Corporacion America Airports(CAAP) - 2025 Q1 - Quarterly Report

Condensed Consolidated Interim Financial Statements This section presents the company's financial performance and position for the interim period, including income, balance sheet, equity changes, and cash flows Glossary of Terms This section provides definitions for key terms and acronyms used throughout the financial report, including currency symbols, regulatory bodies, and company-specific terms, to ensure clarity and consistent understanding - The glossary defines key terms such as '$' for Argentine peso, 'U$S' for US dollar, and 'La Sociedad' for Aeropuertos Argentina 2000 S.A., along with various regulatory and accounting acronyms[3] Company Information Aeropuertos Argentina 2000 S.A. (AA2000) is primarily engaged in the exploitation, administration, and operation of airports. The company's controlling entity is Corporación América S.A.U., holding 45.90% of common stock and total votes - The principal activity of Aeropuertos Argentina 2000 S.A. is the exploitation, administration, and operation of airports[5] - Corporación América S.A.U. is the controlling company, with a 45.90% participation in common stock and total votes[7] Capital Breakdown (Issued Common Shares, in $) | Class | Subscribed ($) | Paid-in ($) | | :--- | :--- | :--- | | 79,105,489 Class "A" Shares | 79,105,489 | 79,105,489 | | 79,105,489 Class "B" Shares | 79,105,489 | 79,105,489 | | 61,526,492 Class "C" Shares | 61,526,492 | 61,526,492 | | 38,779,829 Class "D" Shares | 38,779,829 | 38,779,829 | | Total | 258,517,299 | 258,517,299 | Consolidated Statements of Comprehensive Income For the three-month period ended March 31, 2025, the company reported a significant decrease in net income to $42,919 million from $233,062 million in the prior year, primarily driven by reduced finance income and higher income tax expenses. Operating profit also declined Consolidated Statement of Comprehensive Income (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Sales income | 264,586 | 291,906 | | Construction income | 21,695 | 44,222 | | Cost of service | (169,294) | (158,795) | | Construction costs | (21,612) | (44,141) | | Income for gross profit for the period | 95,375 | 133,192 | | Distribution and selling expenses | (15,640) | (16,802) | | Administrative expenses | (14,134) | (11,601) | | Other income and expenses, net | 2,300 | 5,153 | | Operating profit for the period | 67,901 | 109,942 | | Finance Income | (1,401) | (100,510) | | Finance Costs | 7,205 | 392,213 | | RECPAM | (2,331) | (21,669) | | Income before income tax | 71,374 | 379,976 | | Income tax | (28,455) | (146,914) | | Net Income for the period | 42,919 | 233,062 | | Income per share basic and diluted | 165.7104 | 899.8533 | - Net Income for the period decreased significantly from $233,062 million in Q1 2024 to $42,919 million in Q1 2025[9] - Operating profit for the period decreased from $109,942 million in Q1 2024 to $67,901 million in Q1 2025[9] Consolidated Statements of Financial Position As of March 31, 2025, total assets slightly decreased to $2,428,948 million from $2,475,943 million at December 31, 2024. Total shareholders' equity increased to $1,303,574 million, while total liabilities decreased to $1,125,374 million, indicating an improved equity position relative to liabilities Consolidated Statements of Financial Position (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 2,183,498 | 2,209,703 | | Total Current Assets | 245,450 | 266,240 | | Total Assets | 2,428,948 | 2,475,943 | | Total Shareholders' Equity | 1,303,574 | 1,260,582 | | Total Non-Current Liabilities | 923,452 | 937,279 | | Total Current Liabilities | 201,922 | 278,082 | | Total Liabilities | 1,125,374 | 1,215,361 | | Total Shareholder's Equity and Liabilities | 2,428,948 | 2,475,943 | - Total Assets decreased by approximately $47 billion from December 31, 2024, to March 31, 2025[12] - Total Shareholders' Equity increased by approximately $43 billion, while Total Liabilities decreased by approximately $90 billion over the same period[12] Consolidated Statements of Changes in Equity The consolidated equity attributable to majority shareholders increased to $1,303,346 million as of March 31, 2025, from $1,260,302 million at January 1, 2025, primarily due to the net income for the period of $42,971 million Consolidated Statements of Changes in Equity (Millions of $) | Item | Balance at 01.01.25 | Compensation plan | Net Income for the period | Balance at 03.31.2025 | | :--- | :--- | :--- | :--- | :--- | | Common Shares | 259 | - | - | 259 | | Share Premium | 137 | - | - | 137 | | Adjustment of capital | 148,089 | - | - | 148,089 | | Legal Reserve | 29,655 | - | - | 29,655 | | Facultative Reserve | 764,080 | - | - | 764,080 | | Other Reserves | 4,547 | 73 | - | 4,620 | | Retained Earnings | 313,535 | - | 42,971 | 356,506 | | Total Attributable to majority shareholders | 1,260,302 | 73 | 42,971 | 1,303,346 | | Non-Controlling Interest | 280 | - | (52) | 228 | | Total Shareholders' Equity | 1,260,582 | 73 | 42,919 | 1,303,574 | - Net Income attributable to shareholders for the period was $42,971 million[15] - Total Shareholders' Equity increased from $1,260,582 million at January 1, 2025, to $1,303,574 million at March 31, 2025[15] Consolidated Statements of Cash Flows Cash flow from operating activities significantly increased to $93,341 million in Q1 2025 from $17,161 million in Q1 2024. However, net cash flow from financing activities resulted in a larger outflow of $78,530 million, primarily due to dividend payments and