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GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2024.

1. Net sales decreased 18% in 2024, primarily in Mexican markets. 2. Gross profit dropped to Ps. 8,190 million, down 18% year-on-year. 3. Net income rose 168% to Ps. 11,475 million despite lower sales. 4. Cost of sales decreased by 18%, benefiting from lower scrap costs. 5. Sales outside Mexico increased 36% compared to Q4 2023.

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Why Bullish?

Despite a decline in sales, the significant net income growth may indicate operational efficiency improvements. Historical examples show that companies often see stock price increases in earnings growth despite revenue declines (e.g., many tech firms during downturns).

How important is it?

The company's profit growth juxtaposed against revenue decline showcases resilience, which could attract investors. Improved cost efficiency illustrates solid management performance.

Why Short Term?

Immediate trading may react positively due to net income increase. Long-term effects will depend on sustained operational efficiency and market conditions.

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, /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the twelve-month period ended December 31, 2024 and December 31, 2023 Audited. Twelve-Month Period Ended December 31, 2024 compared to Twelve-Month Period Ended December 31, 2023. Net Sales  Net sales decreased 18% by the combination of less shipments of finished steel products (6%) and a lower average sales price of 13% compared the same period of 2023, the sales decreased from Ps. 41,139 million in the twelve-month period ended December 31, 2023 to Ps. 33,658 million in the same period of 2024. Shipments of finished steel products decreased 6% to 2 million 056 thousand tons in the twelve-month period ended December 31, 2024 compared to 2 million 176 thousand tons in the same period of 2023. Total sales outside of Mexico on the twelve-month period ended December 31, 2024 decreased 8% to Ps. 15,388 million compared with Ps. 16,814 million in the same period of 2023. Total sales in Mexico decreased 25% from Ps. 24,325 million in the twelve-month period ended December 31, 2023 to Ps. 18,270 million in the same period of 2024. Cost of Sales   Cost of sales decreased 18% from Ps. 31,100 million in the twelve-month period ended December 31, 2023 to Ps. 25,468 million in the same period of 2024. Cost of sales as a percentage of net sales represented, 76% for both periods 2024 and 2023. The average cost of finished steel produced in the twelve-month period ended December 31, 2024 compared to the same period of 2023 decreased 13% mainly due to lower scrap cost. Gross Profit    Gross profit of the Company in the twelve-month period ended December 31, 2024 was of Ps. 8,190 million compared to Ps. 10,039 million in the same period of 2023. Gross profit as a percentage of net sales represented 24% for both periods 2024 and 2023. Operating Expenses    Selling, general and administrative expenses increased 7% from Ps. 2,317 million in the twelve-month period ended December 31, 2023 to Ps. 2,487 million in the same period of 2024. Selling, general and administrative expenses as a percentage of net sales represented 6% during the twelve-month period ended December 31, 2023 and 7% in the same period of 2024. Other Expenses (Income) net    The company recorded other net expenses of Ps. 119 million in the twelve-month period ended December 31, 2023 compared to other net income of Ps. 127 million in the same period of 2024. Operating Income    Operating income decreased 23% from Ps. 7,603 million for the twelve-month period ended December 31, 2023 to Ps. 5,830 million in the same period of 2024. Operating income as a percentage of net sales represented 17% and 18% for the 2024 and 2023 periods respectively. EBITDA   The EBITDA of the Company decreased 21% from Ps. 8,638 million in the twelve-month prior ended December 31, of 2023, (result of a net income of Ps. 4,283, less minority stake of Ps. 8 million, plus income taxes of Ps. 1,740 million, plus comprehensive financial cost of Ps. 1,588 million, plus depreciation of Ps. 1,035 million), to Ps. 6,864 million in the same period of 2024 (result a net income of Ps. 11,475, less minority stake of Ps. 2 million, plus income taxes of Ps. 987 million, less comprehensive financial income of Ps. 6,630 million, plus