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Fiscal Year 2021 Net Revenues Increased 23.6% to
Strong Double Digit 2021 Revenue Growth in All Business Units Driven by Market Share Gains and New Product Launches
Company to Host Business Update Call on
“Our performance in 2021 exceeded our initial projections across all our business units as we achieved record financial milestones with sales breaking the
“Looking forward to 2022, we expect to see continued growth from our business units, as well as launching high-quality products across the regions we operate. We are investing to support our product launches and building the right internal capabilities to execute our regional consolidation strategy.”
Full Year 2021 and Operational Highlights
- New products represented 23.5% of total sales for the year ended
December 31, 2021 - 70+ new products
- 160+ products internationalized
- 150+ products in registration stages
Key 2021 and Subsequent Corporate Highlights
- Ordinary shares and warrants listed on Nasdaq Global Market under “PROC” and “PROCW”, respectively, on
September 29, 2021 . - Announced a new capacity expansion plan in
the United States andColombia for its Funtrition business through a new gummy manufacturing facility inMiramar, Florida , and increased manufacturing capabilities inColombia . We believe this will allowProcaps to meet risingU.S. and global demand for the Company's product development and manufacturing services of nutraceutical and specialized gummy products. - Acquired an 86,000 sq. ft. pharmaceutical production facility located in
West Palm Beach, Florida with an expected production capacity of approximately 1.8 billion capsules per year for its iCDMO (integratedContract and Manufacturing Organization ) business unit. - Closed a private placement of an aggregate principal amount of
$115 million of senior notes led byPrudential Private Capital at a fixed rate of 4.75% with a final maturity of 10 years and amortization payments starting on the sixth anniversary of the closing of the transaction. - Appointed Dr.
Camilo Camacho as President ofProcaps .Dr. Camacho has over 24 years of experience in the pharmaceutical industry inLatin America , with broad experience in marketing, sales, R&D, operations, and quality control. - Appointed
Patricio Vargas as Chief Financial Officer.Mr. Vargas has 25 years of public company finance experience with proven capabilities in global financial management, business development, and global capital markets. - Appointed
Melissa Angelini as Investor Relations Director.Ms. Angelini is a seasoned executive with over 15 years of experience in capital markets and investor relations with healthcare and pharmaceutical companies.
Key Financial Highlights for the Fiscal Year Ended
- Net revenues increased by
$78.3 million , or 23.6%, to$409.7 million for the fiscal year endedDecember 31, 2021 , compared to$331.5 million for the fiscal year endedDecember 31, 2020 , driven by strong demand across all business units as well as from our continued rollout of new product launches.
- Gross profit increased by
$44.4 million , or 23.2%, to$235.7 million for the year endedDecember 31, 2021 , compared to$191.3 million for the year endedDecember 31, 2020 , mainly due to strong topline growth, with a 57.5% gross margin, consistent with the same period last year.
- Adjusted EBITDA increased by 17.8% to
$99.7 million for the fiscal year endedDecember 31, 2021 , compared to$84.6 million for the fiscal year endedDecember 31, 2020 , with an Adjusted EBITDA margin of 24.3% for the year.
- Net Loss for the fiscal year ended
December 31, 2021 was$100.9 million , compared to a net loss of$10.4 million for the fiscal year endedDecember 31, 2020 , which was driven by a one-time listing expense of$73.9 million .
Management Commentary
“2021 was highlighted by our financial and operational momentum and the successful completion of key milestones that we believe position the company for global success in 2022.
“During the year we continued the pace of new product launches and product rollouts to new regions, as well as improvements to our inventory rotations, which combined to deliver 24% revenue growth during the year, including significant increases across all five of our business units. Increased investment in product development and new launches enabled stronger 2021 sales.
“Our reach into
“2021 was a milestone year for
“In 2022 we are focused on executing a multi-prong growth strategy that we expect will continue to deliver double-digit growth in our core markets with strong cash generation to the bottom line. We believe our capital position also enables us to focus on strategic roll-ups and consolidation in the region that we anticipate will drive an accelerated competitive position and value creation,” concluded Minski.
“We ended 2021 with record topline performance and Adjusted EBITDA with double-digit growth.
“We are executing on our strategy designed to deliver strong growth and establishing the necessary building blocks behind our growth drivers including: the hiring of strategic human capital, investing in our disruptive brands and capacity expansion, all of which we believe are necessary to achieve our 2022 targets. We are putting in place the plans to turn our top line into sustainable bottom-line results.
