Grupo Simec Announces Results for the First Six Months of 2015
07/28/2015 - Grupo Simec, S.A.B. de C.V. ("Simec") announced its results of operations for the sixth-month period ended June 30, 2015.
Comparative first six months of 2015 vs. first six months of 2014
Net Sales
Net sales of the Company maintained from Ps. 13,204 million in the first half of 2014 to Ps. 13,204 million in the first half of 2015. Shipments of finished steel products increased 5% from 1,066 thousand tons in the first half of 2014 to 1,118 thousand tons in the first half of 2015. Total sales outside of Mexico in the first half of 2015 decreased 11% to Ps. 5,879 million compared to Ps. 6,598 million in the first half of 2014. Mexican sales increased 11% from Ps. 6,606 million in the first half of 2014 to Ps. 7,324 million in the first half of 2015. Sales were flat for the first half of 2015 compared to the first half of 2014, is due to the combined of decreased in the average sales price of 5% and increase in the volume of shipments approximately of 52 thousand tons that represent a 5%.
Cost of Sales
Cost of sales decreased 5% from Ps. 12,071 million in the first half of 2014, to Ps. 11,476 million in the first half of 2015. Cost of sales as a percentage of net sales represented 87% in the first half of 2015 while in the first half of 2014 represented 91%. Cost of sales decreased due to the higher volume shipment and the price of certain raw materials.
Gross Profit
Gross profit of the Company for the first half of 2015 increased 53% from Ps. 1,133 million in the first half of 2014, to Ps. 1,728 million in the first half of 2015. Gross profit as percentage of net sales in the first half of 2015 was of 13% while in the first half of 2014 was of 9%. The gross profit between both periods is given by a higher volume of shipments and improved costs of certain raw materials.
Selling, General and Administrative Expense
Selling, general and administrative expense increased 15%, from Ps. 555 million in the first half of 2014 to Ps. 641 million in the same period 2015, selling, general and administrative expense represented 5% of the net sales of the first half of 2015 and 4% of net sales in the first half of 2014.
Other Income (Expenses,) net
The Company recorded other income net for Ps. 8 million in the first half of 2015 million compared to Ps. 9 million in the same period of 2014.
Operating Income
Operating income increased 87% from Ps. 587 million for the first half of 2014 compared to Ps. 1,095 million in the first half of 2015. Operating income as percentage of net sales was 8% in the first half of 2015 compared to 4% in the same period of 2014. The increase in operating income is due to the average cost of production.
Ebitda
The Ebitda of the first half of 2015, increased in Ps 574 million or 53% compared to first half of 2014, due to the higher volume shipment and a decrease in the average cost of production. The Ebitda passed of Ps. 1,084 million in the first half of 2014 to Ps. 1,658 million in the first half of 2015.
Comprehensive Financial Cost
Comprehensive financial cost for the first half of 2015 represented an income of Ps. 69 million compared with of Ps. 28 million of expense for the first half of 2014. The comprehensive financial cost is comprised by the exchange gain of Ps. 74 million in the first half of 2015 compared with an exchange loss of Ps. 13 million in the first half of 2014. Also the Company recorded a net expense interest of Ps. 5 million for the first half of 2015 compared with a net expense interest of Ps.15 million in 2014.
Income Taxes
The Company recorded an expense of Ps. 502 million for the net income tax during the first half of 2015, (comprised for a current income tax of Ps. 503 million and an income for deferred income tax of Ps. 1 million) compared with an income of Ps. 35 million of income tax for the first half of 2014 (comprised for a current income tax of Ps. 15 million and an income for deferred income tax of Ps. 50 million).
Net Income
As a result of the foregoing, the Company recorded an increase in net income of 18% to pass of Ps. 722 million in the first half of 2014 to Ps. 853 million of the same period of 2015.
Net Sales
Net sales of the Company maintained from Ps. 13,204 million in the first half of 2014 to Ps. 13,204 million in the first half of 2015. Shipments of finished steel products increased 5% from 1,066 thousand tons in the first half of 2014 to 1,118 thousand tons in the first half of 2015. Total sales outside of Mexico in the first half of 2015 decreased 11% to Ps. 5,879 million compared to Ps. 6,598 million in the first half of 2014. Mexican sales increased 11% from Ps. 6,606 million in the first half of 2014 to Ps. 7,324 million in the first half of 2015. Sales were flat for the first half of 2015 compared to the first half of 2014, is due to the combined of decreased in the average sales price of 5% and increase in the volume of shipments approximately of 52 thousand tons that represent a 5%.
Cost of Sales
Cost of sales decreased 5% from Ps. 12,071 million in the first half of 2014, to Ps. 11,476 million in the first half of 2015. Cost of sales as a percentage of net sales represented 87% in the first half of 2015 while in the first half of 2014 represented 91%. Cost of sales decreased due to the higher volume shipment and the price of certain raw materials.
Gross Profit
Gross profit of the Company for the first half of 2015 increased 53% from Ps. 1,133 million in the first half of 2014, to Ps. 1,728 million in the first half of 2015. Gross profit as percentage of net sales in the first half of 2015 was of 13% while in the first half of 2014 was of 9%. The gross profit between both periods is given by a higher volume of shipments and improved costs of certain raw materials.
Selling, General and Administrative Expense
Selling, general and administrative expense increased 15%, from Ps. 555 million in the first half of 2014 to Ps. 641 million in the same period 2015, selling, general and administrative expense represented 5% of the net sales of the first half of 2015 and 4% of net sales in the first half of 2014.
Other Income (Expenses,) net
The Company recorded other income net for Ps. 8 million in the first half of 2015 million compared to Ps. 9 million in the same period of 2014.
Operating Income
Operating income increased 87% from Ps. 587 million for the first half of 2014 compared to Ps. 1,095 million in the first half of 2015. Operating income as percentage of net sales was 8% in the first half of 2015 compared to 4% in the same period of 2014. The increase in operating income is due to the average cost of production.
Ebitda
The Ebitda of the first half of 2015, increased in Ps 574 million or 53% compared to first half of 2014, due to the higher volume shipment and a decrease in the average cost of production. The Ebitda passed of Ps. 1,084 million in the first half of 2014 to Ps. 1,658 million in the first half of 2015.
Comprehensive Financial Cost
Comprehensive financial cost for the first half of 2015 represented an income of Ps. 69 million compared with of Ps. 28 million of expense for the first half of 2014. The comprehensive financial cost is comprised by the exchange gain of Ps. 74 million in the first half of 2015 compared with an exchange loss of Ps. 13 million in the first half of 2014. Also the Company recorded a net expense interest of Ps. 5 million for the first half of 2015 compared with a net expense interest of Ps.15 million in 2014.
Income Taxes
The Company recorded an expense of Ps. 502 million for the net income tax during the first half of 2015, (comprised for a current income tax of Ps. 503 million and an income for deferred income tax of Ps. 1 million) compared with an income of Ps. 35 million of income tax for the first half of 2014 (comprised for a current income tax of Ps. 15 million and an income for deferred income tax of Ps. 50 million).
Net Income
As a result of the foregoing, the Company recorded an increase in net income of 18% to pass of Ps. 722 million in the first half of 2014 to Ps. 853 million of the same period of 2015.
