Grupo Simec (SIM) Q3 2024 earnings summary

Executive summary

• 9M 2024 net sales fell 23% YoY to Ps. 24,828 million; operating income declined 33% to Ps. 4,440 million as lower selling prices and shipments weighed on results.

• Net income attributable to owners rose 125% YoY to Ps. 8,587 million, mainly reflecting Ps. 4,907 million of net financial income, including a Ps. 3,799 million exchange gain.

• Q3 sales declined 10% YoY, while higher net financial income supported net income of Ps. 3,152 million versus Ps. 1,802 million in Q3 2023.

Financial highlights

• 9M revenue was Ps. 24,828 million versus Ps. 32,401 million YoY; cost of sales fell 23% to Ps. 18,625 million and gross profit fell 23% to Ps. 6,203 million.

• 9M SG&A rose 16% to Ps. 1,834 million; operating income decreased 33% to Ps. 4,440 million.

• 9M net income attributable to owners was Ps. 8,587 million versus Ps. 3,821 million; income tax expense declined to Ps. 762 million from Ps. 1,541 million.

• Q3 2024 revenue was Ps. 8,549 million, down 10% YoY; gross profit was Ps. 2,156 million, down 5%, and operating income was Ps. 1,524 million, down 16%.

• Q3 net income was Ps. 3,152 million versus Ps. 1,802 million YoY; QoQ it decreased from Ps. 3,979 million.

Outlook and guidance

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