"As discussed with our third quarter 2021 financial results, as a result of our business combination, there were a number of one-time charges that affected our bottom line and equity classification. In order to maintain best practices with financial reporting and IFRS parameters, we utilized the extended reporting period in 2021 to reclassify some accounting metrics to set the template for 2022.
“We have reclassified approximately
“We expect to provide more information on our first quarter 2022 financial results in the coming weeks and look forward to engaging with investors in the
Fiscal Year 2021 Financial Results
Net revenues for the year ended
USD$mm |
2021 |
2020 |
% Growth |
||||||
Procaps Colombia |
$ |
155.3 |
$ |
114.9 |
35.2 |
% |
|||
Nextgel |
|
120.8 |
|
106.0 |
14.0 |
% |
|||
CASAND |
|
54.0 |
|
38.6 |
39.9 |
% |
|||
CAN |
|
50.9 |
|
45.6 |
11.6 |
% |
|||
Diabetrics |
|
28.7 |
|
22.8 |
25.9 |
% |
|||
Total |
$ |
409.7 |
$ |
331.5 |
23.6 |
% |
The increase in net revenue was attributed to growth across all SBUs.
- Procaps Colombia
- The 35.2% growth in net revenue of the Procaps Colombia business during the year ended
December 31, 2021 when compared to year endedDecember 31, 2020 is primarily due to increased demand for existing Rx and OTC products, such as Clenox and anesthetic products as well as the new products launches.
- The 35.2% growth in net revenue of the Procaps Colombia business during the year ended
- Nextgel
- The 14.0% growth in net revenue for the year ended
December 31, 2021 when compared to the year endedDecember 31, 2020 in this business unit was driven by strong demand from iCDMO products from third parties, and the launch of new products inBrazil and in the Funtrition (gummies) line, with increased demand for the immunity gummies and probiotics product lines, and the broader portfolio with important clients such as Olly, Amway, and Trace among others.
- The 14.0% growth in net revenue for the year ended
- Central America South and
Andean Region (CASAND)- The 39.9% growth in net revenue for the year ended
December 31, 2021 when compared to the year endedDecember 31, 2020 , was primarily due to further development of new products, the continued strengthening of existing brands in key growth markets and also the rollout of new products, such as Tapectam, Ezolium, Cuticlin and Vitybelle, in the region.
- The 39.9% growth in net revenue for the year ended
- Central America North (CAN)
- CAN experienced net revenue growth of approximately 11.6% growth for the year ended
December 31, 2021 compared to the prior year, primarily as a result of the increase demand for both Rx and OTC products, such as Ezolium, Muvett and Isoface.
- CAN experienced net revenue growth of approximately 11.6% growth for the year ended
- Diabetrics
- Increased demand for Diabetrics products resulted in net revenue growth of 25.9% for the year ended
December 31, 2021 when compared to the year endedDecember 31, 2020 primarily due to the increase in the demand for the product portfolio as a result of the expansion of products offering in this segment to a more complete diabetes solution focus.
- Increased demand for Diabetrics products resulted in net revenue growth of 25.9% for the year ended
Gross profit increased by
Gross margin remained relatively consistent in the year ended
Net loss for the year ended
Adjusted EBITDA1 increased by 17.8% to
Total net debt as of
Cash totaled
Key Fourth Quarter 2021 Financial Highlights
- Net revenues increased by
$8.4 million , or 7.1%, to$126.5 million for the three months endedDecember 31, 2021 , compared to$118.1 million for the three months endedDecember 31, 2020 .
- Gross profit increased by
$7.5 million , or 11.1%, to$75.7 million (yielding a gross margin of 58%) for the three months endedDecember 31, 2021 , compared to$68.1 million for the three months endedDecember 31, 2020 .
- Adjusted EBITDA decreased by 1.6% to
$42.1 million for the three months endedDecember 31, 2021 , compared to$42.7 million for the three months endedDecember 31, 2020 , with a 33.2% Adjusted EBITDA margin.
- Net Loss for the three months ended
December 31, 2021 was$46.3 million , compared to net income of$9.4 million for the three months endedDecember 31, 2020 .
