Grupo Aeroportuario del Pacifico(PAC) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues increased by 57% compared to 2019, supported by continued passenger traffic growth and a strong commercial revenue increase [105] - Net comprehensive income rose by MXN 2.2 billion compared to 2021, reflecting a 34% increase, while net income increased by 52% [12] - The effective tax rate increased from 23% in 2021 to 25% in 2022, primarily due to high inflation affecting the net financial liability position [13] Business Line Data and Key Metrics Changes - Aeronautical revenues increased by almost 65% versus 2019, driven by passenger traffic growth and increased maximum tariff inflation [115] - Commercial revenue increased by almost 30% compared to 2019, attributed to additional commercial spaces in Montego Bay, Los Cabos, and Guadalajara [107] - The company reported the highest EBITDA margin in its history, with expectations of maintaining around a 70% margin for 2023 [12][118] Market Data and Key Metrics Changes - The company transported almost 57 million passengers in 2022, a 60.4% increase over 2019, positioning it as the largest airport operator in Mexico [105] - The recovery of passenger traffic in Jamaica showed strong signs compared to 2019, with the company working closely with airlines to secure additional routes [114] Company Strategy and Development Direction - The company plans to expand airport capacity to accommodate additional flights, routes, and frequencies, including reopening all routes from China by the end of 2023 [5] - Committed CapEx for 2023 amounts to MXN 10 billion, with MXN 7.5 billion for mandatory CapEx and MXN 2.5 billion for commercial investments [89] - The company is focusing on commercial projects, including the construction of a mixed-use building in Guadalajara and expansions in various airports [42][108] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the growth of leisure destinations, particularly in Cabos and Vallarta, driven by increased hotel room availability [70][78] - The company anticipates sustainable passenger growth across its network of airports, expecting a 6% to 8% increase compared to the previous year [26] - Management noted the impact of nearshoring on operations, particularly in automotive areas, indicating potential for increased passenger traffic [99] Other Important Information - The company faced increased operating costs due to inflation, minimum wage increases, and additional concession fees, particularly in Jamaica [3][128] - The company is committed to maintaining a healthy leverage level, with a net debt to EBITDA ratio of 1.4 times [25] Q&A Session Summary Question: What are the expectations regarding the potential upgrade for maximization interests? - Management indicated that the federal government has a schedule for recovery in the first half of the year, with expectations for completion possibly in the third to fourth quarter [28] Question: Can you elaborate on the cost pressures faced in the fourth quarter? - Management acknowledged that the cost of services increased due to the opening of new operational areas and inflation-related pressures, particularly in maintenance and security [19][32] Question: What is the expected dividend payment considering CapEx commitments? - Management stated that they aim for optimal use of fiscal resources and will release specific numbers in the coming weeks [34] Question: Can you provide details on the CapEx deployment for 2022 and expectations for 2023? - Management confirmed that MXN 8.4 billion was deployed in 2022, with expectations to deploy around MXN 10 billion in 2023, focusing on both mandatory and commercial investments [86][89] Question: How is nearshoring impacting operations? - Management expressed optimism about the potential impact of nearshoring, particularly in automotive sectors, indicating a gradual increase in passenger traffic [99]