Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Corporación América Airports Second Quarter 2023 Earnings Conference Call. A slide presentation accompanies today's webcast and is available in the Investor section of the Corporación América Airports website.

As a reminder, all participants will be in a listen-only mode. There will an opportunity to ask questions at the end of the presentation.

At this time, I would like to turn the call over to Patricio Inaki Esnaola, Head of Investor Relations. ahead. go please Patricio,

Patricio Inaki Esnaola

morning, thank Good us for today. everyone, you. you and joining Thank

call Eurnekian, be Officer, during will Speaking today's Martin Arruda, Chief and our our Financial Officer. Jorge Executive Chief

the forward-looking assume I and with like any call proceed, or recent to contain and forward-looking filings to statements, no the new update or refer forward-looking harbor revise our statements we Before section will to make of obligation statement. reflect following to would statements events Today's you the We circumstances. or I SEC. safe earnings release changed

Now, our let me turn Martin the call over CEO, to Eurnekian.

Martin Eurnekian

Inaki. a will to to our kick quick quarter and cargo review you, financial will a second I call everyone, second financial today's results. our call. providing of turn Jorge by traffic earnings Thank to and I the call off summary go trends. Hello, by quarter then our followed welcome through of XXXX highlights

quarter reached ex-IFRICXX second with the with approaching outstanding percentage compared traffic across to adjusted with quarter performance record an was This points. up X.X when pre-pandemic passenger million, margin EBITDA another reported $XXX the yet levels. We XX% robust EBITDA expanding XXXX Adjusted achieved board. of

in EBITDA, operations. good territories performance fueled solid and quarter this the reflecting XX% both second positive XXXX, ex-IFRICXX Again, strong when rebound in quarter, and climbed contributed across with travel Revenues by all adjusted revenues. Commercial demand a execution compared Aeronautical to

all-time times, leverage leverage increase with amazing contributed reflecting growth, debt slight an work during operating in lowering in a commercial have activities. the revenue we with company. further built along pandemic reduction undertaken below increased to and to we the low turn connection reflecting in our after our profitability, into have X.X Costs the the in The of ratio net

airport to and network track looking our concessions on of other to the value long-term to Argentina Uruguay, airport fully and and programs the our well execution front, remain we continue actively our are and funded stakeholders. On CapEx with expanding in CapEx delivering selectively

traffic just patterns. recovery been quarter X% turn for Next, were Slide chart sustained X seeing to line have demand. The dive into levels. in We travel below second tracks passenger XXXX of the a deeper we

first XXXX a about in was the of level. reference, below the traffic XX% quarter, As point

passenger June, by by traffic has Importantly, pre-pandemic X%. exceeded

This by Now to look second and each Italy at of pre-pandemic continued and levels, countries posted recovery year-on-year across levels frequencies above Argentina the XX% pre-pandemic operations. pre-pandemic XX%. lead the our and the with was performance for let's surpassing recovery Armenia, by of exceeding and climbing new entrance aided performance traffic July quarter straight the with traffic their Armenia Brazil and volumes continues Uruguay, trend. strong levels XX%. carriers into while quarter it continued fifth of by flight Ecuador increased

at in pre-pandemic single levels Domestic which traffic Passenger first traffic continue to of July of into pre-pandemic total driven XXXX. domestic above second XXXX by XXXX quarter international traffic performance levels. over for the pre-pandemic onset XX%, passengers and good July, of Argentina exceeded accounted improving XX% time digits recover, continued low reaching levels since the This with of XX% the XX% traffic pandemic. July to traffic, by XX% total surpassed international traffic levels, of while by for levels of

[indiscernible], XX.X% energized while competitive by supported and supported continued traffic Equair double-digit in by outperforming Ecuador levels, volumes XXXX as international continued robust with traffic performance US, Europe XX% pre-pandemic Growth healthy in in international to domestic traffic. the post environment traffic. a above and domestic growth the trend, Panama both

to XX% weaker into XX.X% with second XXXX performance traffic of volumes. of where levels, passenger continued passengers Uruguay, international, July number the a of traffic following XXXX This the saw of is quarter increasing to first XXX% year. of quarter July increase

reaching recover, X% levels, XXXX levels to improved by continued Florence second while reflecting above both similar July, operating levels Notably, and quarter traffic XX% passenger X.X%. airport. Pisa In resumed volumes pre-pandemic surpassing Airport traffic for international further total some was XXXX Italy, recovery of traffic. yet have not at of domestic pre-pandemic In destinations

