Business Context and Reporting Period
Company: Central North Airport Group (Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.), trading as OMA (NASDAQ: OMAB; BMV: OMA).
Reporting Period: Third Quarter 2023 (ended September 30, 2023).
Business Overview: OMA operates 13 international airports in nine states of central and northern Mexico, including major hubs in Monterrey and tourist destinations like Acapulco and Mazatlán. The company also provides commercial services, hotel operations, and industrial park services.
Key Financial Metrics
| Metric | 3Q23 Value | 3Q22 Value | Change |
|---|---|---|---|
| Passenger Traffic | 7.4 million | 6.2 million (implied) | +18.6% |
| Operating Income | Ps. 2,272 million | Not explicitly stated | N/A |
| Operating Margin | 58.2% | N/A | N/A |
| Adjusted EBITDA | Ps. 2,532 million | Ps. 1,907 million | +32.7% |
| Adjusted EBITDA Margin | 79.4% | N/A | N/A |
| Net Income | Ps. 1,414 million | Not explicitly stated | +28.4% |
| Earnings Per Share (EPS) | Ps. 3.65 | N/A | N/A |
| Earnings Per ADS | US$ 1.66 | N/A | N/A |
| Cash from Operations | Ps. 1,498 million | N/A | N/A |
| Cash and Equivalents (End of Period) | Ps. 2,220 million | N/A | N/A |
| Capital Investments (MDP + Strategic) | Ps. 964 million | N/A | N/A |
| Financing Expense | Ps. 272 million | Ps. 219 million | +24.2% |
Material Changes vs. Prior Period
- Traffic Growth: Total passenger traffic rose 18.6% year-over-year, driven by an 18.1% increase in domestic traffic and a 22.8% increase in international traffic. Seats offered increased 15.5%.
- Revenue Drivers: Aeronautical revenues surged 31.0% due to higher traffic and tariff increases. Non-aeronautical revenues grew 17.6%, with commercial revenues up 23.6% (led by restaurants +40.1% and car rentals +28.1%).
- Cost Structure: Total operating costs and expenses increased 14.4%. While cost of services and G&A rose only 2.8%, financing expenses increased significantly due to higher indebtedness and financing costs.
- Segment Performance:
- Cargo: Revenues declined 3.0% despite a 1.9% increase in tonnage, attributed to lower storage and custody service revenues.
- Hotels: NH Collection Terminal 2 occupancy improved to 86.3% (from 78.5%), though average room rates fell 2.5%. Hilton Garden Inn occupancy dipped to 73.3% (from 76.6%) but average room rates rose 17.6%.
- Industrial: OMA VYNMSA Aero Industrial Park revenues increased 13.0% due to higher leased square meters.
Outlook, Risks, and Unusual Items
- Investment Activity: The company invested Ps. 964 million in the quarter, split between improvements to concessioned assets (Ps. 719 million), major maintenance (Ps. 105 million), and strategic investments (Ps. 139 million).
- Liquidity and Dividends: Financing activities resulted in a net cash outflow of Ps. 798 million, primarily due to the second tranche of the ordinary dividend payment (Ps. 500 million).
- Corporate Governance: On October 26, 2023, the Board accepted the resignations of two members and appointed Katia Eschenbach as a Provisional Independent Board Member pending shareholder approval.
- Risk Factors: The filing includes standard forward-looking statement disclaimers, noting that actual results may differ due to risks discussed in the most recent Form 20-F. No specific new risks were detailed in this text beyond general market uncertainties.
- Derivatives: As of the report date, OMA has no financial derivatives exposure.
Investor Verification Checklist
- Verify the specific exchange rate used for the US$ 1.66 ADS earnings calculation (filing cites Ps. 17.6195 as of Sept 30, 2023).
- Confirm the total debt balance and interest rate assumptions driving the 24.2% increase in financing expenses.
- Review the full list of 37 new domestic routes started during the quarter to assess long-term traffic sustainability.
- Check the status of the "major maintenance provision" (outstanding balance Ps. 2,159 million) and its impact on future capital requirements.
- Monitor the appointment of the provisional board member and the timeline for the next General Ordinary Shareholders' Meeting.