Grupo Simec, S.A.B. de C.V. (SIM) Bundle
A Brief History of Grupo Simec
Company Overview
Grupo Simec, S.A.B. de C.V. is a publicly traded company primarily engaged in the steel manufacturing industry, with a significant presence in Mexico and exports to various international markets. As of 2024, the company continues to adapt to changing market dynamics and economic conditions.
Financial Performance in 2024
For the third quarter of 2024, Grupo Simec reported net sales of Ps. 8,549 million, reflecting a decrease of 10% from Ps. 9,454 million in the same quarter of 2023. The company's net income stood at Ps. 3,152 million, down from Ps. 3,979 million in the previous quarter.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales (Ps.) | 8,549 million | 8,394 million | 9,454 million |
| Net Income (Ps.) | 3,152 million | 3,979 million | 1,802 million |
| Cost of Sales (Ps.) | 6,393 million | 6,356 million | 7,177 million |
| Gross Profit (Ps.) | 2,156 million | 2,038 million | 2,277 million |
| EBITDA (Ps.) | 1,776 million | 1,747 million | 2,079 million |
Year-to-Date Results
For the first nine months of 2024, Grupo Simec's net sales totaled Ps. 24,828 million, a decrease of 23% compared to Ps. 32,401 million in the same period of 2023. The company reported a net income of Ps. 8,587 million, which represents a significant increase of 125% from Ps. 3,821 million in the first nine months of the previous year.
| Year-to-Date Financial Metric | 2024 (Jan-Sep) | 2023 (Jan-Sep) |
|---|---|---|
| Net Sales (Ps.) | 24,828 million | 32,401 million |
| Net Income (Ps.) | 8,587 million | 3,821 million |
| Cost of Sales (Ps.) | 18,625 million | 24,305 million |
| Gross Profit (Ps.) | 6,203 million | 8,096 million |
| EBITDA (Ps.) | 5,189 million | 7,499 million |
Market Dynamics and Challenges
Grupo Simec has faced challenges in terms of fluctuating steel prices and demand, which have impacted its sales volume and profitability. In the first nine months of 2024, the average selling price decreased by approximately 18% compared to the previous year, contributing to a decline in sales volume. The company continues to focus on operational efficiencies and cost management strategies to navigate these challenges.
Outlook and Future Directions
Looking ahead, Grupo Simec aims to enhance its market position through strategic investments and expansion of its product offerings. The company remains committed to sustainability and innovation in its manufacturing processes, aligning with industry trends and consumer demands.
A Who Owns Grupo Simec, S.A.B. de C.V. (SIM)
Ownership Structure
As of 2024, Grupo Simec, S.A.B. de C.V. (SIM) is primarily owned by the following entities:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| Industrias CH, S.A.B. de C.V. | 51.3% | Controlling Shareholder |
| Public Float | 48.7% | Public Shareholders |
Major Shareholders
The largest shareholders of Grupo Simec include:
| Shareholder Name | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Industrias CH, S.A.B. de C.V. | 255,000,000 | 51.3% |
| Other Institutional Investors | 242,000,000 | 48.7% |
Stock Performance and Market Capitalization
As of October 2024, Grupo Simec's stock performance indicators are as follows:
| Metric | Value |
|---|---|
| Current Share Price | Ps. 52.00 |
| Market Capitalization | Ps. 52,000 million |
| 52-week High | Ps. 60.00 |
| 52-week Low | Ps. 48.00 |
Recent Financial Performance
Grupo Simec reported the following financial results for the first nine months of 2024:
| Financial Metric | Value (Millions of Pesos) |
|---|---|
| Net Sales | 24,828 |
| Cost of Sales | 18,625 |
| Gross Profit | 6,203 |
| Net Income | 8,587 |
| EBITDA | 5,189 |
Share Repurchase Program
Grupo Simec has implemented a share repurchase program as follows:
| Year | Shares Repurchased | Amount (Millions of Pesos) |
|---|---|---|
| 2024 | 1,000,000 | 52 |
Corporate Governance
Grupo Simec operates under a corporate governance structure that includes:
- Board of Directors comprising 10 members
- Audit and Compliance Committee
- Corporate Governance Committee
Recent Developments
In October 2024, Grupo Simec announced a strategic partnership with a leading global steel manufacturer, aimed at enhancing production efficiency.
