Grupo Aeroportuario del Pacifico Announces Results for the Second Quarter of 2021

Thursday, 29. July 2021 07:46

GUADALAJARA, Mexico, July 29, 2021 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reported its consolidated results for the second quarter ended June 30, 2021 (2Q21) (at the end of this report, tables are presented of passenger traffic and consolidated results for 2021 compared to 2019, in order to illustrate the recovery of our financial results and their trend). Figures are unaudited and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

COVID-19 Impact

During the first half of the year (1H21), passenger traffic increased 37.8% compared to 1H20 and decreased 23.4% as compared to 1H19, demonstrating a better-than-expected recovery, despite continuing restrictions on international travel. The United States Government expanded the requirement for negative COVID-19 testing for all air passengers entering the United States beginning January 26, 2021. Additionally, as of January 7, 2021, there were similar testing requirements for air passengers traveling to Canada, and subsequently, the Canadian Government suspended flights with Mexico and the Caribbean until July 5, 2021, directly affecting the recovery of passenger traffic levels at our Puerto Vallarta, Montego Bay and Kingston airports.

Company measures during 2Q21:

  • The Company continued supporting airlines and commercial clients. For commercial contracts, the Company granted discounts on guaranteed minimum rent amounts in accordance with the percentage decrease in passenger traffic at each airport as compared to 2Q19, while maintaining our percentage of participation in revenues. With regards our support to the airlines, the Company continued its incentive program in accordance with the reactivation of routes and frequencies that were held prior to the pandemic.
  • The control measures for our cost of services were maintained throughout some expense line items and primarily at our airports that have experienced a slower recovery. However, as a result of the increase in passenger traffic during 2Q21, we have freed certain restrictions particularly on personnel, maintenance, security, and cleaning services, among others.

Impact of COVID-19 on the Company’s Financial Position:

During 2Q21, results were significantly better as compared to 2Q20, with an increase in revenues in 2Q21 of 345.4% and an increase in cost of services of 8.5%, the Company generated positive EBITDA of Ps. 2,797.1 million.

In 2Q21, operating activities continued generating positive cash flow. The Company reported a financial position of cash and cash equivalents as of June 30, 2021, of Ps. 15,503.0 million (1.6% lower than the 2Q20 balance). During 2Q21, the Company issued long-term bond certificates (Certificados Bursátiles) for Ps. 4,500.0 million. The proceeds were used to pay off the Ps. 1,000.0 million debt contracted for working capital in 2Q20 with Scotiabank, the Ps. 1,500.0 million maturity payment for the “GAP16” certificate (which was paid on July 2, 2021), and the remainder will be used for committed investments at our Mexican airports. Additionally, cash flow from operating activities was used to pay off the Ps. 1,000.0 million debt contracted for working capital in May 2020 with BBVA. Additionally, a payment of Ps. 3.8230950615 per share outstanding was made as a capital reduction and Ps. 872.9 million in share repurchases were made during 2Q21.

In 2Q21, the Company performed an assessment of the portfolio risk of our airlines and commercial clients in terms of liquidity. As a result, during this quarter it was not necessary to recognize the reserve provision for expected credit losses due to growth and recovery of our main airlines and commercial clients.

During 2Q21, the Company continued evaluating the possible adverse impacts of the pandemic on its financial condition and operating results. The Company also reviewed key indicators and impairment tests of significant long-term assets, expected credit losses and recovery of assets due to deferred taxes. In this evaluation, the Company reviewed financial results for the short, medium, and long term, concluding that a significant deterioration of the Company’s assets is not expected. As such, the Company does not foresee a business interruption or closing operations at any of its airports. However, the Company cannot ensure that the negative effect of the pandemic will continue decreasing in the coming quarter, nor can it ensure that local and global economic conditions will improve. The Company can also not predict the availability of financing, or what general credit conditions will be.

The Company will continue to monitor the pandemic’s adverse effects on the results of operations, including the monitoring of key indicators, impairment tests, projections, budgets, fair values, future cash flow related to the recovery of significant financial and non-financial assets, as well as possible contingencies. The Company will continue informing the market in a timely manner regarding future material updates on airport operations and the measures adopted for preserving liquidity and ensuring business continuity.

Summary of Results 2Q21 vs. 2Q20 (and 2Q19 for purposes of illustrating the recovery trend):

  • The sum of aeronautical and non-aeronautical services revenues increased by Ps. 3,051.2 million, or 345.4% (Ps. 399.7 million, or 11.3%, as compared to 2Q19). Total revenues increased by Ps. 3,410.7 million, or 229.7% (Ps. 1,238.3 million, or 33.9%, as compared to 2Q19).

  • Cost of services increased by Ps. 52.1 million, or 8.1% (as compared to 2Q19, cost of services decreased Ps. 9.7 million, or 1.4%).

  • Income from operations increased by Ps. 2,655.4 million, or 720.3% (Ps. 287.7 million, or 14.4%, as compared to 2Q19).

  • EBITDA increased by Ps. 2,660.6 million, or 1,948.8% (Ps. 372.2 million, or 15.3%, as compared to 2Q19), going from Ps. 136.5 million in 2Q20 to Ps. 2,797.1 million in 2Q21. EBITDA margin (excluding the effects of IFRIC 12) increased from 15.6% in 2Q20 to 71.2% in 2Q21 (EBITDA margin (excluding the effects of IFRIC 12) was 68.8% in 2Q19).

  • Net comprehensive income increased Ps. 2,247.0 million, or 237.5% (Ps. 228.7 million, or 18.8%, as compared to 2Q19), from a loss of Ps. 946.0 million in 2Q20 to an income of Ps. 1,300.9 million in 2Q21.

Passenger Traffic

During 2Q21, total passengers at the Company’s 14 airports increased by 9,373.9 thousand passengers, an increase of 562.6%, compared to 2Q20 (as compared to 2Q19, total passengers decreased by 1,169.3 thousand, or 9.6%).

During 2Q21, the following new routes were opened:

National:

AirlineDepartureArrivalOpening dateFrequencies
AeromarLa PazMazatlánJune 17, 20212 weekly frequencies
VolarisMéxicaliCancúnJune 18, 20212 weekly frequencies

Note: Frequencies can vary without prior notice.

International:

AirlineDepartureArrivalOpening dateFrequencies
UnitedGuanajuatoChicago O’HareJune 3, 20217 weekly frequencies
American AirlinesHermosilloDallas Fort WorthJune 3, 20217 weekly frequencies
JetBlueLos CabosLos ÁngelesJune 17, 20216 weekly frequencies
JetBlueLos CabosNueva York (JFK)June 17, 20215 weekly frequencies

Note: Frequencies can vary without prior notice.

Domestic Terminal Passengers – 14 airports (in thousands):
Airport2Q202Q21Change6M206M21Change
Guadalajara393.82,177.8453.0%2,730.33,751.437.4%
Tijuana *460.31,773.3285.3%1,880.33,184.169.3%
Los Cabos76.1520.5584.0%478.8887.485.3%
Puerto Vallarta34.0453.11233.5%401.8753.587.6%
Guanajuato55.9394.9606.6%480.5680.941.7%
Montego Bay0.00.00.0%1.00.0(100.0%)
Hermosillo58.5360.8517.2%454.6618.436.0%
Mexicali46.9273.0481.5%323.9463.243.0%
Morelia46.1145.8216.2%171.9255.748.7%
La Paz33.5228.5582.2%247.0397.761.0%
Aguascalientes20.0144.6622.4%157.6242.453.8%
Kingston0.00.73204.8%1.30.7(46.6%)
Los Mochis10.691.7763.9%97.4162.666.9%
Manzanillo1.923.11105.9%25.140.360.4%
Total1,237.66,587.9432.3%7,451.511,438.153.5%
*CBX users are classified as international passengers.
       
