6-K
Sofgen Pharma S.A. (PROCF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUERPURSUANT 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 CONTAINEDIN 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
| ExhibitNumber | 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 (TheGroup)
Unaudited Condensed ConsolidatedInterim 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 Statementof Profit or Loss
for the periods ended September30, June 30 and March 31, 2021
(In thousands of United States Dollars, unlessotherwise stated)
| For the nine months ended<br><br> September 30 | For the six months ended<br><br> June 30 | For the three months ended<br><br> 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 Statementof Financial Position
as of September 30, June 30, andMarch 31, 2021 and December 31, 2020
(In thousands of United States Dollars, unlessotherwise stated)
| As of <br><br>September 30, <br><br>2021 | As of <br><br>June 30,<br><br> 2021 | As of <br><br>March 31,<br><br> 2021 | As of <br><br>December 31, <br><br>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 Statementof Changes in Equity
for the periods ended September30, June 30 and March 31, 2020
(In thousands of United States Dollars, unlessotherwise stated)
| Attributable to equity holders of the Group | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Issued<br> <br><br>Capital | Share<br><br><br> premium | Reserves ^1^ | Accumulated<br><br><br> deficit | Other<br><br><br> Comprehensive<br><br> Income | Total | Non-<br><br>controlling<br><br><br> interest | Total<br> equity<br><br> (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 | ) |
| ^1^ | Includes the appropriate values from net income to comply with<br>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 Statementof Changes in Equity
for the periods ended September30, June 30 and March 31, 2021
(In thousands of United States Dollars, unlessotherwise stated)
| Attributable<br> to equity holders of the Group | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Issued<br> <br><br>Capital | Share<br><br> premium | Reserves ^1^ | Accumulated<br><br> deficit | Other<br><br> Comprehensive<br><br> Income | Total | Non-<br><br> controlling<br><br> interest | Total<br> equity<br><br> (deficit) | |||||||||||||||
| Balance<br> as of December 31, 2020 | 2,001 | 54,412 | 39,897 | (327,344 | ) | (24,421 | ) | (255,455 | ) | 777 | (254,678 | ) | ||||||||||
| Loss<br> for the period | — | — | — | (17,319 | ) | — | (17,319 | ) | 281 | (17,038 | ) | |||||||||||
| Transfer<br> reserves | — | — | (8 | ) | 8 | — | — | — | — | |||||||||||||
| Other<br> comprehensive income | — | — | — | — | (4,782 | ) | (4,782 | ) | — | (4,782 | ) | |||||||||||
| Non-controlling<br> interest | — | — | 281 | — | 281 | — | 281 | |||||||||||||||
| Balance<br> as of March 31, 2021 | $ | 2,001 | $ | 54,412 | $ | 39,889 | $ | (344,374 | ) | $ | (29,203 | ) | $ | (277,275 | ) | $ | 1,058 | $ | (276,217 | ) | ||
| Balance<br> as of December 31, 2020 | 2,001 | 54,412 | 39,897 | (327,344 | ) | (24,421 | ) | (255,455 | ) | 777 | (254,678 | ) | ||||||||||
| Loss<br> for the period | — | — | — | (17,968 | ) | — | (17,968 | ) | 322 | (17,646 | ) | |||||||||||
| Transfer<br> reserves | — | — | (8 | ) | 8 | — | — | — | — | |||||||||||||
| Other<br> comprehensive income | — | — | — | — | (4,461 | ) | (4,461 | ) | — | (4,461 | ) | |||||||||||
| Non-controlling<br> interest | — | — | — | 322 | — | 322 | — | 322 | ||||||||||||||
| Balance<br> as of June 30, 2021 | $ | 2,001 | $ | 54,412 | $ | 39,889 | $ | (344,982 | ) | $ | (28,882 | ) | $ | (277,562 | ) | $ | 1,099 | $ | (276,463 | ) | ||
| Balance<br> as of December 31, 2020 | 2,001 | 54,412 | 39,897 | (327,344 | ) | (24,421 | ) | (255,455 | ) | 777 | (254,678 | ) | ||||||||||
| Loss<br> for the period | — | — | — | (54,948 | ) | — | (54,948 | ) | 378 | (54,570 | ) | |||||||||||
| Transfer<br> reserves | — | — | (8 | ) | 8 | — | — | — | — | |||||||||||||