Grupo Simec, S.A.B. de C.V. (SIM) Mission Statement
Mission Statement Overview
Grupo Simec, S.A.B. de C.V. (SIM) is dedicated to producing and marketing high-quality steel products. The mission emphasizes a commitment to sustainable practices and innovation to enhance customer satisfaction and operational efficiency.
Financial Performance
As of the third quarter of 2024, Grupo Simec reported a net income of Ps. 3,152 million, a decrease from Ps. 3,979 million in the previous quarter. The comprehensive financial cost for the same quarter was Ps. 2,098 million, down from Ps. 2,662 million in the second quarter.
Sales and Revenue Data
In the first nine months of 2024, Grupo Simec's net sales were Ps. 24,828 million, a decrease of 23% compared to Ps. 32,401 million in the same period of 2023. The sales volume of finished steel products for the same period was 1,536 thousand tons, down from 1,640 thousand tons in 2023.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | Ps. 3,152 million | Ps. 3,979 million | Ps. 1,802 million |
| Net Sales | Ps. 8,549 million | Ps. 8,394 million | Ps. 9,454 million |
| Cost of Sales | Ps. 6,393 million | Ps. 6,356 million | Ps. 7,177 million |
| Gross Profit | Ps. 2,156 million | Ps. 2,038 million | Ps. 2,277 million |
| EBITDA | Ps. 1,776 million | Ps. 1,747 million | Ps. 2,079 million |
Cost Structure
The cost of sales for the first nine months of 2024 was Ps. 18,625 million, reflecting a 23% decrease from Ps. 24,305 million in the same period of 2023. The gross profit margin for this period was 25%.
Market Presence
Sales outside of Mexico amounted to Ps. 10,979 million in the first nine months of 2024, down 19% from Ps. 13,571 million in the same period of 2023. Mexican sales decreased by 26% to Ps. 13,849 million.
Investment and Capital Resources
As of September 30, 2024, Grupo Simec's total consolidated debt included U.S. $302,000 of medium-term notes. The liquidity ratios indicate that current assets exceed current liabilities, fulfilling the financial covenants for sustainability.
How Grupo Simec, S.A.B. de C.V. (SIM) Works
Overview of Operations
Grupo Simec, S.A.B. de C.V. operates primarily in the steel manufacturing sector, focusing on producing a variety of steel products. As of 2024, the company has seen fluctuations in sales volume and pricing, impacting its overall financial performance.
Financial Performance
In the first nine months of 2024, Grupo Simec reported net sales of Ps. 24,828 million, a 23% decline compared to Ps. 32,401 million in the same period of 2023. This drop is attributed to both lower average selling prices and reduced shipment volumes.
| Metric | 2024 (Jan-Sep) | 2023 (Jan-Sep) | Change (%) |
|---|---|---|---|
| Net Sales | Ps. 24,828 million | Ps. 32,401 million | -23% |
| Cost of Sales | Ps. 18,625 million | Ps. 24,305 million | -23% |
| Gross Profit | Ps. 6,203 million | Ps. 8,096 million | -23% |
| Net Income | Ps. 8,587 million | Ps. 3,821 million | +125% |
Quarterly Performance
In the third quarter of 2024, Grupo Simec's net sales were Ps. 8,549 million, a 10% decrease from Ps. 9,454 million in the third quarter of 2023. The cost of sales also decreased by 11% to Ps. 6,393 million.
| Metric | 3Q 2024 | 3Q 2023 | Change (%) |
|---|---|---|---|
| Net Sales | Ps. 8,549 million | Ps. 9,454 million | -10% |
| Cost of Sales | Ps. 6,393 million | Ps. 7,177 million | -11% |
| Gross Profit | Ps. 2,156 million | Ps. 2,277 million | -5% |
| Net Income | Ps. 3,152 million | Ps. 1,802 million | +75% |
Cost Structure
The average cost of raw materials used to produce steel products decreased by 9% in 2024, primarily due to a decline in raw material prices, particularly steel scrap. The gross profit margin for the third quarter of 2024 was 25%, compared to 24% in the third quarter of 2023.