financial debt repayments, leading to a net increase in cash and cash equivalents of $16,938 million Consolidated Statements of Cash Flow (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Net cash Flow generated by operating activities | 93,341 | 17,161 | | Net Cash Flow generated by (applied to) investing activities | 2,127 | (6,828) | | Net Cash Flow applied to financing activities | (78,530) | (49,718) | | Net Increase (decrease) in cash and cash equivalents | 16,938 | (39,385) | | Cash and cash equivalents at the beginning of the period | 114,294 | 172,512 | | Cash and cash equivalents at the end of the period | 97,537 | 134,692 | - Operating cash flow saw a substantial increase from $17,161 million in Q1 2024 to $93,341 million in Q1 2025[17] - Financing activities resulted in a net cash outflow of $78,530 million in Q1 2025, including $27,537 million in dividend payments[17] Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements, covering accounting policies, specific financial items, and risk management NOTE 1 – Company Activities Aeropuertos Argentina 2000 S.A. (AA2000) holds concession rights for 35 airports in Argentina, with the concession period extended to February 13, 2038. The company is engaged in ongoing negotiations and legal processes with ORSNA regarding the review of the Financial Projection of Income and Expenses (PFIE) and the restoration of the concession's financial-economic equation, with procedural deadlines suspended until June 30, 2025 - AA2000 operates 35 airports in Argentina under a concession agreement, extended until February 13, 2038[20][23] - The company is in a judicial process with ORSNA regarding the review of the Financial Projection of Income and Expenses (PFIE) for 2019-2023, with procedural deadlines suspended until June 30, 2025[25][26][30] - The National State retains the right to rescue the Concession as of February 13, 2018, subject to compensation payment to the Company[31] NOTE 2 - Basis for Consolidation The condensed consolidated interim financial statements include the assets, liabilities, and results of AA2000 and its subsidiaries, such as Servicios y Tecnología Aeroportuarios S.A. (99.30% owned) and Texelrio S.A. (70% owned). Accounting policies of subsidiaries are adjusted for consistency with the Group's policies Key Subsidiaries and Participation | Subsidiaries | Participation in capital and votes | | :--- | :--- | | Servicios y Tecnología Aeroportuarios S.A. | 99.30% | | Cargo & Logistics S.A. | 98.63% | | Paoletti América S.A. | 50.00% | | Texelrío S.A. | 70.00% | | Villalonga Furlong S.A | 1.46% | - The Company directly and indirectly owns 98.53% of Cargo & Logistics S.A.[32] - The Company is in charge of the administration of Paoletti America S.A. and appoints the Chairman of the Board of Directors, who has a double vote in case of a tie[36] NOTE 3 – Accounting Policies The financial statements are presented in millions of Argentine pesos, prepared in accordance with IFRS and IAS 34, and restated for hyperinflation as Argentina has been classified as a hyperinflationary economy since July 1, 2018. There were no significant changes in accounting policies or estimates from the prior year - The financial statements are prepared in accordance with IFRS and IAS 34, and are restated for hyperinflation as Argentina is considered a hyperinflationary economy since July 1, 2018[39][41][57] - The Company is managed as a single business unit, with all airports considered as a whole, operating under a 'cross-subsidies' model[45][46] - As of March 31, 2025, the cumulative inflation rate for the three-month period was 7.4%, and year-on-year inflation was 54.2%[60] 7) Foreign currency conversion and financial information in hyperinflationary economies%20Foreign%20currency%20conversion%20and%20financial%20information%20in%20hyperinflationary%20economies) The financial statements are adjusted for inflation using a general price index, as required by IAS 29 for hyperinflationary economies. Monetary items are not restated, while non-monetary assets and liabilities are updated using adjustment coefficients. Foreign exchange gains and losses are recognized in the comprehensive income statement - Argentina has been classified as a hyperinflationary economy under IAS 29 since July 1, 2018, requiring financial statements to be restated to reflect inflation[57] - Non-monetary assets and liabilities are updated by adjustment coefficients, while monetary assets and liabilities are presented in terms of current purchasing power[62][63][68] - The loss or gain from the net monetary position is included in the comprehensive net result as RECPAM (Result from Exposure to Changes in the Purchasing Power of the Currency)[62][68] 9) Income tax and Deferred tax - Tax revalued - Tax inflation adjustment%20Income%20tax%20and%20Deferred%20tax%20-%20Tax%20revalued%20-%20Tax%20inflation%20adjustment) The income tax for the three-month period ended March 31, 2025, was a loss of $28,455 million. This includes an adjustment for inflation of $36,363 million to determine the taxable net result, as the CPI variation for the 36-month period ending fiscal year 2025 is expected to exceed 100% - Income tax for the three-month period ended March 31, 2025, was a loss of $28,455 million[72] - A tax inflation adjustment of $36,363 million was incorporated into the tax result due to the expected CPI variation exceeding 100% over 36 months[73] NOTE 4 - Sales Income Total sales income for the three-month period ended March 31, 2025, decreased to $264,586 million from $291,906 million in the prior year. Aeronautical income, primarily from air station use rates, constituted the majority of sales but also saw a decline Sales Income (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Air station use rate | 146,589 | 157,603 | | Landing fee | 11,283 | 14,886 | | Parking fee | 4,197 | 5,754 | | Total aeronautical income | 162,069 | 178,243 | | Total non-aeronautical income | 102,517 | 113,663 | | Total | 264,586 | 291,906 | - Total sales income decreased by $27,320 million (approx. 