Pacific Airport Group (GAP) - Q3 2022 Financial 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 third quarter ended September 30, 2022 (3Q22). GAP operates 12 airports in Mexico's Pacific region and two international airports in Jamaica (Montego Bay and Kingston). The results are presented in accordance with International Financial Reporting Standards (IFRS).
Key Financial Metrics (3Q22)
- Total Revenues: Ps. 6,752.0 million (27.6% increase vs. 3Q21).
- EBITDA: Ps. 4,085.0 million (31.8% increase vs. 3Q21); EBITDA margin (excluding IFRIC 12) was 70.7%.
- Net Income: Ps. 2,662.7 million (49.6% increase vs. 3Q21).
- Comprehensive Income: Ps. 2,656.7 million (31.9% increase vs. 3Q21).
- Operating Cash Flow: Ps. 3,748.6 million.
- Liquidity: Cash and cash equivalents totaled Ps. 16,157.6 million as of September 30, 2022 (51.7% higher than 3Q21).
- Debt Activity: Issued Ps. 2,757.6 million in long-term debt securities during the quarter.
Material Changes vs. Prior Period
Financial performance improved significantly compared to 3Q21, driven by a 24.6% increase in total passenger traffic to 14.6 million. Aeronautical services revenue grew 34.2%, while non-aeronautical revenue rose 28.2%. Operating costs increased 20.0%, primarily due to higher concession taxes, technical assistance fees, and service costs associated with traffic recovery. Operating income margin expanded to 51.8% (from 48.8% in 3Q21). Compared to pre-pandemic levels (3Q19), total revenues were up 56.5% and EBITDA was up 67.3%.
Outlook, Commentary, and Risks
Management attributes the strong results to the recovery of passenger traffic and inflation-based rate adjustments at Mexican airports. The company continues to execute its Master Development Program, evidenced by increased revenues from improvements to concession assets (IFRIC 12). Share repurchases of Ps. 924.3 million were executed in 3Q22. The filing includes standard forward-looking statement disclaimers regarding economic conditions, industry trends, and operating factors. No specific numerical guidance for future periods was provided in this text.
Investor Verification Checklist
- Verify the impact of IFRIC 12 accounting on reported revenues and margins, as these figures include non-cash revenue from infrastructure commitments.
- Monitor the sustainability of the 70.7% EBITDA margin (excluding IFRIC 12) as operating costs rise with traffic recovery.
- Assess the debt servicing capacity given the issuance of Ps. 2,757.6 million in new debt and rising interest rates.
- Review the specific performance of Jamaican airports (Montego Bay and Kingston), which showed significant growth but are subject to foreign exchange fluctuations.
- Confirm the timeline and funding status of the Master Development Program investments driving IFRIC 12 revenue recognition.