Grupo Simec (SIM) Q2 2023 earnings summary

Executive summary

• H1 2023 net sales fell 25% YoY to Ps. 22,947 million; operating income declined 35% to Ps. 4,860 million and net income fell 67% to Ps. 2,019 million.

• Lower average selling prices and shipment volumes drove weaker results; Q2 net sales fell 35% YoY and net income fell 73% YoY.

Financial highlights

• H1 net sales were Ps. 22,947 million, down 25% YoY; cost of sales fell 22% to Ps. 17,128 million, while gross profit declined 32% to Ps. 5,819 million.

• H1 operating income declined 35% YoY to Ps. 4,860 million; net income attributable to owners was Ps. 2,019 million versus Ps. 6,098 million.

• Q2 net sales fell 35% YoY to Ps. 10,122 million; gross profit fell 45% to Ps. 2,612 million and operating income fell 47% to Ps. 2,182 million.

• Q2 net income was Ps. 987 million, down 73% YoY; sequentially, net sales declined 21% and net income declined 5% versus Q1.

Segment performance

• H1 Mexican sales declined 18% YoY to Ps. 13,308 million; sales outside Mexico declined 32% to Ps. 9,639 million.

• H1 commercial profiles generated Ps. 15,156 million on 779 thousand tons; special profiles generated Ps. 7,791 million on 330 thousand tons.

• Q2 domestic sales fell 32% YoY to Ps. 5,664 million; sales outside Mexico fell 39% to Ps. 4,458 million.