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Grupo Aeroportuario del Pacífico Reports 5.4% Revenue Growth

Grupo Aeroportuario del Pacífico achieved a 5.4% rise in total revenues for Q4 2024, driven by an increase in passenger traffic and non-aeronautical revenue growth. However, increasing costs pose a concern for future profitability.

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AI Rating:   5

Financial Highlights

Grupo Aeroportuario del Pacífico reported a total revenue increase of 5.4% for Q4 2024, amounting to Ps. 9,627.7 million. This growth was significantly supported by a 16.4% increase in combined aeronautical and non-aeronautical service revenues. While overall revenues rose, rising operational costs totaling a 29.0% increase in service costs has raised concerns over profitability. Specifically, total operating costs increased, affecting profit margins.

Net Income and Earnings Per Share

Net income saw a decrease of 3.9% compared to the previous year, which may indicate a potential concern about financial stability as costs continue to rise. Additionally, the comprehensive income per share increased by 16.2%, reflecting a positive trend despite the net income decline.

Profit Margins

Despite increased revenue and an improved operating income margin of 39.8% in Q4 2024, the EBITDA margin, excluding IFRIC-12 effects, has seen a decline from 67.8% to 66.9% year-over-year. This suggests diminishing operational efficiency amid increasing costs.

Revenue Growth Drivers

The increase in revenues has been primarily supported by the resumption of passenger traffic due to the reopening of aircraft routes. Non-aeronautical services revenue grew by an impressive 32.7%, driven heavily by cargo operations and trade zone businesses. However, these improvements have not been able to fully alleviate the squeeze on margins caused by surging costs.

Outlook

Looking ahead, the company has guided for continued growth in 2025, projecting an increase in traffic and revenues. This forecast is underpinned by expected increases in both aeronautical and non-aeronautical revenues. However, investors should remain cautious regarding the impact of rising costs on profitability and net income.

Stocks:  PAC