____________________ | ||
1 |
See under the heading “Use of Non-IFRS Financial Measures” for a discussion of Adjusted EBITDA and a reconciliation of net income, which the Company believes is the most comparable IFRS measure, to Adjusted EBITDA. |
Use of Non-IFRS Financial Measures
Our management uses and discloses EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, and Net Debt-to-Adjusted EBITDA ratio, which are non-IFRS financial information to assess our operating performance across periods and for business planning purposes. We believe the presentation of these non-IFRS financial measures is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business. These non-IFRS measures are not meant to be considered in isolation or as a substitute for financial information presented in accordance with International Financial Reporting Standards (“IFRS”) issued by the
We define EBITDA as profit (loss) for the period before interest expense, net, income tax expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted to exclude certain isolated costs incurred as a result of the COVID-19 pandemic, certain transaction costs incurred in connection with the business combination (“Business Combination”) with
We use EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, and Net Debt-to-Adjusted EBITDA ratio for operational and financial decision-making and believe these measures are useful in evaluating our performance because they eliminate certain items that we do not consider indicators of our operating performance. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt-to-Adjusted EBITDA ratio are also used by many of our investors and other interested parties in evaluating our operational and financial performance across reporting periods. We believe that the presentation of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt-to- Adjusted EBITDA ratio provides useful information to investors by allowing an understanding of key measures that we use internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing our operating performance.
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, and Net Debt-to- Adjusted EBITDA ratio are not recognized terms under IFRS and should not be considered as a substitute for net income (loss), cash flows from operating activities, or other income or cash flow statement data. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under IFRS. We strongly encourage investors to review our financial statements in their entirety and not to rely on any single financial measure.
Because non-IFRS financial measures are not standardized, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, and Net Debt-to-Adjusted EBITDA ratio, as defined by us, may not be comparable to similarly titled measures reported by other companies. It, therefore, may not be possible to compare our use of these non-IFRS financial measures with those used by other companies.
The following table contains a reconciliation of profit for the period to EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin for the periods presented.
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the Year Ended |
|||||||||
|
For the year ended |
||||||||
(in millions of |
2021 |
|
2020 |
|
% Change |
||||
|
|||||||||
Loss for the year |
(100.9 |
) |
(10.5 |
) |
- |
|
|||
Financial expenses, net |
78.6 |
|
54.5 |
|
44.3 |
% |
|||
Income tax expense |
13.7 |
|
11.3 |
|
21.3 |
% |
|||
Depreciation and amortization |
15.1 |
|
16.5 |
|
-8.4 |
% |
|||
EBITDA |
6.6 |
|
71.8 |
|
-90.8 |
% |
|||
COVID-19 impact adjustments(1) |
3.8 |
|
5.2 |
|
-26.9 |
% |
|||
Business transformation initiatives(2) |
|
1.7 |
|
- |
|
||||
Foreign currency translation adjustments(3) |
4.0 |
|
3.9 |
|
3.1 |
% |
|||
Other finance costs adjustments(4) |
0.7 |
|
2.0 |
|
-65.1 |
