GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST SIX MONTHS OF 2025
PR Newswire
GUADALAJARA, Mexico, July 25, 2025
GUADALAJARA, Mexico, July 25, 2025 /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, 2025.
Comparative first six months of 2025 vs. first six months of 2024
Net Sales
Net sales decreased 9% by the combination of less shipments of finished steel products (11%) and a higher average sales price of 3% compared to the same period of 2024, the sales decreased from Ps. 16,279 million in the first half of 2024 to Ps. 14,835 million in the first half of 2025. Shipments of finished steel products decreased 11% to 901 thousand tons in the first half of 2025 compared to 1 million 015 thousand tons in the first half of 2024. Total sales outside of Mexico on the first half of 2025 decreased 10% to Ps. 6,573 million compared with Ps. 7,287 million in the first half of 2024. Total sales in Mexico decreased 8% from Ps. 8,992 million in the first half of 2024 to Ps. 8,262 million in the first half of 2025.
Cost of Sales
Cost of sales decreased 9% from Ps. 12,232 million in the first half of 2024, to Ps. 11,167 million in the first half of 2025. Cost of sales as a percentage of net sales represented 75% for both periods 2025 and 2024. The average cost of finished steel produced in the first half of 2025 compared to the same period of 2024 increased 3% mainly due to higher scrap cost.
Gross Profit
Gross profit of the Company in the first half of 2025 was of Ps. 3,668 million compared to Ps. 4,047 million in the first half of 2024. Gross profit as percentage of net sales represented 25% for both periods 2025 and 2024.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 11%, from Ps. 1,176 million in the first half of 2024 to Ps. 1,307 million in the same period 2025, selling, general and administrative expenses as a percentage of net sales represented 7% of the net sales in the first half of 2024 and 9% in the first half of 2025.
Other Income (Expenses,) net
The Company recorded other income net for Ps. 263 million in the first half of 2025 million compared to other income net Ps. 45 million in the same period of 2024.
Operating Profit
Operating profit decreased 10% from Ps. 2,916 million for the first half of 2024 compared to Ps. 2,624 million in the first half of 2025. Operating income as percentage of net sales was 18% in the first half of 2025 and 2024. The decrease in operating profit is mainly due to less shipments of finished steel products.
Ebitda
The Ebitda of the Company decreased 7% from Ps. 3,413 million in the first half of 2024 (result of net income of Ps. 5,435 million, less minority stake of Ps. 1 million, plus income taxes of Ps.291 million, less comprehensive financial income of Ps. 2,809 million, plus depreciation of Ps. 497 million), compared to Ebitda of Ps 3,165 million in the first semester of 2025 (result of net income of Ps. 304 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 476 million, plus comprehensive financial cost of Ps. 1,845 million, plus depreciation of Ps. 541 million).
First six months of 2025 vs first six months of 2024, | ||||||||
Consolidated Million | 2025 | 2024 | ||||||
Net income (loss) | 304 | 5,435 | ||||||
Loss attributable to noncontrolling interests | (1) | (1) | ||||||
Net income (loss) | 303 | 5,434 | ||||||
Depreciation and amortization | 541 | 497 | ||||||
Income taxes | 476 | 291 | ||||||
Financial results (income) loss | 1,845 | (2,809) | ||||||
EBITDA | 3,165 | 3,413 | ||||||
Comprehensive Financial Cost
Comprehensive financial Cost for the first half of 2025 represented an expense of Ps. 1,845 million compared with a net income of Ps. 2,809 million for the first half of 2024. The comprehensive financial cost is comprised by the exchange loss of Ps. 2,332 million in the first half of 2025 compared with an exchange income of Ps. 2,030 million in the first half of 2024. Likewise, the Company recorded a net interest income of Ps. 487 million for the first half of 2025 compared with a net interest income of Ps. 737 million in 2024, in the first half of 2024 there is a record of net other financial income for Ps. 42 million.
Income Taxes
The Company recorded a net tax expense of Ps. 476 million during the first half of 2025, (comprised for a current tax expense of Ps. 383 million and expense for deferred tax of Ps. 93 million) compared with net tax expense of Ps. 291 million to the first half of 2024 (comprised for a current tax expense of Ps. 412 million and income for deferred tax of Ps. 121 million).
Net Income
As a result of the foregoing, the Company recorded a decrease in net income of 94% from of Ps. 5,435 million in the first half of 2024 to Ps. 304 million in the same period of 2025.
