Grupo Aeroportuario del Pacifico Announces Results for the Third Quarter of 2024
GUADALAJARA, Mexico, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC, BMV:GAP) ("the Company" or "GAP") reports its consolidated results for the third quarter ended September 30, 2024 (3Q24). Figures are unaudited and prepared following International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
Summary of Results 3Q24 vs. 3Q23
The sum of aeronautical and non-aeronautical services revenues increased by Ps. 402.8 million, or 6.4%. Total revenues increased by Ps. 839.7 million, or 11.4%.
Cost of services increased by Ps. 251.9 million, or 21.3%.
Income from operations increased by Ps. 70.2 million, or 1.9%.
EBITDA increased by Ps. 237.8 million, or 5.6%, from Ps. 4,629.9 million in 3Q23 to Ps. 4,507.6 million in 3Q24. EBITDA margin (excluding the effects of IFRIC-12) went from 67.5% in 3Q23 to 67.0% in 3Q24.
Comprehensive income increased by Ps. 69.1 million, or 2.7%, from Ps. 2,551.4 million in 3Q23 to Ps. 2,620.6 million in 3Q24.
Company's Financial Position:
During 3Q24, there was a decrease in the Company's aeronautical revenues compared to 3Q23, mainly due to the decline in passenger traffic, as a result of preventive reviews of Pratt & Whitney A320neo and A321neo engines, which affected the fleet operated by Volaris and VivaAerobus and that started in the third quarter of 2023 reaching its highest volume in the 3Q24. This decrease was offset by an increase in non-aeronautical revenues of 38.7%, generated mainly by the consolidation of the cargo and free trade zone business at the Guadalajara airport starting in July 2024. The Company reports a financial position of cash and cash equivalents as of September 30, 2024, of Ps. 15,828.0 million. During 3Q24, the Company refinanced the credit facilities with Citibanamex for Ps. 1,000.0 million and for USD$40.0 million, additionally, on September 5, 2024, the Company issued long-term bond certificates for an amount of Ps. 5,648.1 million, for capital investments and debt refinancing.
Passenger TrafficDuring 3Q24, total passengers at the Company's 14 airports decreased by 923.2 thousand passengers, a decrease of 5.7%, compared to 3Q23.
During 3Q23, the following new routes were opened:
Domestic:
Airline
Departure
Arrival
Opening date
Frequencies
Aeromexico
Guadalajara
Tijuana
July 1, 2024
1 daily
Note: Frequencies can vary without prior notice.
International:
Airline
Departure
Arrival
Opening date
Frequencies
Hainan
Tijuana
Beijing
July 12, 2024
2 weekly
Flair
Guadalajara
Toronto
September 13, 2024
2 weekly
Note: Frequencies can vary without prior notice.
Domestic Terminal Passengers, 14 airports (in thousands):
Airport
3Q23
3Q24
Change
9M23
9M24
Change
Guadalajara
3,261.8
3,113.0
(4.6%)
9,395.0
8,779.4
(6.6%)
Tijuana *
2,448.3
2,204.9
(9.9%)
6,751.6
6,288.3
(6.9%)
Los Cabos
832.5
791.4
(4.9%)
2,244.2
2,119.7
(5.5%)
Puerto Vallarta
799.5
804.2
0.6%
2,197.1
2,121.6
(3.4%)
Montego Bay
0.0
0.0
0.0%
0.0
0.0
0.0%
Guanajuato
662.9
547.0
(17.5%)
1,729.5
1,545.3
(10.7%)
Hermosillo
556.8
524.2
(5.9%)
1,552.4
1,512.7
(2.6%)
Kingston
0.7
1.3
69.8%
1.3
2.4
80.5%
Mexicali
447.6
250.5
(44.0%)
1,174.8
765.1
(34.9%)
Morelia
221.1
165.0
(25.3%)
609.1
464.5
(23.7%)
La Paz
303.6
320.5
5.6%
814.2
879.9
8.1%
Aguascalientes
171.6
158.5
(7.6%)
478.6
467.0
(2.4%)
Los Mochis
123.1
144.0
16.9%
336.2
412.0
22.5%
Manzanillo
27.3
28.1
3.1%
80.1
94.4
17.8%
Total
9,856.8
9,052.5
(8.2%)
27,364.0
25,452.3
(7.0%)
*Cross Border Xpress (CBX) users are classified as international passengers.
