Grupo Simec Announces Results Of Operations For The Twelve-Month Period Ended December 31, 2020
GUADALAJARA, Mexico, Feb. 9, 2021 /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, 2020 and December 31, 2019.
Twelve-Month Period Ended December 31, 2020 compared to Twelve-Month Period Ended December 31, 2019
Net Sales
Net sales increased 5% by the combination of higher shipments of finished steel products and a higher average sales price by 1% compared the same period of 2019, the sales increased from Ps. 34,171 million in the twelve-month period ended December 31, 2019 to Ps. 35,957 million in the same period of 2020. Shipments of finished steel products increased 4% to 2 million 441 thousand tons in the twelve-month period ended December 31, 2020 compared to 2 million 349 thousand tons in the same period of 2019. Total sales outside of Mexico on the twelve-month period ended December 31, 2020 increased 7% to Ps. 17,871 million compared with Ps. 16,736 million in the same period of 2019. Total sales in Mexico increased 4% from Ps. 17,435 million in the twelve-month period ended December 31, 2019 to Ps. 18,086 million in the same period of 2020. The increase of 5% in sales is due to a higher average sales price and higher volume of shipments.
Cost of Sales
Cost of sales decreased 3% from Ps. 30,067 million in the twelve-month period ended December 31, 2019 to Ps. 29,236 million in the same period of 2020. Cost of sales as a percentage of net sales represented, 81% for 2020 and 2019 88%. The average cost of finished steel produced in the twelve-month period ended December 31, 2020 compared to the same period of 2019 decreased 6% due to higher costs of some supplies at year end.
Gross Profit
Gross profit of the Company in the twelve-month period ended December 31, 2020 was of Ps. 6,721 million compared to Ps. 4,104 million in the same period of 2019. Gross profit as a percentage of net sales represented 19% and 12% for the 2020 and 2019 periods respectively.
Operating Expenses
Selling, general and administrative expenses increased 11% from Ps. 1,637 million in the twelve-month period ended December 31, 2019 to Ps. 1,814 million in the same period of 2020. Selling, general and administrative expenses as a percentage of net sales represented 5% for both periods.
Other Expenses (Income) net
The company recorded other net expenses of Ps. 137 million in the twelve-month period ended December 31, 2019 compared to other net income of Ps. 555 million in the same period of 2020.
Operating Income
Operating income increased 134% from Ps. 2,330 million for the twelve-month period ended December 31, 2019 to Ps. 5,462 million in the same period of 2020. Operating income as a percentage of net sales represented 15% and 7% for the 2020 and 2019 periods respectively.
EBITDA
The EBITDA of the Company increased 96% from Ps. 3,439 million in the twelve-month prior ended December 31, of 2019, generating a net loss of Ps. 1,636, less minority stake of Ps. 4, plus income taxes of Ps. 3,276, plus comprehensive financial cost of Ps. 694, plus depreciation of Ps. 1,109 to Ps. 6,729 million in the same period of 2020 as a result a net income of Ps. 4,180, less minority stake of Ps. 2, plus income taxes of Ps. 1,335, less comprehensive financial cost of Ps. 51, plus depreciation of 1,267.
Consolidated | Twelve-month period ended December 31, | ||||||
2020 | 2019 | ||||||
Net income (loss) | 4,180 | (1,636) | |||||
Loss attributable to | (2) | (4) | |||||
Net income (loss) | 4,178 | (1,640) | |||||
Depreciation, depletion and | 1,267 | 1,109 | |||||
Income taxes | 1,335 | 3,276 | |||||
Financial results income (loss) | (51) | 694 | |||||
EBITDA | 6,729 | 3,439 | |||||
Items to reconciled adjusted | |||||||
Equity results and other | 0 | 0 | |||||
Dividends received and | 0 | 0 | |||||
Impairment and disposal of | 0 | 0 | |||||
Adjusted EBITDA | 6,729 | 3,439 | |||||
Comprehensive Financial Cost
Comprehensive financial cost in the twelve-month period ended December 31, 2020 represented a net income of Ps. 51 million compared with a net expense of Ps. 694 million in the same period of 2019. The net interest was an income of Ps. 59 million in 2020 compared with a net income of Ps. 91 million in the twelve-month period ended December 31, 2019. As a result, we registered a net exchange loss of Ps. 8 million in the twelve-month period ended December 31, 2020 compared with a net exchange loss of Ps. 785 million in the same period of 2019, reflecting a 5.63% increase in the value of the peso versus the dollar in the twelve-month period ended December 31, 2020 compared to December 31, 2019.