% |
|||
Transaction expenses(5) |
10.7 |
|
- |
|
- |
|
|||
Listing expense(6) |
73.9 |
|
- |
|
- |
|
|||
Adjusted EBITDA(7) |
99.7 |
|
84.6 |
|
17.8 |
% |
|||
Adjusted EBITDA Margin |
24.3 |
% |
25.5 |
% |
|
____________________ | ||
(1) |
COVID-19 impact adjustments primarily include: (i) for the year ended |
|
(2) |
Business transformation initiatives consists of costs and expenses in connection with severance payments made to separate our employees for certain business transformation initiatives implemented during the year ended |
|
(3) |
Foreign currency translation adjustments represent the reversal of exchange losses we recorded due to foreign currency translation of monetary balances of certain of our subsidiaries’ from |
|
(4) |
Other finance costs adjustments represent non-operating expenses we incurred, primarily including additional interests incurred due to the withholding tax obligations of certain financial institutions outside of |
|
(5) |
Transactions expenses primarily include: (i) capital markets advisory fees of |
|
(6) |
Listing expense of |
|
|
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the Three Months Ended |
|||||||||
|
For the three months ended |
||||||||
(in millions of |
2021 |
|
2020 |
|
% Change |
||||
|
|||||||||
Loss (income) for the year |
(46.3 |
) |
9.4 |
|
- |
|
|||
Financial expenses, net |
(0.6 |
) |
14.7 |
|
- |
|
|||
Income tax expense |
7.4 |
|
10.6 |
|
-30.5 |
% |
|||
Depreciation and amortization |
2.0 |
|
16.5 |
|
-63.3 |
% |
|||
EBITDA |
(37.6 |
) |
40.1 |
|
- |
|
|||
COVID-19 impact adjustments(1) |
0.6 |
|
1.8 |
|
-64.5 |
% |
|||
Business transformation initiatives(2) |
|
1.7 |
|
- |
|
||||
Foreign currency translation adjustments(3) |
1.7 |
|
(0.2 |
) |
- |
|
|||
Other finance costs adjustments(4) |
0.5 |
|
0.5 |
|
-4.4 |
% |
|||
Transaction expenses(5) |
2.9 |
|
- |
|
- |
|
|||
Listing expense(6) |
73.9 |
|
- |
|
- |
|
|||
Adjusted EBITDA(7) |
42.1 |
|
42.7 |
|
-1.6 |
% |
|||
Adjusted EBITDA Margin |
33.2 |
% |
36.2 |
% |
|
____________________ | ||
(1) |
COVID-19 impact adjustments |
|
|
||
(2) |
Business transformation initiatives consist of costs and expenses in connection with severance payments made to separate our employees for certain business transformation initiatives implemented during the three months ended |
|
|
||
(3) |
Foreign currency translation adjustments represent the reversal of exchange losses we recorded due to foreign currency translation of monetary balances of certain of our subsidiaries’ from |
|
|
||
(4) |
Other finance cost adjustments represent non-operating expenses we incurred, primarily including additional interests incurred due to the withholding tax obligations of certain financial institutions outside of |
|
|
||
(5) |
Transactions expenses |
|
|
||
(6) |
Listing expense of |
|
The Company will host a Business Update conference call in early May, after the filing of its annual report on Form 20-F, during which management will discuss the fiscal year end 2021 financial results and provide an update on current and future business initiatives.
In conjunction with Procaps Group’s earnings release, Chief Executive Officer
This event will also include a question-and-answer period following management’s prepared remarks designed for both sell-side research analysts and institutional investors.
To access the call, please use the following information:
Date: |
|
||
Time: |
|
||
Toll Free dial-in number: |
1 844 204-8586 |
||
Toll/International dial-in number: |
1 412 317-6346 |
||
Conference ID: |
|
The conference call will be broadcast live and available for replay at https://webcastlite.mziq.com/cover.html?webcastId=943e36d7-832e-4be0-8322-96abb75ad728 and via the investor relations section of Procaps’ website here.