International Terminal Passengers – 14 airports (in thousands):
Airport2Q202Q21Change6M206M21Change
Guadalajara159.9949.3493.7%1,117.71,544.338.2%
Tijuana *140.7737.8424.4%825.01,162.640.9%
Los Cabos28.2983.43392.3%975.21,517.855.6%
Puerto Vallarta25.0575.82201.1%1,111.3928.2(16.5%)
Guanajuato16.9163.4867.5%165.1248.850.7%
Montego Bay16.7656.83832.9%1,149.6961.5(16.4%)
Hermosillo1.925.91286.7%20.645.8121.8%
Mexicali0.11.11108.6%1.31.839.9%
Morelia9.3101.8996.6%108.9176.962.4%
La Paz0.44.3871.7%3.88.3119.9%
Aguascalientes6.954.6696.6%55.388.660.2%
Kingston21.6183.4749.1%375.1298.8(20.3%)
Los Mochis0.12.43542.4%1.34.0198.6%
Manzanillo1.112.11031.6%29.521.5(27.3%)
Total428.64,452.2938.7%5,939.97,008.718.0%
*CBX users are classified as international passengers.
       
Total Terminal Passengers – 14 airports (in thousands):
Airport2Q202Q21Change6M206M21Change
Guadalajara553.73,127.2464.8%3,848.15,295.737.6%
Tijuana *600.92,511.1317.9%2,705.34,346.660.7%
Los Cabos104.31,503.91342.5%1,454.02,405.165.4%
Puerto Vallarta59.01,028.91643.8%1,513.11,681.811.1%
Guanajuato72.8558.3667.2%645.6929.744.0%
Montego Bay16.7656.83832.9%1,150.6961.5(16.4%)
Hermosillo60.3386.8541.1%475.2664.239.8%
Mexicali47.0274.1482.8%325.2465.043.0%
Morelia55.4247.6347.0%280.8432.554.0%
La Paz33.9232.9586.0%250.8406.061.9%
Aguascalientes26.9199.3641.3%212.9330.955.4%
Kingston21.6184.1751.5%376.4299.5(20.4%)
Los Mochis10.794.1781.0%98.7166.668.7%
Manzanillo3.035.21079.4%54.661.713.0%
Total1,666.211,040.1562.6%13,391.418,446.937.8%
*CBX users are classified as international passengers.
       
CBX (thousands)     Table 5
Airport2Q202Q21Change6M206M21Change
Tijuana140.4731.6421.1%817.71,152.641.0%


Consolidated Results for the Second Quarter of 2021 (in thousands of pesos):

 2Q202Q21Change
Revenues   
Aeronautical services551,8753,023,604447.9%
Non-aeronautical services331,641911,151174.7%
Improvements to concession assets (IFRIC 12)601,542960,98359.8%
Total revenues1,485,0584,895,738229.7%
    
Operating costs   
Costs of services:643,554695,6448.1%
Employee costs239,260289,82821.1%
Maintenance97,402109,03711.9%
Safety, security & insurance104,079124,60519.7%
Utilities79,69295,59120.0%
Other operating expenses123,12176,583(37.8%)
    
Technical assistance fees8,777135,4411443.1%
Concession taxes94,721303,817220.7%
Depreciation and amortization505,174510,3801.0%
Cost of improvements to concession assets (IFRIC 12)601,542960,98359.8%
Other (income) expense(58)2,7124775.9%
Total operating costs1,853,7102,608,97740.7%
(Loss) income from operations(368,651)2,286,761720.3%
    
Financial Result(311,089)(406,199)30.6%
Share of loss of associates(83)-100.0%
(Loss) income before income taxes (679,823)1,880,562376.6%
Income taxes97,616(456,589)(567.7%)
Net (loss) income (582,207)1,423,973344.6%
Currency translation effect(66,233)(146,953)121.9%
Cash flow hedges, net of income tax(287,997)23,233108.1%
Remeasurements of employee benefit – net income tax(9,558)735107.7%
Comprehensive (loss) income (945,995)1,300,988237.5%
Non-controlling interest29,64513,545(54.3%)
Comprehensive (loss) income attributable to controlling interest(916,350)1,314,533243.5%
    
    
 2Q202Q21Change
EBITDA136,5232,797,1411948.8%
Comprehensive (loss) income(945,994.961,300,988237.5%
Comprehensive (loss) income per share (pesos)(1.692.5018248.4%
Comprehensive (loss) income per ADS (US dollars)(0.731.2568272.0%
    
Operating (loss) income margin(24.8%)46.7%288.2%
Operating (loss) income margin (excluding IFRIC 12)(41.7%)58.1%239.3%
EBITDA margin9.2%57.1%521.5%
EBITDA margin (excluding IFRIC 12)15.6%71.2%357.6%
Costs of services and improvements / total revenues83.8%33.8%(59.6%)
Cost of services / total revenues (excluding IFRIC 12)72.8%17.7%(75.7%)
    

- Net (loss) income and comprehensive (loss) income per share for 2Q21 were calculated based on 520,024,505 shares outstanding as of June 30, 2021, and for 2Q20 were calculated based on 525,525,547 shares outstanding as of June 30, 2020. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 19.9060 per U.S. dollar (the noon buying rate on June 30, 2021, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay and Kingston airports, the average three-month exchange rate of Ps. 20.0503 per U.S. dollar for the three months ended June 30, 2021, was used.

Revenues (2Q21 vs. 2Q20)

  • Aeronautical services revenues increased by Ps. 2,471.7 million, or 447.9%.
  • Non-aeronautical services revenues increased by Ps. 579.5 million, or 174.7%.
  • Revenues from improvements to concession assets increased by Ps. 359.4 million, or 59.8%.
  • Total revenues increased by Ps. 3,410.7 million, or 229.7%.
  • The change in aeronautical services revenues was composed primarily of the following factors:

    1. Revenues at the Company’s Mexican airports increased by Ps. 2,201.1 million or 481.6% compared to 2Q20, mainly as a result of the 526.5% increase in passenger traffic. As international passenger traffic accelerates and business passenger traffic recovers, the Company expects to be closer to recovering pre-pandemic revenue levels.

    2. Revenues from the Montego Bay airport increased by Ps. 197.5 million, or 393.3%, compared to 2Q20. This was mainly due to the 3,832.9% increase in passenger traffic. The passenger traffic increase was partially offset by the 14.2% appreciation of the peso versus the U.S. dollar during 2Q21, which went from an average exchange rate of Ps. 23.3631 in 2Q20 to Ps. 20.0503 in 2Q21.

    3. Revenues from the Kingston airport increased by Ps. 73.0 million, or 163.5% compared to 2Q20, mainly due to a 751.5% increase in passenger traffic. The appreciation of the peso versus the dollar partially offset the increase in passenger traffic.

  • The change in non-aeronautical services revenues was composed primarily of the following factors:

    1. Revenues from the Company’s Mexican airports increased by Ps. 511.2 million, or 204.5%, compared to 2Q20. Revenues from businesses operated by third parties increased by Ps. 368.3 million. This was mainly due to an increase in revenues from food and beverage, duty-free stores, car rentals, retail, and time shares, which jointly increased by Ps. 318.1 million, or 239.6%. Revenues from businesses operated directly by the Company increased by Ps. 128.1 million, or 176.6%, while the recovery of costs increased by Ps. 14.7 million, or 62.0%.

