GUADALAJARA, MEXICO, May 6, 2024 /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, 2023 Audited and December 31, 2022 Audited. Twelve-Month Period Ended December 31, 2023 compared to Twelve-Month Period Ended December 31, 2022. Net Sales Net sales decreased 24% by the combination shipments of finished steel products and a lower average sales price by 21% compared the same period of 2022, the sales decreased from Ps. 54,159 million in the twelve-month period ended December 31, 2022 to Ps. 41,139 million in the same period of 2023. Shipments of finished steel products decreased 4% to 2 million 176 thousand tons in the twelve-month period ended December 31, 2023 compared to 2 million 255 thousand tons in the same period of 2022. Total sales outside of Mexico on the twelve-month period ended December 31, 2023 decreased 31% to Ps. 16,814 million compared with Ps. 24,515 million in the same period of 2022. Total sales in Mexico decreased 18% from Ps. 29,644 million in the twelve-month period ended December 31, 2022 to Ps. 24,325 million in the same period of 2023. The decrease of 4% in sales and to a lower average sales price 21%. Cost of Sales Cost of sales decreased 22% from Ps. 39,684 million in the twelve-month period ended December 31, 2022 to Ps. 31,100 million in the same period of 2023. Cost of sales as a percentage of net sales represented, 76% for 2023 and 2022 73%. The average cost of finished steel produced in the twelve-month period ended December 31, 2023 compared to the same period of 2022 decreased 19% mainly due to the volume shipped and due to scrap cost and to lower costs of some supplies during the year. Gross Profit Gross profit of the Company in the twelve-month period ended December 31, 2023 was of Ps. 10,039 million compared to Ps. 14,475 million in the same period of 2022. Gross profit as a percentage of net sales represented 24% and 27% for the 2023 and 2022 periods respectively. Operating Expenses Selling, general and administrative expenses decreased 6% from Ps. 2,456 million in the twelve-month period ended December 31, 2022 to Ps. 2,317 million in the same period of 2023. Selling, general and administrative expenses as a percentage of net sales represented 5% during the twelve-month period ended December 31, 2022 and 6% in the same period of 2023. Other Expenses (Income) net The company recorded other net income of Ps. 72 million in the twelve-month period ended December 31, 2022 compared to other net expenses of Ps. 119 million in the same period of 2023. Operating Income Operating income decreased 37% from Ps. 12,091 million for the twelve-month period ended December 31, 2022 to Ps. 7,603 million in the same period of 2023. Operating income as a percentage of net sales represented 18% and 22% for the 2023 and 2022 periods respectively. EBITDA The EBITDA of the Company decreased 35% from Ps. 13,207 million in the twelve-month prior ended December 31, of 2022, as a result a net income of Ps. 7,703, less minority stake of Ps. 2 million, plus income taxes of Ps. 3,300, plus comprehensive financial cost of Ps. 1,089 million, plus depreciation of Ps. 1,117 million, to Ps. 8,638 million in the same period of 2023 as a result 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 1,035 million. Consolidated  Million   Twelve-month period ended December 31, 2023 2022 Net income (loss) 4,283 7,703 Loss attributable to noncontrolling interests (8) (2) Net income (loss) 4,275 7,701 Depreciation and amortization 1,035 1,117 Income taxes 1,740 3,300 Financial results income (loss) 1,588 1,089 EBITDA 8,638 13,207 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 8,638 13,207 Comprehensive Financial Cost  Comprehensive financial cost in the twelve-month period ended December 31, 2023 represented a net expense of Ps. 1,588 million compared with a net expense of Ps. 1,089 million in the same period of 2022. The net interest was an income of Ps. 778 million in 2023 compared with a net income of Ps. 197 million in the twelve-month period ended December 31, 2022. As a result, we registered a net exchange loss of Ps. 2,431 million in the twelve-month period ended December 31, 2023 compared with a net exchange loss of Ps. 700 million in the same period of 2022, net other financial income was recorded for Ps. 65 million for the period 2023 compared to the Ps. 586 million of other financial expenses for the period 2022. Income Taxes The Company have recorded an expense net tax of Ps. 1,740 million in the twelve-month period ended December 31, 2023 (including the expense of deferred tax of Ps. 45 million) compared with a net expense tax of Ps. 3,300 million in the same period of 2022 (including the tax deferred expense of Ps. 150 million). Net Income (loss) As a result of the foregoing, net income decreased by 44% from Ps. 7,703 million net profits in the twelve-month period ended December 31, 2022 to Ps. 4,283 million a result net income in the same period of 2023.  Liquidity and Capital Resources 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).  As of December 31, 2022, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.8 million (accrued interest on December 31, 2022 was U.S. $694,987, or Ps. 13.5 million). Comparative fourth quarter 2023 vs third quarter 2023 Net Sales                       Net sales decreased from Ps. 9,454 million in the third quarter of 2023 to Ps. 8,738 million for the fourth quarter of 2023. Sales in tons increased from 531 thousand ton in the third quarter of 2023 to 536 thousand ton in the fourth quarter of the same period, an increase of 1%. Total sales outside of Mexico for the fourth quarter of 2023 decreased 18% from Ps. 3,932 million in the third quarter to Ps. 3,243 million in the four quarter of 2023. Sales in Mexico decreased to Ps. 5,495 million in the fourth quarter of 2023 compared Ps. 5,522 million in the third quarter of 2023 and decreased of 0.49%. Prices of finished products sold in the fourth quarter of 2023 decreased 8% compared with the third quarter of the same period. Cost of Sales  Cost of sales decreased to Ps. 6,795 million in the fourth quarter of 2023 compared to Ps. 7,177 million for the third quarter of 2023. With respect to sales, in the fourth quarter of 2023, the cost of sales represented 78% in the fourth quarter of 2023, compared to 76% in the third quarter of the same period. The average cost of sales by ton decreased of 6% in the fourth quarter of 2023 versus the third quarter of 2023. Gross Profit  Gross profit of the Company for the fourth quarter of 2023 decreased 15% to Ps. 1,943 million compared to Ps. 2,277 million in the third quarter of 2023. The gross profit as a percentage of net sales for the third and fourth quarter of 2023 was of 24% and 22% respectively. Operating Expenses   Selling, general and administrative expenses increased 51% to Ps. 730 million in the fourth quarter of 2023 compared to Ps. 485 million for the third quarter of 2023. Selling, general and administrative expenses as a percentage of net sales for the third and fourth quarter of 2023 was of 5% and 8% respectively. Other Expenses (Income) net   The company recorded other net expenses of Ps. 286 million in the fourth quarter of 2023 compared to other net income of Ps. 24 million for the third quarter of 2023. Operating (Loss) Income  Operating income was of Ps. 927 million in the fourth quarter of 2023 compared to an operating income of Ps. 1,816 million in the third quarter of 2023. The operating income as a percentage of net sales represented 11% y 19% for the fourth quarter and third quarter of 2023 respectively. EBITDA  The EBITDA was Ps. 2,079 million in the third quarter of 2023 as a result a net income of Ps. 1,802 million, less minority stake of Ps. 2 million, plus income taxes of Ps. 298 million, less comprehensive financial cost of Ps. 283 million, plus depreciation of Ps. 264 million, compared to Ps. 1,140 million for the fourth quarter of 2023, as ...