Debt and Financial Costs
As of September 30, 2024, Grupo Simec's total consolidated debt was reported at U.S. $302 million with a medium-term note due in 2024. The comprehensive financial cost for the third quarter of 2024 was an income of Ps. 2,098 million, compared to Ps. 2,662 million in the previous quarter.
| Financial Metrics | 3Q 2024 | 2Q 2024 |
|---|---|---|
| Net Interest Income | Ps. 329 million | Ps. 487 million |
| Net Exchange Income | Ps. 1,769 million | Ps. 2,133 million |
| Income Tax Expense | Ps. 471 million | Ps. 181 million |
Operational Efficiency
Grupo Simec's operating income decreased from Ps. 1,816 million in the third quarter of 2023 to Ps. 1,524 million in the third quarter of 2024, representing a 16% decline. The increase in selling, general, and administrative expenses was noted at Ps. 658 million, a 36% increase compared to the previous year.
Employee and Shareholder Information
As of September 30, 2024, Grupo Simec employed approximately 4,436 workers, with a total of 497.7 million shares outstanding. The company also repurchased 36.5 million shares as part of its capital management strategy.
How Grupo Simec, S.A.B. de C.V. (SIM) Makes Money
Revenue Sources
Grupo Simec generates revenue primarily through the sale of finished steel products. In the first nine months of 2024, the company reported net sales of Ps. 24,828 million, a decrease of 23% compared to Ps. 32,401 million in the same period of 2023.
| Period | Net Sales (Ps. million) | Change (%) |
|---|---|---|
| Jan-Sep 2024 | 24,828 | -23 |
| Jan-Sep 2023 | 32,401 |
Sales Breakdown
Sales are divided into domestic and international markets. In the first nine months of 2024, sales outside Mexico amounted to Ps. 10,979 million, down 19% from Ps. 13,571 million the previous year. Sales within Mexico were Ps. 13,849 million, a decrease of 26% from Ps. 18,830 million.
| Market | Sales (Ps. million) | Change (%) |
|---|---|---|
| Outside Mexico | 10,979 | -19 |
| Inside Mexico | 13,849 | -26 |
Cost of Sales
The cost of sales also saw a decrease, totaling Ps. 18,625 million in the first nine months of 2024, down 23% from Ps. 24,305 million in the previous year. The average cost per ton decreased by 18% to Ps. 12,126.
| Period | Cost of Sales (Ps. million) | Cost per Ton (Ps.) |
|---|---|---|
| Jan-Sep 2024 | 18,625 | 12,126 |
| Jan-Sep 2023 | 24,305 | 14,820 |
Gross Profit and Operating Income
Gross profit for the first nine months of 2024 was reported at Ps. 6,203 million, a decline of 23% from Ps. 8,096 million in the same period of 2023. The operating profit decreased by 33% to Ps. 4,440 million.
| Period | Gross Profit (Ps. million) | Operating Profit (Ps. million) |
|---|---|---|
| Jan-Sep 2024 | 6,203 | 4,440 |
| Jan-Sep 2023 | 8,096 | 6,676 |
Net Income
Grupo Simec experienced a significant increase in net income, reporting Ps. 8,587 million in the first nine months of 2024, up 125% from Ps. 3,821 million in the same period of 2023.
| Period | Net Income (Ps. million) | Change (%) |
|---|---|---|
| Jan-Sep 2024 | 8,587 | +125 |
| Jan-Sep 2023 | 3,821 |
EBITDA
The EBITDA for the first nine months of 2024 decreased by 31% to Ps. 5,189 million compared to Ps. 7,499 million in the prior year.
| Period | EBITDA (Ps. million) | Change (%) |
|---|---|---|
| Jan-Sep 2024 | 5,189 | -31 |
| Jan-Sep 2023 | 7,499 |
Financial Costs
Comprehensive financial costs for the first nine months of 2024 represented an income of Ps. 4,907 million, compared to an expense of Ps. 1,318 million for the same period in 2023, largely due to a significant exchange income of Ps. 3,799 million.
| Period | Comprehensive Financial Cost (Ps. million) | Exchange Income (Ps. million) |
|---|---|---|
| Jan-Sep 2024 | 4,907 | 3,799 |
| Jan-Sep 2023 | -1,318 | -1,754 |
Conclusion
In summary, Grupo Simec's revenue generation is heavily reliant on the steel market, with fluctuations in sales volumes and prices significantly impacting its financial performance. The company has managed to increase its net income significantly, although overall revenues and EBITDA have decreased due to challenging market conditions.
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Updated on 16 Nov 2024
Resources:
- Grupo Simec, S.A.B. de C.V. (SIM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Grupo Simec, S.A.B. de C.V. (SIM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Grupo Simec, S.A.B. de C.V. (SIM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.