    2. Revenues from the Montego Bay airport increased by Ps. 57.8 million, or 99.6%, compared to 2Q20. Revenues in U.S. dollars increased by US$ 3.3 million, or 132.6%. However, the 14.2% appreciation of the peso versus the dollar partially offset the revenue increase in 2Q21.

    3. Revenues from the Kingston airport declined by Ps. 10.6 million, or 44.7%, compared to 2Q20. Revenues in U.S. dollars decreased by US$ 0.7 million, or 68.7%.
 2Q202Q21Change
Businesses operated by third parties:   
Duty-free25,647141,096450.1%
Food and beverage32,575122,340275.6%
Retail36,812100,186172.2%
Car rentals46,34094,946104.9%
Leasing of space49,48761,21523.7%
Time shares1,08549,6564475.7%
Ground transportation12,41434,431177.4%
Communications and financial services5,82022,524287.0%
Other commercial revenues13,54831,427132.0%
Total223,727657,820194.0%
    
Businesses operated directly by us:   
Car parking23,13097,921323.4%
VIP lounges19,40152,638171.3%
Advertising23,73911,414(51.9%)
Convenience stores8,54243,852413.4%
Total74,811205,826175.1%
Recovery of costs33,10347,50343.5%
Total Non-aeronautical Revenues 331,641911,151174.7%
    

Figures expressed in thousands of Mexican pesos.

  • Revenues from improvements to concession assets1
    Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 359.4 million, or 59.8%, compared to 2Q20, mainly in:

    1. The Company’s Mexican airports, which increased by Ps. 401.3 million, or 74.6%, as a result of the increase in committed investments in the Master Development Program for the 2020-2024 period.

    2. Improvements to concession assets at the Montego Bay airport decreased Ps. 41.8 million, or 66.0%. During 2Q21, no investments in improvements to concession assets were made at the Kingston airport.

________________________
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an 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 in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program 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. 755.3 million, or 40.7%, compared to 2Q20, mainly due to a Ps. 359.4 million, or 59.8%, increase in the cost of improvements to the concession assets (IFRIC-12), a Ps. 335.8 million, or 324.4%, increase in concession taxes and technical assistance fees, and a Ps. 52.1 million, or 8.1% increase in cost of services (excluding the cost of improvements to concession assets, operating costs increased Ps. 395.8 million, or 31.6%). Total operating costs increase was composed primarily of the following factors:

Mexican Airports:

  • Operating costs increased by Ps. 726.2 million, or 50.2%, compared to 2Q20, primarily due to a Ps. 401.3 million, or 74.6%, increase in the cost of improvements to the concession assets (IFRIC-12) (excluding this cost, operating costs increased by Ps. 324.9 million or 35.8%), a Ps. 261.6 million, or 593.6%, increase in technical assistance fees and concession taxes, a Ps. 45.2 million, or 9.1%, increase in cost of services and a Ps. 20.3 million, or 5.6%, increase in depreciation and amortization.

The change in the cost of services during 2Q21 was mainly due to:

  • Employee costs increased Ps. 53.2 million, or 28.5%, compared to 2Q20, mainly due to the recognition of labor provisions in accordance with the reform to the Labor Law in Mexico and the hiring of additional personnel as required for airport operations.
  • Safety, security, and insurance costs increased Ps. 21.9 million, or 32.8%, compared to 2Q20, mainly due to an increase in the number of security staff as compared to 2Q20 when the partial closure of some operating areas reduced the need for personnel.
  • Maintenance costs increased by Ps. 12.7 million, or 16.7%, compared to 2Q20.
  • Other operating expenses decreased by Ps. 49.5 million or 44.0%, compared to 2Q20, mainly due to a Ps. 67.5 million decrease in the allowance for credit losses and the cost of sanitation supplies, purchase of supplies and donations to the medical sector for the prevention of COVID-19. This decrease was partially offset by a Ps. 18.0 million increase in the cost of sales in VIP lounges and convenience stores, FBO services and travel expenses.

Montego Bay Airport:

  • Operating costs decreased by Ps. 25.7 million, or 8.3%, compared to 2Q20, mainly due to a Ps. 41.8 million, or 66.0%, decrease in cost of improvements to the concession assets (IFRIC-12), a Ps. 15.1 million, or 11.0%, decrease in depreciation and amortization and the 14.2% appreciation of the Mexican peso against the U.S. dollar. However, this decrease was partially offset by an increase in concession taxes of Ps. 25.5 million, or 161.1%. Operating costs in U.S. dollars declined by US$ 0.3 million.

Kingston Airport:

  • Operating costs increased by Ps. 54.8 million, or 55.2%, compared to 2Q20, mainly due to a Ps. 48.7 million, or 111.6% increase in concession taxes, and a Ps. 6.2 million, or 11.7% increase in the cost of services. Operating costs in U.S. dollars increased by US$ 3.1 million.

Operating margin for 2Q21 went from a negative margin of 24.8% in 2Q20 to a positive margin of 46.7% in 2Q21. Excluding the effects of IFRIC-12, operating margin went from a negative margin of 41.7% to a positive margin of 58.1% in 2Q21. Operating income increased Ps. 2,655.4 million, or 720.3%, compared to 2Q20.

EBITDA margin went from 9.2% in 2Q20 to 57.1% in 2Q21. Excluding the effects of IFRIC-12, EBITDA margin went from 15.6% in 2Q20 to 71.2% in 2Q21. The nominal value of EBITDA was Ps. 2,797.1 million in 2Q21, compared to Ps. 136.5 million in 2Q20.

Financial cost increased by Ps. 95.1 million, from a net expense of Ps. 311.1 million in 2Q20 to a net expense of Ps. 406.2 million in 2Q21. This increase was mainly the result of:

  • Foreign exchange rate fluctuations, which went from an expense of Ps. 49.3 million in 2Q20 to an expense of Ps. 102.1 million in 2Q21. This generated an increase in the foreign exchange loss of Ps. 52.7 million. The currency translation effect increased Ps. 80.7 million, compared to 2Q20.

  • An increase in interest expenses of Ps. 53.6 million, or 15.0%, compared to 2Q20, mainly due to higher debt as a result of the issuance of long-term bonds and bank loans disbursed during 2020.

  • Interest income increased by Ps. 11.3 million, or 11.7%, compared to 2Q20, mainly due to an increase in the average balance of cash and cash equivalents during 2Q21 as compared to 2Q20.

In 2Q21, comprehensive income increased by Ps. 2,247.0 million, or 237.5%, compared to 2Q20. This increase was mainly due to the Ps. 2,560.4 million increase in profit before taxes derived from the significant increase in passenger traffic, as well as the Ps. 311.2 million increase in the cash flow hedge reserve. This increase was partially offset by an increase in income taxes of Ps. 554.2 million.

During 2Q21, net income increased by Ps. 2,006.2 million, or 344.6%, compared to 2Q20. Income taxes increased by Ps. 633.7 million and were partially offset by a Ps.79.6 million increase in the benefit for deferred taxes, mainly due to a higher inflation rate, that went from deflation of 0.62% in 2Q20 to inflation of 1.01% in 2Q21.

