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: Second Quarter 2022 (ended June 30, 2022).
Business Overview: OMA operates 13 international airports in nine states of 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 freight logistics.
Key Financial Metrics
| Metric | 2Q22 Value | Currency |
|---|---|---|
| Passenger Traffic | 5.9 million | Units |
| Adjusted EBITDA | 1,832 million | MXN |
| Adjusted EBITDA Margin | 77.7% | % |
| Operating Income | 1,402 million | MXN |
| Operating Margin | 48.1% | % |
| Net Income | 928 million | MXN |
| Earnings Per Share (EPS) | 2.39 | MXN |
| Earnings Per ADS | 0.95 | USD |
| Cash Flow from Operations | 1,076 million | MXN |
| Cash and Cash Equivalents (End of Period) | 1,757 million | MXN |
| Capital Investments (MDP + Strategic) | 784 million | MXN |
Material Changes vs. Prior Period
- Traffic Recovery: Passenger traffic increased 29.6% year-over-year (vs. 2Q21) but remains 1.3% below 2Q19 pre-pandemic levels. Domestic traffic grew 34.5% YoY, while international traffic declined 0.4% YoY.
- Revenue Growth: Aeronautical revenues rose 33.2% and non-aeronautical revenues rose 40.2%. Commercial revenues surged 48.5%, driven by parking (+53.5%), retail (+74.8%), and VIP lounges (+54.7%).
- Profitability: Adjusted EBITDA increased 40.1% to Ps.1,832 million. Net income grew 49.8% to Ps.928 million.
- Cost Structure: Total operating costs and expenses increased 32.5%, primarily due to higher payroll costs from labor regulation changes and increased maintenance costs.
- Liquidity Impact: Net cash decreased by Ps.1,512 million, largely due to dividend payments totaling Ps.2,300 million (Ps.1,795 million paid in the quarter).
Outlook, Commentary, and Risks
- Management Commentary: Management highlighted strong recovery in domestic traffic and commercial space occupancy (89.0%). The company inaugurated the first phase of the Terminal A expansion at Monterrey International Airport.
- Dividends: The company paid the second installment of its declared dividend (Ps.500 million) on July 25, 2022.
- Green Bond: OMA published its first Green Bond Report regarding the allocation of proceeds from a Ps.1,000 million bond issued in April 2021.
- Risks: 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, including economic conditions and regulatory changes.
- Derivatives: As of the report date, OMA has no financial derivatives exposure.
Investor Verification Checklist
- Verify the sustainability of the 77.7% Adjusted EBITDA margin as traffic approaches pre-pandemic (2Q19) levels.
- Confirm the impact of Mexican labor regulation changes on future payroll costs and operating margins.
- Monitor the execution rate of the Master Development Plans (MDPs), specifically the Monterrey Terminal A expansion.
- Assess the trajectory of international passenger traffic, which remains slightly below 2Q19 levels despite domestic growth.
- Review the company's liquidity position following the significant cash outflow for dividend payments in 2Q22.