Business Context and Reporting Period
Company: Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (Pacific Airport Group)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter ended June 30, 2022 (2Q22) and Six Months ended June 30, 2022 (6M22).
Business Overview: The Company operates 12 airports in Mexico's Pacific region and two international airports in Jamaica (Montego Bay and Kingston). The reporting period reflects a continued recovery in passenger traffic and financial metrics compared to 2021 and 2019 levels, driven by the resurgence of tourism and business travel.
Key Financial Metrics (2Q22)
| Metric | 2Q22 Value (MXN) | Change vs 2Q21 | Change vs 2Q19 |
|---|---|---|---|
| Total Revenues | Ps. 6,610.1 million | +35.0% | +80.7% |
| EBITDA | Ps. 4,081.7 million | +45.9% | +68.1% |
| Net Income | Ps. 2,364.6 million | +66.1% | +87.1% |
| Comprehensive Income | Ps. 2,249.2 million | +72.9% | +84.7% |
| Operating Cash Flow | Ps. 3,267.6 million | +29.1% | N/A |
| Cash & Equivalents | Ps. 13,489.6 million | -13.0% (vs 2Q21) | N/A |
| EBITDA Margin (excl. IFRIC 12) | 72.4% | +1.2 pts | Flat |
Material Changes vs. Prior Periods
- Revenue Growth: Total revenues increased by Ps. 1,714.3 million (35.0%) year-over-year. Aeronautical services rose 43.0% and non-aeronautical services rose 44.7%. Revenues from improvements to concession assets (IFRIC 12) remained relatively flat (+0.8%).
- Passenger Traffic: Total passengers increased 27.6% vs. 2Q21 and 15.3% vs. 2Q19. International traffic grew 37.2% vs. 2Q21, while domestic traffic grew 21.1%.
- Cost Structure: Total operating costs increased 18.5% vs. 2Q21. This was driven by a 55.8% increase in concession taxes and a 40.4% increase in technical assistance fees. Cost of services rose 29.4%.
- Profitability: Operating income surged 53.9% to Ps. 3,518.6 million. Operating margin (excluding IFRIC 12) improved to 62.4% from 58.1% in 2Q21.
- Financial Position: Total liabilities increased by Ps. 9,289.6 million year-over-year, primarily due to the issuance of Ps. 4,500.0 million in long-term debt securities and Ps. 3,675.8 million in dividends pending payment.
Guidance, Outlook, and Management Commentary
- 2022 Guidance Update: Management updated full-year 2022 estimates vs. 2021:
- Traffic: 26% - 30% growth
- Total Revenue: 33% - 37% growth
- EBITDA: 33% - 37% growth
- EBITDA Margin: 71% +/- 1%
- CAPEX: Ps. 8.0 billion
- Capital Allocation: The Company paid the first installment of dividends (Ps. 7.20 per share) in May 2022 and executed Ps. 576.2 million in share repurchases during 2Q22.
- Operational Highlights: New routes were opened in Mexico (e.g., Volaris Morelia-Cancun) and internationally (e.g., Frontier Kingston-Miami, Spirit Montego Bay-Philadelphia). The recovery is attributed to the tourism and business segments.
- Risks: Forward-looking statements are subject to risks including general economic conditions, industry conditions, and operating factors. The filing notes that non-GAAP measures like EBITDA have limitations.
Investor Verification Checklist
- IFRIC 12 Impact: Verify the distinction between cash-generating revenues and non-cash revenues from "improvements to concession assets" (IFRIC 12), which significantly inflate total revenue and asset figures but do not impact operating cash flow.
- Debt Issuance: Confirm the terms and interest rate implications of the Ps. 4,500.0 million long-term debt securities issued in 2022, which contributed to higher interest expenses.
- Exchange Rate Sensitivity: Monitor the impact of the Mexican Peso vs. U.S. Dollar exchange rate on the consolidation of Jamaican airport results (Montego Bay and Kingston), as these are reported in USD but consolidated in MXN.
- Tax Rate Volatility: Review the increase in income taxes (89.6% YoY) and the impact of inflation adjustments on deferred tax benefits.
- Share Count: Note the reduction in shares outstanding due to repurchases and capital reductions, which impacts per-share metrics.