Comparative second quarter of 2025 vs. first quarter of 2025
Net Sales
Net sales of the Company decreased 9% in the second quarter of 2025 compared to the first quarter of the same period, from of Ps. 7,783 million during the first quarter of 2025 to Ps. 7,052 million in the second quarter of 2025. Shipments of finished steel products decreased from 476 thousand tons in the first quarter of 2025 to 425 thousand tons in the second quarter of the same year. Total sales outside of Mexico in the second quarter of 2025 decreased 11% to Ps. 3,104 million compared to Ps. 3,469 million of the first quarter of the same year. Domestic sales decreased from Ps. 4,314 million in the first quarter of 2025 to Ps. 3,948 million in the second quarter of the same year. The sales decreased mainly because of lower shipments of finished steel products (11%) and a higher average sales price of 1%.
Cost of Sales
Cost of sales decreased 7% from Ps. 5,786 million in the first quarter of 2025 to Ps. 5,381million in the second quarter of 2025. Cost of sales as a percentage of net sales represented 74% for the first quarter of 2025 compared to 76% in the second quarter of the same year, the average cost of sales per ton had an increase of 4%.
Gross Profit
Gross profit of the Company for the second quarter of 2025 decreased 16% from of Ps. 1,997 million in the first quarter of 2025 to Ps. 1,671 million in the second quarter of the same year. Gross profit as a percentage of net sales represented 26% for the first quarter of 2025 compared to 24% in the second quarter of the same year.
Selling, General and Administrative Expense
Selling, general and administrative expense increased 6%, from Ps. 633 million in the first quarter of 2025 to Ps. 674 million in the second quarter of the same year, and as percentage of net sales represented 8% in the first quarter of 2025 compared to 10% in the second quarter of the same year.
Other (Expenses) Income, net
The Company recorded other income net for Ps. 201 million during the second quarter of 2025 compared to other income net for Ps. 62 million in the first quarter of 2025.
Operating Income
Operating income decreased 16%, from of Ps. 1,426 million in the first quarter of 2025 compared to Ps. 1,198 million in the second quarter of the same year. Operating income as percentage of net sales represented 18% for the first quarter of 2025 compared to 17% in the second quarter of the same year.
Ebitda
The Ebitda was Ps. 1,692 million in the first quarter of 2025 (result of net income of Ps. 1,305 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 179 million, less comprehensive financial income of Ps. 57 million, plus depreciation of Ps. 266 million), compared to Ebitda of Ps 1,473 million in the second quarter of 2025 (result of net loss of Ps. 1,000 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 297 million, plus comprehensive financial cost of Ps. 1,902 million, plus depreciation of Ps. 275 million).
Second quarter of 2025 vs first quarter of 2025, | ||||||||
Consolidated Million | Second quarter | First quarter | ||||||
Net income (loss) | (1,000) | 1,305 | ||||||
Loss attributable to noncontrolling interests | (1) | (1) | ||||||
Net income (loss) | (1,001) | 1,304 | ||||||
Depreciation and amortization | 275 | 266 | ||||||
Income taxes | 297 | 179 | ||||||
Financial results (income) loss | 1,902 | (57) | ||||||
EBITDA | 1,473 | 1,692 | ||||||
Comprehensive Financial Cost
Comprehensive financial cost of the Company in the second quarter of 2025 represented an expense of Ps. 1,902 million compared with a net income of Ps. 57 million for the first quarter of 2025. The comprehensive financial cost is comprised of net interest income of Ps. 274 million in the second quarter of 2025, while in the first quarter was a net income of Ps. 213 million. Likewise, we recorded a net exchange loss of Ps. 2,176 million in the second quarter of 2025 compared a net exchange loss Ps. 156 million in the first quarter of the same year.
Income Taxes
The Company recorded an expense of Ps. 297 million of income tax during the second quarter of 2025, (comprised for an expense of current tax of Ps. 197 million and an expense for deferred tax of Ps. 100 million) compared with the Ps. 179 million of expense for the first quarter of the same year, (comprised of an expense of current tax of Ps. 186 million and an income for deferred tax of Ps. 7 million).
Net Income
As a result of the foregoing, the Company recorded a decrease in net income from Ps. 1,305 million in the first quarter of 2025 compared to a net loss of Ps. 1,000 million for the second quarter of 2025.
Liquidity and Capital Resources
As of June 30th, 2025, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 5.7 million (accrued interest on June 30th, 2025 was U.S. $856,000, or Ps. 16.1 million). As June 30, 2024, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 5.5 million (accrued interest on June 30, 2024 was U.S. $812,000, or Ps. 14.9 million).