XX% Finally, levels, in traffic in up Brazil quarter. increased of XX% prior to the pre-pandemic from

in was levels, XX.X% financial for financial at and impacted impacted low the pre-pandemic digits. aircraft the by by still traffic July constraints majority the local and airlines, of levels traffic, for up vast time, in which first traffic the below was While XXXX aircraft domestic some accounts surpassed aforementioned constraints. single traffic Brazil,

pre-pandemic in single of were in cargo Next, levels, volumes digit prior low levels. above levels, Brazil XX% strong are Uruguay XX% on XX% still Noteworthy, were In up of from in and to Ecuador turn, of reaching pre-pandemic and second from sustained above quarter. respectively, Argentina pre-pandemic and Armenia revenues quarter volumes phase. levels, Cargo reflecting year-on-year, the Argentina. XX% and Slide remain while XXXX improved XX% contributions up a Cargo X. cargo Italy recovery

are are the we recovery trends seeing by In going this confident in sum, forward. we sustained we and business, Cargo recovery encouraged our in positive are

us our exceptional provide rely on and customers to dependable Importantly, can service.

call review our I results. will Jorge, Jorge, who now financial Please, hand will to off go the ahead.

Jorge Arruda

ex-IFRICXX Thank with surpassed pre-pandemic line XX%. Total by day, and Starting increased top good XX% you, year-on-year on Martin, Slide levels our everyone. revenues X. and

both the driven robust growth solid pleased been to able growth Aeronautical. by and we deliver with the of are We Commercial from revenue continuation have

while XXXX. XX% compared Aeronautical digit strong traffic and pre-pandemic continued driven This were increases, XX% in mainly revenues for increased a Argentina of tariff second second Aeronautical increased and quarter. our double geographies, passenger XXXX second quarter was revenues year-on-year up levels in by surpassing to XX% reaching quarter recovery across year-on-year, Armenia maintained consecutive momentum, the levels.

revenues, pre-pandemic Argentina solid Armenia. mainly and fuel-related up accounted nearly duty-free of total revenues performance year-on-year XX% were a XX% cargo was higher which for in revenues, our ex-IFRIC of Commercial This above revenues supported by and XX% and levels. in

in from of the reflection second XX% quarter our a results, quarter. revenues this $XX.X $XX.X increased As XXXX per these to strong passenger

growth. the Total for expenses by year-on-year costs expenses following explained ex-IFRICXX the on Now the business, debt in occurred for recovery of by the below sustained is the XX% XX%. bad in year-on-year concession total was Argentina, ex-IFRICXX fees and turning XX% but Argentina our SG&A local increased Compared SG&A in to fuel of due XX% quarter. and to last Slide revenue quarter higher and in below costs expenses reflecting second rate of in Argentina costs XXXX, currency sales also cost grew were a growth revenue quarter still higher higher quarter activity inflation the increased growth. depreciation. our well salaries X. to of tied as Higher our up quarter million fuel Armenia This the benefit a mainly above in onetime to mainly second increased to year. structure X%, Compared $XX XXXX, which XX%

Moving on to X. Slide

million recorded compared As in a percentage adjusted ex-IFRICXX from quarter increased points XXXX. result EBITDA percentage the the this the the was above contributed quarter $XXX second EBITDA this delivered X.X the of reached and comparison, of up when our margin All year. to XX% when the bad adjusted Moreover, we in second last year record to strong XX% of EBITDA streamlined 'XX structure, growth up and points the the adjusted debt XX.X%, pre-pandemic including X.X quarter performance. recovery levels. and top previously beating of cost a first XXXX, second quarter geographies in line achieved high historical Year-on-year,

by million, X. Slide with our to liquidity quarter position to generation, of cash ended a Turning $XXX $XX million strong the flow XXXX. compared Supported total we up year-end

subsidiaries. flow delivered from operating in Importantly, our operations positive all we cash

our debt maturity our profile. strong balance to billion, $X while XX. on Moving billion. quarter-end and at on at healthy profile Total debt sheet a the We with closed net debt stood was and quarter $X.XX Slide debt a

in result XXXX, debt net levels, times times of declined slightly the growth continued reaching an X.X our further low. adjusted to our EBITDA and all-time lower as of December from As leverage X.X ratio a net