A telephone replay will be available approximately two hours after the call and will run through
About
Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include estimated production capacity of the new US facility; expectations regarding the construction of a new gummy manufacturing facility and it being fully operational by 2023; expectations of continued growth, launching of new products and investments; expectations related to rising demand for Procaps Group’s products and services; expectations relating to maintaining Procaps Group’s year over year, double-digit revenue and adjusted EBITDA growth targets; expectations related to the timing and completion of our capacity expansion plans; expectations regarding Procaps Group’s capital expansion and global growth plans; and expectations related to product development capabilities. Such forward-looking statements with respect to revenues, earnings, performance, strategies, synergies, prospects, and other aspects of the businesses of
|
||||||||||||||
Consolidated Statement of Profit or Loss and Other Comprehensive Income |
||||||||||||||
For the year ended |
||||||||||||||
(In thousands of United States Dollars, unless otherwise stated) |
||||||||||||||
|
|
For the year ended |
||||||||||||
|
Notes |
2021 |
2020 |
2019 |
||||||||||
Revenue |
7 |
$ |
409,742 |
|
$ |
331,467 |
|
$ |
324,792 |
|
||||
Cost of sales |
|
|
(174,029 |
) |
|
(140,153 |
) |
|
(142,294 |
) |
||||
Gross profit |
|
|
235,713 |
|
|
191,314 |
|
|
182,498 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing expenses |
|
|
(83,057 |
) |
|
(69,629 |
) |
|
(84,810 |
) |
||||
Administrative expenses |
|
|
(82,187 |
) |
|
(58,631 |
) |
|
(60,257 |
) |
||||
Finance expenses, net |
9 |
|
(78,636 |
) |
|
(54,489 |
) |
|
(42,983 |
) |
||||
Other expenses, net |
10 |
|
(78,991 |
) |
|
(7,716 |
) |
|
(4,426 |
) |
||||
(Loss)/Income before tax |
|
|
(87,158 |
) |
|
849 |
|
|
(9,978 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
11 |
|
(13,705 |
) |
|
(11,296 |
) |
|
(7,035 |
) |
||||
Loss for the year |
|
$ |
(100,863 |
) |
$ |
(10,447 |
) |
$ |
(17,013 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Loss for the year attributable to: |
|
|
|
|
|
|
|
|
|
|
||||
Owners of the Company |
|
|
(100,863 |
) |
|
(10,447 |
) |
|
(17,008 |
) |
||||
Non-controlling interests |
|
|
— |
|
|
— |
|
|
(5 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||
Basic, loss for the period attributable to ordinary equity holders of the Company |
24 |
|
(1.03 |
) |
|
(0.11 |
) |
|
(0.18 |
) |
||||
|
||||||||||||||
Consolidated Statement of Financial Position |
||||||||||||||
As of |
||||||||||||||
(In thousands of United States Dollars, unless otherwise stated) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
As of |
|
As of |
||||||||
|
|
|
|
|
|
|
2020 |
|
2020 |
|||||
|
|
Notes |
|
2021 |
|
As |
|
As |
||||||
Assets |
|
|
|
|
|
|
|
|||||||
Non-current assets |
|
|
|
|
|
|
|
|||||||
Property, plant and equipment, net |
14 |
|
72,638 |
|
|
70,335 |
|
|
74,915 |
|
||||
Right-of-use assets |
15 |
|
40,167 |
|
|
43,195 |
|
|
38,296 |
|
||||
|
12 |
|
6,803 |
|
|
6,863 |
|
|
7,020 |
|
||||
Intangible assets |
13 |
|
30,171 |
|
|
27,583 |
|
|
23,201 |
|
||||
Investments in joint ventures |
16 |
|
2,443 |
|
|
2,460 |
|
|
1,390 |
|
||||
Other financial assets |
|
|
256 |
|
|
761 |
|
|
1,131 |
|
||||
Deferred tax assets |
20 |
|
7,067 |
|
|
21,769 |
|
|
16,215 |
|
||||
Other assets |
|
|
4,531 |
|
|
1,870 |
|
|
3,111 |
|
||||
Total non-current assets |
|
$ |
164,076 |
|
$ |
174,836 |
|
$ |
165,279 |
|
||||
Current assets |
|
|
|
|
|
|
|
|
|
|
||||
Cash |
|
|
72,112 |
|
|
4,229 |
|
|
2,042 |
|
||||
Trade and other receivables, net |
18 |
|
117,449 |
|
|
96,493 |
|
|
96,466 |
|
||||
Inventories, net |
17 |
|
79,430 |
|
|
64,284 |
|
|
65,002 |
|
||||