| Other<br> comprehensive income | — | — | — | — | (3,894 | ) | (3,894 | ) | — | (3,894 | ) | |||||||||||
| Non-controlling<br> interest | — | — | 378 | — | 378 | — | 378 | |||||||||||||||
| Share<br> redemption and issuance in business combination | (873 | ) | 201,304 | 148,638 | — | 349,069 | — | 349,069 | ||||||||||||||
| Balance<br> as of September 30, 2021 | $ | 1,128 | $ | 255,716 | $ | 39,889 | $ | (233,268 | ) | $ | (28,315 | ) | $ | 35,150 | $ | 1,155 | $ | 36,305 | ||||
| ^1^ | Includes<br> the appropriate values from net income to comply with legal provisions related to asset protection<br> according to applicable jurisdictions with cumulative earnings. | |||||||||||||||||||||
| --- | --- |
5
ProcapsGroup S.A. and subsidiaries (The Group)
UnauditedCondensed Consolidated Interim Statement of Cash Flows
forthe periods ended September 30, June 30 and March 31, 2021 and 2020
(Inthousands of United States Dollars, unless otherwise stated)
| For the nine months<br> ended<br><br> September 30 | For the six months<br> ended<br><br> June 30 | For the three months<br> ended <br><br> March 31 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating activities | ||||||||||||||||||
| Loss<br> for the period | $ | (54,570 | ) | $ | (19,892 | ) | $ | (17,646 | ) | $ | (18,923 | ) | $ | (17,038 | ) | $ | (27,583 | ) |
| Adjustments<br> to reconcile net loss with net cash from operating activities: | ||||||||||||||||||
| Depreciation of property,<br> 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<br> 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<br> flow from operating activities before changes in working capital | $ | 49,896 | $ | 35,071 | $ | 25,144 | $ | 19,172 | $ | 4,480 | $ | (3,153 | ) | |||||
| (Increase)/decrease<br> 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<br> 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<br> 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<br> assets | (946 | ) | (4,027 | ) | (855 | ) | (1,862 | ) | (1,726 | ) | (479 | ) | ||||||
| Cash<br> generated from operations | $ | 13,720 | $ | 26,208 | $ | 762 | $ | 30,339 | $ | 1,078 | $ | 18,814 | ||||||
| Dividends received | 300 | — | — | — | — | — | ||||||||||||
| Income<br> tax paid | (2,711 | ) | 3,291 | (2,261 | ) | (2,899 | ) | (319 | ) | (241 | ) | |||||||
| Cash<br> flow from operating activities | $ | 11,309 | $ | 29,499 | $ | (1,499 | ) | $ | 27,440 | $ | 759 | $ | 18,572 | |||||
| Investing<br> activities | ||||||||||||||||||
| Acquisition of property,<br> plant and equipment | (10,933 | ) | (5,641 | ) | (5,439 | ) | (2,678 | ) | (1,785 | ) | (1,367 | ) | ||||||
| Proceeds from sale of property,<br> plant and equipment | 26 | — | 26 | 1 | — | 920 | ||||||||||||
| Acquisition of intangibles | (5,898 | ) | (5,595 | ) | (4,170 | ) | (3,790 | ) | (56 | ) | (1,443 | ) | ||||||
| Cash<br> flow used in investing activities | $ | (16,805 | ) | $ | (11,236 | ) | $ | (9,583 | ) | $ | (6,467 | ) | $ | (1,841 | ) | $ | (1,890 | ) |
| Financing<br> 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<br> obtained from acquisition | 91,585 | — | — | — | — | — | ||||||||||||
| Cash<br> flow generated from (used in) financing activities | $ | 116,068 | $ | (1,603 | ) | $ | 26,636 | $ | (6,162 | ) | $ | 11,521 | $ | (5,496 | ) | |||
| Net increase<br> in cash | 110,572 | 16,660 | 15,554 | 14,811 | 10,439 | 11,187 | ||||||||||||
| Cash less bank overdrafts<br> at beginning of the period | 4,229 | 2,042 | 4,229 | 2,042 | 4,229 | 2,042 | ||||||||||||
| Effect<br> of exchange rate fluctuations | (14,609 | ) | (12,229 | ) | (12,088 | ) | (10,231 | ) | (7,069 | ) | (9,078 | ) | ||||||
| Cash<br> less bank overdrafts at end of the period | $ | 100,192 | $ | 6,473 | $ | 7,695 | $ | 6,622 | $ | 7,599 | $ | 4,151 | ||||||
| Non-cash<br> financing and investing activities (1) | $ | 948 | $ | 6,418 | $ | 944 | $ | 6,253 | $ | 726 | $ | 5,548 | ||||||
| ^1^ | Non-cash<br> financing and investing activities include acquisition of right-of-use assets | |||||||||||||||||
| --- | --- |
6