Grupo Simec (SIM) Q2 2024 earnings summary

Executive summary

• H1 2024 net sales fell 29% YoY to Ps. 16,279 million as average selling prices declined 22% and shipments fell 8%; net income rose 169% to Ps. 5,435 million, driven largely by foreign-exchange gains.

• Q2 sales rose 6% QoQ on 12% higher shipment volume, while net income increased 173% QoQ to Ps. 3,979 million, supported by a Ps. 2,133 million net exchange gain.

Financial highlights

• H1 gross profit declined 30% YoY to Ps. 4,047 million; operating income fell 40% to Ps. 2,916 million, reflecting lower prices and shipment volume.

• Q2 net sales declined 17% YoY to Ps. 8,394 million despite shipments rising 6% to 536 thousand tons; average selling price fell 22%.

• Q2 operating income fell 31% YoY to Ps. 1,498 million and EBITDA fell 29% to Ps. 1,747 million; net income increased 303% to Ps. 3,979 million.

• H1 net income attributable to owners was Ps. 5,435 million versus Ps. 2,019 million in H1 2023; H1 EBITDA was Ps. 3,413 million versus Ps. 5,419 million.

Segment performance

• H1 domestic sales were Ps. 8,992 million on 510 thousand tons; foreign sales were Ps. 6,698 million on 478 thousand tons, and foreign subsidiaries generated Ps. 589 million on 27 thousand tons.

• H1 sales outside Mexico fell 24% YoY to Ps. 7,287 million, while Mexican sales declined 32% to Ps. 8,992 million.

• Q2 domestic sales fell 15% YoY to Ps. 4,801 million; sales outside Mexico fell 19% to Ps. 3,593 million.