Business Context and Reporting Period
Company: Central North Airport Group (Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. or OMA)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: First Quarter 2022 (Ended March 31, 2022)
Release Date: April 25, 2022
Business Overview: OMA operates 13 international airports in nine states of central and northern Mexico, including major hubs in Monterrey and tourist destinations like Mazatlán. The company also provides commercial services, hotel operations, and industrial park services.
Key Financial Metrics
| Metric | 1Q22 Value | Currency |
|---|---|---|
| Passenger Traffic | 4.6 million | Units |
| Adjusted EBITDA | 1,409 million | MXN |
| Adjusted EBITDA Margin | 75.2% | % |
| Operating Income | 1,196 million | MXN |
| Operating Margin | 54.2% | % |
| Net Income | 753 million | MXN |
| Earnings Per Share (EPS) | 1.94 | MXN |
| Earnings Per ADS | 0.78 | USD |
| Cash and Cash Equivalents (End of Period) | 3,260 million | MXN |
| Capital Investments (MDP + Strategic) | 430 million | MXN |
Material Changes vs. Prior Periods
- Passenger Traffic: Increased 52.2% year-over-year (vs. 1Q21) but remains 10.0% below pre-pandemic levels (1Q19). International traffic grew 76.6% vs. 1Q21, while domestic traffic grew 52.2%.
- Revenue Growth: Aeronautical revenues rose 59.7% and non-aeronautical revenues rose 51.5% compared to 1Q21. Commercial revenues surged 62.2%, driven by parking (+76.2%), car rentals (+62.2%), and VIP lounges (+111%).
- Profitability: Adjusted EBITDA increased 74.4% to Ps.1,409 million (vs. Ps.808 million in 1Q21) and was 11.0% higher than 1Q19. Net income increased 80.7% to Ps.753 million.
- Costs: Total operating costs and expenses increased 15.9%, primarily due to higher payroll costs from labor regulation changes and the direct operation of premium lounges.
- Debt Activity: Financing expenses increased by Ps.131 million due to additional debt and exchange losses. The company issued Ps.4.0 billion in sustainability-linked notes to prepay Ps.2.7 billion in short-term loans.
Outlook, Risks, and Unusual Items
- Dividends: Shareholders approved a cash dividend of Ps.2.3 billion, payable in two installments (Ps.1.8 billion by May 31, 2022, and Ps.0.5 billion by July 31, 2022).
- Investments: Capital investments totaled Ps.430 million in 1Q22, including Ps.332 million for improvements to concessioned assets under Master Development Plans (MDPs).
- Commercial Recovery: Commercial space occupancy reached 87.7%. Hotel occupancy rates improved significantly (NH Collection: 73.5%; Hilton Garden Inn: 60.0%).
- Risks: The filing includes standard forward-looking statement disclaimers regarding risks such as economic conditions, regulatory changes, and pandemic-related uncertainties. No specific new material risks were detailed beyond standard disclosures.
- Derivatives: As of the report date, OMA has no financial derivatives exposure.
Investor Verification Checklist
- Dividend Payment Dates: Verify the execution of the two dividend installments scheduled for May and July 2022.
- Debt Structure: Confirm the terms and interest rates of the newly issued Ps.4.0 billion sustainability-linked notes (variable rate TIIE 28 + 14 bps and fixed rate 9.35%).
- Passenger Recovery Trajectory: Monitor if passenger traffic continues to close the 10% gap against 1Q19 levels, specifically in international routes.
- Cost Inflation: Track the impact of Mexican labor regulation changes and inflation on future payroll and operational costs.
- Cash Position: Reconcile the reported cash balance of Ps.3,260 million against the significant cash outflows from financing activities (dividends and debt prepayments).