Grupo Simec (SIM) Q1 2024 earnings summary

Executive summary

• Q1 net sales fell 39% YoY to Ps. 7,885 million as shipments and average selling prices declined; net income rose 41% to Ps. 1,456 million, supported by a much lower net financial expense.

• Versus Q4 2023, sales declined 11% and operating income fell 17%; EBITDA was Ps. 1,668 million, down 13%.

Financial highlights

• Net sales Ps. 7,885 million, down 39% YoY; cost of sales Ps. 5,876 million, down 39%; gross profit Ps. 2,009 million, down 37%.

• Operating income Ps. 1,419 million, down 47% YoY; general, selling and administrative expenses rose 1% to Ps. 595 million.

• Net income Ps. 1,456 million versus Ps. 1,033 million YoY; income tax expense was Ps. 110 million versus Ps. 531 million.

• EBITDA Ps. 1,668 million versus Ps. 2,959 million YoY; adjusted EBITDA was also Ps. 1,668 million, with no reconciling adjustments shown.

• Basic EPS Ps. 2.93 versus Ps. 2.07 YoY; comprehensive income was Ps. 1,309 million, including negative other comprehensive income of Ps. 146 million.

Outlook and guidance

• Forward-looking information is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from estimates; no obligation to update it was assumed.