depreciation of 1,034 million). Consolidated Million Twelve-month period ended December 31, 2024 2023 Net income (loss) 11,475 4,283 Loss attributable to noncontrolling interests (2) (8) Net income (loss) 11,473 4,275 Depreciation and amortization 1,034 1,035 Income taxes 987 1,740 Financial results (income) loss (6,630) 1,588 EBITDA 6,864 8,638 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) 0 0 Impairment and disposal of non-current assets 0 0 Adjusted EBITDA 6,864 8,638 Comprehensive Financial Cost Comprehensive financial cost in the twelve-month period ended December 31, 2024 represented a net income of Ps. 6,630 million compared with a net expense of Ps. 1,588 million in the same period of 2023. The net interest was an income of Ps. 1,612 million in 2024 compared with a net income of Ps. 778 million in the twelve-month period ended December 31, 2023. As a result, we registered a net exchange income of Ps. 4,950 million in the twelve-month period ended December 31, 2024 compared with a net exchange loss of Ps. 2,431 million in the same period of 2023, net other financial income was recorded for Ps. 68 million for the period 2024 compared to the Ps. 65 million of other financial income for the period 2023. Income TaxesThe Company recorded an expense net tax of Ps. 987 million in the twelve-month period ended December 31, 2024 (including the income of deferred tax of Ps. 370 million) compared with a net expense tax of Ps. 1,740 million in the same period of 2023 (including the tax deferred expense of Ps. 45 million). Net Income (loss)As a result of the foregoing, net income increased by 168% from Ps. 4,283 million net profits in the twelve-month period ended December 31, 2023 to Ps. 11,475 million of net income in the same period of 2024.  Liquidity and Capital ResourcesAs of December 31, 2024, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 6.2 million (accrued interest on December 31, 2024 was U.S. $841,577 or Ps. 17.3 million).  As of December 31, 2023, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.1 million (accrued interest on December 31, 2023 was U.S. $812,916, or Ps. 13.7 million). Comparative fourth quarter 2024 vs third quarter 2024 Net Sales Net sales increased from Ps. 8,549 million in the third quarter of 2024 to Ps. 8,830 million for the fourth quarter of 2024. Sales in tons remained stable from 521 thousand ton in the third quarter of 2024 to 520 thousand ton in the fourth quarter of the same period. Total sales outside of Mexico for the fourth quarter of 2024 increased 19% from Ps. 3,691 million in the third quarter to Ps. 4,410 million in the four quarter of 2024. Sales in Mexico decreased 9% to Ps. 4,420 million in the fourth quarter of 2024 compared Ps. 4,858 million in the third quarter of 2024. Prices of finished products sold in the fourth quarter of 2024 increased 3% compared with the third quarter of the same period. Cost of Sales   Cost of sales increased to Ps. 6,843 million in the fourth quarter of 2024 compared to Ps. 6,393 million for the third quarter of 2024. With respect to sales, in the fourth quarter of 2024, the cost of sales represented 77% in the fourth quarter of 2024, compared to 75% in the third quarter of the same period. The average cost of sales by ton increase of 7% in the fourth quarter of 2024 versus the third quarter of 2024. Gross Profit   Gross profit of the Company for the fourth quarter of 2024 decreased 8% to Ps. 1,987 million compared to Ps. 2,156 million in the third quarter of 2024. The gross profit as a percentage of net sales for the third and fourth quarter of 2024 was of 25% and 23% respectively. Operating Expenses   Selling, general and administrative expenses decreased 1% to Ps. 654 million in the fourth quarter of 2024 compared to Ps. 658 million for the third quarter of 2024. Selling, general and administrative expenses as a percentage of net sales for the third quarter of 2024 was of 8% compared to 7% in the fourth quarter 2024. Other Expenses (Income) net   The company recorded other net income of Ps. 56 million in the fourth quarter of 2024 compared to other net income of Ps. 26 million for the third quarter of 2024. Operating (Loss) Income    Operating income was of Ps. 1,389 million in the fourth quarter of 2024 compared to an operating income of Ps. 1,524 million in the third quarter of 2024. The operating income as a percentage of net sales represented 16% y 18% for the fourth quarter and