Income Taxes
The Company have recorded an expense net tax of Ps. 1,335 million in the twelve-month period ended December 31, 2020 (including the income of deferred tax of Ps. 22 million) compared with a net expense tax of Ps. 3,276 million in the same period of 2019 (including the tax deferred expense of Ps. 202 million).
Net Income (loss) (After Minority Interest)
As a result of the foregoing, net income increased by 356% from Ps. 1,636 million net loss in the twelve-month period ended December 31, 2019 to Ps. 4,180 million a result net income in the same period of 2020.
Liquidity and Capital Resources
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, Ps. 6.0 million (accrued interest on December 31, 2020 was U.S. $640,393 or Ps. 12.8 million). As of December 31, 2019, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.7 million (accrued interest on December 31, 2019 was U.S. $676,758, or Ps. 12.8 million).
Comparative fourth quarter 2020 vs third quarter 2020
Net Sales
Net sales increased from Ps. 9,643 million in the third quarter of 2020 to Ps. 10,218 million for the fourth quarter of 2020. Sales in tons decreased from 676 thousand ton in the third quarter of 2020 to 602 thousand ton in the fourth quarter of the same period, a decrease of 11%. Total sales outside of Mexico for the fourth quarter of 2020 increased 1% from Ps. 4,824 million in the third quarter to Ps. 4,878 million in the four quarter of 2020. Sales in Mexico increased to Ps. 5,340 million in the fourth quarter of 2020 compared Ps. 4,819 million in the third quarter of 2020 and increase of 11%. Prices of finished products sold in the fourth quarter of 2020 increased 19% compared with the third quarter of the same period.
Cost of Sales
Cost of sales increased to Ps. 8,381 million in the fourth quarter of 2020 compared to Ps. 7,682 million for the third quarter of 2020. With respect to sales, in the fourth quarter of 2020, the cost of sales represented 82% in the fourth quarter of 2020, compared to 80% in the third quarter of the same period. The average cost of sales by ton increased 23% in the fourth quarter of 2020 versus the third quarter of 2020.
Gross Profit
Gross profit of the Company for the fourth quarter of 2020 decreased 6% to Ps. 1,837 million compared to Ps. 1,961 million in the third quarter of 2020. The gross profit as a percentage of net sales for the third and fourth quarter of 2020 was of 20% and 18% respectively.
Operating Expenses
Selling, general and administrative expenses increased 11% to Ps. 498 million in the fourth quarter of 2020 compared to Ps. 449 million for the third quarter of 2020. Selling, general and administrative expenses as a percentage of net sales for the third and fourth quarter of 2020 were of 5% for both periods
Other Expenses (Income) net
The company recorded other net income of Ps. 339 million in the fourth quarter of 2020 compared to other net income of Ps. 56 million for the third quarter of 2020.
Operating (Loss) Income
Operating income was of Ps. 1,678 million in the fourth quarter of 2020 compared to an operating income of Ps. 1,568 million in the third quarter of 2020. The operating income as a percentage of net sales represented 16% for both periods.
EBITDA
The EBITDA was Ps. 1,891 million in the third quarter of 2020 as a result a net income of Ps. 1,003, less minority stake of Ps. 1 million, plus income taxes of Ps. 352, plus comprehensive financial cost of Ps. 214, plus depreciation of Ps. 323 compared to Ps. 1,987 million for the fourth quarter of 2020, as a result a net income of Ps. 717, plus minority stake of Ps. 2 million, plus income taxes of Ps. 31, plus comprehensive financial cost of Ps. 928, plus depreciation of Ps. 309.
Consolidated | Comparative fourth quarter vs third quarter 2020 | ||||||
4Q 2020 | 3Q 2020 | ||||||
Net income (loss) | 717 | 1,003 | |||||
Loss attributable to | 2 | (1) | |||||
Net income (loss) | 719 | 1,002 | |||||
Depreciation, depletion and | 309 | 323 | |||||
Income taxes | 31 | 352 | |||||
Financial results income | 928 | 214 | |||||
EBITDA | 1,987 | 1,891 | |||||
Items to reconciled adjusted | |||||||
Equity results and other | 0 | 0 | |||||
Dividends received and | 0 | 0 | |||||
Impairment and disposal of | 0 | 0 | |||||
Adjusted EBITDA | 1,987 | 1,891 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2020 was a net expense of Ps. 928 million compared with a net expense of Ps. 214 million for the third quarter of 2020. The net interest income the fourth quarter was Ps. 20 million compared with a net expense of Ps. 6 million in the third quarter of 2020. At same time we registered an exchange net loss of Ps. 208 million in the third quarter of 2020 compared with an exchange net loss of Ps. 948 million in the fourth quarter of 2020.