Consolidated Results for the First Six Months of 2021 (in thousands of pesos):

 6M206M21Change
Revenues   
Aeronautical services3,675,6575,096,37138.7%
Non-aeronautical services1,353,4821,547,13814.3%
Improvements to concession assets (IFRIC 12)1,424,7571,890,22632.7%
Total revenues6,453,8978,533,73432.2%
    
Operating costs   
Costs of services:1,380,1121,348,342(2.3%)
Employee costs486,466533,4629.7%
Maintenance211,805203,476(3.9%)
Safety, security & insurance229,405248,4318.3%
Utilities171,319172,7640.8%
Other operating expenses281,117190,209(32.3%)
    
Technical assistance fees141,041223,79858.7%
Concession taxes538,427517,657(3.9%)
Depreciation and amortization987,2311,013,1252.6%
Cost of improvements to concession assets (IFRIC 12)1,424,7571,890,22632.7%
Other expense (income)9,022(637)(107.1%)
Total operating costs4,480,5914,992,51011.4%
Income from operations1,973,3073,541,22479.5%
    
Financial Result(326,183)(485,503)48.8%
Share of loss of associates3166.7%
Income before income taxes 1,647,1273,055,72285.5%
Income taxes(421,271)(594,170)41.0%
Net income 1,225,8562,461,552100.8%
Currency translation effect1,351,131(85,224)(106.3%)
Cash flow hedges, net of income tax(348,105)240,027169.0%
Remeasurements of employee benefit – net income tax(9,705)1,837118.9%
Comprehensive income2,219,1772,618,19218.0%
Non-controlling interest(164,109)650100.4%
Comprehensive income attributable to controlling interest2,055,0682,618,84227.4%
    
    
 6M206M21Change
EBITDA2,960,5364,554,34953.8%
Comprehensive income2,219,1762,618,19218.0%
Comprehensive income per share (pesos)3.95585.034727.3%
Comprehensive income per ADS (US dollars)1.71382.529319.2%
    
Operating income margin30.6%41.5%35.7%
Operating income margin (excluding IFRIC 12)39.3%53.3%35.5%
EBITDA margin45.9%53.4%16.3%
EBITDA margin (excluding IFRIC 12)58.9%68.6%16.5%
Costs of services and improvements / total revenues43.5%38.0%(12.7%)
Cost of services / total revenues (excluding IFRIC 12)27.4%20.3%(26.0%)
    

- Net income and comprehensive income per share for 1H21 were calculated based on 520,024,505 shares outstanding and for 1H20 were calculated based on 525,525,547 shares outstanding. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 19.9060 per U.S. dollar (the noon buying rate on June 30, 2021, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay and Kingston airports, the average exchange rate of Ps. 19.8027 per U.S. dollar for the six months ended June 30, 2021, was used.

Revenues (1H21 vs. 1H20)

  • Aeronautical services revenues increased by Ps. 1,420.7 million, or 38.7%.
  • Non-aeronautical services revenues increased by Ps. 193.7 million, or 14.3%.
  • Revenues from improvements to concession assets increased by Ps. 465.5 million, or 32.7%.
  • Total revenues increased by Ps. 2,079.8 million, or 32.2%.
  • The change in aeronautical services revenues was composed of the following factors:

    1. Revenues at the Company’s Mexican airports increased by Ps. 1,529.8 million or 51.3% compared to 1H20, mainly as a result of the 44.9% increase in passenger traffic and the increase in the maximum tariffs applicable for 2021 as a result of the Extraordinary Review Process of our Master Development Program.

    2. Revenues from the Montego Bay airport decreased by Ps. 123.6 million, or 24.4%, compared to 1H20. This was mainly due to the 16.4% decrease in passenger traffic and the 6.6% appreciation of the peso versus the U.S. dollar during 1H21, which went from an average exchange rate of Ps. 21.6091 in 1H20 to Ps. 20.1847 in 1H21.

    3. Revenues from the Kingston airport increased by Ps. 14.4 million, or 7.8% compared to 1H20, mainly due to an increase in tariffs beginning in April 2020 and partially offset by a 20.4% decrease in passenger traffic and the 6.6% appreciation of the peso versus the dollar.

  • The change in non-aeronautical services revenues was composed primarily of the following factors:

    1. Revenues from the Company’s Mexican airports increased by Ps. 218.6 million, or 20.3%, compared to 1H20. Revenues from businesses operated by third parties increased by Ps. 193.3 million, or 27.9%. This was mainly due to an increase in revenues from duty-free stores, food and beverage, time shares, retail, car rentals and other commercial revenues, which jointly increased by Ps. 176.7 million, or 32.3%. Revenues from businesses operated directly by the Company increased by Ps. 27.6 million, or 9.0%. This increase was primarily due to a Ps. 67.1 million increase in revenue from parking and was partially offset by a Ps. 49.7 million decrease in combined revenues from publicity and VIP lounges. The recovery of costs decreased by Ps. 2.4 million, or 3.3%.

    2. Revenues from the Montego Bay airport decreased by Ps. 10.6 million, or 5.2%, compared to 1H20. Revenues in U.S. dollars increased by US$ 0.2 million, or 1.5%. However, the 6.6% appreciation of the peso versus the dollar offset the revenue increase.

    3. Revenues from the Kingston airport declined by Ps. 14.2 million, or 18.8%, compared to 1H20. Revenues in U.S. dollars decreased by US$ 0.5 million, or 13.1%. The 6.6% appreciation of the peso versus the dollar further contributed to the decrease.
 6M206M21Change
Businesses operated by third parties:   
Duty-free177,674222,43825.2%
Food and beverage177,321203,82914.9%
Retail143,233165,66215.7%
Car rentals156,716175,65312.1%
Leasing of space105,197110,2444.8%
Time shares53,54380,02049.4%
Ground transportation50,67461,07220.5%
Communications and financial services36,92738,8755.3%
Other commercial revenues39,06458,32149.3%
Total940,3491,116,11618.7%
    
Businesses operated directly by us:   
Car parking101,234167,26565.2%
VIP lounges100,68784,410(16.2%)
Advertising57,67321,857(62.1%)
Convenience stores58,81269,04517.4%
Total318,406342,5777.6%
Recovery of costs94,72788,445(6.6%)
Total Non-aeronautical Revenues 1,353,4821,547,13814.3%
    

Figures expressed in thousands of Mexican pesos.

  • Revenues from improvements to concession assets2
    Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 465.5 million, or 32.7%, compared to 1H20, mainly in:

    1. The Company’s Mexican airports, which increased by Ps. 503.6 million, or 37.4%, as a result of the increase in committed investments in the Master Development Program for the 2020-2024 period.

    2. Improvements to concession assets at the Montego Bay airport decreased Ps. 38.1 million, or 48.0%. During 1H21, no investments in improvements to concession assets were made at the Kingston airport.

________________________
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an 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 in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program 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. 511.9 million, or 11.4%, compared to 1H20, mainly due to a Ps. 465.5 million, or 32.7%, increase in the cost of improvements to the concession assets (IFRIC-12) and a Ps. 61.9 million, or 8.3%, increase in concession taxes and technical assistance fees. This increase was partially offset by a Ps. 31.8 million, or 2.3% decrease in cost of services (excluding the cost of improvements to concession assets, operating costs increased Ps. 46.5 million, or 1.5%). Operating costs was composed primarily of the following factors:

Mexican Airports:

  • Operating costs increased by Ps. 715.4 million, or 20.7%, compared to 1H20, primarily due to a Ps. 503.6 million, or 37.4%, increase in the cost of improvements to the concession assets (IFRIC-12), a Ps. 170.2 million, or 33.1%, increase in technical assistance fees and concession taxes as a result of the increase in revenues, a Ps. 35.4 million, or 4.9%, increase in depreciation and amortization and a Ps. 13.0 million, or 1.3%, increase in the cost of services.