9.4%) year-over-year[74] - Aeronautical income decreased by $16,174 million, with air station use rates being the largest component[74] NOTE 5 - Costs of Sales, Administrative, Distribution, and Selling Expenses Total cost of sales increased to $169,294 million in Q1 2025, driven by higher airport services and maintenance and amortization of intangible assets. Distribution and marketing expenses decreased, while administrative expenses increased, mainly due to higher salaries and social charges - Cost of sales increased by $10,499 million (6.6%) year-over-year[76][167] - Distribution and marketing expenses decreased by $1,162 million (6.9%) year-over-year[77][168] - Administrative expenses increased by $2,533 million (21.8%) year-over-year[79][169] 5.1. Sales Cost Sales cost for the three-month period ended March 31, 2025, was $169,294 million, an increase from $158,795 million in the prior year. Key drivers were increases in airport services and maintenance, and amortization of intangible assets, partially offset by a decrease in salaries and social charges Sales Cost (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Specific allocation of income | 39,029 | 43,118 | | Airport services and maintenance | 36,884 | 27,506 | | Amortization of intangible assets | 36,452 | 26,546 | | Salaries and social charges | 42,846 | 47,336 | | Total | 169,294 | 158,795 | - Airport services and maintenance costs increased by $9,378 million (34.1%) year-over-year[76] - Amortization of intangible assets increased by $9,906 million (37.3%) year-over-year[76] 5.2. Distribution and marketing expenses Distribution and marketing expenses decreased to $15,640 million in Q1 2025 from $16,802 million in Q1 2024. This reduction was mainly due to lower taxes, despite an increase in provision for bad debts Distribution and Marketing Expenses (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Taxes | 12,750 | 15,020 | | Provision for bad debts | 1,199 | 1,022 | | Salaries and social charges | 874 | 118 | | Total | 15,640 | 16,802 | - Taxes within distribution and marketing expenses decreased by $2,270 million (15.1%) year-over-year[77] - Salaries and social charges in this category increased significantly from $118 million to $874 million[77] 5.3. Administrative expenses Administrative expenses rose to $14,134 million in Q1 2025 from $11,601 million in Q1 2024. The primary drivers for this increase were higher salaries and social charges, amortization of intangible assets, and insurance costs Administrative Expenses (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Salaries and social charges | 7,691 | 6,393 | | Amortization of intangible assets | 990 | 230 | | Office expenses | 1,715 | 1,416 | | Insurance | 613 | 127 | | Total | 14,134 | 11,601 | - Salaries and social charges in administrative expenses increased by $1,298 million (20.3%) year-over-year[79] - Amortization of intangible assets in administrative expenses increased significantly from $230 million to $990 million[79] NOTE 6 - Other Items of the Comprehensive Income Statement The company experienced a significant shift in financial results, moving from a large finance income in Q1 2024 to a net finance cost in Q1 2025, primarily due to foreign exchange differences. Other net income and expenses also decreased - Net financial income and costs totaled a profit of $5,804 million in Q1 2025, a substantial decrease from $291,703 million in Q1 2024[170] - The variation in financial results is mainly attributed to the result arising from exposure to foreign currency[171] - Other net income and expenses decreased from a gain of $5,153 million in Q1 2024 to $2,300 million in Q1 2025[80][172] 6.1 Other Net Incomes and Expenses Other net incomes and expenses decreased to a gain of $2,300 million in Q1 2025 from $5,153 million in Q1 2024, mainly due to a reduction in 'Trust for Strengthening' income and an increase in 'Other' expenses Other Net Incomes and Expenses (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Trust for Strengthening | 6,505 | 7,186 | | Other | (4,205) | (2,033) | | Total | 2,300 | 5,153 | 6.2. Finance Income Finance income shifted from a negative $100,510 million in Q1 2024 to a negative $1,401 million in Q1 2025. This significant change was primarily driven by a reduction in negative foreign exchange differences Finance Income (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Interest | 5,963 | 15,187 | | Foreign Exchange differences | (7,364) | (115,697) | | Total | (1,401) | (100,510) | 6.3 Financial Costs Financial costs decreased substantially to $7,205 million in Q1 2025 from $392,213 million in Q1 2024. This was mainly due to a significant reduction in positive foreign exchange differences, despite a decrease in interest costs Financial Costs (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Interest | (13,279) | (19,051) | | Foreign Exchange differences | 20,488 | 411,264 | | Total | 7,205 | 392,213 | 6.4 Income Tax Income tax expense decreased to $28,455 million in Q1 2025 from $146,914 million in Q1 2024, primarily driven