Wrapping strong and contributing delivering leverage. momentum, reduction to financial the up, we our a results, further strong of maintained operating

I the and the will discuss remarks. for Martin, remainder closing view some call to our who will back hand of now year provide the

Martin Eurnekian

to Slide turn up, Now please wrap XX. to

at a second passenger, record performance, solid $XX.X from XXXX. to period in is up expanded delivered a same the the pre-pandemic EBITDA, new have per noteworthy considerable volumes quarter adjusted which in pre-pandemic Also XX% of to pleased traffic setting $XX.X, practically increase are above levels revenues despite We high levels.

with As year. for then Natal on in process Florence we look fourth government the ahead, of indemnification $XXX be negotiations regarding quarter the connection receiving with to the master the approval Airport Armenia million of and a plan of which our Airport, much needed the payment primary remains on focus track The continues return program. the this in CapEx at new

concession Kano government the and we agreements. continue in remain connection with on our with also Abuja Additionally, portfolio the and we focused of Nigeria expanding working

Separately, you published pleased report second invite to read report we our are sustainability we also that just to it. and have

journey. just starting are We this

We across This our are company forward as ESG on continuous and this prepared to share journey. committed advance updates to with you the remarks. we more ends awareness and driving improvement look

to We are ready your take questions.

the questions. for open please Operator, line

Operator

Your [Operator go from first at be will question Instructions] ahead. you, Singh sir. Please Thank Jay Citi.

Jay Singh

my are bit talk now? a into Thank Can right new to everybody. morning, Good you markets us plan? plans questions. you more for market the little Nigerian What about taking your expanding for

Martin Eurnekian

preferred attitude with two and be government for We for the the start present, where we arise cash team we criteria. continent, out the our started us for with portfolio. which and Jay. opportunities and that that different in and we as opportunities we pandemic, participated we always bidder Kano our to said, the But we of you, and that finalize may can recovery looking -- we we opened We for has there. This working already the with the Thank being discussing were selected disciplined and are also sign once -- as on airports, understanding investment keep capital, the airport there in And are which geographies now opportunities our grow our in to process. that Abuja, keep looking will Nigeria are the again to good our in very the we always terms Africa for continue accretive looking for working North. door eyes different but Sure. opportunities able opportunities, And markets. process open we start we be -- started to have if

Jay Singh

about you how your follow-up, a know And rate? long-run much. to we think Thank Awesome. as very normalized like should CapEx I'd

Martin Eurnekian

Thank you, Jay.

investments of which following Argentina for to we is which later extra In underway perfectly on. are terms agreed be Uruguay, the XXXX, same in decided had which thing do a track to as us with of addition them, The which $XXX at in country, the with a airports signed will years, CapEx the airports where of government and the CapEx the currently that of airport executing rest government, and CapEx six extension the require terms is CapEx are happens in and regional as agreement million, in of have the opened some well probably we of timing with have underway XX-year agreement in we the what we a end year and all CapEx, well. of related in first the the budget underway requirement other there, on of which and last also

Thank terms and the the material rest, on agreement we're seeing rest Pisa of just the regarding of in much. be traffic. there with there. the for this only investments with Florence have the what have rest because would to will of CapEx traffic this that having high For discussions it -- governments, the in also we're the required for maintenance maintenance the and we the CapEx you beyond the we Armenia And development CapEx feed beyond growing CapEx agreements subsidiaries mentioned requirement of the that do because with an regarding CapEx, But very ahead. to government the going important now

Jay Singh

Thank helpful. you. Super

Operator

have time, we remarks. additional this to [Operator turn I will closing further questions. Martin no Thank call at And for any the Instructions] you. back it appears

Martin Eurnekian

rest any of our to may remains thank please that I today you further And for all you to available that you your remind much. discuss day. enjoy just team very Thank you require. information and wanted the joining us

Operator

please this conference Thank lines. today. your does weekend. disconnect for conclude sir. your thank again, gentlemen, good for attending. indeed At you Once time, a and you this we Have that Ladies you call ask

Corporación América Airports (CAAP) 18 Aug 232023 Q2 Earnings call transcript