International Terminal Passengers, 14 airports (in thousands):
Airport
3Q23
3Q24
Change
9M23
9M24
Change
Guadalajara
1,342.2
1,493.1
11.2%
3,848.9
4,353.1
13.1%
Tijuana *
1,093.9
1,067.9
(2.4%)
3,254.5
3,001.9
(7.8%)
Los Cabos
999.4
881.2
(11.8%)
3,603.1
3,489.0
(3.2%)
Puerto Vallarta
599.0
529.0
(11.7%)
2,863.8
2,970.5
3.7%
Montego Bay
1,306.4
1,154.9
(11.6%)
3,963.2
3,897.2
(1.7%)
Guanajuato
227.4
284.2
25.0%
645.5
773.5
19.8%
Hermosillo
18.3
19.0
3.9%
55.0
62.6
13.8%
Kingston
509.4
514.3
1.0%
1,338.9
1,324.9
(1.0%)
Mexicali
1.8
1.8
0.1%
5.3
5.6
4.8%
Morelia
149.2
169.9
13.9%
444.0
483.9
9.0%
La Paz
2.6
2.6
(2.4%)
10.3
8.7
(15.9%)
Aguascalientes
81.5
90.9
11.5%
214.3
242.1
13.0%
Los Mochis
1.9
2.1
13.9%
5.4
6.1
14.3%
Manzanillo
6.5
9.6
47.7%
49.1
65.7
33.7%
Total
6,339.5
6,220.3
(1.9%)
20,301.6
20,684.7
1.9%
*CBX users are classified as international passengers.
Total Terminal Passengers, 14 airports (in thousands):
Airport
3Q23
3Q24
Change
9M23
9M24
Change
Guadalajara
4,604.0
4,606.0
0.0%
13,243.9
13,132.5
(0.8%)
Tijuana *
3,542.2
3,272.7
(7.6%)
10,006.1
9,290.2
(7.2%)
Los Cabos
1,831.9
1,672.6
(8.7%)
5,847.3
5,608.7
(4.1%)
Puerto Vallarta
1,398.5
1,333.2
(4.7%)
5,060.9
5,092.1
0.6%
Montego Bay
1,306.4
1,154.9
(11.6%)
3,963.2
3,897.2
(1.7%)
Guanajuato
890.2
831.2
(6.6%)
2,375.0
2,318.7
(2.4%)
Hermosillo
575.2
543.3
(5.5%)
1,607.5
1,575.3
(2.0%)
Kingston
510.1
515.5
1.1%
1,340.3
1,327.3
(1.0%)
Mexicali
449.4
252.3
(43.9%)
1,180.1
770.7
(34.7%)
Morelia
370.2
335.0
(9.5%)
1,053.1
948.4
(9.9%)
La Paz
306.2
323.0
5.5%
824.5
888.6
7.8%
Aguascalientes
253.1
249.3
(1.5%)
692.9
709.1
2.3%
Los Mochis
125.0
146.1
16.9%
341.6
418.1
22.4%
Manzanillo
33.8
37.7
11.6%
129.2
160.1
23.9%
Total
16,196.1
15,272.8
(5.7%)
47,665.4
46,137.0
(3.2%)
*CBX users are classified as international passengers.
CBX Users (in thousands):
Airport
3Q23
3Q24
Change
9M23
9M24
Change
Tijuana
1,084.2
1,048.7
(3.3%)
3,226.9
2,956.3
(8.4%)
Consolidated Results for the Third Quarter of 2024 (in thousands of pesos):
3Q23
3Q24
Change
Revenues
Aeronautical services
4,812,288
4,627,601
(3.8%)
Non-aeronautical services
1,516,381
2,103,878
38.7%
Improvements to concession assets (IFRIC-12)
1,064,286
1,501,188
41.1%
Total revenues
7,392,955
8,232,667
11.4%
Operating costs
Costs of services:
1,183,268
1,435,204
21.3%
Employee costs
440,836
573,117
30.0%
Maintenance
171,063
213,360
24.7%
Safety, security & insurance
180,066
220,486
22.4%
Utilities
141,334
160,803
13.8%
Business operated directly by us
63,147
72,858
15.4%
Other operating expenses
186,822
194,580
4.2%
Technical assistance fees
209,109
200,635
(4.1%)
Concession taxes
671,398
598,091
(10.9%)
Depreciation and amortization
619,755
787,295
27.0%
Cost of improvements to concession assets (IFRIC-12)
1,064,286
1,501,188
41.1%
Other (income)
(4,959)
(10,082)
103.3%
Total operating costs
3,742,857
4,512,331
20.6%
Income from operations
3,650,098
3,720,336
1.9%
Financial Result
(544,187)
(1,059,983)
94.8%
Income before income taxes
3,105,911
2,660,353
(14.3%)
Income taxes
(727,051)
(677,524)
(6.8%)
Net income
2,378,860
1,982,829
(16.6%)
Currency translation effect
158,864
651,897
310.3%
Cash flow hedges, net of income tax
13,398
(12,124)
(190.5%)
Remeasurements of employee benefit, net income tax
