UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of December 2021

 

Commission File Number: 001-40851

 

Procaps Group, S.A.

(Translation of registrant’s name in English)

 

9 rue de Bitbourg, L-1273

Luxembourg

Grand Duchy of Luxembourg

R.C.S. Luxembourg: B253360

Tel : +356 7995-6138

(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒          Form 40-F ☐ 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 

 

 

INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K

 

Financial Information Provided to Analysts

 

On December 17, 2021, Procaps Group, S.A. provided financial information to analysts for the periods ended September 30, June 30 and March 31, 2021.

 

The Unaudited Condensed Consolidated Interim Financial Statements for the periods ended September 30, June 30 and March 31, 2021 are filed as Exhibit 99.1 to this Report on Form 6-K.

 

Exhibit Index

 

Exhibit
Number
  Exhibit Title
99.1   Unaudited Condensed Consolidated Interim Financial Statements for the periods ended September 30, June 30 and March 31, 2021.

 

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  PROCAPS GROUP, S.A.
     
  By:   /s/ Ruben Minski
  Name:  Ruben Minski
  Title: Chief Executive Officer

 

Dated: December 17, 2021

 

 

2

 

Exhibit 99.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

Procaps Group S.A. and subsidiaries (The Group)

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 of Profit or Loss

for the periods ended September 30, June 30 and March 31, 2021

(In 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 
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)

 

2

 

 

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 otherwise stated)

 

   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 

 

3

 

 

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 otherwise stated)

 

   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)

 

1Includes the appropriate values from net income to comply with legal provisions related to asset protection according to applicable jurisdictions with cumulative earnings.

 

4

 

 

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 otherwise stated)

 

   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 

 

1Includes the appropriate values from net income to comply with legal provisions related to asset protection according to applicable jurisdictions with cumulative earnings.

 

5

 

 

Procaps Group S.A. and subsidiaries (The Group)

Unaudited Condensed Consolidated Interim Statement of Cash Flows

for the periods ended September 30, June 30 and March 31, 2021 and 2020

(In 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 

 

1Non-cash financing and investing activities include acquisition of right-of-use assets

 

 

6