Pacific Airport Group (GAP) - 4Q24 Results Summary
Business Context and Reporting Period
This Form 6-K filing reports the unaudited consolidated results for Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) for the fourth quarter ended December 31, 2024 (4Q24), and the full year 2024. The company operates 12 airports in Mexico and two in Jamaica. Financial figures are presented in Mexican Pesos (Ps.) and prepared under International Financial Reporting Standards (IFRS).
Key Financial Metrics (4Q24)
- Total Revenues: Ps. 9,627.7 million (up 5.4% vs. 4Q23).
- EBITDA: Ps. 4,757.0 million (up 14.9% vs. 4Q23); Margin of 49.4% (66.9% excluding IFRIC-12).
- Operating Income: Ps. 3,833.5 million (up 11.0% vs. 4Q23).
- Net Income: Ps. 2,169.2 million (down 3.9% vs. 4Q23).
- Comprehensive Income: Ps. 2,274.3 million (up 16.2% vs. 4Q23).
- Cash and Cash Equivalents: Ps. 13,466.0 million as of December 31, 2024.
- Passenger Traffic: 16.02 million total passengers (up 1.4% vs. 4Q23).
Material Changes vs. Prior Period
Revenue Drivers: Aeronautical revenues increased 10.5% driven by a 1.9% rise in passenger traffic at Mexican airports and the resumption of operations for Volaris and Viva aircraft previously grounded for engine inspections. Non-aeronautical revenues surged 32.7%, primarily due to the consolidation of cargo and free trade zone operations at Guadalajara Airport (starting July 2024) and a 14.1% depreciation of the peso against the dollar, which boosted Jamaican airport revenue consolidation.
Cost Structure: Total operating costs rose 2.1%. Costs of services increased 29.0% due to the new cargo business consolidation and higher employee costs (33.6% increase) from labor law changes and hiring. Depreciation and amortization increased 34.5%. These increases were partially offset by a 16.7% decrease in revenues and costs related to improvements to concession assets (IFRIC-12).
Profitability: While EBITDA and operating income grew significantly, Net Income declined 3.9% due to a 91.1% increase in income taxes and a reduction in deferred tax benefits. Comprehensive income, however, grew 16.2% largely due to a favorable foreign currency translation effect.
Guidance, Outlook, and Risks
2025 Guidance: Management projects the following growth for 2025 compared to 2024:
- Traffic: 4% - 6% increase.
- Aeronautical Revenues: 23% - 25% increase.
- Non-Aeronautical Revenues: 24% - 26% increase.
- Total Revenues: 23% - 25% increase.
- EBITDA: 21% - 23% increase.
- EBITDA Margin: 66% +/- 1% (excluding IFRIC-12).
- CAPEX: Ps. 13.0 billion.
Key Assumptions & Risks: The outlook assumes the recovery of aircraft grounded for Pratt & Whitney engine inspections, implementation of new tariffs in Mexico, and continued full-year operation of the cargo business. Risks include airline performance, economic conditions, and government regulations. The EBITDA margin guidance reflects a concession fee increase in Mexico from 5% to 9%.
Investor Verification Checklist
- Verify the impact of the 14.1% peso depreciation on Jamaican airport revenue consolidation versus actual USD revenue growth.
- Confirm the sustainability of the 32.7% non-aeronautical revenue growth driven by the new cargo and free trade zone consolidation.
- Monitor the recovery of passenger traffic from airlines (Volaris, Viva) previously affected by Pratt & Whitney engine inspections.
- Assess the effect of the increased Mexican concession fee (5% to 9%) on future operating margins.
- Review the divergence between rising EBITDA and declining Net Income due to tax provisions and deferred tax adjustments.