The cost of services during 1H21 was mainly comprised of the following:

  • Employee costs increased Ps. 58.5 million, or 15.5%, compared to 1H20, mainly due to the recognition of labor provisions in accordance with the reform to the Labor Law in Mexico and the hiring of additional personnel as required for airport operations.
  • Safety, security, and insurance costs increased Ps. 23.4 million, or 15.3%, compared to 1H20.
  • Other operating expenses decreased by Ps. 69.5 million or 30.2%, compared to 1H20, mainly due to a Ps. 72.1 million, or 91.4%, decrease in the allowance for credit losses, professional fees, publicity, sanitation supplies, and the decrease in the purchase of supplies and donations to the medical sector for the prevention of COVID-19.

Montego Bay Airport:

  • Operating costs decreased by Ps. 177.7 million, or 24.6% compared to 1H20, mainly due to a Ps. 108.9 million, or 60.8%, decrease in concession taxes, a Ps. 17.7 million, or 8.7%, decrease in the cost of services, a Ps. 38.1 million, or 48.0%, decrease in the cost of improvements to concession assets (IFRIC-12), and a Ps. 10.1 million, or 4.0%, decrease in depreciation and amortization. Operating costs in U.S. dollars declined by US$ 9.2 million.

Kingston Airport:

  • Operating costs decreased by Ps. 25.7 million, or 8.5% compared to 1H20, mainly due to a Ps. 26.9 million, or 19.1%, decrease in the cost of services. Operating costs in U.S. dollars decreased by US$ 1.3 million.

Operating margin went from 30.6% in 1H20 to 41.5% in 1H21. Excluding the effects of IFRIC-12, operating margin went from 39.3% to 53.3% in 1H21. Operating income increased Ps. 1,567.9 million, or 79.5%, compared to 1H20. EBITDA margin increased 750 basis points from 45.9% in 1H20 to 53.4% in 1H21. Excluding the effects of IFRIC-12, EBITDA margin increased 970 basis points from 58.9% in 1H20 to 68.6% in 1H21. The nominal value of EBITDA was Ps. 4,554.3 million in 1H21 compared to Ps. 2,960.5 million in 1H20, an increase of 53.8%. Financial cost increased by Ps. 159.3 million, from a net expense of Ps. 326.2 million in 1H20 to a net expense of Ps. 485.5 million in 1H21. This increase was mainly the result of:

  • Foreign exchange rate fluctuations went from an income of Ps. 187.1 million in 1H20 to an income of Ps. 117.5 million in 1H21. This generated a decrease in the foreign exchange gain of Ps. 69.6 million. Currency translation effect income also decreased by Ps. 1,436.4 million as compared to 1H20, due to the fact that the exchange rate for 1H20 closed at Ps. 22.9715 and for 1H21 it closed at Ps. 19.8027, an appreciation by the peso of 13.8%.

  • An increase in interest expense of Ps. 92.3 million, or 13.1%, compared to 1H20, mainly due to higher debt as a result of the issuance of long-term bonds issued during 2021.

  • Interest income increased by Ps. 2.6 million, or 1.4%, compared to 1H20, mainly due to an increase in the average balance of cash and cash equivalents during 1H21.

In 1H21, comprehensive income increased Ps. 399.0 million, or 18.0% compared to 1H20. This increase was mainly due to the Ps. 1,408.6 million increase in profit before taxes and the Ps. 588.1 million increase in the cash flow hedge reserve. This increase was partially offset by a Ps. 1,436.4 million decrease in currency translation effect.

During 1H21, net income increased Ps. 1,235.7 million, or 100.8% compared to 1H20. Income taxes increased by Ps. 172.9 million, or 41.0%, as a result of a Ps. 332.1 million increase in current income taxes and were partially offset by a Ps. 159.2 million increase in the benefit for deferred taxes, mainly due to a higher inflation rate, that went from 0.6% in 1H20 to 3.4% in 1H21.

Statement of Financial Position

Total assets as of June 30, 2021, increased by Ps. 1,435.0 million as compared to June 30, 2020, primarily due to the following items: (i) improvements to concession assets of Ps. 1,026.5 million; (ii) machinery, equipment and leasehold improvements and advances to suppliers of Ps. 729.7 million; (iii) trade accounts receivable of Ps. 494.4 million and (iv) other current assets of Ps. 394.3 million. This was partially offset by a Ps. 1,022.6 million decrease in the value of concession assets (due to the valuation of the Jamaica concessions in U.S. dollars and the appreciation of the peso), among others.

Total liabilities as of June 30, 2021, increased by Ps. 2,063.7 million compared to June 30, 2020. This increase was primarily due to the following items: (i) issuance of Ps. 4,500.0 million in long-term bonds and (ii) concession taxes of Ps. 190.8 million. This was partially offset by decreases of: (i) Ps. 2,000.0 million in bank loans, (ii) Ps. 590.2 million in derivative financial instruments and (iii) Ps. 227.1 million in deferred taxes, among others.

Recent Events

On July 2, 2021, the Ps. 1,500.0 million maturity payment was made on “GAP16” debt securities with the proceeds obtained from the issuance on May 7, 2021.

From March 1st, 2021, and as of the date of this report, the Company has repurchased 8,721,192 shares at an average price of Ps. 217.00 per share, for a total of Ps. 1,892.4 million.

Company Description

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz, and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the operation of the Norman Manley International Airport in Kingston, Jamaica and took control of the operation in October 2019.

This press release contains references to EBITDA, a financial performance measure not recognized under IFRS, and which does not purport to be an alternative to IFRS measures of operating performance or liquidity. We caution investors not to place undue reliance on non-GAAP financial measures such as EBITDA, as these have limitations as analytical tools and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS.
 
This press release may contain forward-looking statements. These statements are statements that are not historical facts and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends, or results will occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The web site is www.lineadedenuncia.com/gap. GAP’s Audit Committee will be notified of all complaints for immediate investigation.


Exhibit A: Operating results by airport (in thousands of pesos):

Airport2Q202Q21Change6M206M21Change
Guadalajara      
Aeronautical services170,144801,607371.1%975,5511,428,32646.4%
Non-aeronautical services83,201210,343152.8%302,391372,29223.1%
Improvements to concession assets (IFRIC 12)172,627281,77163.2%431,567563,54230.6%
Total Revenues425,9721,293,721203.7%1,709,5072,364,15938.3%
Operating (loss) income(12,121)663,8215576.7%667,0151,144,94671.7%
EBITDA79,807756,372847.7%849,9661,340,43357.7%
       
Tijuana      
Aeronautical services128,227502,450291.8%508,525834,81264.2%
Non-aeronautical services46,017114,282148.4%163,218201,04523.2%
Improvements to concession assets (IFRIC 12)95,507408,844328.1%238,766814,066240.9%
Total Revenues269,7501,025,577280.2%910,5091,849,922103.2%
Operating income1,084413,89538089.0%305,299644,762111.2%
EBITDA62,999475,112654.2%429,375774,44680.4%
       
Los Cabos      
Aeronautical services44,404539,3961114.7%474,805863,65281.9%
Non-aeronautical services37,445217,022479.6%252,977346,09036.8%
Improvements to concession assets (IFRIC 12)108,233124,06714.6%270,583222,815(17.7%)
Total Revenues190,082880,484363.2%998,3651,432,55843.5%
Operating (loss) income(58,947)548,3251030.2%392,276819,034108.8%
EBITDA7,720610,5027807.6%524,268945,32180.3%
       
Puerto Vallarta      
Aeronautical services29,989329,9951000.4%484,538555,76114.7%
Non-aeronautical services29,183106,473264.8%170,709175,5142.8%
Improvements to concession assets (IFRIC 12)75,80478,2753.3%189,511155,633(17.9%)
Total Revenues134,976514,743281.4%844,758886,9095.0%
Operating (loss) income(49,519)289,658684.9%387,502453,01816.9%
EBITDA(7,701)332,0494411.6%469,982542,13615.4%
       
