Business Context and Reporting Period
Company: Central North Airport Group (OMA)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: First Quarter 2024 (ended March 31, 2024)
Business Overview: OMA operates 13 international airports in central and northern Mexico, including major hubs in Monterrey and tourist destinations like Mazatlán and Zihuatanejo. The company also provides commercial services, hotel operations, and industrial park services.
Key Financial Metrics
| Metric | 1Q24 Value | Notes |
|---|---|---|
| Total Passenger Traffic | 5.9 million | Down 1.5% vs 1Q23 |
| Combined Aeronautical & Non-Aeronautical Revenue | Not explicitly stated | Grew 7.2% vs 1Q23 |
| Adjusted EBITDA | Ps. 2,043 million | Up 3.1% vs 1Q23; Margin 74.6% |
| Operating Income | Ps. 1,793 million | Margin 47.7% |
| Net Income | Ps. 1,079 million | Flat vs 1Q23 |
| Earnings Per Share (EPS) | Ps. 2.79 | US$1.35 per ADS |
| Cash and Cash Equivalents | Ps. 3,439 million | As of March 31, 2024 |
| Capital Investments (MDP + Strategic) | Ps. 1,110 million | Includes Ps. 1,016 million in asset improvements |
| Financing Expense | Ps. 276 million | Up from Ps. 229 million in 1Q23 |
Material Changes vs. Prior Period
- Passenger Traffic: Total traffic declined 1.5% to 5.9 million. Domestic traffic fell 3.4%, while international traffic rose 10.0%. Significant declines occurred in Acapulco (-52.6%) due to Hurricane Otis, and in Culiacán (-16.8%) and Ciudad Juárez (-7.8%). Growth was led by Zihuatanejo (+20.3%) and Mazatlán (+18.2%).
- Revenue Composition: Aeronautical revenues increased 5.3%. Non-aeronautical revenues grew 13.3%, driven by Car Rentals (+25.4%), Restaurants (+18.6%), and Parking (+8.3%). Diversification revenues (primarily hotels) increased 20.6%.
- Costs and Taxes: Total operating costs and expenses surged 33.7%. This was largely driven by an 87% increase in the airport concession tax (from 5% to 9% rate), resulting in an expense of Ps. 223.5 million. General and administrative expenses plus cost of airport services rose only 3.7%.
- Profitability: Despite the tax increase, Adjusted EBITDA grew 3.1%. Excluding the incremental concession tax effect, Adjusted EBITDA would have been Ps. 2,127 million (77.7% margin).
Outlook, Risks, and Management Commentary
- Concession Tax Impact: The increase in the concession tax rate to 9% significantly impacted operating costs. However, under Tariff Regulation Bases effective October 2023, excess payments made in 2024 will be added to the reference value for the next tariff revision, allowing recovery starting in January 2026.
- Investment Activity: OMA continues to execute Master Development Plans (MDPs), with Ps. 1,110 million invested in 1Q24. Commercial space occupancy in terminals reached 95.3%.
- Hotel Performance: Hotel occupancy rates improved significantly (NH Collection: 88.7%; Hilton Garden Inn: 77.3%), though average room rates varied.
- Risks: The filing includes standard forward-looking statement disclaimers regarding risks such as economic conditions, regulatory changes, and unforeseen events (e.g., natural disasters like Hurricane Otis) that could materially affect results.
- Derivatives: As of the report date, OMA has no financial derivatives exposure.
Key Facts for Investor Verification
- Verify the long-term impact of the 87% increase in concession tax on future cash flows and the timeline for tariff recovery starting in 2026.
- Monitor the recovery trajectory of Acapulco airport traffic following Hurricane Otis, which caused a 52.6% drop in 1Q24.
- Assess the sustainability of the 13.3% growth in non-aeronautical revenues, particularly in car rentals and restaurants, as a hedge against passenger volume fluctuations.
- Review the capital expenditure plan for the remainder of 2024 to ensure alignment with the Ps. 1,110 million invested in Q1.
- Confirm the exchange rate sensitivity, as the filing notes significant fluctuations in the USD/Peso rate between 2023 and 2024 (Ps. 18.09 to Ps. 16.53).