GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST QUARTER, OF 2025, ENDED MARCH 31, 2025

Rhea-AI Summary

Grupo Simec reported its Q1 2025 financial results, showing mixed performance. Net sales decreased to Ps. 7,783 million, down from Ps. 7,885 million in Q1 2024, primarily due to lower sales prices and reduced shipments. Steel shipments declined 1% to 476 thousand tons.

The company's Mexican sales increased 3% to Ps. 4,314 million, while international sales decreased 6% to Ps. 3,469 million. Despite lower revenues, gross profit margin improved slightly to 26% from 25%. EBITDA increased to Ps. 1,692 million in Q1 2025 from Ps. 1,668 million in Q1 2024.

Net income decreased to Ps. 1,305 million from Ps. 1,456 million year-over-year. The company maintained strong operational efficiency with cost of sales representing 74% of net sales, an improvement from 75% in the previous year. Operating income remained stable at 18% of net sales.

Positive

• Operating income margin remained stable at 18% year-over-year
• EBITDA increased slightly to Ps. 1,692M in Q1 2025 from Ps. 1,668M in Q1 2024
• Mexican sales grew 3% to Ps. 4,314M in Q1 2025
• Cost of sales as percentage of revenue improved to 74% from 75% year-over-year
• Operating income increased 66% quarter-over-quarter to Ps. 1,426M

Negative

• Net sales decreased to Ps. 7,783M from Ps. 7,885M year-over-year
• Steel shipments declined 1% to 476k tons from 479k tons year-over-year
• International sales dropped 6% to Ps. 3,469M year-over-year
• General, selling and administrative expenses increased 6% year-over-year
• Net income decreased 10% to Ps. 1,305M from Ps. 1,456M year-over-year
• Total sales volume decreased 8% quarter-over-quarter from 520k tons

GUADALAJARA, Mexico, April 30, 2025 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the three-period ended March 31, 2025.

Comparative first quarter of 2025 vs. first quarter of 2024

Net Sales

The net sales of the company decreased derived from a lower sales price. Sales decreased from Ps. 7,885 million in the first quarter of 2024 to Ps. 7,783 million in the same period of 2025. Shipments of steel finished goods decreased 1% from 479 thousand tons in the first quarter of 2024 compared to 476 thousand tons in the same period of 2025. Total sales outside of Mexico in the first quarter of 2025 decreased 6% to reach Ps. 3,469 million compared to Ps. 3,694 million in the same period of 2024. The Mexican sales increased 3% from Ps. 4,191 million in the first quarter of 2024 to Ps. 4,314 million in the same period of 2025. The average sales price per ton of steel finished goods decreased 1% in the first quarter of 2025 compared with the same period of 2024.

Cost of Sales

The cost of sales decreased from Ps. 5,876 million in the first quarter of 2024 to Ps. 5,786 million in the same period of 2025. Cost of sales as a percentage of net sales in the first quarter of 2025 and 2024 represented 74% and 75% for said periods respectively. The average cost of sales per ton of steel finished goods decreased 1% in the first quarter of 2025 compared to the same period of 2024.

Gross Profit

The gross profit of the company decreased 1% from Ps. 2,009 million in 2024 to Ps. 1,997 million in the same period of 2025. Gross profit as a percentage of net sales in the first quarter of 2025 and 2024 represented 26% and 25% respectively. The decrease in gross profit is caused by a lower Volume of tons shipped in the first quarter of 2025 compared with the same period of 2024, and lower average sales price per ton. Of steel finished goods.

 General, Sales and administrative Expenses

General, selling, and administrative expenses increased 6%, from Ps.595 million in the first quarter of 2024 to Ps. 633 million in the same period of 2025 and representing 8% of net sales for both periods 2025 and 2024.

Other Expenses (Income) net

The company recorded other income net of Ps. 62 million in the first quarter of 2025 compared to other income net of Ps. 5 million in the same period of 2024.

Operating Income

The operating income was Ps. 1,419 million in the first quarter of 2024 compared to Ps. 1,426 million in the same period of 2025. Operating income as a percentage of net sales was 18% for both the firsts quarters of 2025 and 2024.

EBITDA

The EBITDA of the Company was in Ps. 1,668 million in the first quarter of 2024, (result of a net income of Ps. 1,456 million, plus income taxes of Ps. 110 million, less comprehensive financial income of Ps. 147 million, plus depreciation of Ps. 249 million). Compared to an Ebitda of Ps 1,692 million in the same period of 2025 (result of a 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).