third quarter of 2024 respectively. EBITDA   The EBITDA was Ps. 1,776 million in the third quarter of 2024 (result a net income of Ps. 3,152 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 471 million, less comprehensive financial income of Ps. 2,098 million, plus depreciation of Ps. 252 million), compared to Ps. 1,673 million for the fourth quarter of 2024, (result of net income of  Ps. 2,888 million,  plus income taxes of Ps. 225 million, less comprehensive financial income of Ps. 1,724 million, plus depreciation of Ps. 284 million). Consolidated  Million   Comparative fourth quarter vs third quarter 2024 4Q 2024 3Q 2024 Net income (loss) 2,888 3,152 Loss attributable to noncontrolling interests 0 (1) Net income (loss) 2,888 3,151 Depreciation and Amortization 284 252 Income taxes 225 471 Financial results (income) loss (1,724) (2,098) EBITDA 1,673 1,776 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) 0 0 Impairment and disposal of non-current assets 0 0 Adjusted EBITDA 1,673 1,776 Comprehensive Financial Income (Cost)  Comprehensive financial income for the fourth quarter for 2024 was a net income of Ps. 1,724 million compared with a net income of Ps. 2,098 million for the third quarter of 2024. The net interest income the fourth quarter was Ps. 548 million compared with a net income of Ps. 329 million in the third quarter of 2024. At same time we registered an exchange net profit of Ps. 1,769 million in the third quarter of 2024 compared with an exchange net income of Ps. 1,150 million in the fourth quarter of 2024. Net other financial income was recorded for Ps. 26 million in the fourth quarter of 2024. Income Taxes   Income Taxes for the third quarter of 2024 had an expense net tax of Ps. 471 million (including an expense tax deferred for Ps. 33 million) compared to an expense of Ps. 225 million for the fourth quarter of 2024, (including an income tax deferred of Ps. 282 million). Net Income (loss)   As a result of the foregoing, the Company recorded a net income of Ps. 2,888 million in the fourth quarter of 2024 compared to Ps. 3,152 million of net income in the third quarter of 2024. Comparative fourth quarter 2024 vs fourth quarter 2023 Net Sales  Net sales increased 1% from Ps. 8,738 million for the fourth quarter of 2023 to Ps. 8,830 million for the fourth quarter of 2024. Sales in tons of finished steel in the fourth quarter of 2023 were 536 thousand tons versus to 520 thousand tons in the fourth quarter of 2024. Total sales outside of Mexico increased 36% from Ps. 3,243 million for the fourth quarter of 2023 to Ps. 4,410 million in the fourth quarter of 2024. Sales in Mexico decreased 20% from Ps. 5,495 million in the fourth quarter of 2023 to Ps. 4,420 million in the fourth quarter of 2024. The average sales prices of finished products sold in the fourth quarter of 2024 increased 4%, compared to the same period of 2023. Cost of SalesCost of sales increased 1% from Ps. 6,795 million in the fourth quarter of 2023 compared to Ps. 6,843 million for the fourth quarter of 2024. With respect to sales, the cost of sales represented 77% during the fourth quarter of 2024 and 78% during the fourth quarter of 2023. The average cost of steel products increased 4% in the fourth quarter of 2024 versus the fourth quarter of 2023. Gross ProfitGross profit for the fourth quarter of 2024 increased 2% from Ps. 1,943 million in the fourth quarter of 2023 compared to Ps. 1,987 million in the fourth quarter of 2024. The gross profit as a percentage of net sales represented 22% for the fourth quarter of 2023 compared to 23% of the fourth quarter of 2024. Operating ExpensesSelling, general and administrative expenses decreased 10% belong from Ps. 730 million in the fourth quarter of 2023 compared to Ps. 654 million for the fourth quarter of 2024. Selling, general and administrative expenses as a percentage of net sales for the fourth quarter of 2023 was of 8% compared to 7% in the fourth quarter 2024. Other Expenses (Income) net The company recorded other expenses net of Ps. 286 million in the fourth quarter of 2023 compared with other income net of Ps. 56 million for the fourth quarter of 2024. Operating (Loss) Income Operating income was of Ps. 1,389 million in the fourth quarter of 2024 compared to an operating profit of Ps. 927 million in the fourth quarter of 2023. The operating income as a percentage of net sales in the fourth quarter of 2024 was 16%, compared to an operating