by a significant reduction in deferred tax liabilities Income Tax (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Current | 4 | (23) | | Deferred | (28,459) | (146,891) | | Total | (28,455) | (146,914) | NOTE 7 – Intangible Assets Net intangible assets slightly decreased to $2,083,570 million as of March 31, 2025, from $2,093,480 million at March 31, 2024. This was due to higher amortization during the period, partially offset by new acquisitions Intangible Assets (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Original values: Balance at March 31 | 3,537,591 | 3,439,345 | | Accumulated Amortization: Balance at March 31 | (1,454,021) | (1,345,865) | | Net balance at March 31 | 2,083,570 | 2,093,480 | - Acquisitions of intangible assets for the period were $21,695 million in Q1 2025, compared to $44,222 million in Q1 2024[85] - Accumulated amortization increased by $37,546 million in Q1 2025[85] NOTE 8 - Financial Debts Total net financial debt decreased to $630,568 million as of March 31, 2025, from $690,070 million at the beginning of the period. This reduction was driven by significant financial debt payments and foreign exchange differences, despite accrued interest. The company fully canceled Class VI Bonds during the period - Total net financial debt decreased by $59,502 million from January 1, 2025, to March 31, 2025[87] - Financial debts paid amounted to $50,339 million in Q1 2025[87] - The Company fully canceled Class VI Bonds as of March 31, 2025[95] 8.1 Changes in Financial Debt The initial balance of financial debt was $690,070 million, which decreased to $630,568 million by March 31, 2025. This change was influenced by financial debt payments ($50,339 million), negative foreign exchange differences ($21,908 million), and accrued interest ($12,560 million) Changes in Financial Debt (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Initial Balance | 690,070 | 1,237,966 | | New financial debts | 102 | - | | Financial debts paid | (50,339) | (48,674) | | Accrued interest | 12,560 | 18,593 | | Foreign Exchange differences | (21,908) | (397,406) | | Inflation adjustment | 83 | 11,651 | | Total Net Balance at March 31 | 630,568 | 822,130 | 8.2 Breakdown of Financial Debt As of March 31, 2025, non-current financial debts totaled $559,957 million, primarily consisting of Negotiable Obligations. Current financial debts amounted to $70,611 million, also largely from Negotiable Obligations. The fair value of financial debt was $666,984 million Breakdown of Financial Debt (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Non-current Financial Debts: Negotiable Obligations | 560,706 | 601,092 | | Non-current Financial Debts: Cost of issuance of NO | (749) | (892) | | Total Non-current Financial Debts | 559,957 | 600,200 | | Current Financial Debts: Bank borrowings | 11,075 | 11,343 | | Current Financial Debts: Negotiable Obligations | 59,849 | 78,880 | | Current Financial Debts: Cost of issuance of NO | (313) | (353) | | Total Current Financial Debts | 70,611 | 89,870 | | Overall Total | 630,568 | 690,070 | - The fair value of financial debt as of March 31, 2025, was $666,984 million, classified as Level 2 in the fair value hierarchy[88] 8.3 Negotiable Obligations The company has various classes of Negotiable Obligations (NOs), primarily denominated in US dollars, with maturities ranging from 2025 to 2032 and interest rates up to 9.500%. As of March 31, 2025, Class VI Bonds were fully canceled, and the company holds Class IX and X Bonds totaling US$17 million Negotiable Obligations (Capital in U$S Millions) | Class | Maturity | Interest | Currency | Capital at 03.31.2025 | | :--- | :--- | :--- | :--- | :--- | | Guaranteed with Maturity in 2027 | 02.2027 | 6.875% | U$S | 10.0 | | Class I Series 2020 | 02.2027 | 6.875% | U$S | 36.1 | | Class I Series 2021 - Additional | 08.2031 | 8.500% | U$S | 272.9 | | Class IV | 11.2028 | 9.500% | U$S | 59.3 | | Class V | 02.2032 | 5.500% | U$S | 138.0 | | Class VI | 02.2025 | 2.000% | U$S | - | | Class IX | 08.2026 | 0.000% | U$S | 22.9 | | Class X | 07.2025 | 0.000% | U$S | 17.9 | | Class XI | 12.2026 | 5.500% | U$S | 28.8 | - The company complies with financial covenants for its international Negotiable Obligations as of March 31, 2025[94] - Class VI Bonds were fully canceled, and the company holds Class IX and Class X Bonds totaling US$17 million[95][96] 8.4 Bank Debt Bank debt includes a loan from ICBC - Dubai Branch of U$S 10.0 million maturing in October 2025, with an interest rate of SOFR+7.875%. Additionally, there is a short-term financing for imports of EUR 0.1 million maturing in April 2025 Bank Debt (Capital in Original Currency) | Institution | Start | Maturity | N.A.R. | Currency | Initial Capital | Capital at 03.31.2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | ICBC - Dubái Branch | 07.2022 | 10.2025 | SOFR+ 7.875% | U$S | 10.0 | 10.0 | | Financing Imports | 03.2025 | 04.2025 | 11.000% | EUR | 0.1 | 0.1 | NOTE 9 - Composition of Certain Items of the Consolidated Statements of Financial Position This note details the composition of various balance sheet items. Other receivables, both current and non-current, saw minor changes. Trade receivables decreased, while investments showed mixed trends with an increase in current investments and a decrease in non-current. Cash and cash equivalents decreased, and accounts payable also saw a reduction - Non-current other receivables increased to $50,025 million from $47,203 million, mainly due to the 'Trust for Strengthening'[99] - Current other receivables decreased to $22,498 