Pacific Airport Group (GAP) - 4Q22 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 fourth quarter ended December 31, 2022 (4Q22), and the full year 2022. GAP operates 12 airports in Mexico's Pacific region and two international airports in Jamaica (Montego Bay and Kingston). The results are prepared in accordance with International Financial Reporting Standards (IFRS).
Key Financial Metrics (4Q22)
- Total Revenues: Ps. 8,005.7 million (54.3% increase vs. 4Q21).
- EBITDA: Ps. 4,252.4 million (30.6% increase vs. 4Q21).
- EBITDA Margin (ex-IFRIC 12): 69.8% (down 0.4% from 70.1% in 4Q21).
- Net Income: Ps. 1,830.7 million (1.6% increase vs. 4Q21).
- Comprehensive Income: Ps. 1,660.1 million (15.2% decrease vs. 4Q21).
- Operating Cash Flow: Ps. 2,910.5 million.
- Cash and Cash Equivalents: Ps. 12,371.5 million as of Dec 31, 2022.
- Debt Activity: Drew down Ps. 3,000.0 million in credit facilities for capital investments in 4Q22.
Material Changes vs. Prior Period
Revenue Growth: Total revenues surged 54.3% year-over-year, driven by a 31.9% increase in aeronautical services and a 28.2% increase in non-aeronautical services. A significant portion of the revenue increase (Ps. 1,375.1 million) is attributed to "Improvements to concession assets" (IFRIC 12), which increased 255.0% due to capital commitments under the Master Development Program. This accounting item does not have a cash impact.
Passenger Traffic: Total passengers increased 20.8% to 15.4 million in 4Q22. International traffic grew 22.0%, while domestic traffic grew 20.0%. Kingston airport saw the highest growth at 64.8%.
Costs and Margins: Total operating costs rose 77.4%, largely due to the non-cash IFRIC 12 costs. Excluding IFRIC 12, operating costs increased 27.4%. Operating income margin (ex-IFRIC 12) improved to 60.0% from 58.8% in 4Q21.
Financial Results: Net financial expenses increased 128.4% to Ps. 750.1 million, driven by higher interest rates, increased debt levels, and a foreign exchange loss of Ps. 260.6 million due to peso appreciation.
Outlook, Risks, and Unusual Items
- Recent Events: In January 2023, Guadalajara Airport acquired 116.7 hectares of land for Ps. 1,143.3 million for future expansion. In February 2023, airline Aeromar suspended operations; however, management states this will not significantly impact financial results as Aeromar represented only 0.23% of total passenger traffic in Mexico.
- IFRIC 12 Impact: The filing emphasizes that IFRIC 12 revenues and costs are non-cash items related to infrastructure investments. Investors are cautioned that margins including these items are not comparable to standard operating metrics.
- Forward-Looking Statements: The company notes risks related to general economic conditions, industry trends, and the assumption that current recovery trends will continue.
Investor Verification Checklist
- Verify the distinction between cash-generating revenues and non-cash IFRIC 12 revenues when analyzing margin trends.
- Confirm the impact of the strong Mexican Peso on foreign currency-denominated revenues from Jamaican airports.
- Monitor the execution of the Master Development Program capital expenditures and their effect on future debt levels.
- Assess the long-term impact of Aeromar's suspension on route diversity at Guadalajara, Puerto Vallarta, and Aguascalientes.
- Review the specific breakdown of interest rate exposure given the 36.2% variable rate debt mix as of year-end 2022.