Consolidated
Million		Comparative first quarter of 2025 vs first quarter of 2024,
		2025				2024
Net income (loss) Controlling interest			1,305				1,456
Loss attributable to noncontrolling interests			(1)				0
Net income (loss)			1,304				1,456
Depreciation and amortization			266				249
Income taxes			179				110
Financial results (income) loss			(57)				(147)
EBITDA			1,692				1,668

 

Comprehensive Financial Cost 

The Comprehensive financial income in the first quarter of 2025 represented a net income of Ps. 57 million compared with a net income of Ps. 147 million in the same period of 2024. Net interest was an income of Ps. 213 million in the first quarter of 2025 compared with a net income of Ps. 250 million in the same period of 2024. At the same time, Simec registered an exchange loss of Ps. 156 million in the first quarter of 2025 compared with an exchange loss of Ps.103 million in the same period of 2024.

Income Taxes

Income Taxes recorded an expense of Ps. 179 million in the first quarter of 2025 (including the benefits of Ps. 7 million of deferred income taxes), compared to an expense of Ps.110 million in the same period of 2024 (including the benefits of Ps. 8 million of deferred income taxes).

Net Income (loss)

As a result of the foregoing, net income decreased to Ps. 1,305 million in the first quarter of 2025 from Ps. 1,456 million in the same period of previous year.

Financial Situation, Liquidity and Capital Resources

As of March 31, 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. 6.2 million (accrued interest on March 31, 2025 was U.S. $849 or Ps. 17.3 million).  As of March 31, 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. 5.0 million (accrued interest on March 31, 2024 was U.S. $820 or Ps. 13.7 million).

Comparative first quarter of 2025 vs. fourth quarter of 2024

Net Sales

The net sales of the company decreased 12% comparing Ps. 8,830 million in the fourth quarter of 2024 to Ps. 7,783 million in the first quarter of 2025. The tons sales decreased 8%, from 520 thousand tons in the fourth quarter of 2024 compared to 476 thousand tons in the first quarter of 2025. Total sales outside of Mexico in the first quarter of 2025 decreased 21% from Ps. 4,410 million on the last quarter of 2024 compared to Ps. 3,469 million in the first quarter of 2025. The Mexican sales decreased 2% from Ps. 4,420 million in the fourth quarter of 2024 to Ps. 4,314 million in the first quarter of 2025. The decrease was mainly due to a lower volume of tons shipped, in the first quarter of 2025 compared with the fourth quarter of 2024.

Cost of Sales

Cost of sales decreased 22% from Ps. 7,408 million in the fourth quarter of 2024 to Ps. 5,786 million in the first quarter of 2025. Cost of sales as a percentage of net sales in the first quarter of 2025 represented 74% and in the last quarter of 2024 cost of sales represented 84%. The average cost of finished steel products in the first quarter of 2025 decreased 15% compared to the fourth quarter of 2024 as a result of lower input costs in the first quarter of 2025.

Gross Profit

Gross profit of the company for the first quarter of 2025 increased to Ps. 1,997 million in 2025 from Ps. 1,422 million in the last quarter of 2024. Gross profit as a percentage of net sales in the first quarter of 2025 was 26% and for the last period of 2024 was 16%. The increase in gross profit was due to lower costs for inputs.

General, Sales and administrative Expenses

General selling, and administrative expenses decreased to Ps. 633 million in the first quarter of 2025 compared to Ps. 768 million in the fourth quarter of 2024, representing 8% for the first quarter 2025 and 9% for the fourth quarter 2024.

Other Expenses (Income) net

The company recorded other net income of Ps. 62 million in the first quarter of 2025 compared to other net income of Ps. 207 million in the fourth quarter of 2024.

Operating Income

Operating income increased 66% to Ps. 1,426 million in the first quarter of 2025 compared to Ps. 861 million in the last quarter of 2024. Operating income as a percentage of net sales was 18% in the first quarter of 2025, compared to 10% in the last quarter of 2024. The increase in operating profit is mainly due to lower input costs and lower expenses in the first quarter of 2025 compared to the fourth quarter of 2024.

EBITDA

The EBITDA of the Company was of 1,178 million in the fourth quarter of 2024, (result of a net income of Ps. 1,901 million, less minority stake of Ps. 5 million, plus income taxes of Ps. 1,298 million, less comprehensive financial income of Ps. 2,333 million, plus depreciation of Ps. 317 million). Compared to an Ebitda of 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).