Income Taxes
Income Taxes for the third quarter of 2020 had an expense net tax of Ps. 352 million (including an expenses tax deferred for Ps. 18 million) compared to an expense of Ps. 31 million for the fourth quarter of 2020, (including an income tax deferred of Ps. 37 million).
Net Income (loss)
As a result of the foregoing, the Company had a net income of Ps. 717 million in the fourth quarter of 2020 compared to Ps. 1,003 million of net income in the third quarter of 2020.
Comparative fourth quarter 2020 vs fourth quarter 2019
Net Sales
Net sales increased 40% from Ps. 7,315 million for the fourth quarter of 2019 to Ps. 10,218 million for the fourth quarter of 2020. Sales in tons of finished steel in the fourth quarter of 2019 were 570 thousand tons versus to 602 thousand tons in the fourth quarter of 2020. Total sales outside of Mexico increased 39% from Ps. 3,497 million for the fourth quarter of 2019 to Ps. 4,878 million in the fourth quarter of 2020. Sales in Mexico increased 40% from Ps. 3,818 million in the fourth quarter of 2019 to Ps. 5,340 million in the fourth quarter of 2020. The average sales prices of finished products sold in the fourth quarter of 2020 increased 32%, compared to the same period of 2019.
Cost of Sales
Cost of sales increased 23% from Ps. 6,835 million in the fourth quarter of 2019 compared to Ps. 8,381 million for the fourth quarter of 2020. With respect to sales, the cost of sales represented 82% during the fourth quarter of 2020 and 93% during the fourth quarter of 2019. The average cost of steel products increased 16% in the fourth quarter of 2020 versus the fourth quarter of 2019.
Gross Profit
Gross profit for the fourth quarter of 2020 increased 283% from Ps. 480 million in the fourth quarter of 2019 compared to Ps. 1,837 million in the fourth quarter of 2020. The gross profit as a percentage of net sales represented 7% for the fourth quarter of 2019 compared to 18% of the fourth quarter of 2020.
Operating Expenses
Selling, general and administrative expenses decreased 6% from Ps. 530 million in the fourth quarter of 2019 compared to Ps. 498 million for the fourth quarter of 2020. Selling, general and administrative expenses as a percentage of net sales represented 7% for the fourth quarter of 2019 and 5% for the fourth quarter of 2020.
Other Expenses (Income) net
The company recorded other expenses net of Ps. 298 million in the fourth quarter of 2019 compared with other income net of Ps. 339 million for the fourth quarter of 2020.
Operating (Loss) Income
Operating income was of Ps. 1,678 million in the fourth quarter of 2020 compared to an operating loss of Ps. 348 million in the fourth quarter of 2019. The operating income as a percentage of net sales in the fourth quarter of 2020 was 16%, compared to an operating loss of -5% in the fourth quarter of 2019.
EBITDA
The EBITDA was Ps. -42 million in the fourth quarter of 2019 as a result a net loss of Ps. 3,229, plus minority stake of Ps. 124, plus income taxes of Ps. 2,970, less comprehensive financial cost of Ps. 213, plus depreciation of Ps. 306 compared to a profit of Ps 1,987 million in the fourth quarter of 2020 as a result a net income of Ps. 717, plus minority stake of Ps. 2 million, plus income taxes of Ps. 31, plus comprehensive financial cost of Ps. 928, plus depreciation of Ps. 309.
Consolidated | Comparative fourth quarter vs fourth quarter | ||||||
2020 | 2019 | ||||||
Net income (loss) | 717 | (3,229) | |||||
Loss attributable to | 2 | 124 | |||||
Net income (loss) | 719 | (3,105) | |||||
Depreciation, depletion and | 309 | 306 | |||||
Income taxes | 31 | 2,970 | |||||
Financial results income | 928 | (213) | |||||
EBITDA | 1,987 | (42) | |||||
Items to reconciled adjusted | |||||||
Equity results and other | 0 | 0 | |||||
Dividends received and | 0 | 0 | |||||
Impairment and disposal of | 0 | 0 | |||||
Adjusted EBITDA | 1,987 | (42) | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2020 was a net expense of Ps. 928 million compared with a net income of Ps 213 million in the fourth quarter of 2019. Net interest income was of Ps. 20 million in the fourth quarter of 2020 compared with a net interest expense of Ps. 40 million in the fourth quarter of 2019. At same time we registered a net exchange loss of Ps. 948 million in the fourth quarter of 2020 compared with an exchange income of Ps. 253 million in the fourth quarter of 2019.
