)
|
3Q'21
|
2Q
'21
|
3Q
'20
|
3Q´21vs
2Q´21
|
3Q´21 vs
3Q '20
|
|
Sales
|
14,122
|
15,258
|
9,643
|
(7%)
|
46%
|
|
Cost of
Sales
|
9,913
|
10,854
|
7,682
|
(9%)
|
29%
|
|
Gross
Profit
|
4,209
|
4,404
|
1,961
|
(4%)
|
115%
|
|
Selling, General and
Adm. Expenses
|
508
|
509
|
449
|
0%
|
13%
|
|
Other Income
(Expenses), net
|
(20)
|
(17)
|
56
|
18%
|
(136%)
|
|
Operating
Profit
|
3,681
|
3,878
|
1,568
|
(5%)
|
135%
|
|
EBITDA
|
3,974
|
4,170
|
1,891
|
(5%)
|
110%
|
|
Net Income
|
3,313
|
2,333
|
1,003
|
42%
|
230%
|
|
Sales Outside
Mexico
|
6,838
|
7,767
|
4,824
|
(12%)
|
42%
|
|
Sales in
Mexico
|
7,284
|
7,491
|
4,819
|
(3%)
|
51%
|
|
Total Sales
(Tons)
|
585
|
687
|
676
|
(15%)
|
(13%)
|
|
Cost per
Tons
|
16,945
|
15,799
|
11,364
|
7%
|
49%
|
|
Product
|
Thousands of
Tons
Jan-Sep
2021
|
Millions of
Pesos Jan-Sep
2021
|
Average Price per
Ton
Jan-Sep
2021
|
Thousands of
Tons
Jan – Sep
2020
|
Millions of
Pesos Jan- Sep 2020
|
Average Price per
Ton
Jan-Sep
2020
|
|
Special
Profiles
|
714
|
17,116
|
23,972
|
571
|
9,695
|
16,979
|
|
Commercial
Profiles
|
1,240
|
25,620
|
20,661
|
1,268
|
16,044
|
12,653
|
|
Total
|
1,954
|
42,736
|
21,871
|
1,839
|
25,739
|
13,996
|
|
Product
|
Thousands of
Tons
Jul-Sep
2021
|
Millions of
Pesos Jul-Sep 2021
|
Average Price per
Ton
Jul-Sep
2021
|
Thousands of
Tons
Apr-Jun
2021
|
Millions of
Pesos Apr-Jun
2021
|
Average Price per
Ton
Apr-Jun
2021
|
Thousands of
Tons
Jul-Sep
2020
|
Millions of
Pesos
Jul-Sep 2020
|
Average Price per
Ton
Jul-Sep
2020
|
|
Special
Profiles
|
225
|
5,976
|
26,560
|
242
|
5,900
|
24,380
|
215
|
3,551
|
16,516
|
|
Commercial
Profiles
|
360
|
8,146
|
22,628
|
445
|
9,358
|
21,029
|
461
|
6,092
|
13,215
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
585
|
14,122
|
24,140
|
687
|
15,258
|
22,210
|
676
|
9,643
|
14,265
|
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-nine-months-of-2021-301411283.html
SOURCE Grupo Simec, S.A.B. de
C.V.