Montego Bay      
Aeronautical services50,229247,781393.3%506,791383,205(24.4%)
Non-aeronautical services58,020115,81499.6%203,673193,051(5.2%)
Improvements to concession assets (IFRIC 12)63,39021,577(66.0%)79,37741,273(48.0%)
Total Revenues171,639385,172124.4%789,841617,529(21.8%)
Operating (loss) income(136,422)102,791175.3%67,09072,4858.0%
EBITDA517224,57643305.5%320,634315,892(1.5%)
       


Exhibit A: Operating results by airport (in thousands of pesos): (continued)

Airport2Q202Q21Change6M206M21Change
Guanajuato      
Aeronautical services21,967148,653576.7%163,714248,52951.8%
Non-aeronautical services16,97736,051112.4%63,95362,570(2.2%)
Improvements to concession assets (IFRIC 12)21,6463,094(85.7%)54,1166,187(88.6%)
Total Revenues60,590187,798210.0%281,783317,28712.6%
Operating (loss) income(8,907)116,8781412.2%113,980186,05863.2%
EBITDA9,224135,6331370.4%149,494223,35649.4%
       
Hermosillo      
Aeronautical services17,31482,214374.8%100,283143,00242.6%
Non-aeronautical services11,51919,91072.8%35,81035,761(0.1%)
Improvements to concession assets (IFRIC 12)2,8984,34149.8%7,2468,68219.8%
Total Revenues31,731106,465235.5%143,339187,44630.8%
Operating (loss) income(15,892)47,961401.8%31,79270,345121.3%
EBITDA3,02266,4322098.3%69,723109,10656.5%
       
Others (1)      
Aeronautical services89,602371,509314.6%461,452639,08438.5%
Non-aeronautical services49,28089,72782.1%160,751158,402(1.5%)
Improvements to concession assets (IFRIC 12)61,43739,014(36.5%)153,59278,027(49.2%)
Total Revenues200,319500,250149.7%775,795875,51312.9%
Operating (loss) income(96,136)118,958223.7%(15,563)134,498964.2%
EBITDA(36,625)182,761599.0%102,764264,510157.4%
       
Total       
Aeronautical services551,8753,023,604447.9%3,675,6575,096,37138.7%
Non-aeronautical services331,641909,622174.3%1,353,4821,544,72514.1%
Improvements to concession assets (IFRIC 12)601,542960,98359.8%1,424,7571,890,22632.7%
Total Revenues1,485,0584,894,209229.6%6,453,8988,531,32232.2%
Operating (loss) income(376,860)2,302,287710.9%1,949,3903,525,14780.8%
EBITDA118,9652,783,4372239.7%2,916,2054,515,20054.8%
       

(1) Others include the operating results of the Aguascalientes, La Paz, Los Mochis, Manzanillo, Mexicali, Morelia, and Kingston airports.


Exhibit B: Consolidated statement of financial position as of June 30 (in thousands of pesos):

 20202021Change %
Assets    
Current assets    
Cash and cash equivalents15,748,82915,502,987(245,842)(1.6%)
Trade accounts receivable - Net1,060,9501,555,349494,39946.6%
Other current assets821,0971,215,368394,27148.0%
Total current assets17,630,87618,273,704642,8283.6%
     
Advanced payments to suppliers367,078627,829260,75171.0%
Machinery, equipment and improvements to leased buildings - Net1,999,9032,468,753468,85023.4%
Improvements to concession assets - Net12,978,44914,004,9411,026,4927.9%
Airport concessions - Net11,426,76710,404,130(1,022,637)(8.9%)
Rights to use airport facilities - Net1,318,5001,245,103(73,397)(5.6%)
Deferred income taxes5,855,3376,043,134187,7973.2%
Other non-current assets212,791157,094(55,697)(26.2%)
Total assets51,789,70053,224,6881,434,9882.8%
     
Liabilities     
Current liabilities6,079,7995,390,130(689,669)(11.3%)
Long-term liabilities22,821,28425,574,6602,753,37612.1%
Total liabilities28,901,08330,964,7902,063,7077.1%
     
Stockholders' Equity    
Common stock6,185,0824,185,082(2,000,000)(32.3%)
Legal reserve1,592,5511,592,551-0.0%
Net income1,227,5502,463,3071,235,757100.7%
Retained earnings9,940,0359,927,597(12,438)(0.1%)
Reserve for share repurchase3,283,3745,264,6661,981,29260.3%
Repurchased shares(1,733,374)(2,944,448)(1,211,074)69.9%
Foreign currency translation reserve1,711,320951,116(760,204)(44.4%)
Remeasurements of employee benefit – Net(3,099)(8,215)(5,116)165.1%
Cash flow hedges- Net(520,200)(231,080)289,120(55.6%)
Total controlling interest21,683,23921,200,576(482,663)(2.2%)
Non-controlling interest1,205,3791,059,323(146,056)(12.1%)
Total stockholder's equity22,888,61822,259,899(628,719)(2.7%)
     
Total liabilities and stockholders' equity51,789,70053,224,6881,434,9882.8%
     

The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).


Exhibit C: Consolidated statement of cash flows (in thousands of pesos):  

 2Q202Q21Change6M206M21Change
Cash flows from operating activities:      
Consolidated net (loss) income(582,208)1,423,973344.6%1,225,8552,461,552100.8%
       
Postemployment benefit costs2,0487,771279.4%6,66616,671150.1%
Allowance expected credit loss41,084(2,455)(106.0%)87,05121,070(75.8%)
Depreciation and amortization505,174510,3801.0%987,2311,013,1252.6%
(Gain) loss on sale of machinery, equipment and improvements to leased assets(11,147)739106.6%(14,199)1,335109.4%
Interest expense312,080419,65134.5%626,261800,79027.9%
Share of profit of associate89-(100.0%)3(1)(133.3%)
Provisions8856,635649.7%(1,345)(5,677)322.1%
Income tax expense(97,616)456,589567.7%421,271594,17041.0%
Unrealized exchange loss(111,964)(226,877)102.6%652,719(63,839)(109.8%)
Net loss on derivative financial instruments30,312-(100.0%)58,754-(100.0%)
 88,7372,596,4062826.0%4,050,2664,839,19619.5%
Changes in working capital:      
(Increase) decrease in      
Trade accounts receivable711,733(243,232)(134.2%)382,344(316,920)(182.9%)
Recoverable tax on assets and other assets(617,650)(18,877)(96.9%)(458,057)(75,310)(83.6%)
(Decrease) increase      
Concession taxes payable(411,611)103,830125.2%(376,329)60,738116.1%
Accounts payable(565,673)174,976130.9%(343,322)216,618163.1%
Cash (used) generated by operating activities(794,463)2,613,101428.9%3,254,9034,724,32245.1%
Income taxes paid(152,568)(82,750)(45.8%)(629,357)(385,099)(38.8%)
Net cash flows provided by operating activities(947,031)2,530,351367.2%2,625,5464,339,22365.3%
       
Cash flows from investing activities:      
Machinery, equipment and improvements to concession assets(606,257)(849,081)40.1%(1,244,295)(1,679,015)34.9%
Cash flows from sales of machinery and equipment282,2968100.0%1932,9471426.9%
Other investment activities(40,617)(27,577)(32.1%)(55,001)(24,372)(55.7%)
Net cash used by investment activities(646,847)(874,362)35.2%(1,299,104)(1,700,441)30.9%
       