million from $25,609 million, driven by lower tax credits and prepaid insurance[100] - Trade receivables, net, decreased to $97,199 million from $102,265 million[102] 9.2 Trade Receivables Net trade receivables decreased to $97,199 million as of March 31, 2025, from $102,265 million at December 31, 2024. This was primarily due to a decrease in gross trade receivables and related parties balances, partially offset by a slight reduction in the provision for bad debts Trade Receivables (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Trade receivables | 102,271 | 107,194 | | Related parties | 2,023 | 2,443 | | Checks-postdated checks | 2,903 | 2,786 | | Subtotal sales credits | 107,197 | 112,423 | | Provision for bad debts | (9,998) | (10,158) | | Total | 97,199 | 102,265 | 9.3 Investments Total non-current investments decreased to $44,582 million, mainly due to a reduction in negotiable obligations. Conversely, current investments increased to $27,971 million, driven by higher negotiable obligations Investments (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Non-current investments: Negotiable obligations | 40,551 | 47,546 | | Non-current investments: Negotiable obligations of related companies | 2,463 | 3,812 | | Non-current investments: Other financial assets | 1,568 | 2,064 | | Total Non-current investments | 44,582 | 53,422 | | Current investments: Negotiable Obligations | 23,059 | 15,452 | | Current investments: Negotiable Obligations of related companies | 1,232 | - | | Current investments: Other financial assets | 3,680 | 8,446 | | Total Current investments | 27,971 | 23,898 | 9.4 Cash and Cash Equivalents Cash and cash equivalents decreased to $97,537 million as of March 31, 2025, from $114,294 million at December 31, 2024. This was primarily due to a reduction in bank balances, partially offset by an increase in term deposits Cash and Cash Equivalents (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Cash and funds in custody | 897 | 179 | | Banks | 56,821 | 88,737 | | Checks not yet deposited | 707 | 517 | | Term deposits and others | 39,112 | 24,861 | | Total | 97,537 | 114,294 | 9.5 Accounts Payable and Other Total current accounts payable and other liabilities decreased to $97,344 million from $123,886 million. This reduction was mainly driven by lower balances with suppliers and foreign suppliers, as well as reduced salaries and social security liabilities Current Accounts Payable and Other (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Suppliers | 40,394 | 57,829 | | Foreign suppliers | 6,671 | 9,494 | | Related Parties | 4,732 | 4,869 | | Salaries and social security liabilities | 37,673 | 43,813 | | Other fiscal liabilities | 7,874 | 7,881 | | Total | 97,344 | 123,886 | NOTE 10 - Balances and Transactions with Related Parties Balances with related parties show a mix of receivables and payables. Other receivables from related companies increased, while trade receivables decreased. Investments in related company negotiable obligations increased for current and decreased for non-current. Significant transactions include payments for office rental, airport maintenance, and IT outsourcing, as well as commercial income from Duty Paid S.A. and compensation to key management Balances with Related Parties (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Other receivables | 3,223 | 2,777 | | Trade receivables | 2,023 | 2,443 | | Investments (non-current) | 2,463 | 3,812 | | Investments (current) | 1,232 | - | | Accounts payable and other | 4,732 | 4,869 | | Provisions and other charges (Dividends to be paid) | - | 14,575 | - The Company allocated $979 million for office rental and maintenance with Proden S.A. and $1,921 million for airport maintenance with Grass Master S.A.U. in Q1 2025[113] - Short-term compensation to key management was $661 million for the three-month period ended March 31, 2025[117] NOTE 11 – Provisions and Other Charges Total provisions and other charges decreased significantly to $25,252 million as of March 31, 2025, from $56,700 million at January 1, 2025. This reduction was primarily due to the payment of dividends and negative inflation adjustments, despite increases in deferred income and guarantees received Provisions and Other Charges (Millions of $) | Item | At 01.01.25 | Increases / (Recovery) | Decreases | Inflation Adjustment | Accruals | Exchange differences | At 03.31.25 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Litigations | 3,686 | 191 | (397) | (257) | 11 | 89 | 3,323 | | Deferred Income | 14,708 | 1,072 | - | (416) | (4,538) | 328 | 11,154 | | Guarantees Received | 2,281 | (39) | 248 | (172) | - | 369 | 2,687 | | Upfront fees from concessionaires | 5,596 | 699 | - | - | (791) | - | 5,504 | | Dividends to be paid | 27,873 | - | (27,537) | (1,380) | - | 1,044 | - | | Others | 2,556 | 124 | (47) | (173) | 27 | 97 | 2,584 | | Total | 56,700 | 2,047 | (27,733) | (2,398) | (5,291) | 1,927 | 25,252 | - Dividends to be paid decreased from $27,873 million to zero due to payments of $27,537 million[122] - Deferred income increased by $1,072 million but saw significant accruals and inflation adjustments[122] NOTE 12 - Foreign Currency Assets and Liabilities The company holds a net liability position in foreign currency, totaling $453,081 million as of March 31, 2025, a decrease from $521,721 million at December 31, 2024. This is primarily driven by significant non-current financial debts denominated in US dollars Foreign Currency Assets and Liabilities (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Total current assets | 168,061 | 188,135 | | Total Non-Current Assets | 43,493 | 50,184 | | Total assets | 211,554 | 238,319 | | Total current liabilities | 99,370 | 152,526 | | Total non-current liabilities | 565,265 | 607,514 | | Total liabilities | 664,635 | 760,040 | | Net liability position | 453,081 | 521,721 | - The net liability position in foreign currency decreased by $68,640 million[124] - Non-current financial debts in US dollars represent the largest component of foreign currency liabilities, totaling $560,834 million[124] NOTE 13 – Other Restricted Assets As of March 31, 2025, the company held $6,361 million in restricted cash and cash equivalents, specifically allocated in bank accounts for the settlement of Negotiable Obligations Series 2021 and Class IV - Restricted cash and cash equivalents for Negotiable Obligations Series 2021 and Class IV amounted to $6,361 million as of March 31, 2025[125] NOTE 14 - Capital Stock As of March 31, 2025, the company's capital stock consists of 258,517,299 ordinary shares, each with a par value of $1 and one vote per share. The total subscribed and integrated capital is $258,517,299 Capital Stock (in $) | Item | Par Value ($) | | :--- | :--- | | Integrated and subscribed | 258,517,299 | | Registered in the Public Registry | 258,517,299 | - The capital stock is composed of 258,517,299 ordinary shares, each with a par value of $1 and one vote[126] NOTE 15 - Resolution of General Meetings General meetings in 2024 and 2025 resolved to restate profits for inflation and allocate them to legal and discretionary reserves for future infrastructure plans and dividend payments. Specifically, the 2023 profit was restated to $14,262,583,889, and a discretionary reserve of $737,844,377,142 was partially released for US$80,000,000 in dividends. The 2024 profit was restated to $316,986,187,842 and allocated to a discretionary reserve - The profit for fiscal year ended December 31, 2023, was restated to $14,262,583,889 and allocated to legal and discretionary reserves[127] - A discretionary reserve of $737,844,377,142 was partially released to distribute US$80,000,000 in dividends to shareholders[127] - The positive result for fiscal year ended December 31, 2024, was restated to $316,986,187,842 and allocated to a discretionary reserve for future infrastructure plans and potential dividends[130] NOTE 16 – Earnings Per Share Earnings per share significantly decreased to $165.7104 in Q1 2025 from $899.8533 in Q1 2024, reflecting the lower net income for the period Earnings Per Share | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Income for the period (in millions of $) | 42,919 | 233,062 | | Amount of ordinary shares (millions) | 259 | 259 | | Earnings per shares ($ per share) | 165.7104 | 899.8533 | - Earnings per share decreased by approximately 81.6% year-over-year[131] NOTE 17 - Financial Risk Management The company is exposed to market risk (exchange rate, interest rate, price), credit risk, and liquidity risk. No significant modifications were made to the disclosure of these risks compared to the December 31, 2024, annual financial statements. Recent BCRA measures in April 2025 eased access to the MULC for foreign currency, which the company is monitoring for impact - The company is exposed to market risk (exchange rate, interest rate, price), credit risk, and liquidity risk[132] - No significant modifications to financial risk disclosures were made compared to the December 31, 2024, annual financial statements[134] - BCRA implemented measures in April 2025 to ease access to the MULC for foreign currency, which the company is monitoring for potential impacts[135][136] NOTA 18 - Events Subsequent to the End of the Period No events or transactions have occurred since March 31, 2025, that would significantly affect the company's financial and equity situation - No significant subsequent events or transactions have occurred that would materially affect the company's financial and equity situation[137] Summary Report (CNV Rules) This section provides a summary report prepared under CNV rules, offering an overview of the company's financial position, operational results, cash flow, and key performance indicators Presentation Base This Summary Report is prepared in accordance with Article 4 of Chapter III of Title IV of the NSC Regulations and should be read in conjunction with the Interim Condensed Consolidated Financial Statements. All values are expressed in constant currency as of March 31, 2025, following IAS 29 for hyperinflationary economies - The report is prepared according to NSC Regulations and IAS 29, with values expressed in constant currency as of March 31, 2025[139][140] 1. General Considerations The company's revenues are highly seasonal, peaking during summer and winter holidays. Various infrastructure projects are underway at key airports like Ezeiza, Jorge Newbery, Rio Hondo, San Rafael, Iguazú, San Juan, Resistencia, and Formosa, while the New Passenger Terminal and Parking project at La Rioja Airport has been terminated and suspended - Company revenues are highly influenced by the seasonality of air traffic, with higher income during summer and winter holiday periods[143] - Ongoing works include beaconing and electrical substations at Ezeiza, renovation of inspection points at Jorge Newbery, and terminal expansions at Rio Hondo, San Rafael, Iguazú, San Juan, Resistencia, and Formosa[145][147][148][149][150][151][152][157][158][159] - Works on the New Passenger Terminal and Parking at La Rioja Airport have been terminated due to supplier non-compliance