318
(2,052)
(745.3%)
Comprehensive income
2,551,440
2,620,550
2.7%
Non-controlling interest
(52,302)
(140,692)
169.0%
Comprehensive income attributable to controlling interest
2,499,138
2,479,858
(0.8%)
3Q23
3Q24
Change
EBITDA
4,269,853
4,507,631
5.6%
Comprehensive income
2,551,440
2,620,550
2.7%
Comprehensive income per share (pesos)
5.0175
5.1864
3.4%
Comprehensive income per ADS (US dollars)
3.0304
3.1324
3.4%
Operating income margin
49.4%
45.2%
(8.5%)
Operating income margin (excluding IFRIC-12)
57.7%
55.3%
(4.2%)
EBITDA margin
57.8%
54.8%
(5.2%)
EBITDA margin (excluding IFRIC-12)
67.5%
67.0%
(0.7%)
Costs of services and improvements / total revenues
30.4%
35.7%
17.3%
Cost of services / total revenues (excluding IFRIC-12)
18.7%
21.3%
14.0%
- Net income and comprehensive income per share for 3Q24 and 3Q23 were calculated based on 505,277,464 shares outstanding as of September 30, 2024, and September 30, 2023, respectively. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 19.6303 per U.S. dollar (the noon buying rate on September 30, 2024, as published by the U.S. Federal Reserve Board). For purposes of consolidating our Jamaican airports, the average three-month exchange rate of Ps. 18.9229 per U.S. dollar for the three months ended September 30, 2024, was used.
Revenues (3Q24 vs. 3Q23)
Aeronautical services revenues decreased by Ps. 184.7 million, or 3.8%.
Non-aeronautical services revenues increased by Ps. 587.5 million, or 38.7%.
Revenues from improvements to concession assets increased by Ps. 436.9 million, or 41.1%.
Total revenues increased by Ps. 839.7 million, or 11.4%.
The change in aeronautical services revenues was primarily due to the following factors:
Revenues at our Mexican airports decreased by Ps. 251.2 million or 6.1% compared to 3Q23, mainly due to the 5.4% decrease in passenger traffic.
Revenues from Jamaican airports increased by Ps. 66.5 million, or 9.4%, compared to 3Q23. This was mainly due to the peso depreciation versus the U.S. dollar by 10.9%, compared to 3Q23, which went from an average exchange rate of Ps. 17.0621 in 3Q23 to Ps. 18.9229 in 3Q24. Passenger traffic decreased by 8.0%.
The change in non-aeronautical services revenues was primarily driven by the following factors:
Revenues at our Mexican airports increased by Ps. 573.4 million, or 45.5%, compared to 3Q23. Revenues from businesses operated directly by us increased by Ps. 444.5 million, or 100.3%, mainly due to the consolidation of a cargo and free trade zone business starting in July 2024 with revenues of Ps. 354.1 million. Revenues from businesses operated by third parties increased by Ps. 124.5 million, or 16.1%, mainly due to the opening of new commercial spaces, and the renegotiation of contract conditions. The business lines that grew the most were car rentals, food and beverages, time shares, and retail, all of which increased by Ps. 122.9 million, or 23.4%, offset by a decrease of Ps. 6.3 million in duty-free stores.
Revenues from the Jamaican airports increased by Ps. 14.1 million, or 5.6%, compared to 3Q23, mainly due to the peso depreciation versus the U.S. dollar by 10.9%, compared to 3Q23. Revenues in U.S. dollars decreased by US$ 0.7 million, or 4.9%.