Cash flows from financing activities:      
Capital distribution-(2,000,000)100.0%-(2,000,000)100.0%
Debt securities4,200,0004,500,0007.1%7,200,0004,500,000(37.5%)
Payment from Debt securities--0.0%(2,200,000)-(100.0%)
Bank loans-(2,080,739)100.0%-(5,860,151)100.0%
Repurchase of shares-(872,890)100.0%-(1,211,074)100.0%
Interest paid(257,118)(433,039)68.4%(608,416)(772,236)26.9%
Bank loans2,151,264-(100.0%)2,151,2643,779,41375.7%
Interest paid on lease(675)(438)(35.1%)(1,392)(940)(32.5%)
Payments of obligations for leasing(3,163)(2,985)(5.6%)(6,815)(6,045)(11.3%)
Net cash flows used in financing activities6,090,308(890,091)(114.6%)6,534,640(1,571,033)(124.0%)
       
Effects of exchange rate changes on cash held278,5098,698(96.9%)387,554(9,311)(102.4%)
Net increase in cash and cash equivalents4,774,939774,596(83.8%)8,248,6361,058,438(87.2%)
Cash and cash equivalents at beginning of year 10,973,89014,728,39134.2%7,500,19314,444,54992.6%
Cash and cash equivalents at the end of year 15,748,82915,502,987(1.6%)15,748,82915,502,987(1.6%)
       


Exhibit D: Consolidated statements of profit or loss and other comprehensive income (in thousands of pesos):

 2Q202Q21Change6M206M21Change
Revenues      
Aeronautical services551,8753,023,604447.9%3,675,6575,096,37138.7%
Non-aeronautical services331,641911,151174.7%1,353,4821,547,13814.3%
Improvements to concession assets (IFRIC 12)601,542960,98359.8%1,424,7571,890,22632.7%
Total revenues1,485,0584,895,738229.7%6,453,8978,533,73432.2%
       
Operating costs      
Costs of services:643,554695,6448.1%1,380,1121,348,342(2.3%)
Employee costs239,260289,82821.1%486,466533,4629.7%
Maintenance97,402109,03711.9%211,805203,476(3.9%)
Safety, security & insurance104,079124,60519.7%229,405248,4318.3%
Utilities79,69295,59120.0%171,319172,7640.8%
Other operating expenses123,12176,583(37.8%)281,117190,209(32.3%)
       
Technical assistance fees8,777135,4411443.1%141,041223,79858.7%
Concession taxes94,721303,817220.7%538,427517,657(3.9%)
Depreciation and amortization505,174510,3801.0%987,2311,013,1252.6%
Cost of improvements to concession assets (IFRIC 12)601,542960,98359.8%1,424,7571,890,22632.7%
Other (income) expense(58)2,7124775.9%9,022(637)(107.1%)
Total operating costs1,853,7102,608,97740.7%4,480,5914,992,51011.4%
(Loss) income from operations(368,651)2,286,761720.3%1,973,3073,541,22479.5%
       
Financial Result(311,089)(406,199)30.6%(326,183)(485,503)48.8%
Share of loss of associates(83)-100.0%3166.7%
Income (loss) before income taxes (679,823)1,880,562376.6%1,647,1273,055,72285.5%
Income taxes97,616(456,589)(567.7%)(421,271)(594,170)41.0%
Net (loss) income (582,207)1,423,973344.6%1,225,8562,461,552100.8%
Currency translation effect(66,233)(146,953)121.9%1,351,131(85,224)(106.3%)
Cash flow hedges, net of income tax(287,997)23,233108.1%(348,105)240,027169.0%
Remeasurements of employee benefit – net income tax(9,558)735107.7%(9,705)1,837118.9%
Comprehensive (loss) income (945,995)1,300,988237.5%2,219,1772,618,19218.0%
Non-controlling interest29,64513,545(54.3%)(164,109)650100.4%
Comprehensive (loss) income attributable to controlling interest(916,350)1,314,533243.5%2,055,0682,618,84227.4%
       

The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).


Exhibit E: Consolidated stockholders’ equity (in thousands of pesos):

 Common
Stock
Legal ReseveReserve
for Share
Repurchase
Repurchased
Shares
Retained
Earnings
Other
comprehensive
income
Total
controlling
interest
Non-
controlling
interest
Total
Stockholders'
Equity
Balance as of January 1, 20206,185,0821,592,5513,283,374(1,733,374)9,940,035360,50419,628,1721,041,27120,669,443
Comprehensive income:         
Net income----1,227,550-1,227,550(1,695)1,225,855
Foreign currency translation reserve-----1,185,3271,185,327165,8041,351,131
Remeasurements of employee benefit – Net-----(9,705)(9,705)-(9,705)
Reserve for cash flow hedges – Net of income tax-----(348,105)(348,105)-(348,105)
Balance as of June 30, 20206,185,0821,592,5513,283,374(1,733,374)11,167,5851,188,02221,683,2401,205,37922,888,618
          
Balance as of January 1, 20216,185,0821,592,5513,283,374(1,733,374)11,908,891556,28721,792,8111,059,97222,852,783
Reserve for share repurchase--1,981,292-(1,981,292)----
Capital distribution(2,000,000)-----(2,000,000)-(2,000,000)
Repurchase of share---(1,211,074)--(1,211,074)-(1,211,074)
Comprehensive income:         
Net income----2,463,307-2,463,307(1,756)2,461,552
Foreign currency translation reserve-----(86,330)(86,330)1,106(85,224)
Remeasurements of employee benefit – Net-----1,8371,837-1,837
Reserve for cash flow hedges – Net of income tax-----240,027240,027-240,027
Balance as of June 30, 20214,185,0821,592,5515,264,666(2,944,448)12,390,904711,82121,200,5761,059,32322,259,899
          

For presentation purposes, the 25.5% stake in Desarrollo de Concesiones Aeroportuarias, S.L. (“DCA”) held by Vantage appears in the Stockholders’ Equity of the Company as a non-controlling interest.

As a part of the adoption of IFRS, the effects of inflation on common stock recognized pursuant to Mexican Financial Reporting Standards (MFRS) through December 31, 2007, were reclassified as retained earnings because accumulated inflation recognized under MFRS is not considered hyperinflationary according to IFRS. For Mexican legal and tax purposes, Grupo Aeroportuario del Pacífico, S.A.B. de C.V., as an individual entity, will continue preparing separate financial information under MFRS. Therefore, for any transaction between the Company and its shareholders related to stockholders’ equity, the Company must take into consideration the accounting balances prepared under MFRS as an individual entity and determine the tax impact under tax laws applicable in Mexico, which requires the use of MFRS. For purposes of reporting to stock exchanges, the consolidated financial statements will continue being prepared in accordance with IFRS, as issued by the IASB.


Exhibit F: Other operating data:

 2Q19
2Q21
Change6M206M21Change
Total passengers1,666.211,040.1562.6%13,391.418,446.937.8%
Total cargo volume (in WLUs)462.2688.749.0%1,015.01,356.733.7%
Total WLUs2,128.311,728.8451.1%14,406.419,803.537.5%
       
Aeronautical & non aeronautical services per passenger (pesos)530.3356.4(32.8%)375.6360.1(4.1%)
Aeronautical services per WLU (pesos)259.3257.8(0.6%)255.1257.30.9%
Non aeronautical services per passenger (pesos)199.082.5(58.5%)101.183.9(17.0%)
Cost of services per WLU (pesos)302.459.3(80.4%)95.868.1(28.9%)
       

WLU = Workload units represent passenger traffic plus cargo units (1 cargo unit = 100 kilograms of cargo).


