Full Press Release Details
Procaps Group S.A. and subsidiaries (The
Unaudited Condensed Consolidated
Interim Financial Statements for the periods ended September 30, June 30 and March 31, 2021
Procaps Group S.A. and subsidiaries (The Group)
Unaudited Condensed Consolidated Interim Statement
for the periods ended September
30, June 30 and March 31, 2021
(In thousands of United States Dollars, unless
| For the nine months ended September 30 | For the six months ended June 30 | For the three months ended March 31 | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Revenue | $ | 283,206 | 213,320 | 176,377 | 134,007 | 77,442 | 52,110 | |||||||||||||||||
| Cost of sales | (123,152 | ) | (90,133 | ) | (78,575 | ) | (58,608 | ) | (37,755 | ) | (21,723 | ) | ||||||||||||
| Gross profit | 160,054 | 123,187 | 97,802 | 75,399 | 39,687 | 30,387 | ||||||||||||||||||
| Sales and marketing expenses | (61,191 | ) | (53,352 | ) | (38,350 | ) | (34,118 | ) | (19,481 | ) | (18,185 | ) | ||||||||||||
| Administrative expenses | (64,670 | ) | (43,857 | ) | (43,659 | ) | (29,487 | ) | (20,578 | ) | (15,225 | ) | ||||||||||||
| Finance expenses | (79,242 | ) | (39,763 | ) | (28,591 | ) | (25,527 | ) | (14,237 | ) | (13,315 | ) | ||||||||||||
| Other expenses | (3,179 | ) | (5,406 | ) | (2,072 | ) | (3,738 | ) | (535 | ) | (5,400 | ) | ||||||||||||
| Income (loss) before tax | $ | (48,228 | ) | (19,191 | ) | (14,870 | ) | (17,471 | ) | (15,144 | ) | (21,738 | ) | |||||||||||
| Income tax expense | (6,342 | ) | (701 | ) | (2,776 | ) | (1,452 | ) | (1,894 | ) | (5,845 | ) | ||||||||||||
| Loss for the period | $ | (54,570 | ) | (19,892 | ) | (17,646 | ) | (18,923 | ) | (17,038 | ) | (27,583 | ) |
Procaps Group S.A. and subsidiaries (The Group)
Unaudited Condensed Consolidated Interim Statement
of Financial Position
as of September 30, June 30, and
March 31, 2021 and December 31, 2020
(In thousands of United States Dollars, unless
| As of September 30, 2021 | As of June 30, 2021 | As of March 31, 2021 | As of December 31, 2020 | |||||||||||||
| Assets | ||||||||||||||||
| Non-current assets | ||||||||||||||||
| Property, plant and equipment, net | $ | 71,259 | 67,488 | 64,600 | 70,335 | |||||||||||
| Right-of-use assets | 36,645 | 38,318 | 39,912 | 43,195 | ||||||||||||
| Goodwill | 6,851 | 6,867 | 6,886 | 6,863 | ||||||||||||
| Intangible assets | 24,754 | 25,183 | 24,826 | 27,583 | ||||||||||||
| Investments in joint ventures | 2,478 | 2,849 | 2,593 | 2,460 | ||||||||||||
| Other financial assets | 440 | 631 | 464 | 761 | ||||||||||||
| Deferred tax assets | 6,675 | 6,745 | 7,071 | 21,769 | ||||||||||||
| Other assets | 2,778 | 2,687 | 3,558 | 1,870 | ||||||||||||
| Total non-current assets | 151,880 | 150,768 | 149,910 | 174,836 | ||||||||||||
| Cash | 100,192 | 7,695 | 7,599 | 4,229 | ||||||||||||
| Trade and other receivables, net | 110,023 | 104,736 | 94,117 | 96,493 | ||||||||||||
| Inventories, net | 76,981 | 68,383 | 61,866 | 64,284 | ||||||||||||
| Amounts owed by related parties | 3,398 | 2,383 | 2,042 | 2,562 | ||||||||||||
| Current tax assets | 21,314 | 16,809 | 18,046 | 16,774 | ||||||||||||
| Other current assets | 960 | 1,259 | 1,617 | 360 | ||||||||||||
| Total current assets | 312,868 | 201,265 | 185,287 | 184,702 | ||||||||||||
| Total assets | $ | 464,748 | 352,033 | 335,197 | 359,538 | |||||||||||
| Liabilities and stockholders' equity (deficit) | ||||||||||||||||
| Total equity (deficit) | $ | 36,305 | (276,463 | ) | (276,217 | ) | (254,678 | ) | ||||||||
| Borrowings | 101,932 | 381,918 | 350,141 | 339,738 | ||||||||||||
| Amounts owed to related parties | 11,190 | 11,542 | 11,580 | 12,163 | ||||||||||||
| Warrant liability | 33,950 | - | - | - | ||||||||||||
| Deferred tax liabilities | 1,451 | 2,440 | 4,021 | 18,890 | ||||||||||||
| Other liabilities | 3,173 | 2,912 | 3,100 | 3,797 | ||||||||||||
| Total non-current liabilities | 151,696 | 398,812 | 368,842 | 374,588 | ||||||||||||
| Borrowings | 116,713 | 95,262 | 102,204 | 102,621 | ||||||||||||
| Trade and other payables, net | 132,462 | 113,117 | 106,580 | 106,275 | ||||||||||||
| Amounts owed to related parties | 5,703 | 6,104 | 7,337 | 8,459 | ||||||||||||
| Current tax liabilities | 14,249 | 8,772 | 12,946 | 9,393 | ||||||||||||
| Provisions | 1,663 | 1,663 | 1,052 | 1,829 | ||||||||||||
| Other liabilities | 5,957 | 4,766 | 12,453 | 11,051 | ||||||||||||
| Total current liabilities | 276,747 | 229,684 | 242,572 | 239,628 | ||||||||||||
| Total liabilities and stockholders' equity (deficit) | $ | 464,748 | 352,033 | 335,197 | 359,538 |
Procaps Group S.A. and subsidiaries (The Group)
Unaudited Condensed Consolidated Interim Statement
of Changes in Equity
for the periods ended September
30, June 30 and March 31, 2020
(In thousands of United States Dollars, unless
| Attributable to equity holders of the Group | ||||||||||||||||||||||||||||||||
| Issued Capital | Share premium | Reserves 1 | Accumulated deficit | Other Comprehensive Income | Total | Non- controlling interest | Total equity (deficit) | |||||||||||||||||||||||||
| Balance as of December 31, 2019 | 2,001 | 54,412 | 28,681 | (305,634 | ) | (23,753 | ) | (244,293 | ) | 346 | (243,947 | ) | ||||||||||||||||||||
| Loss for the period | - | - | - | (28,629 | ) | - | (28,629 | ) | 1,046 | (27,583 | ) | |||||||||||||||||||||
| Transfer reserves | - | - | 11,216 | (11,216 | ) | - | - | - | - | |||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | (3,622 | ) | (3,622 | ) | - | (3,622 | ) | |||||||||||||||||||||
| Non-controlling interest | - | - | - | 1,046 | - | 1,046 | - | 1,046 | ||||||||||||||||||||||||
| Balance as of March 31, 2020 | $ | 2,001 | $ | 54,412 | $ | 39,897 | $ | (344,433 | ) | $ | (27,375 | ) | $ | (275,498 | ) | $ | 1,392 | $ | (274,106 | ) | ||||||||||||
| Balance as of December 31, 2019 | 2,001 | 54,412 | 28,681 | (305,634 | ) | (23,753 | ) | (244,293 | ) | 346 | (243,947 | ) | ||||||||||||||||||||
| Loss for the period | - | - | - | (19,651 | ) | - | (19,651 | ) | 728 | (18,923 | ) | |||||||||||||||||||||
| Transfer reserves | - | - | 11,177 | (11,177 | ) | - | - | - | - | |||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | (5,673 | ) | (5,673 | ) | - | (5,673 | ) | |||||||||||||||||||||
| Non-controlling interest | - | - | - | 728 | - | 728 | - | 728 | ||||||||||||||||||||||||
| Balance as of June 30, 2020 | $ | 2,001 | $ | 54,412 | $ | 39,858 | $ | (335,734 | ) | $ | (29,426 | ) | $ | (268,889 | ) | $ | 1,074 | $ | (267,815 | ) | ||||||||||||
| Balance as of December 31, 2019 | 2,001 | 54,412 | 28,681 | (305,634 | ) | (23,753 | ) | (244,293 | ) | 346 | (243,947 | ) | ||||||||||||||||||||
| Loss for the period | - | - | - | (20,620 | ) | - | (20,620 | ) | 728 | (19,892 | ) | |||||||||||||||||||||
| Transfer reserves | - | - | 11,177 | (11,177 | ) | - | - | - | - | |||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | 11,600 | 11,600 | - | 11,600 | ||||||||||||||||||||||||
| Non-controlling interest | - | - | - | 728 | - | 728 | - | 728 | ||||||||||||||||||||||||
| Balance as of September 30, 2020 | $ | 2,001 | $ | 54,412 | $ | 39,858 | $ | (336,703 | ) | $ | (12,153 | ) | $ | (252,585 | ) | $ | 1,074 | $ | (251,511 | ) |
Procaps Group S.A. and subsidiaries (The Group)
Unaudited Condensed Consolidated Interim Statement
of Changes in Equity
for the periods ended September
30, June 30 and March 31, 2021
(In thousands of United States Dollars, unless
| Attributable to equity holders of the Group | ||||||||||||||||||||||||||||||||
| Issued Capital | Share premium | Reserves 1 | Accumulated deficit | Other Comprehensive Income | Total | Non- controlling interest | Total equity (deficit) | |||||||||||||||||||||||||
| Balance as of December 31, 2020 | 2,001 | 54,412 | 39,897 | (327,344 | ) | (24,421 | ) | (255,455 | ) | 777 | (254,678 | ) | ||||||||||||||||||||
| Loss for the period | - | - | - | (17,319 | ) | - | (17,319 | ) | 281 | (17,038 | ) | |||||||||||||||||||||
| Transfer reserves | - | - | (8 | ) | 8 | - | - | - | - | |||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | (4,782 | ) | (4,782 | ) | - | (4,782 | ) | |||||||||||||||||||||
| Non-controlling interest | - | - | 281 | - | 281 | - | 281 | |||||||||||||||||||||||||
| Balance as of March 31, 2021 | $ | 2,001 | $ | 54,412 | $ | 39,889 | $ | (344,374 | ) | $ | (29,203 | ) | $ | (277,275 | ) | $ | 1,058 | $ | (276,217 | ) | ||||||||||||
| Balance as of December 31, 2020 | 2,001 | 54,412 | 39,897 | (327,344 | ) | (24,421 | ) | (255,455 | ) | 777 | (254,678 | ) | ||||||||||||||||||||
| Loss for the period | - | - | - | (17,968 | ) | - | (17,968 | ) | 322 | (17,646 | ) | |||||||||||||||||||||
| Transfer reserves | - | - | (8 | ) | 8 | - | - | - | - | |||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | (4,461 | ) | (4,461 | ) | - | (4,461 | ) | |||||||||||||||||||||
| Non-controlling interest | - | - | - | 322 | - | 322 | - | 322 | ||||||||||||||||||||||||
| Balance as of June 30, 2021 | $ | 2,001 | $ | 54,412 | $ | 39,889 | $ | (344,982 | ) | $ | (28,882 | ) | $ | (277,562 | ) | $ | 1,099 | $ | (276,463 | ) | ||||||||||||
| Balance as of December 31, 2020 | 2,001 | 54,412 | 39,897 | (327,344 | ) | (24,421 | ) | (255,455 | ) | 777 | (254,678 | ) | ||||||||||||||||||||
| Loss for the period | - | - | - | (54,948 | ) | - | (54,948 | ) | 378 | (54,570 | ) | |||||||||||||||||||||