3Q23
3Q24
Change
Businesses operated by third parties:
Food and beverage
249,671
291,059
16.6%
Car rental
144,939
209,871
44.8%
Duty-free
193,804
184,931
(4.6%)
Retail
175,933
174,816
(0.6%)
Leasing of space
97,178
111,224
14.5%
Times shares
33,902
63,608
87.6%
Ground transportation
24,526
41,301
68.4%
Other commercial revenues
50,202
30,260
(39.7%)
Communications and financial services
28,734
26,446
(8.0%)
Total
998,889
1,133,516
13.5%
Businesses operated directly by us:
Cargo operation and free trade zone
-
390,385
100.0%
Car parking
186,944
171,497
(8.3%)
Convenience stores
128,147
137,122
7.0%
VIP Lounges
105,870
130,000
22.8%
Advertising
41,696
52,977
27.1%
Hotel operation
-
28,189
100.0%
Total
462,657
910,169
96.7%
Recovery of costs
54,836
60,193
9.8%
Total Non-aeronautical Revenues
1,516,381
2,103,878
38.7%
Figures are expressed in thousands of Mexican pesos.
Revenues from improvements to concession assets 1Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 436.9 million, or 41.1%, compared to 3Q23. The change was composed of :
Improvements to concession assets at the Company's Mexican airports increased by Ps. 299.7 million, or 28.9%, following investments under the Master Development Program for the 2020-2024 period.
Improvements to concession assets at the Company's Jamaican airports increased Ps. 137.2 million, or 504.1%.
________________________1 Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 "Service Concession Arrangements" (IFRIC 12). However, this recognition does not have a cash impact or impact on the Company's operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed. This is in accordance with the Company's Master Development Programs in Mexico and Capital Development Programs in Jamaica. All margins and ratios calculated using "Total Revenues" include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.
Total operating costs increased by Ps. 769.5 million, or 20.6%, compared to 3Q23, mainly due to the increase in the cost of improvements to concession assets (IFRIC-12) by Ps. 436.9 million and the cargo and free trade zone business consolidation.
The cost of services increased by Ps. 251.9 million, or 21.3%, while the depreciation and amortization increased by Ps. 167.5 million, or 27.0%. This was offset by a combined decrease of Ps. 81.8 million, or 5.0%, in concession taxes and technical assistance fees (excluding the cost of improvements to concession assets (IFRIC-12), operating costs increased Ps. 332.5 million, or 12.4%).
This increase in total operating costs was primarily due to the following factors:
Mexican airports:
Operating costs increased by Ps. 694.8 million, or 23.4%, compared to 3Q23, primarily due to an increase in the cost of improvements to the concession assets (IFRIC-12) by Ps. 299.7 million, or 28.9%, an increase in the cost of services by Ps. 223.2 million, or 22.9%, an increase in depreciation and amortization by Ps. 152.7 million, or 30.6%, and a combined increase in technical assistance fees and concession taxes by Ps. 22.9 million, or 5.0% (excluding the cost of improvements to the concession assets (IFRIC-12), operating costs increased by Ps. 395.0 million or 20.5%).
The change in the cost of services at our Mexican airports during 3Q24 was mainly due to:
Employee costs increased Ps. 125.0 million, or 32.2%, compared to 3Q23, mainly due to the consolidation of the cargo and free trade zone business of Ps. 86.5 million, as well as the hiring of 175 additional personnel during the last quarter of 2023 and 9M24, as well as the adjustments in salaries and cost related to changes in Labor Law.
Maintenance expenses increased by Ps. 41.3 million, or 31.7%, compared to 3Q23, mainly due to the opening of new operational areas and the consolidation of the cargo and free trade zone business with maintenance expenses of Ps. 8.4 million.
Safety, security, and insurance increased by Ps. 29.4 million, or 22.1%, compared to 3Q23, mainly due to the increase in the security headcount, minimum wages, and changes in Labor Law, the opening of new operational areas and the consolidation of the cargo and free trade zone business by Ps.4.8 million.
Other operating expenses increased by Ps. 15.7 million, or 7.1%, compared to 3Q23, mainly due to a combined increase in services, professional fees, and travel expenses by Ps. 11.7 million, the consolidation of the cargo and free trade zone business with other operating expenses of Ps. 12.4 million. This was offset by the decrease in the allowance for expected credit losses by Ps. 4.8 million.
Jamaican Airport:
Operating costs increased by Ps. 74.7 million, or 9.6%, compared to 3Q23, mainly due to a Ps. 137.2 million, or 504.1%, increase in the cost of improvements to concession assets (IFRIC-12), an increase in the cost of services by Ps. 28.7 million, or 13.8%, offset by the decrease in the concession taxes by Ps. 104.7 million, or 24.8%.
Operating income margin went from 49.4% in 3Q23 to 45.2% in 3Q24. Excluding the effects of IFRIC-12, the operating income margin went from 57.7% in 3Q23 to 55.3% in 3Q24. Income from operations increased by Ps. 70.2 million, or 1.9%, compared to 3Q23.