Passenger Traffic and Consolidated Results for 2Q21 and 1H21 compared to the same periods of 2019:

Domestic Terminal Passengers – 14 airports (in thousands):
Airport2Q192Q21Change6M196M21Change
Guadalajara2,674.02,177.8(18.6%)5,094.43,751.4(26.4%)
Tijuana *1,533.71,773.315.6%2,894.93,184.110.0%
Los Cabos490.9520.56.0%885.5887.40.2%
Puerto Vallarta479.5453.1(5.5%)831.3753.5(9.4%)
Guanajuato532.3394.9(25.8%)994.3680.9(31.5%)
Montego Bay2.40.0(100.0%)4.20.0(100.0%)
Hermosillo475.0360.8(24.0%)859.9618.4(28.1%)
Mexicali303.4273.0(10.0%)569.4463.2(18.6%)
Morelia115.7145.826.0%225.9255.713.2%
La Paz256.3228.5(10.8%)466.4397.7(14.7%)
Aguascalientes162.3144.6(10.9%)305.2242.4(20.6%)
Kingston0.00.7N/A0.00.7N/A
Los Mochis103.391.7(11.3%)187.1162.6(13.1%)
Manzanillo25.423.1(8.8%)49.240.3(18.2%)
Total7,154.16,587.9(7.9%)13,367.711,438.1(14.4%)
*CBX users are classified as international passengers.
     
International Terminal Passengers – 14 airports (in thousands):
Airport2Q192Q21Change6M196M21Change
Guadalajara1,088.6949.3(12.8%)2,076.71,544.3(25.6%)
Tijuana *736.1737.80.2%1,394.21,162.6(16.6%)
Los Cabos963.1983.42.1%2,019.31,517.8(24.8%)
Puerto Vallarta713.7575.8(19.3%)1,970.6928.2(52.9%)
Guanajuato173.8163.4(6.0%)345.1248.8(27.9%)
Montego Bay1,179.9656.8(44.3%)2,516.2961.5(61.8%)
Hermosillo17.425.949.1%34.545.832.8%
Mexicali1.91.1(40.7%)3.31.8(45.5%)
Morelia105.8101.8(3.8%)207.1176.9(14.6%)
La Paz3.14.341.2%6.68.324.9%
Aguascalientes54.854.6(0.3%)99.388.6(10.9%)
Kingston0.0183.4N/A0.0298.8N/A
Los Mochis1.92.429.6%3.54.013.4%
Manzanillo15.212.1(20.3%)52.321.5(59.0%)
Total5,055.24,452.2(11.9%)10,728.87,008.7(34.7%)
*CBX users are classified as international passengers.      
       
Total Terminal Passengers – 14 airports (in thousands):
Airport2Q192Q21Change6M196M21Change
Guadalajara3,762.63,127.2(16.9%)7,171.15,295.7(26.2%)
Tijuana *2,269.72,511.110.6%4,289.14,346.61.3%
Los Cabos1,453.91,503.93.4%2,904.82,405.1(17.2%)
Puerto Vallarta1,193.21,028.9(13.8%)2,801.91,681.8(40.0%)
Guanajuato706.2558.3(20.9%)1,339.4929.7(30.6%)
Montego Bay1,182.5656.8(44.5%)2,520.4961.5(61.9%)
Hermosillo492.4386.8(21.4%)894.5664.2(25.7%)
Mexicali305.3274.1(10.2%)572.7465.0(18.8%)
Morelia221.5247.611.8%433.0432.5(0.1%)
La Paz259.4232.9(10.2%)473.0406.0(14.2%)
Aguascalientes217.1199.3(8.2%)404.6330.9(18.2%)
Kingston0.0184.1N/A0.0299.5N/A
Los Mochis105.294.1(10.6%)190.6166.6(12.6%)
Manzanillo40.535.2(13.1%)101.561.7(39.2%)
Total12,209.311,040.1(9.6%)24,096.518,446.9(23.4%)
*CBX users are classified as international passengers.
       
CBX Users (thousands)     Table 20
Airport2Q192Q21Change6M196M21Change
Tijuana723.6731.61.1%1,370.91,152.6(15.9%)

The Company took control of the operation of the Kingston airport on October 10, 2019, consequently no figures are available for comparison purposes from January to June 2019.


Consolidated Results and Other Data for 2Q21 and 1H21 compared with 2019 (in thousands of pesos):

 2Q192Q21Change6M196M21Change
Revenues      
Aeronautical services2,577,7733,023,60417.3%5,209,0985,096,371(2.2%)
Non-aeronautical services957,275911,151(4.8%)1,858,6001,547,138(16.8%)
Improvements to concession assets (IFRIC 12)122,363960,983685.4%268,8501,890,226603.1%
Total revenues3,657,4114,895,73833.9%7,336,5488,533,73416.3%
       
Operating costs      
Costs of services705,304695,644(1.4%)1,300,9431,348,3423.6%
Technical assistance fees113,644135,44119.2%229,218223,798(2.4%)
Concession taxes292,887303,8173.7%618,154517,657(16.3%)
Depreciation and amortization425,839510,38019.9%847,4401,013,12519.6%
Cost of improvements to concession assets (IFRIC 12)122,363960,983685.4%268,8501,890,226603.1%
Other (income) expense(5,025)2,712(154.0%)(8,933)(637)(92.9%)
Total operating costs1,655,0122,608,97757.6%3,255,6724,992,51053.3%
Income from operations2,002,3992,286,76114.2%4,080,8773,541,224(13.2%)
       
Financial Result(235,745)(406,199)72.3%(318,354)(485,502)52.5%
Income taxes(503,081)(456,589)(9.2%)(1,101,400)(594,170)(46.1%)
Net income 1,263,5731,423,97312.7%2,661,1232,461,552(7.5%)
Currency translation effect(45,788)(146,953)220.9%(139,739)(85,224)(39.0%)
Cash flow hedges, net of income tax-23,233100.0%-240,027100.0%
Remeasurements of employee benefit – net income tax(146)735(603.4%)(293)1,837(727.0%)
Comprehensive income1,217,6391,300,9886.8%2,521,0912,618,1923.9%
Non-controlling interest(19,763)13,545168.5%(44,929)650101.4%
Comprehensive income attributable to controlling interest1,197,8761,314,5339.7%2,476,1622,618,8425.8%
       
       
 2Q192Q21Change6M196M21Change
EBITDA2,428,2382,797,14115.2%4,928,3174,554,349(7.6%)
Comprehensive income1,217,6391,300,9886.8%2,521,0912,618,1923.9%
Comprehensive income per share (pesos)2.172.501815.3%4.49395.034712.0%
Comprehensive income per ADS (US dollars)1.131.256811.2%2.33952.52938.1%
       
Operating income margin54.7%46.7%(14.7%)55.6%41.5%(25.4%)
Operating income margin (excluding IFRIC 12)56.6%58.1%2.6%57.7%53.3%(7.7%)
EBITDA margin66.4%57.1%(13.9%)67.2%53.4%(20.6%)
EBITDA margin (excluding IFRIC 12)68.8%71.2%3.5%69.7%68.6%(1.7%)
Costs of services and improvements / total revenues22.6%33.8%49.5%21.4%38.0%77.4%
Cost of services / total revenues (excluding IFRIC 12)20.0%17.7%(11.4%)18.4%20.3%10.3%
       


IR Contacts: 
  
Saúl Villarreal, Chief Financial Officersvillarreal@aeropuertosgap.com.mx
Alejandra Soto, IRO and Corporate Finance Directorasoto@aeropuertosgap.com.mx
Gisela Murillo, Investor Relationsgmurillo@aeropuertosgap.com.mx / +523338801100 ext. 20294

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