Amounts owed by related parties |
29 |
|
1,147 |
|
|
2,562 |
|
|
2,144 |
|
||||
Current tax assets |
11 |
|
22,082 |
|
|
16,774 |
|
|
6,697 |
|
||||
Other current assets |
26.1 |
|
5,839 |
|
|
360 |
|
|
98 |
|
||||
Total current assets |
|
$ |
298,059 |
|
$ |
184,702 |
|
$ |
172,449 |
|
||||
Total assets |
|
$ |
462,135 |
|
$ |
359,538 |
|
$ |
337,728 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
|
|
|
|
||||
Equity (Deficit) |
|
|
|
|
|
|
|
|
|
|
||||
Share capital |
23 |
|
1,011 |
|
|
2,001 |
|
|
2,001 |
|
||||
Share premium |
23 |
|
377,677 |
|
|
54,412 |
|
|
54,412 |
|
||||
Reserves |
23 |
|
42,749 |
|
|
39,897 |
|
|
28,681 |
|
||||
Accumulated deficit |
|
|
(431,059 |
) |
|
(327,344 |
) |
|
(305,634 |
) |
||||
Accumulated other comprehensive loss |
|
|
(27,778 |
) |
|
(24,421 |
) |
|
(23,753 |
) |
||||
Equity (deficit) attributable to owners of the company |
|
$ |
(37,400 |
) |
$ |
(255,455 |
) |
$ |
(244,293 |
) |
||||
Non-controlling interest |
|
|
(940 |
) |
|
777 |
|
|
346 |
|
||||
Total equity (deficit) |
|
$ |
(38,340 |
) |
$ |
(254,678 |
) |
$ |
(243,947 |
) |
||||
Non-Current liabilities |
|
|
|
|
|
|
|
|
|
|
||||
Borrowings |
19 |
|
178,720 |
|
|
339,738 |
|
|
320,462 |
|
||||
Amounts owed to related parties |
29 |
|
— |
|
|
12,163 |
|
|
— |
|
||||
Warrant liabilities |
25 |
|
23,112 |
|
|
— |
|
|
— |
|
||||
Shares held in escrow |
|
|
101,859 |
|
|
|
|
|
|
|
||||
Deferred tax liabilities |
20 |
|
6,070 |
|
|
18,890 |
|
|
7,659 |
|
||||
Other liabilities |
|
|
2,750 |
|
|
3,797 |
|
|
5,077 |
|
||||
Total non-current liabilities |
|
$ |
312,511 |
|
$ |
374,588 |
|
$ |
333,198 |
|
||||
Current liabilities |
|
|
|
|
|
|
|
|
|
|
||||
Borrowings |
19 |
|
74,646 |
|
|
114,780 |
|
|
99,975 |
|
||||
Trade and other payables, net |
21 |
|
85,381 |
|
|
94,116 |
|
|
104,608 |
|
||||
Amounts owed to related parties |
29 |
|
8,450 |
|
|
8,459 |
|
|
25,091 |
|
||||
Current tax liabilities |
11 |
|
11,756 |
|
|
9,393 |
|
|
7,542 |
|
||||
Provisions |
22 |
|
501 |
|
|
1,829 |
|
|
2,276 |
|
||||
Other liabilities |
|
|
7,230 |
|
|
11,051 |
|
|
8,985 |
|
||||
Total current liabilities |
|
$ |
187,964 |
|
$ |
239,628 |
|
$ |
248,477 |
|
||||
Total liabilities and stockholders’ equity (deficit) |
|
$ |
462,135 |
|
$ |
359,538 |
|
$ |
337,728 |
|
||||
|
||||||||||||||
Consolidated Statement of Cash Flows |
||||||||||||||
For the years ended |
||||||||||||||
(In thousands of United States Dollars, unless otherwise stated) |
||||||||||||||
|
|
|
|
|||||||||||
|
|
For the year ended |
||||||||||||
|
|
|
|
2020 |
2019 |
|||||||||
|
Notes |
2021 |
As |
As |
||||||||||
Operating activities |
|
|
|
|
|
|
|
|||||||
Loss for the year |
|
$ |
(100,863 |
) |
$ |
(10,447 |
) |
$ |
(17,013 |
) |
||||
Adjustments to reconcile net loss with net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
||||
Depreciation of property, plant and equipment |
14 |
|
6,072 |
|
|
5,900 |
|
|
6,773 |
|
||||
Depreciation of right-of-use assets |
15 |
|
4,223 |
|
|
4,598 |
|
|
5,133 |
|
||||
Amortization of intangibles |
13 |
|
4,816 |
|
|
5,979 |
|
|
4,560 |
|
||||
Income tax expense |
11 |
|
13,705 |
|
|
11,296 |
|
|
7,035 |
|
||||
Finance expenses |
9 |
|
78,636 |
|
|
54,489 |
|
|
42,983 |
|
||||
IFRS 2 Share-based payment expense (listing expense) |
10 |
|
73,917 |
|
|
— |
|
|
— |
|
||||
Share of result of joint ventures |
|
|
305 |
|
|
(806 |
) |
|
(240 |
) |
||||
Net (gain)/loss on sale of property, plant and equipment |
14 |
|
(317 |
) |
|
134 |
|
|
115 |
|
||||
Net (gain)/loss on sale or disposal of intangibles |
13 |
|
— |
|
|
161 |
|
|
(7,157 |
) |
||||
Inventory provision |
17 |
|
5,391 |
|
|
1,616 |
|
|
514 |
|
||||
Reversed provision for bad debt |
18 |
|
(818 |
) |
|
(1,915 |
) |
|
(430 |
) |
||||
Provisions |
22 |
|
— |
|
|
761 |
|
|
12 |
|
||||
