Grupo Simec (SIM) Q4 2024 earnings summary

Executive summary

• FY2024 net sales fell 18% and operating income fell 23% YoY, while net income rose 168%, supported by a Ps. 6,630 million net financial gain versus a Ps. 1,588 million net financial cost in 2023.

• Q4 net sales grew 1% YoY and operating income rose to Ps. 1,389 million from Ps. 927 million; net income reached Ps. 2,888 million versus Ps. 462 million.

Financial highlights

• FY2024 net sales were Ps. 33,658 million, down 18% YoY; gross profit was Ps. 8,190 million, down 18%, while gross margin held at 24%.

• Operating income declined 23% to Ps. 5,830 million; operating margin was 17% versus 18% in 2023. EBITDA fell 21% to Ps. 6,864 million.

• Net income attributable to owners was Ps. 11,475 million versus Ps. 4,283 million; basic EPS was Ps. 23.06 versus Ps. 8.61.

• Q4 net sales were Ps. 8,830 million, up 1% YoY; gross profit rose 2% to Ps. 1,987 million, and gross margin improved to 23% from 22%.

• Q4 operating income rose 50% YoY to Ps. 1,389 million; EBITDA increased 47% to Ps. 1,673 million, and net income was Ps. 2,888 million versus Ps. 462 million.

Segment performance

• FY2024 sales in Mexico fell 25% to Ps. 18,270 million; sales outside Mexico declined 8% to Ps. 15,388 million.

• Q4 sales outside Mexico rose 36% YoY to Ps. 4,410 million, while Mexico sales decreased 20% to Ps. 4,420 million.

• FY finished-steel shipments decreased 6% to 2.056 million tons; Q4 shipments were 520,000 tons versus 536,000 tons YoY.