Consolidated
Million		Comparative first quarter of 2025 vs fourth quarter of 2024,
		2025				2024
Net income (loss) Controlling interest			1,305				1,901
Loss attributable to noncontrolling interests			(1)				(5)
Net income (loss)			1,304				1,896
Depreciation and amortization			266				317
Income taxes			179				1,298
Financial results (income) loss			(57)				(2,333)
Adjusted EBITDA			1,692				1,178

 

Comprehensive Financial Cost 

Comprehensive financial income in the first quarter of 2025 represented a net income of Ps. 57 million compared with a net income of Ps. 2,333 million in the fourth quarter of 2024. Net interest income of the first quarter of 2025 was of Ps. 213 million compared with an interest net income of Ps. 550 million in the last quarter of 2024. Likewise, an exchange loss of 156 million was recorded in the first quarter of 2025 against an exchange profit of Ps. 1,757 million in the last quarter of 2024. In the fourth quarter of 2024, other net financial income was recorded for Ps. 26 million.

Income Taxes

Income Taxes recorded a expense of Ps. 179 million in the first quarter of 2025 (including an income of deferred tax of Ps. 7 million). compared a net tax expense of Ps. 1,298 million in the fourth quarter of 2024 (including an income of deferred tax of Ps. 205 million).

Net Income (loss)

As a result of the foregoing, the net income of the first quarter of 2025 is of Ps. 1,305 million compared to a net income of Ps. 1,901 million in of the fourth quarter 2024.

Quarter
(millions of pesos)	1Q'25	4Q '24	1Q 24	1Q´25 vs 4Q´24	1Q´25 vs 1Q '24
Sales	7,783	8,830	7,885	(12 %)	(1 %)
Cost of Sales	5,786	7,408	5,876	(22 %)	(2 %)
Gross Profit	1,997	1,422	2,009	40 %	(1 %)
Selling, General and Adm. Expenses	633	768	595	(18 %)	6 %
Other Income (Expenses), net	62	207	5	(70 %)	1140 %
Operating Profit	1,426	861	1,419	66 %	0 %
EBITDA	1,692	1,178	1,668	44 %	1 %
Net Income Controlling interest	1,305	1,901	1,456	(31 %)	(10 %)
Sales Outside Mexico	3,469	4,410	3,694	(21 %)	(6 %)
Sales in Mexico	4,314	4,420	4,191	(2 %)	3 %
Total Sales (Tons thousands)	476	520	479	(8 %)	(1 %)
Cost per Ton (Pesos)	12,155	14,246	12,267	(15 %)	(1 %)

 

Product	Thousands of Tons Jan-Mar 2025	Millions of Pesos Jan-Mar 2025	Average Price per Ton Jan-Mar 2025	Thousands of Tons Oct-Dec 2024	Millions of Pesos Oct-Dec 2024	Average Price per Ton Oct-Dec 2024	Thousands of Tons Jan-Mar  2024	Millions of Pesos Jan-Mar 2024	Average Price per Ton Jan-Mar  2024
Commercial Long Steel	360	5,374	14,928	403	6,350	15,757	352	5,435	15,440
Special Bar Quality SBQ	116	2,409	20,767	117	2,480	21,197	127	2,450	19,291
Total	476	7,783	16,351	520	8,830	16,981	479	7,885	16,461

 

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.

PRESS RELEASE	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 1025
	52 33 3770 6734

 

View original content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-quarter-of-2025-ended-march-31-2025-302443393.html

SOURCE Grupo Simec, S.A.B. de C.V.

FAQ

How did Grupo Simec (SIM) perform in Q1 2025 compared to Q1 2024?

Grupo Simec's performance showed slight declines in Q1 2025 vs Q1 2024. Net sales decreased to Ps. 7,783 million from Ps. 7,885 million, with steel shipments down 1% to 476,000 tons. Net income decreased 10% to Ps. 1,305 million, though EBITDA slightly improved by 1% to Ps. 1,692 million.

What caused the decline in Grupo Simec (SIM) sales for Q1 2025?

The decline in sales was primarily due to lower sales prices and decreased shipment volume. Steel shipments fell 1% to 476,000 tons, while the average sales price per ton decreased 1% compared to Q1 2024. International sales notably decreased by 6%, though Mexican sales increased by 3%.

What is Grupo Simec's (SIM) profit margin for Q1 2025?

Grupo Simec maintained a gross profit margin of 26% in Q1 2025, slightly up from 25% in Q1 2024. Operating income remained stable at 18% of net sales, while cost of sales improved to 74% of net sales compared to 75% in the previous year.

How much debt does Grupo Simec (SIM) have as of March 31, 2025?

Grupo Simec's total consolidated debt as of March 31, 2025, consisted of U.S. $302,000 in medium-term notes with 8 7/8% interest (Ps. 6.2 million), plus accrued interest of U.S. $849 (Ps. 17.3 million).

What is Grupo Simec's (SIM) EBITDA performance in Q1 2025?

Grupo Simec's EBITDA reached Ps. 1,692 million in Q1 2025, showing a 1% increase from Ps. 1,668 million in Q1 2024. This improvement came despite lower net income, supported by higher income taxes and depreciation figures.