Comparative second quarter of 2025 vs. second quarter of 2024
Net Sales
Net sales of the Company decreased 16% from Ps. 8,394 million during the second quarter of 2024 to Ps. 7,052 million in the second quarter of 2025. Sales in tons of finished steel products decreased 21% from 536 thousand tons in the second quarter of 2024 compared with 425 thousand tons in the second quarter of 2025. Sales outside of Mexico in the second quarter of 2025 decreased 14% from Ps. 3,593 million in the second quarter of 2024 to Ps. 3,104 million in the second quarter of 2025. Domestic sales decreased 18% from Ps. 4,801 million in the second quarter of 2024 to Ps. 3,948 million in the second quarter of 2025. The decrease in sales in the second quarter of 2025 compared to the second quarter of 2024 is due to an increase in the average sales price of 6% and a decrease in the volume of shipments approximately of 111 thousand of tons that represents a 21% decrease.
Cost of Sales
Cost of sales decreased 15% in the second quarter of 2025 compared to the second quarter of 2024 from Ps. 6,356 million in the second quarter of 2024 to Ps. 5,381 million in the second quarter of 2025. With respect to sales, the cost of sales of the second quarter of 2025 and 2024 represented 76%. The average cost of sales by ton of steel products increased 7% in the second quarter of 2025 versus the second quarter of 2024, due to the increase in costs of certain raw materials mainly scrap.
Gross (Loss) Profit
Gross profit of the Company for the second quarter of 2025 was to Ps. 1,671 million compared to Ps. 2,038 million in the second quarter of 2024, this represented a decrease of 18% between both periods. Gross profit as a percentage of net sales for the second quarter of 2025 and 2024 was 24%. The decrease in gross profit is mainly due to a lower volume of finished steel products shipped, in the second quarter of 2025 compared to the second quarter of 2024.
Selling, General and Administrative Expense
The selling, general and administrative expenses increased 16% in the second quarter of 2025 from Ps. 580 million in the second quarter of 2024 to Ps. 674 million in the second quarter of 2025. Selling, general and administrative expense as a percentage of net sales represented 10% in the second quarter of 2025 compared to 7% of the second quarter of 2024.
Other Income (Expenses), net
The company recorded other income net of Ps. 201 million in the second quarter of 2025 compared with other income net of Ps. 40 million for the second quarter of 2024.
Operating (Loss) Income
Operating income was to Ps. 1,198 million in the second quarter 2025 compared to Ps. 1,498 million in the second quarter of 2024. The operating income as a percentage of net sales was 17% in the second quarter of 2025, compared to 18% in the second quarter of 2024. The decrease in operating profit was due to a lower volume of finished steel products shipped.
Ebitda
The Ebitda was Ps. 1,747 million in the second quarter of 2024 (result of net income of Ps. 3,979 million, plus income taxes of Ps. 181 million, less comprehensive financial income of Ps. 2,662 million, plus depreciation of Ps. 249 million), compared to Ebitda of Ps 1,473 million in the second quarter of 2025 (result of net loss of Ps. 1,000 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 297 million, plus comprehensive financial cost of Ps. 1,902 million, plus depreciation of Ps. 275 million).
Second quarter of 2025 vs second quarter of 2024, | ||||||||
Consolidated Million | 2025 | 2024 | ||||||
Net income (loss) | (1,000) | 3,979 | ||||||
Loss attributable to noncontrolling interests | (1) | |||||||
Net income (loss) | (1,001) | 3,979 | ||||||
Depreciation and amortization | 275 | 249 | ||||||
Income taxes | 297 | 181 | ||||||
Financial results (income) loss | 1,902 | (2,662) | ||||||
EBITDA | 1,473 | 1,747 | ||||||
Comprehensive Financial Cost
Comprehensive financial cost for the second quarter of 2025 represented a net expense of Ps. 1,902 million compared with a net income of Ps. 2,662 million for the second quarter of 2024. The comprehensive financial cost is comprised of net interest income of Ps. 274 million in the second quarter of 2025, compared to a net interest income of Ps. 487 million for the same period of 2024. Also, we recorded an exchange loss of Ps. 2,176 million in the second quarter of 2025 and an exchange income of Ps. 2,133 million in the second quarter of 2024. In the second quarter of 2024 there was a record of net other financial income for Ps. 42 million.
Income Taxes
The company recorded a net taxes expense for the second quarter of 2025 of Ps. 297 million (including an expense of deferred tax of Ps. 100 million) compared to a net tax expense of Ps. 181 million for the second quarter of 2024, (including a deferred tax income of Ps. 113 million).
Net Income (Loss)
As a result of the foregoing, the Company recorded a net loss of Ps. 1.000 million in the second quarter of 2025 compared to Ps. 3,979 million of net profit in the second quarter of 2024.
