Procaps S A : Q1 2022 Financial Statements Q1 2022

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

Unaudited Condensed Consolidated Interim Financial Statements for the three

months ended March 31, 2022 and 2021

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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, 2022 and 2021

(In thousands of United States Dollars, unless otherwise stated)

					For the three months ended March 31
			Notes		2022		2021
	Revenue		5	$	85,630	$	77,442
Cost of sales			(38,508)		(37,755)
	Gross profit				47,122		39,687
	Sales and marketing expenses				(20,157)		(19,481)
Administrative expenses			(24,556)		(20,578)
	Finance income (expenses), net		7		14,582		(14,237)
Other income (expenses), net	8		5,124		(535)
	Income (loss) before tax				22,115		(15,144)
	Income tax expense		9		(5,669)		(1,894)
Income (loss) for the year		$	16,446	$	(17,038)
Income (loss) for the year attributable to:
	Owners of the Company				16,446		(17,319)
	Non-controlling interests			-		281
Earnings per share:
	Basic, income (loss) for the period attributable to ordinary				0.16		(0.18)
	equity holders of the Company1

1 The Group reports net earnings per share in accordance with IAS 33 - Earnings Per Share. Basic income (loss) per share is calculated by dividing the income (loss) attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during the period. No dilutive effect has been identified for the three months ended March 31, 2022 and 2021. The weighted average number of ordinary shares used as the denominator in calculating basic earnings per share is 101,109,572 and 97,128,690 as of March 31, 2022 and 2021, respectively.

The accompanying notes are an integral part of these unaudited consolidated condensed interim financial statements.

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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, 2022 and 2021

(In thousands of United States Dollars, unless otherwise stated)

	For the three months ended March 31
	2022			2021
Income (loss) for the year	$	16,446	$	(17,038)
Other comprehensive income/(loss)
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		2,234		(4,782)
Other comprehensive income (loss) for the year, net of tax		2,234		(4,782)
Total comprehensive income (loss) for the year	$	18,680	$	(21,820)
Total comprehensive income (loss) for the year
attributable to:
Owners of the Company		18,679		(22,101)
Non-controlling interests		1		281

The accompanying notes are an integral part of these unaudited consolidated condensed interim financial statements.

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

Unaudited Condensed Consolidated Interim Statement of Financial Position

As of March 31, 2022 and December 31, 2021

(In thousands of United States Dollars, unless otherwise stated)

			Notes	As of March 31, 2022 As of December 31, 2021
	Assets
	Non-current assets
	Property, plant and equipment, net		11		77,296		72,638
	Right-of-use assets				40,898		40,167
	Goodwill				6,864		6,803
	Intangible assets	10		32,707		30,171
	Investments in joint ventures				2,335		2,443
	Other financial assets				269		256
	Deferred tax assets				7,891		7,067
	Other assets				5,072		4,531
	Total non-current assets			$	173,332	$	164,076
	Current assets
	Cash				65,644		72,112
	Trade and other receivables, net	13		111,561		117,449
	Inventories, net		12		98,343		79,430
	Amounts owed by related parties				1,804		1,147
	Current tax assets				28,839		22,082
	Other current assets				3,747		5,839
	Total current assets			$	309,938	$	298,059
	Total assets			$	483,270	$	462,135
	Liabilities and Stockholders' Equity (Deficit)
	Equity (Deficit)
	Share capital				1,011		1,011
	Share premium				377,677		377,677
	Reserves				45,743		42,749
	Accumulated deficit				(417,607)		(431,059)
	Accumulated other comprehensive loss				(25,544)		(27,778)
	Equity (deficit) attributable to owners of the company			$	(18,720)	$	(37,400)
	Non-controlling interest				(939)		(940)
	Total equity (deficit)			$	(19,659)	$	(38,340)
	Non-Current liabilities
	Borrowings		14		168,631		178,720
	Amounts owed to related parties				-		-
	Warrant liabilities		16		21,384		23,112
	Shares held in escrow	17		83,349		101,859
	Deferred tax liabilities				6,393		6,070
	Other liabilities				2,061		2,750
	Total non-current liabilities			$	281,818	$	312,511
	Current liabilities
	Borrowings		14		100,100		74,646
	Trade and other payables, net				90,282		85,381
	Amounts owed to related parties				6,465		8,450
	Current tax liabilities				18,323		11,756
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Procaps Group S.A. and subsidiaries (The Group)

Unaudited Condensed Consolidated Interim Statement of Financial Position

As of March 31, 2022 and December 31, 2021

(In thousands of United States Dollars, unless otherwise stated)

Provisions	15		578		501
Other liabilities			5,363		7,230
Total current liabilities		$	221,111	$	187,964
Total liabilities and stockholders' equity (deficit)		$	483,270	$	462,135

The accompanying notes are an integral part of these unaudited consolidated condensed interim financial statements.

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