EBITDA margin went from 57.8% in 3Q23 to 54.8% in 3Q24. Excluding the effects of IFRIC-12, EBITDA margin went from 67.5% in 3Q23 to 67.0% in 3Q24. The nominal value of EBITDA increased by Ps. 237.8 million, or 5.6%, compared to 3Q23.
Financial results increased by Ps. 515.8 million, or 94.8%, from a net expense of Ps. 544.1 million in 3Q23 to a net expense of Ps. 1,060.0 million in 3Q24. This change was mainly the result of:
Foreign exchange rate fluctuations, which went from an income of Ps. 170.2 million in 3Q23 to an expense of Ps. 313.4 million in 3Q24. This generated a foreign exchange loss of Ps. 483.7 million. This was mainly due to the depreciation of the peso. Currency translation effect gain increased Ps. 493.0 million, compared to 3Q23.
Interest expenses increased by Ps. 25.2 million, or 2.2%, compared to 3Q23, mainly due to higher debt as a result of the issuance of long-term debt securities and the drawdown of credit lines, as well as the substantial increase in the interest rates.
Interest income decreased by Ps. 6.9 million, or 2.1%, compared to 3Q23, mainly due to a decrease in the cash and cash equivalents average balance and the reference rates.
In 3Q24, comprehensive income increased by Ps. 69.1 million, or 2.7%, compared to 3Q23. Income before income taxes decreased by Ps. 445.6 million, mainly due to the decrease in passenger traffic and partially offset by the revenues generated by the commercial strategy and the consolidation of the cargo and free trade zone business. This decrease generated a decrease in the tax income of Ps. 49.5 million. Net and comprehensive income increased mainly due to the increase of the effect of foreign currency translation by Ps. 493.0 million.
During 3Q24, net income decreased by Ps. 396.0 million, or 16.6%, compared to 3Q23. Taxes for the period decreased by Ps. 49.5 million, tax income increased by Ps. 67.0 million and the benefit for deferred taxes increased by Ps. 116.5 million, mainly due to the application of fiscal losses for Ps. 97.9 million, and other deferred taxes by Ps. 20.7 million, offset by a decrease in the inflationary effects, that went from an inflation rate of 1.5% in 3Q23 to 1.4% in 3Q24.
Consolidated Results for the Nine Months of 2024 (in thousands of pesos):
9M23
9M24
Change
Revenues
Aeronautical services
14,780,643
14,150,663
(4.3%)
Non-aeronautical services
4,544,249
5,521,018
21.5%
Improvements to concession assets (IFRIC-12)
4,767,624
4,314,977
(9.5%)
Total revenues
24,092,516
23,986,658
(0.4%)
Operating costs
Costs of services:
3,184,434
3,720,973
16.8%
Employee costs
1,273,009
1,522,994
19.6%
Maintenance
478,061
555,642
16.2%
Safety, security & insurance
503,020
602,508
19.8%
Utilities
363,997
396,811
9.0%
Business operated directly by us
175,242
219,017
25.0%
Other operating expenses
391,105
424,000
8.4%
Technical assistance fees
651,826
627,172
(3.8%)
Concession taxes
1,938,019
1,991,302
2.7%
Depreciation and amortization
1,858,980
2,137,595
15.0%
Cost of improvements to concession assets (IFRIC-12)
4,767,624
4,314,977
(9.5%)
Other (income)
7,837
(22,474)
(386.7%)
Total operating costs
12,408,721
12,769,544
2.9%
Income from operations
11,683,794
11,217,114
(4.0%)
Financial Result
(1,726,623)
(2,316,875)
34.2%
Income before income taxes
9,957,170
8,900,239
(10.6%)
Income taxes
(2,524,654)
(2,193,977)
(13.1%)
Net income
7,432,516
6,706,263
(9.8%)
Currency translation effect
(655,718)
1,019,679
(255.5%)
Cash flow hedges, net of income tax
(24,353)
(47,527)
95.2%
Remeasurements of employee benefit, net income tax
917
177
(80.7%)
Comprehensive income
6,753,363
7,678,591
13.7%
Non-controlling interest
(60,519)
(268,334)
343.4%
Comprehensive income attributable to controlling interest
6,692,844
7,410,259
10.7%
9M23
9M24
Change
EBITDA
13,542,775
13,354,710
(1.4%)
Comprehensive income
6,753,363
7,678,591