First Semester
(millions of pesos) | 1H '25 | 1H '24 | Year 25 VS' 24 | |||||||||
Sales | 14,835 | 16,279 | (9 %) | |||||||||
Cost of Sales | 11,167 | 12,232 | (9 %) | |||||||||
Gross Profit | 3,668 | 4,047 | (9 %) | |||||||||
Selling, General and Administrative Expense | 1,307 | 1,176 | 11 % | |||||||||
Other Income (Expenses), net | 263 | 45 | 484 % | |||||||||
Operating Profit | 2,624 | 2,916 | (10 %) | |||||||||
EBITDA | 3,165 | 3,413 | (7 %) | |||||||||
Net income | 304 | 5,435 | (94 %) | |||||||||
Sales Outside Mexico | 6,573 | 7,287 | (10 %) | |||||||||
Sales in Mexico | 8,262 | 8,992 | (8 %) | |||||||||
Total Sales (Tons Thousands) | 901 | 1,015 | (11 %) | |||||||||
Quarter | ||||||||||||||||||||||||||||
(millions of pesos) | 2Q'25 | 1Q '25 | 2Q '24 | 2Q´25 vs | 2Q´25 vs 2Q ´24 | |||||||||||||||||||||||
Sales | 7,052 | 7,783 | 8,394 | (9 %) | (16 %) | |||||||||||||||||||||||
Cost of Sales | 5,381 | 5,786 | 6,356 | (7 %) | (15 %) | |||||||||||||||||||||||
Gross Profit | 1,671 | 1,997 | 2,038 | (16 %) | (18 %) | |||||||||||||||||||||||
Selling, General and Adm. Expenses | 674 | 633 | 580 | 6 % | 16 %) | |||||||||||||||||||||||
Other Income (Expenses), net | 201 | 62 | 40 | 224 % | 403 % | |||||||||||||||||||||||
Operating Profit | 1,198 | 1,426 | 1,498 | (16 %) | (20 %) | |||||||||||||||||||||||
EBITDA | 1,473 | 1,692 | 1,747 | (13 %) | (16 %) | |||||||||||||||||||||||
Net Income | (1,000) | 1,305 | 3,979 | N/C | N/C | |||||||||||||||||||||||
Sales Outside Mexico | 3,104 | 3,469 | 3,593 | (11 %) | (14 %) | |||||||||||||||||||||||
Sales in Mexico | 3,948 | 4,314 | 4,801 | (8 %) | (18 %) | |||||||||||||||||||||||
Total Sales (Tons Thousands) | 425 | 476 | 536 | (11 %) | (21 %) | |||||||||||||||||||||||
Product | Thousands of Tons Jan-Jun 2025 | Millions of | Average Price per Ton Jan-Jun 2025 | Thousands of Tons Jan – Jun 2024 | Millions of | Average Price per Ton Jan-Jun 2024 | ||||||||||||||||||
Commercial Long Steel | 642 | 9,503 | 14,802 | 744 | 11,191 | 15,042 | ||||||||||||||||||
Special Bar Quality SBQ | 259 | 5,332 | 20,587 | 271 | 5,088 | 18,775 | ||||||||||||||||||
Total | 901 | 14,835 | 16,465 | 1,015 | 16,279 | 16,038 | ||||||||||||||||||
Product | Thousands of Tons Apr-Jun 2025 | Millions of Pesos | Average Price per Ton Apr-Jun 2025 | Thousands of Tons Jan – Mar 2025 | Millions of Pesos Jan- Mar 2025 | Average Price per Ton Jan-Mar 2025 | Thousands of Tons Apr-Jun 2024 | Millions of Pesos | Average Price per Ton Apr-Jun 2024 | |||||||||||||||||||||||||||
Commercial Long Steel | 319 | 4,855 | 15,219 | 360 | 5,374 | 14,928 | 392 | 5,756 | 14,684 | |||||||||||||||||||||||||||
Special Bar Quality SBQ | 106 | 2,197 | 20,726 | 116 | 2,409 | 20,767 | 144 | 2,638 | 18,319 | |||||||||||||||||||||||||||
Total | 425 | 7,052 | 16,593 | 476 | 7,783 | 16,351 | 536 | 8,394 | 15,660 | |||||||||||||||||||||||||||
Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.
Contact: José Luis Tinajero
Mario Moreno Cortez
Grupo Simec, S.A.B. de C.V.
Calzada Lázaro Cárdenas 601
44440 Guadalajara, Jalisco, México
52 55 1165 1028
52 33 3770 6734
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SOURCE Grupo Simec, S.A.B. de C.V.