income of 11% in the fourth quarter of 2023. EBITDA  The EBITDA was Ps. 1,140 million in the fourth quarter of 2023 (result of net income of Ps. 462 million, less minority stake of Ps. 4 million, plus income taxes of Ps. 199 million, plus comprehensive financial cost of Ps. 270 million, plus depreciation of Ps. 213 million), compared to EBITDA of Ps 1,673 million in the fourth quarter of 2024 (result of net income of Ps. 2,888 million, plus income taxes of Ps. 225 million, less comprehensive financial income of Ps. 1,724 million, plus depreciation of Ps. 284 million). Consolidated  Million   Comparative fourth quarter vs fourth quarter 2024 2023 Net income (loss) 2,888 462 Loss attributable to noncontrolling interests 0 (4) Net income (loss) 2,888 458 Depreciation and Amortization 284 213 Income taxes 225 199 Financial results (income) loss (1,724) 270 EBITDA 1,673 1,140 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) 0 0 Impairment and disposal of non-current assets 0 0 Adjusted EBITDA 1,673 1,140 Comprehensive Financial Income (Cost)   Comprehensive financial cost for the fourth quarter of 2024 was a net income of Ps. 1,724 million compared with a net expense of Ps 270 million in the fourth quarter of 2023. Net interest income was of Ps. 548 million in the fourth quarter of 2024 compared with a net interest income of Ps. 386 million in the fourth quarter of 2023. At same time we registered a net exchange income of Ps. 1,150 million in the fourth quarter of 2024 compared with an exchange loss of Ps. 677 million in the fourth quarter of 2023. Net other financial income was recorded for Ps. 26 million in the fourth quarter of 2024, compared to the Ps. 21 million of other financial income for the period 2023. Income Taxes   The Company recorded a net taxes expense for the fourth quarter of 2024 of Ps. 225 million (including an income of deferred tax of Ps. 282 million), compared to a net tax expense of Ps. 199 million for the fourth quarter of 2023, (including a tax deferred expense of Ps. 53 million). Net Income (loss)   As a result of the foregoing, the Company recorded a net profit of Ps. 2,888 million in the fourth quarter of 2024 compared to Ps. 462 million of net profit in the fourth quarter of 2023. (million of pesos) Jan - Dec '24 Jan - Dec '23 Year 24 vs  '23 Sales 33,658 41,139 (18 %) Cost of Sales 25,468 31,100 (18 %) Gross Profit 8,190 10,039 (18 %) Selling, General and Administrative Expense 2,487 2,317 7 % Other Income (Expenses), net 127 (119) N/C Operating Profit 5,830 7,603 (23 %) EBITDA 6,864 8,638 (21 %) Net income  11,475 4,283 168 % Sales Outside Mexico 15,388 16,814 (8 %) Sales in Mexico 18,270 24,325 (25 %) Total Sales (Tons Thousands) 2,056 2,176 (6 %) Cost per ton (Pesos) 12,387 14,292 (13 %) Quarter (million of pesos) 4Q'24 3Q '24 4Q '23 4Q´24vs 3Q´24 4Q´24 vs 4Q '23 Sales 8,830 8,549 8,738 3 % 1 % Cost of Sales 6,843 6,393 6,795 7 % 1 % Gross Profit 1,987 2,156 1,943 (8 %) 2 % Selling, General and Adm. Expenses 654 658 730 (1 %) (10 %) Other Income (Expenses), net 56 26 (286) 115 % N/C Operating Profit 1,389 1,524 927 (9 %) 50 % EBITDA 1,673 1,776 1,140 (6 %) 47 % Net Income 2,888 3,152 462 (8 %) 525 % Sales Outside Mexico 4,410 3,691 3,243 19 % 36 % Sales in Mexico 4,420 4,858 5,495 (9 %) (20 %) Total Sales (Tons Thousands) 520 521 536 0 % (3 %) Cost per Ton (pesos) 13,160 12,271 12,677 7 % 4 % Product Thousands of Tons Jan-Dec 2024 Millions of Pesos  Jan-Dec 2024 Average Price per Ton Jan-Dec 2024 Thousands of Tons Jan – Dec 2023 Millions of Pesos Jan- Dec 2023 Average Price per Ton  Jan-Dec 2023 Special Bar Quality SBQ 520 10,133 19,487 597 13,139 22,008 Commercial Profiles 1,536 23,525 15,316 1,579 28,000 17,733 Total Tons 2,056 33,658 16,371 2,176 41,139 18,906 Product Thousands of Tons Oct-Dec 2024 Millions of Pesos Oct-Dec 2024 Average Price per Ton Oct-Dec 2024 Thousands of Tons Jul-Sep 2024 Millions of Pesos Jul-Sep 2024 Average Price per Ton Jul-Sep 2024 Thousands of Tons Oct-Dec 2023 Millions of Pesos Oct-Dec 2023 Average Price per Ton Oct-Dec 2023 Special Bar Quality SBQ 117 2,480 21,197 153 2,939 19,209 153 2,800 18,301 Commercial Profiles 403 6,350 15,757 368 5,610 15,245 383 5,938 15,504 Total Tons 520 8,830 16,981 521 8,549 16,409 536 8,738 16,302 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 SOURCE Grupo Simec, S.A.B. de C.V. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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