Cash flow from operating activities before changes in working capital |
|
|
85,067 |
|
|
71,766 |
|
|
42,285 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
(Increase)/decrease in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
||||
Trade and other receivables |
|
|
(21,257 |
) |
|
1,889 |
|
|
6,741 |
|
||||
Amounts owed by related parties |
|
|
1,387 |
|
|
(613 |
) |
|
(249 |
) |
||||
Inventories |
|
|
(20,536 |
) |
|
(898 |
) |
|
(1,713 |
) |
||||
Current tax assets |
|
|
(5,308 |
) |
|
(10,077 |
) |
|
(1,047 |
) |
||||
Other current assets |
|
|
(5,441 |
) |
|
(9,635 |
) |
|
(9,826 |
) |
||||
Trade and other payables |
|
|
32,825 |
|
|
11,795 |
|
|
32,642 |
|
||||
Amounts owed to related parties |
|
|
(3,448 |
) |
|
1,354 |
|
|
246 |
|
||||
Current tax liabilities |
|
|
2,103 |
|
|
7,499 |
|
|
(2,147 |
) |
||||
Other liabilities |
|
|
(12,936 |
) |
|
12,014 |
|
|
10,305 |
|
||||
Provisions |
22 |
|
— |
|
|
(821 |
) |
|
(38 |
) |
||||
Other financial assets |
|
|
505 |
|
|
370 |
|
|
757 |
|
||||
Other assets |
|
|
(2,699 |
) |
|
1,256 |
|
|
(1,354 |
) |
||||
Cash generated from operations |
|
|
50,262 |
|
|
85,899 |
|
|
76,602 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Interest paid |
|
|
(1,697 |
) |
|
(1,839 |
) |
|
(2,216 |
) |
||||
Dividends received |
|
|
300 |
|
|
— |
|
|
— |
|
||||
Income tax paid |
|
|
(11,562 |
) |
|
(13,140 |
) |
|
(6,100 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flow provided by operating activities |
|
$ |
37,303 |
|
$ |
70,920 |
|
$ |
68,286 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Investing activities |
|
|
|
|
|
|
|
|
|
|
||||
Acquisition of property, plant and equipment |
14 |
|
(14,122 |
) |
|
(7,699 |
) |
|
(11,802 |
) |
||||
Proceeds from sale of property, plant and equipment |
|
|
794 |
|
|
632 |
|
|
276 |
|
||||
Acquisition of intangibles |
13 |
|
(10,403 |
) |
|
(10,219 |
) |
|
(7,896 |
) |
||||
Proceeds from sale of intangible assets |
|
|
— |
|
|
— |
|
|
7,310 |
|
||||
Advances to related parties |
29 |
|
— |
|
|
— |
|
|
(289 |
) |
||||
Proceeds from related parties |
29 |
|
28 |
|
|
195 |
|
|
332 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flow used in investing activities |
|
$ |
(23,703 |
) |
$ |
(17,091 |
) |
$ |
(12,069 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Financing activities |
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from borrowings |
19 |
|
280,795 |
|
|
106,736 |
|
|
96,392 |
|
||||
Payments on borrowings |
19 |
|
(272,301 |
) |
|
(120,586 |
) |
|
(118,417 |
) |
||||
Advances from related parties |
29 |
|
— |
|
|
32 |
|
|
|
|
||||
Payments to related parties |
29 |
|
(9,154 |
) |
|
(5,856 |
) |
|
(4,570 |
) |
||||
Interest paid on borrowings |
|
|
(17,428 |
) |
|
(15,102 |
) |
|
(16,284 |
) |
||||
Payment of lease liabilities |
19 |
|
(8,854 |
) |
|
(5,733 |
) |
|
(4,070 |
) |
||||
Redeemed shares |
23 |
|
(45,000 |
) |
|
— |
|
|
— |
|
||||
Cash obtained in acquisition |
23 |
|
129,986 |
|
|
— |
|
|
— |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flow generated from (used in) financing activities |
|
$ |
58,044 |
|
$ |
(40,509 |
) |
$ |
(46,949 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net increase in cash |
|
|
71,644 |
|
|
13,320 |
|
|
9,268 |
|
||||
Cash at beginning of the year/period |
|
|
4,229 |
|
|
2,042 |
|
|
2,844 |
|
||||
Effect of exchange rate fluctuations |
|
|
(3,761 |
) |
|
(11,133 |
) |
|
(10,070 |
) |
||||
Cash at end of the year/period |
|
$ |
72,112 |
|
$ |
4,229 |
|
$ |
2,042 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash financing and investing activities 1 |
|
$ |
(145,286 |
) |
$ |
40,759 |
|
$ |
166,013 |
|
||||
|
|||||||||||||||||||||||||||||||
Consolidated Statement of Changes in Equity |
|||||||||||||||||||||||||||||||
As of |
|||||||||||||||||||||||||||||||
