Financial Data and Key Metrics Changes - The company reported a 4.3% increase in revenues for Q2 2023 and a 7% increase for the first half of 2023 on a constant currency basis, despite challenges in the CDMO business and reduced orders from pharma companies [13][27] - Adjusted EBITDA was negatively impacted by higher costs and a less favorable sales mix, with gross profit down from last year [46][47] - The cash balance decreased due to low results in Q4 2022 and increased working capital needs [30] Business Line Data and Key Metrics Changes - The Rx segment grew approximately 15% in the first half of the year, outpacing the market, particularly in Colombia, Ecuador, Honduras, Dominican Republic, and Panama [22] - Clinical Specialties experienced a 6% growth on a constant currency basis [22] - The Diabetrics business segment is undergoing a transition year, focusing on portfolio renewal and internationalization [14] Market Data and Key Metrics Changes - The Colombian peso's appreciation since April has negatively impacted the company, but exchange rates are starting to help in Q3 [13][28] - The OTC market in El Salvador saw a decrease in sales, which offset positive impacts from new product rollouts in other regions [28] Company Strategy and Development Direction - The company is focused on value creation initiatives and operational efficiency to strengthen its operations by the end of 2023 and fully in 2024 [21] - New product launches are a key driver for future growth, with $66 million in revenues from new products in the first half of 2023 [9] - The company is committed to refining plans for a resilient organization beyond short-term hurdles [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges, including rising costs and reduced orders, but believes these impacts are temporary [7] - The company anticipates a strong performance in Q4 2023, supported by new product launches and improved market conditions [8][39] - There are risks related to the political and macroeconomic environment in Colombia that could affect business operations [48] Other Important Information - The company is advancing its ESG initiatives, including a carbon neutrality strategy and packaging innovations [24][25] - A buyback program is in place to enhance liquidity and shareholder value despite low liquidity [16][65] Q&A Session All Questions and Answers Question: Progress on working capital accounts - Management acknowledged advancements but noted delays due to economic conditions affecting customer orders [34] Question: Board turnover and stability - Management expressed regret over a board member's resignation but emphasized confidence in the board's direction and agility [35] Question: Optimism for Q4 improvements - Management could not disclose specific order information but expressed confidence in a strong Q4 based on market conditions [55] Question: Updates on M&A activity - Management confirmed the intent to grow inorganically but emphasized a focus on efficiency and cash position for the current year [57]

| --- | --- | --- | |---------------------------------------------|-------|-------| | US$ Million | 2022 | 1H23 | | Cash and equivalents 43.0 11.5 | | | | Trade and other receivables 129.6 136.5 | | | | Inventories 96.8 103.5 | | | | Other current assets 28.0 44.0 | | | | Total current assets 297.4 295.5 | | | | Property, plants and equipments 113.0 132.6 | | | | Intangible assets 32.2 5.8 | | | | Other non-current assets 17.6 56.8 | | | | Total non-current assets 162.7 195.2 | | | | Total assets 460.2 490. ...

Exhibit 99.1 Procaps Group, S.A. and subsidiaries (The Group) Unaudited Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2023 and 2022 1 Procaps Group, S.A. and subsidiaries (The Group) Unaudited Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the three and six months ended June 30, 2023 and 2022 (In thousands of United States Dollars, unless otherwise stated) | | | For the three months ended | | | | For the six mon ...

Exhibit 99.1 Procaps Group, S.A. and subsidiaries (The Group) Unaudited Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2023 and 2022 1 Procaps Group, S.A. and subsidiaries (The Group) Unaudited Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the three ended March 31, 2023 and 2022 (In thousands of United States Dollars, unless otherwise stated) | | | For the three months | | | | | --- | --- | --- | --- | --- | --- | | | ...