and the new tender suspended[154][155][156] 2. Equity Structure The company's equity structure shows an increase in Net Equity to $1,303,574 million as of March 31, 2025, from $1,285,316 million in the prior year. Total assets slightly decreased, while total liabilities saw a more significant reduction, improving the overall equity position Comparative Consolidated Equity Structure (Millions of $) | Item | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Current Asset | 245,450 | 277,665 | 289,516 | 610,338 | 240,451 | | Non-current Assets | 2,183,498 | 2,213,591 | 2,077,627 | 1,995,620 | 2,058,149 | | Total Assets | 2,428,948 | 2,491,256 | 2,367,143 | 2,605,958 | 2,298,600 | | Current liabilities | 201,922 | 212,756 | 256,013 | 545,978 | 513,816 | | Non- Current Liabilities | 923,452 | 993,184 | 1,041,152 | 1,263,888 | 858,494 | | Total Liabilities | 1,125,374 | 1,205,940 | 1,297,165 | 1,809,866 | 1,372,310 | | Net equity attributable to majority shareholders | 1,303,346 | 1,285,270 | 1,070,269 | 796,073 | 926,271 | | Non-controlling interest | 228 | 46 | (291) | 19 | 19 | | Net Equity | 1,303,574 | 1,285,316 | 1,069,978 | 796,092 | 926,290 | - Net Equity increased by $18,258 million from March 31, 2024, to March 31, 2025[162] - Total Liabilities decreased by $80,566 million from March 31, 2024, to March 31, 2025[162] 3. Results Structure The company's results structure for Q1 2025 shows a significant decline in net income to $42,919 million from $233,062 million in Q1 2024. This was primarily due to a sharp decrease in financial income and costs, and a higher income tax expense, despite a positive operating profit Comparative Consolidated Statements of Comprehensive Income (Millions of $) | Item | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 95,375 | 133,192 | 104,559 | 68,416 | 15,931 | | Administrative and distribution and marketing expenses | (29,774) | (28,403) | (24,025) | (16,969) | (10,403) | | Other net income and expenses | 2,300 | 5,153 | 5,444 | 4,104 | (11,543) | | Operating profit | 67,901 | 109,942 | 85,978 | 55,551 | (6,015) | | Income and financial costs | 5,804 | 291,703 | 8,597 | 11,446 | 3,432 | | Result by exposure to changes in the acquisition power of currency | (2,331) | (21,669) | (4,571) | 16,764 | (8,076) | | Income before tax | 71,374 | 379,976 | 90,004 | 83,761 | (10,659) | | Income tax | (28,455) | (146,914) | (42,867) | (4,153) | (5,178) | | Result of the period | 42,919 | 233,062 | 47,137 | 79,608 | (15,837) | - Operating profit decreased by $42,041 million (38.2%) year-over-year[164] - Income and financial costs decreased dramatically from $291,703 million in Q1 2024 to $5,804 million in Q1 2025[164] 4. Cash Flow Structure The cash flow structure for Q1 2025 shows a significant increase in cash generated by operating activities to $93,341 million, up from $17,161 million in Q1 2024. However, cash flow used in financing activities also increased, leading to a net positive cash flow for the period of $16,938 million, a reversal from the prior year's net decrease Comparative Consolidated Statements of Cash Flow (Millions of $) | Item | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash Flow generated by operating activities | 93,341 | 17,161 | 28,211 | 24,504 | 16,551 | | Cash Flow generated by / (used in) investing activities | 2,127 | (6,828) | (122) | (130,835) | 3,813 | | Cash Flow (used in) /generated by financing activities | (78,530) | (49,718) | (33,132) | 238,960 | (16,029) | | Net Cash Flow generated by / (used in) the period | 16,938 | (39,385) | (5,043) | 132,629 | 4,335 | - Cash flow from operating activities increased by $76,180 million year-over-year[165] - Net cash flow from financing activities resulted in a larger outflow of $78,530 million compared to $49,718 million in the prior year[165] 5. Analysis of Operations for Q1 2025 and Q1 2024 This section provides a detailed analysis of the company's operational results, liquidity, and capital resources for the three-month periods ended March 31, 2025, and 2024. It highlights changes in revenues, costs, and financial performance, as well as capitalization and debt ratios 5.1 Results of Operations Total revenues decreased by 9.4% year-over-year, with both aeronautical and non-aeronautical income declining. Cost of sales increased, while distribution and marketing expenses decreased, and administrative expenses rose. Net financial income and costs saw a significant shift, and other net income and expenses also declined Revenue Composition (Millions of $) | Revenues | 03.31.2025 | % Revenues | 03.31.2024 | % Revenues | | :--- | :--- | :--- | :--- | :--- | | Aeronautical revenues | 162,069 | 61.25% | 178,243 | 61.06% | | Non-aeronautical revenues | 102,517 | 38.75% | 113,663 | 38.94% | | Total | 264,586 | 100.00% | 291,906 | 100.00% | - Total revenues decreased by $27,320 million (9.4%) year-over-year[166] - Net financial income and costs shifted from a $291,703 million revenue in Q1 2024 to a $5,804 million profit in Q1 2025, mainly due to foreign currency exposure[170][171] 5.2 Liquidity and Capital Resources The Group's total capitalization decreased to $1,934,142 million as of March 31, 2025, from $2,107,446 million at December 31, 2024. Debt as a percentage of total capitalization improved, decreasing to 32.60% from 39.01% in the prior year - Total capitalization decreased by $173,304 million from December 31, 2024, to March 31, 2025[173] - Debt as a percentage of total capitalization decreased from 39.01% to 32.60% year-over-year[174] 6. Index The company's liquidity ratio improved