(In thousands of United States Dollars, unless otherwise stated) |
|||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||
|
|
Attributable to equity holders of the Group |
|||||||||||||||||||||||||||||
|
|
Issued |
|
Share |
|
Reserves 1 |
|
Accumulated |
|
Other |
|
Total |
|
Non-controlling |
|
Total |
|||||||||||||||
Balance as of |
$ |
2,493 |
|
$ |
120,151 |
|
$ |
28,322 |
$ |
(254,617 |
) |
$ |
(24,416 |
) |
$ |
(128,067 |
) |
$ |
397 |
|
$ |
(127,670 |
) |
||||||||
Loss for the year |
|
— |
|
|
— |
|
|
— |
|
(17,008 |
) |
|
— |
|
|
(17,008 |
) |
|
(5 |
) |
|
(17,013 |
) |
||||||||
Transfer reserves |
$ |
— |
|
$ |
— |
|
$ |
359 |
$ |
(359 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
||||||||
Other comprehensive income |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
709 |
|
|
709 |
|
|
(46 |
) |
|
663 |
|
||||||||
Non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(46 |
) |
|
(46 |
) |
|
— |
|
|
(46 |
) |
||||||||
Put option issued to Hoche |
$ |
(492 |
) |
$ |
(65,739 |
) |
$ |
— |
$ |
(33,385 |
) |
$ |
— |
|
$ |
(99,616 |
) |
$ |
— |
|
$ |
(99,616 |
) |
||||||||
Other |
|
— |
|
|
— |
|
|
— |
|
(265 |
) |
|
— |
|
|
(265 |
) |
|
— |
|
|
(265 |
) |
||||||||
Balance as of |
$ |
2,001 |
|
$ |
54,412 |
|
$ |
28,681 |
$ |
(305,634 |
) |
$ |
(23,753 |
) |
$ |
(244,293 |
) |
$ |
346 |
|
$ |
(243,947 |
) |
||||||||
Loss for the year |
|
— |
|
|
— |
|
|
— |
|
(10,447 |
) |
|
— |
|
|
(10,447 |
) |
|
— |
|
|
(10,447 |
) |
||||||||
Transfer reserves |
|
— |
|
|
— |
|
|
11,216 |
|
(11,216 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Other comprehensive income |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(1,099 |
) |
|
(1,099 |
) |
|
431 |
|
|
(668 |
) |
||||||||
Non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
431 |
|
|
431 |
|
|
— |
|
|
431 |
|
||||||||
Other |
|
— |
|
|
— |
|
|
— |
|
(47 |
) |
|
— |
|
|
(47 |
) |
|
— |
|
|
(47 |
) |
||||||||
Balance as of |
$ |
2,001 |
|
$ |
54,412 |
|
$ |
39,897 |
$ |
(327,344 |
) |
$ |
(24,421 |
) |
$ |
(255,455 |
) |
$ |
777 |
|
$ |
(254,678 |
) |
||||||||
Loss for the year 2 |
|
— |
|
|
— |
|
|
— |
|
(100,863 |
) |
|
(751 |
) |
|
(101,614 |
) |
|
— |
|
|
(101,614 |
) |
||||||||
Transfer reserves |
|
— |
|
|
— |
|
|
2,852 |
|
(2,852 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Other comprehensive income |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(889 |
) |
|
(889 |
) |
|
(1,717 |
) |
|
(2,606 |
) |
||||||||
Non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(1,717 |
) |
|
(1,717 |
) |
|
— |
|
|
(1,717 |
) |
||||||||
Termination of put option agreements |
|
903 |
|
|
297,796 |
|
|
— |
|
— |
|
|
— |
|
|
298,699 |
|
|
— |
|
|
298,699 |
|
||||||||
Subtotal |
|
2,904 |
|
|
352,208 |
|
|
42,749 |
|
(431,059 |
) |
|
(27,778 |
) |
|
(60,976 |
) |
|
(940 |
) |
|
(61,916 |
) |
||||||||
Capital restructuring of |
|
(1,933 |
) |
|
1,933 |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Subtotal - restructured |
|
971 |
|
|
354,141 |
|
|
42,749 |
|
(431,059 |
) |
|
(27,778 |
) |
|
(60,976 |
) |
|
(940 |
) |
|
(61,916 |
) |
||||||||
Acquisition of |
|
202 |
|
|
174,738 |
|
|
— |
|
— |
|
|
— |
|
|
174,940 |
|
|
— |
|
|
174,940 |
|
||||||||
Shares held in escrow |
|
(117 |
) |
|
(106,247 |
) |
|
— |
|
— |
|
|
— |
|
|
(106,364 |
) |
|
— |
|
|
(106,364 |
) |
||||||||
Redemption of redeemable shares |
|
(45 |
) |
|
(44,955 |
) |
|
— |
|
— |
|
|
— |
|
|
(45,000 |
) |
|
— |
|
|
(45,000 |
) |
||||||||
Balance as of |
$ |
1,011 |
|
$ |
377,677 |
|
$ |
42,749 |
$ |
(431,059 |
) |
$ |
(27,778 |
) |
$ |
(37,400 |
) |
$ |
(940 |
) |
$ |
(38,340 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220429005771/en/
Investor Contact:
ir@procapsgroup.com
+1 754 260-6476
Executive Vice President
Direct: 949-491-8235
PROC@mzgroup.us
Source: