GUADALAJARA, Mexico, July 22, 2024 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE:SIM) ("Simec") announced today its results of operations for the sixth-month period ended June 30th, 2024. Comparative first six months of 2024 vs. first six months of 2023 Net SalesNet sales of the Company decreased from Ps. 22,947 million in the first half of 2023 to Ps. 16,279 million in the first half of 2024. Shipments decreased 8% from 1,109 thousand tons in the first half of 2023 to 1,015 thousand tons in the first half of 2024. Total sales outside of Mexico in the first half of 2024 decreased 24% to Ps. 7,287 million compared to Ps. 9,639 million in the first half of 2023. Mexican sales decreased 32% from Ps. 13,308 million in the first half of 2023 to Ps. 8,992 million in the first half of 2024. Sales decreased for the first half of 2024 compared to the first half of 2023, is due to the combined of decrease in the average sales price of 22% and decrease in the volume of shipments approximately of 94 thousand tons that represent an 8%.  Cost of SalesCost of sales decreased 29% from Ps. 17,128 million in the first half of 2023, to Ps. 12,232 million in the first half of 2024. Cost of sales as a percentage of net sales represented 75% for both periods. Cost of sales decreased due to mix products and a lower scrap purchase price. Gross ProfitGross profit of the Company for the first half of 2024 decreased 30% from Ps. 5,819 million in the first half of 2023, to Ps. 4,047 million in the first half of 2024. Gross profit as percentage of net sales was of 25%, for both periods. The gross profit between both periods is given by for less products shipped and lower average price. Selling, General and Administrative ExpenseSelling, general and administrative expense increased 7%, from Ps. 1,102 million in the first half of 2023 to Ps. 1,176 million in the same period 2024, selling, general and administrative expense represented 5% of the net sales in the first half of 2023 and 7% in the first half of 2024. Other Income (Expenses,) netThe Company recorded other income net for Ps. 45 million in the first half of 2024 million compared to other income net Ps. 143 million in the same period of 2023. Operating IncomeOperating income decreased 40% from Ps. 4,860 million for the first half of 2023 compared to Ps. 2,916 million in the first half of 2024. Operating income as percentage of net sales was 18% in the first half of 2024 compared to 21% in the same period of 2023. The decrease in operating profit is mainly due to the for less of products shipped and lower sales prices. EbitdaThe Ebitda amounted to Ps. 5,419 million in the first half of 2023 as a result of a net income of Ps. 2,019 million, less minority stake of Ps. 3 million, plus income taxes of Ps.1,244 million, plus comprehensive financial cost of Ps. 1,600 million, plus depreciation of Ps. 559 million to Ps 3,413 million in the first semester of 2024 as a result a net income of Ps. 5,435 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 291 million, less comprehensive financial cost of Ps. 2,809 million, plus depreciation of Ps. 497 million.                                                    Consolidated        Million   Comparative first six months of 2024 vs first six months of 2023, 2024 2023 Net income (loss) 5,435 2,019 Loss attributable to noncontrolling interests (1) (3) Net income (loss) 5,434 2,016 Depreciation, depletion and amortization 497 559 Income taxes 291 1,244 Financial results income (loss) (2,809) 1,600 EBITDA 3,413 5,419 Items to reconciled adjusted EBITDA Equity results and other results in associates and joint ventures 0 0 Dividends received and interest from associates and joint ventures (i) ((1)0 0 Impairment and disposal of non-current assets 0 0 Adjusted EBITDA 3,413 5,419   Comprehensive Financial Cost Comprehensive financial cost for the first half of 2024 represented an income of Ps. 2,809 million compared with an expense of Ps. 1,600 million for the first half of 2023. The comprehensive financial cost is comprised by the exchange income of Ps. 2,030 million in the first half of 2024 compared with an exchange loss of Ps. 2,009 million in the first half of 2023. Likewise, the Company recorded a net income interest of Ps. 737 million for the first half of 2024 compared with a net income interest of Ps. 365 million in 2023, in the first half of 2024 there is a record of other financial income for Ps. 42 million compared to Ps. 44 million in the same period of 2023. Income TaxesThe Company recorded an expense of Ps. 291 million for the net income tax during the first half of 2024, (comprised for a current expense tax of Ps. 412 million and income for deferred tax of Ps. 121 million) compared with an expense of Ps. 1,244 million to the first half of 2023 (comprised for a current expense tax of Ps. 1,243 million and expense for deferred tax of Ps. 1 million). Net IncomeAs a result of the foregoing, the Company recorded an increase in net income of 169% to pass of Ps. 2,019 million in the first half of 2023 to Ps. 5,435 million in the same period of 2024. Comparative second quarter of 2024 vs. first quarter of 2024 Net SalesNet sales of the Company increased 6% in the second quarter of 2024 compared to the first quarter of the same period, to pass of Ps. 7,885 million during the first quarter of 2024 to Ps. 8,394 million in the second quarter of 2024. Shipments of finished steel products increased from 479 thousand tons in the first quarter of 2024 to 536 thousand tons in the second quarter of the same year. Total sales outside of Mexico in the second quarter of 2024 decreased 3% to get to Ps. 3,593 million compared to Ps. 3,694 million of the first quarter of the same year. Domestic sales increased from Ps. 4,191 million in the first quarter of 2024 to Ps. 4,801 million in the second quarter of the same year. The sales increased mainly a higher shipped by 57 thousand tons compared with the first quarter that represent a 12% and a lower sales price in 5%. Cost of SalesCost of sales increased 8% from Ps. 5,876 million in the first quarter of 2024 to Ps. 6,356 million in the second quarter of 2024. Cost of sales as a percentage of net sales represented 75% for the first quarter of 2024 compared to 76% in the second quarter of the same year, the average cost of sales by ton records a decrease between both quarters of 3%. Gross ProfitGross profit of the Company for the second quarter of 2024 increased 1% to pass of Ps. 2,009 million in the first quarter of 2024 to Ps. 2,038 million in the second quarter of same year. Gross profit as a percentage of net sales represented 25% for the first quarter of 2024 compared to 24% in the second quarter of the same year. The gross profit in the second quarter of 2024 it originates from a lower average sale price and highest volume shipped. Selling, General and Administrative ExpenseSelling, general and administrative expense decreased 3%, from Ps. 595 million in the first quarter of 2024 to Ps. 580 million in the second quarter of the same year, and as percentage of net sales represented 8% in the first quarter of 2024 compared to 7% in the second quarter of the same year. Other (Expenses) Income, net The Company recorded other income net for Ps. 40 million during the second quarter of 2024 compared to other income net for Ps. 5 million in the first quarter of 2024. Operating IncomeOperating income increased 6%, of Ps. 1,419 million in the first quarter of 2024 compared to Ps. 1,498 million of the second quarter of the same year. Operating income as percentage of net sales was 18% for both periods. Operating profit is mainly due to a lower average sale price and a higher volume shipped. EbitdaThe Ebitda amounted to Ps. 1,668 million in the first quarter of 2024 as a result of a net income of Ps. 1,456 million, plus income taxes of Ps. 110 million, less comprehensive financial cost of Ps. 147 million, plus depreciation of Ps. 249 million to Ps 1,747 million in the second quarter of 2024 as a result of a net income of Ps. 3,979 million, plus income taxes of Ps. 181 million, less comprehensive financial cost of Ps. 2,662 million, plus depreciation of Ps. 249 million.                                                 |Consolidated  Million   Comparative second quarter of 2024 vs first quarter of 2024, Second quarter First quarter Net income (loss) 3,979 1,456 Loss attributable to noncontrolling interests