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 2023 (Ended March 31, 2023)
Date of Filing: April 26, 2023
OMA operates 13 international airports in central and northern Mexico, including major hubs in Monterrey, Ciudad Juárez, and Chihuahua. The company also provides commercial services, hotel operations, and industrial park services.
Key Financial Metrics
| Metric | 1Q23 Value | 1Q22 Value | Change |
|---|---|---|---|
| Passenger Traffic | 6.0 million | 4.6 million (implied) | +29.9% |
| Adjusted EBITDA | Ps.1,981 million | Ps.1,409 million | +40.6% |
| Operating Income | Ps.1,752 million | N/A | N/A |
| Net Income | Ps.1,080 million | N/A | +43.5% |
| Operating Margin | 54.4% | N/A | N/A |
| Adjusted EBITDA Margin | 77.5% | N/A | N/A |
| Cash from Operations | Ps.1,276 million | N/A | N/A |
| Cash and Equivalents (End of Period) | Ps.2,831 million | N/A | N/A |
| Capital Investments (MDP + Strategic) | Ps.757 million | N/A | N/A |
Material Changes vs. Prior Period
- Traffic Growth: Total passenger traffic rose 29.9% year-over-year. International traffic grew faster (42.5%) than domestic traffic (28.0%). Monterrey, Ciudad Juárez, and Chihuahua drove the highest volume growth.
- Revenue Drivers: Aeronautical revenues increased 40.0% due to higher traffic and tariff increases. Non-aeronautical revenues rose 25.7%, with commercial revenues up 35.5% (driven by parking, retail, and car rentals).
- Cost Structure: Total operating costs and expenses increased 45.3%, primarily due to higher payroll, maintenance, and contracted services. Financing expenses rose to Ps.229 million (from Ps.165 million) due to higher indebtedness and interest rates.
- Commercial Occupancy: Terminal commercial space occupancy reached 93.6%. Hotel occupancy rates improved significantly (NH Collection: 80.3%; Hilton Garden Inn: 73.4%).
Outlook, Risks, and Unusual Items
- Dividends: Shareholders approved a total cash dividend of Ps.2.3 billion. The first installment of Ps.1.8 billion is payable by June 30, 2023, and the second of Ps.500 million by September 30, 2023.
- Debt Issuance: On March 10, 2023, OMA issued Ps.3.2 billion in sustainability-linked notes (3.4-year variable rate and 7-year fixed rate). Proceeds were used to refinance existing notes and prepay short-term loans.
- Cash Flow Impact: Financing activities resulted in a net cash outflow of Ps.1,195 million, largely due to a special dividend payment of Ps.1,435 million.
- Risks: The filing includes standard forward-looking statement disclaimers regarding risks such as economic conditions, regulatory changes, and operational uncertainties that could cause actual results to differ from projections.
Investor Verification Checklist
- Verify the sustainability of the 29.9% passenger traffic growth rate against full-year 2023 guidance.
- Confirm the impact of rising financing costs on future net income, given the 38.8% increase in financing expenses.
- Review the execution timeline for the Ps.757 million in capital investments and Master Development Plan (MDP) projects.
- Monitor the cash balance of Ps.2.831 billion against the upcoming dividend obligations totaling Ps.2.3 billion.
- Assess the performance of non-aeronautical revenue streams (parking, retail) as a percentage of total revenue to gauge diversification success.