| Transfer reserves | - | - | (8 | ) | 8 | - | - | - | - | |||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | (3,894 | ) | (3,894 | ) | - | (3,894 | ) | |||||||||||||||||||||
| Non-controlling interest | - | - | 378 | - | 378 | - | 378 | |||||||||||||||||||||||||
| Share redemption and issuance in business combination | (873 | ) | 201,304 | 148,638 | - | 349,069 | - | 349,069 | ||||||||||||||||||||||||
| Balance as of September 30, 2021 | $ | 1,128 | $ | 255,716 | $ | 39,889 | $ | (233,268 | ) | $ | (28,315 | ) | $ | 35,150 | $ | 1,155 | $ | 36,305 |
Group S.A. and subsidiaries (The Group)
Condensed Consolidated Interim Statement of Cash Flows
the periods ended September 30, June 30 and March 31, 2021 and 2020
thousands of United States Dollars, unless otherwise stated)
| For the nine months ended September 30 | For the six months ended June 30 | For the three months ended March 31 | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Operating activities | ||||||||||||||||||||||||
| Loss for the period | $ | (54,570 | ) | $ | (19,892 | ) | $ | (17,646 | ) | $ | (18,923 | ) | $ | (17,038 | ) | $ | (27,583 | ) | ||||||
| Adjustments to reconcile net loss with net cash from operating activities: | ||||||||||||||||||||||||
| Depreciation of property, plant and equipment | 4,184 | 4,062 | 2,864 | 2,706 | 1,598 | 1,382 | ||||||||||||||||||
| Depreciation of right-of-use | 3,281 | 3,098 | 2,214 | 2,050 | 1,137 | 982 | ||||||||||||||||||
| Amortization of intangibles | 5,892 | 4,705 | 3,824 | 3,202 | 1,090 | 1,199 | ||||||||||||||||||
| Income tax expense | 6,342 | 701 | 2,776 | 1,452 | 1,894 | 5,845 | ||||||||||||||||||
| Finance expenses | 79,242 | 39,763 | 28,591 | 25,527 | 14,237 | 13,315 | ||||||||||||||||||
| Share of result of joint ventures | (371 | ) | (416 | ) | (419 | ) | (403 | ) | (129 | ) | (208 | ) | ||||||||||||
| Net (gain)/loss on sale of property, plant and equipment | 710 | - | 699 | - | 2 | (59 | ) | |||||||||||||||||
| Inventory provision | 3,263 | 3,538 | 2,038 | 2,460 | 906 | 915 | ||||||||||||||||||
| Provision for bad debt | 741 | (2,087 | ) | 16 | 341 | (299 | ) | (1,072 | ) | |||||||||||||||
| Provisions | 1,182 | 1,599 | 187 | 761 | 1,083 | 2,131 | ||||||||||||||||||
| Cash flow from operating activities before changes in working capital | $ | 49,896 | $ | 35,071 | $ | 25,144 | $ | 19,172 | $ | 4,480 | $ | (3,153 | ) | |||||||||||
| (Increase)/decrease in operating assets and liabilities: | ||||||||||||||||||||||||
| Trade and other receivables | (14,271 | ) | 20,526 | (8,259 | ) | 19,402 | 2,675 | 21,303 | ||||||||||||||||
| Amounts owed by related parties | (835 | ) | (7,038 | ) | 144 | (1,689 | ) | 520 | (2,886 | ) | ||||||||||||||
| Inventories | (15,523 | ) | 828 | (5,771 | ) | 9,453 | 1,513 | 9,495 | ||||||||||||||||
| Current tax assets | (4,540 | ) | (5,295 | ) | (35 | ) | (5,246 | ) | (1,272 | ) | (4,476 | ) | ||||||||||||
| Other current assets | (563 | ) | (47 | ) | (862 | ) | (809 | ) | (1,219 | ) | 279 | |||||||||||||
| Trade and other payables | (10,975 | ) | (12,772 | ) | 3,275 | (15,584 | ) | (1,192 | ) | (7,198 | ) | |||||||||||||