to 1.287 in Q1 2025 from 1.014 in Q1 2023, while solvency also increased to 1.176 from 0.789 over the same period. Cost effectiveness, however, decreased to 0.033 from 0.199 in Q1 2024 Key Financial Ratios | Index | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Liquidity | 1.287 | 1.459 | 1.014 | 0.866 | 0.550 | | Solvency | 1.176 | 1.094 | 0.789 | 0.704 | 0.703 | | Immobilization of capital | 0.899 | 0.889 | 0.883 | 0.858 | 0.890 | | Cost effectiveness | 0.033 | 0.199 | 0.045 | 0.090 | (0.017) | - Liquidity ratio decreased from 1.459 in Q1 2024 to 1.287 in Q1 2025[176] - Solvency ratio increased from 1.094 in Q1 2024 to 1.176 in Q1 2025[176] 7. Statistical Data Passenger traffic increased by 11.8% year-over-year to 11,811 thousand passengers in Q1 2025, with Aeroparque and Ezeiza being the largest contributors. Aircraft movements also increased by 4.7% to 115,319 total movements, with Aeroparque leading the growth Passenger Traffic (Thousands of passengers) | Airport | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Aeroparque | 4,416 | 3,785 | 3,643 | 2,721 | 152 | | Ezeiza | 3,426 | 3,062 | 2,746 | 1,484 | 1,525 | | Córdoba | 801 | 744 | 643 | 595 | 141 | | Bariloche | 659 | 616 | 589 | 533 | 271 | | Mendoza | 642 | 562 | 527 | 359 | 138 | | Iguazú | 470 | 345 | 352 | 229 | 58 | | Salta | 358 | 317 | 334 | 272 | 99 | | Tucumán | 194 | 179 | 205 | 152 | 63 | | C. Rivadavia | 141 | 128 | 122 | 80 | 33 | | Jujuy | 127 | 146 | 146 | 99 | 36 | | Total | 11,234 | 9,884 | 9,307 | 6,524 | 2,516 | | Overall total | 11,811 | 10,562 | 9,960 | 7,060 | 2,705 | | Variation | 11.8% | 6.0% | 41.1% | 161.0% | -68.9% | Aircraft Movement (Number of movements) | Airport | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Aeroparque | 35,250 | 31,188 | 28,409 | 22,113 | 1,646 | | Ezeiza | 20,912 | 19,834 | 15,465 | 10,737 | 14,803 | | San Fernando | 12,706 | 13,299 | 4,712 | 13,589 | 10,803 | | Córdoba | 6,930 | 6,713 | 5,935 | 4,286 | 2,018 | | Mendoza | 5,702 | 5,179 | 4,865 | 3,334 | 1,678 | | Bariloche | 5,202 | 4,590 | 4,528 | 4,052 | 2,649 | | Salta | 4,224 | 4,077 | 2,517 | 2,465 | 1,228 | | Iguazú | 3,484 | 2,607 | 2,598 | 1,802 | 1,184 | | Mar del Plata | 2,138 | 2,558 | 2,420 | 1,904 | 1,184 | | San Rafael | 2,125 | 2,678 | 496 | 1,214 | 1,139 | | Total | 98,673 | 92,723 | 71,945 | 65,496 | 38,332 | | Overall Total | 115,319 | 110,140 | 81,985 | 79,623 | 47,908 | | Variation | 4.7% | 34.3% | 3.0% | 66.2% | -46.8% | - International passenger traffic increased by 20% year-over-year in Q1 2025, surpassing 2019 levels by 11%. Domestic traffic grew by 8% year-over-year[180] Outlook for 2025 The company anticipates continued growth in both international and domestic passenger traffic, expecting 2025 to be a record year. Commercial revenues are performing solidly, with improvements in parking and Duty Free segments. Operating costs remain affected by the macroeconomic context, prompting ongoing efficiency measures. The contractual investment plan, focusing on airport modernization, continues as scheduled - Passenger traffic is expected to continue growth trends, making 2025 a record year, though the domestic segment may be sensitive to macroeconomic context[182] - Commercial revenues show solid performance, with notable improvement in parking and favorable performance in the Duty Free segment[183] - Operating costs are affected by the macroeconomic context, leading to implemented and monitored control and efficiency measures[184] - The contractual investment plan, including Phase II works in Buenos Aires Metropolitan Area and provinces, is progressing according to schedule[185] Report on Review of Condensed Consolidated Interim Financial Statements Price Waterhouse & Co. S.R.L. conducted a review of the condensed consolidated interim financial statements for Aeropuertos Argentina 2000 S.A. as of March 31, 2025, in accordance with NIER 2410. The review concluded that nothing came to their attention to suggest the statements are not prepared, in all material respects, in accordance with IAS 34. The report also noted that the statements are pending recording in the Inventory and Balance Sheets book - The review was performed by Price Waterhouse & Co. S.R.L. in accordance with International Standard for Review Engagements NIER 2410[189] - The Board of Directors is responsible for the preparation and presentation of the financial statements in accordance with IAS 34[188] - The review found no material issues, concluding that the statements are prepared in accordance with IAS 34, but noted they are pending recording in the Inventory and Balance Sheets book[190][192] Surveillance Committee Report The Surveillance Committee reviewed the separate condensed interim financial statements of Aeropuertos Argentina 2000 S.A. as of March 31, 2025, in accordance with legal and BYMA regulations. Based on their review and the external auditor's report, they found no observations regarding the statements' consistency with corporate decisions or formal compliance, except for the pending transcription in the 'Inventories and Balance Sheets' book - The Surveillance Committee conducted its review in accordance with Article 294 Subsection 5º of Act No. 19,550 and Article 63 Subsection b) of the BYMA Regulations[194][195] - The Committee considered the limited review report of the external auditor, Juan Manuel Gallego Tinto of Price Waterhouse & Co. S.R.L.[196] - The Committee reported no observations on the financial statements, except for their pending transcription in the 'Inventories and Balance Sheets' book[199]