Income Taxes
The Company recorded an expense net taxes for the fourth quarter of 2020 of Ps. 31 million (including an income of deferred tax of Ps. 37 million), compared to an expense taxes of Ps. 2,970 million for the fourth quarter of 2019, (including an income tax deferred of Ps. 128 million).
Net Income (loss)
As a result of the foregoing, the Company recorded a net income of Ps. 717 million in the fourth quarter of 2020 compared to Ps. 3,229 million of net loss in the fourth quarter of 2019.
(million of pesos) | Jan - Dec '20 | Jan - Dec '19 | Year 20 vs | ||
Sales | 35,957 | 34,171 | 5% | ||
Cost of Sales | 29,236 | 30,067 | (3%) | ||
Gross Profit | 6,721 | 4,104 | 64% | ||
Selling, General and Administrative Expense | 1,814 | 1,637 | 11% | ||
Other Income (Expenses), net | 555 | (137) | 505% | ||
Operating Profit | 5,462 | 2,330 | 134% | ||
EBITDA | 6,729 | 3,439 | 96% | ||
Net income | 4,180 | (1,636) | 356% | ||
Sales Outside Mexico | 17,871 | 16,736 | 7% | ||
Sales in Mexico | 18,086 | 17,435 | 4% | ||
Total Sales (Tons) | 2,441 | 2,349 | 4% | ||
Cost by ton | 11,977 | 12,800 | (6%) |
Quarter | |||||
(million of pesos) | 4Q'20 | 3Q '20 | 4Q '19 | 4Q´20vs | 4Q´20 vs |
Sales | 10,218 | 9,643 | 7,315 | 6% | 40% |
Cost of Sales | 8,381 | 7,682 | 6,835 | 9% | 23% |
Gross Profit | 1,837 | 1,961 | 480 | (6%) | 283% |
Selling, General and Adm. Expenses | 498 | 449 | 530 | 11% | (6%) |
Other Income (Expenses), net | 339 | 56 | (298) | 505% | 214% |
Operating Profit | 1,678 | 1.568 | (348) | 7% | 582% |
EBITDA | 1,987 | 1,891 | (42) | 5% | 4831% |
Net Income | 717 | 1,003 | (3,229) | (29%) | 122% |
Sales Outside Mexico | 4,878 | 4,824 | 3,497 | 1% | 39% |
Sales in Mexico | 5,340 | 4,819 | 3,818 | 11% | 40% |
Total Sales (Tons) | 602 | 676 | 570 | (11%) | 6% |
Cost per Ton | 13,922 | 11,364 | 11,991 | 23% | 16% |
Product | Thousands of Jan-Dec 2020 | Millions of | Average Price Jan-Dec 2020 | Thousands of Jan – Dec 2019 | Millions of | Average Price Jan-Dec 2019 |
Special Profiles | 791 | 13,593 | 17,185 | 851 | 15,384 | 18,078 |
Commercial Profiles | 1,650 | 22,364 | 13,554 | 1,498 | 18,787 | 12,541 |
Total Tons | 2,441 | 35,957 | 14,730 | 2,349 | 34,171 | 14,547 |
Product | Thousands Oct-Dec 2020 | Millions of Pesos | Average Price per Ton Oct-Dec 2020 | Thousands of Tons Jul-Sep 2020 | Millions of Pesos 2020 | Average Price per Ton Jul-Sep 2020 | Thousands of Tons 2019 | Millions of Pesos | Average 2019 |
Special Profiles | 220 | 3,898 | 17,718 | 215 | 3,551 | 16,516 | 191 | 3,042 | 15,927 |
Commercial Profiles | 382 | 6,320 | 16,545 | 461 | 6,092 | 13,215 | 379 | 4,273 | 11,274 |
Total Tons | 602 | 10,218 | 16,973 | 676 | 9,643 | 14,265 | 570 | 7,315 | 12,833 |
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 :
Jose 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
SOURCE Grupo Simec, S.A.B. de C.V.
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