| Amounts owed to related parties | (252 | ) | 9,148 | (1,183 | ) | (504 | ) | (3,309 | ) | (184 | ) | |||||||||||||
| Current tax liabilities | (1,120 | ) | (3,542 | ) | (2,562 | ) | 4,272 | 1,807 | 3,824 | |||||||||||||||
| Other liabilities | 13,710 | (4,534 | ) | (8,294 | ) | 3,933 | (413 | ) | 4,420 | |||||||||||||||
| Provisions | (1,182 | ) | (2,110 | ) | (146 | ) | (821 | ) | (1,083 | ) | (2,131 | ) | ||||||||||||
| Other financial assets | 321 | - | 166 | 622 | 297 | - | ||||||||||||||||||
| Other assets | (946 | ) | (4,027 | ) | (855 | ) | (1,862 | ) | (1,726 | ) | (479 | ) | ||||||||||||
| Cash generated from operations | $ | 13,720 | $ | 26,208 | $ | 762 | $ | 30,339 | $ | 1,078 | $ | 18,814 | ||||||||||||
| Dividends received | 300 | - | - | - | - | - | ||||||||||||||||||
| Income tax paid | (2,711 | ) | 3,291 | (2,261 | ) | (2,899 | ) | (319 | ) | (241 | ) | |||||||||||||
| Cash flow from operating activities | $ | 11,309 | $ | 29,499 | $ | (1,499 | ) | $ | 27,440 | $ | 759 | $ | 18,572 | |||||||||||
| Investing activities | ||||||||||||||||||||||||
| Acquisition of property, plant and equipment | (10,933 | ) | (5,641 | ) | (5,439 | ) | (2,678 | ) | (1,785 | ) | (1,367 | ) | ||||||||||||
| Proceeds from sale of property, plant and equipment | 26 | - | 26 | 1 | - | 920 | ||||||||||||||||||
| Acquisition of intangibles | (5,898 | ) | (5,595 | ) | (4,170 | ) | (3,790 | ) | (56 | ) | (1,443 | ) | ||||||||||||
| Cash flow used in investing activities | $ | (16,805 | ) | $ | (11,236 | ) | $ | (9,583 | ) | $ | (6,467 | ) | $ | (1,841 | ) | $ | (1,890 | ) | ||||||
| Financing activities | ||||||||||||||||||||||||
| Proceeds from borrowings | 122,042 | 89,950 | 94,744 | 55,538 | 48,612 | 22,230 | ||||||||||||||||||
| Payments on borrowings | (80,101 | ) | (75,209 | ) | (56,640 | ) | (47,734 | ) | (34,442 | ) | (20,314 | ) | ||||||||||||
| Payments to related parties | (3,577 | ) | (4,836 | ) | (2,077 | ) | (3,861 | ) | 1,477 | (3,561 | ) | |||||||||||||
| Interest paid on borrowings | (9,527 | ) | (7,997 | ) | (5,989 | ) | (6,204 | ) | (2,922 | ) | (2,348 | ) | ||||||||||||
| Payment of lease liabilities | (4,354 | ) | (3,511 | ) | (3,402 | ) | (3,901 | ) | (1,204 | ) | (1,503 | ) | ||||||||||||
| Cash obtained from acquisition | 91,585 | - | - | - | - | - | ||||||||||||||||||
| Cash flow generated from (used in) financing activities | $ | 116,068 | $ | (1,603 | ) | $ | 26,636 | $ | (6,162 | ) | $ | 11,521 | $ | (5,496 | ) | |||||||||
| Net increase in cash | 110,572 | 16,660 | 15,554 | 14,811 | 10,439 | 11,187 | ||||||||||||||||||
| Cash less bank overdrafts at beginning of the period | 4,229 | 2,042 | 4,229 | 2,042 | 4,229 | 2,042 | ||||||||||||||||||
| Effect of exchange rate fluctuations | (14,609 | ) | (12,229 | ) | (12,088 | ) | (10,231 | ) | (7,069 | ) | (9,078 | ) | ||||||||||||
| Cash less bank overdrafts at end of the period | $ | 100,192 | $ | 6,473 | $ | 7,695 | $ | 6,622 | $ | 7,599 | $ | 4,151 | ||||||||||||
| Non-cash financing and investing activities (1) | $ | 948 | $ | 6,418 | $ | 944 | $ | 6,253 | $ | 726 | $ | 5,548 |