Financial Performance - Net revenues for Q4 2022 totaled $101.5 million, a decrease of 19.8% year-over-year, while full-year 2022 net revenues were $409.9 million, showing a 7% increase on a constant currency basis[3][4][19]. - The gross profit for Q4 2022 was $52.3 million, resulting in a gross margin of 51.5%, compared to a gross margin of 59.8% in Q4 2021[3][4]. - The company expects FY 2023 net revenues to grow by approximately 10% on a constant currency basis, with adjusted EBITDA projected to be between $90 million and $100 million[5][6]. - In Q1 2023, preliminary net revenues are estimated to be between $82 million and $85 million, with a constant currency adjustment bringing it to approximately $89 million to $92 million[6]. - Total revenue for the year ended December 31, 2022, was $409.920 million, a slight increase from $409.742 million in 2021[90]. - Gross profit for 2022 was $239.569 million, compared to $235.713 million in 2021, reflecting a gross margin of 58.4%[90]. - Adjusted EBITDA totaled $10.6 million in Q4 2022, with a margin of 10.4%; for 2022, adjusted EBITDA was $70.1 million, with a margin of 17.1%[50]. - Adjusted EBITDA for 2022 was $70.1 million, down from $99.7 million in 2021, with an adjusted EBITDA margin of 17.1%[81]. - The company reported a net income of $10.4 million for Q4 2022 and $42.5 million for the full year 2022, a significant recovery from a net loss of $100.9 million in 2021[54][55]. - The company reported an income of $42.540 million for the year 2022, a significant recovery from a loss of $100.863 million in 2021[90]. - Total comprehensive income for the year was $36,459, a recovery from a loss of $104,220 in the previous year[92]. Revenue Breakdown - The RX product line experienced a year-over-year growth of approximately 21%, contributing to the overall revenue growth despite challenges[7][18]. - The CASAND business segment reported a 20.9% increase in net revenues for Q4 2022, driven by new product launches and existing portfolio sales[24]. - Diabetrics net revenues decreased by 37.8% in 4Q22 compared to 4Q21, primarily due to currency devaluation; on a constant currency basis, the decrease was 22.9%[27]. - Nextgel's net revenues totaled $125.1 million in 2022, an increase of 3.5%, driven by product development services and sales of gummy products[31]. - Procaps Colombia's net revenues decreased by 25.8% in 4Q22 compared to 4Q21, impacted by currency devaluation of approximately $9 million; on a constant currency basis, the decrease was 2.2%[33]. Cost Management and Savings Initiatives - The company has implemented multiple value-creation initiatives aimed at achieving up to $15 million in targeted recurring savings over the next 18 months, with a current savings capture rate of approximately 20%[10]. - Operating expenses totaled $62.1 million in 4Q22, influenced by higher administrative expenses; total operating expenses for 2022 were $224.8 million, a decrease of 8.0% compared to 2021[40]. - Sales and marketing expenses increased to $93.566 million in 2022 from $83.057 million in 2021[90]. - The company is focused on achieving cost-saving goals and addressing material weaknesses in its operations[96]. Research and Development - Total R&D expenses for 2022 were $26.8 million, representing 7% of net revenues, with a renewal rate of 27% from new products launched in the last 36 months, generating approximately $111 million in net revenues[14][15]. - The company has over 170 products pending approval for launch in the coming years, indicating a strong pipeline for future growth[9][16]. Debt and Cash Management - Total gross debt increased to $285.9 million as of December 31, 2022, up from $253.4 million in 2021, with an average cost of 8.5%[56][59]. - Total net debt as of December 31, 2022, was $257.5 million, with approximately 90.1% classified as short-term obligations due to covenant breaches[58][59]. - Cash totaled $43.0 million as of December 31, 2022, impacted by increased working capital and expenses related to being a public company[57]. - Cash reserves decreased to $43,003 in 2022 from $72,112 in 2021, reflecting changes in liquidity management[94]. Future Plans and Market Expansion - The company plans to launch new technologies and products, including novel fixed dosage combinations and a glucose monitoring system, while expanding into new markets like Mexico[29]. - The company plans to expand its Diabetrics health solution into Central America and Mexico starting in 2023[75]. - The company is pursuing acquisitions of Grupo Somar, which includes multiple entities, to enhance growth and market presence[96]. - The company anticipates challenges in recognizing the benefits of acquisitions due to competition and integration risks[96]. Financial Health Indicators - The accumulated deficit improved to $(391,513) in 2022 from $(431,059) in 2021, indicating better financial health[94]. - Current assets decreased slightly to $297,443 in 2022 from $298,059 in 2021, while total assets remained stable at $460,187[94]. - Non-current liabilities significantly decreased from $312,511 in 2021 to $93,691 in 2022, primarily due to a reduction in borrowings[94]. - The cash flow from operating activities during 2022 was $22.7 million, primarily affected by changes in working capital and increased CAPEX[63]. - The cash conversion cycle increased to 120 days as of Q4 2022, indicating a longer time to convert investments into cash[64].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ OR Date of event requiring this shell company re ...

Procaps Group, S.A. (NASDAQ:PROC) Q3 2022 Earnings Conference Call November 16, 2022 4:00 PM ET Company Participants Melissa Angelini - IR, Director Ruben Minski - Founder, Chief Executive Officer and Director Patricio Vargas - Chief Financial Officer Conference Call Participants Kemp Dolliver - Brookline Capital Markets Operator Good day and welcome to the Procaps Group Business Update Call and Webcast. Today's conference is being recorded. Please note that some statements made during this call may contain ...

NASDAQ: PROC 1 3Q22 & 9M22 Financial Results November 16, 2022 DISCLAIMER Forward-Looking Statements This presentation includes "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 ...

Exhibit 99.1 Procaps Group S.A. and subsidiaries (The Group) Unaudited Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2022 and 2021 Procaps Group S.A. and subsidiaries (The Group) Unaudited Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income | | | | | For the three months | | | --- | --- | --- | --- | --- | --- | | | | | | ended March 31 | | | | Notes | | 2022 | | 2021 | | Revenue | 5 | $ | 85,630 | $ | 77,442 | | Cost of sales ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F | ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the | | | | --- | --- | --- | | Fiscal Year Ended December 31, 2021 | | | | OR | | | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For | | | | the transition period from __________ to ___________ | | | | OR | | | | ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EX ...