Procaps Group SA (PROC) 2022 Q2 法說會逐字稿

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 forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, and/or future events, including financial projections or future market conditions, is a forward-looking statement.

美好的一天，歡迎來到 Procaps Group 業務更新電話和網絡廣播。今天的會議正在錄製中。請注意，本次電話會議期間做出的某些陳述可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，並存在風險和不確定性。任何涉及預期、預測和/或未來事件的聲明，包括財務預測或未來市場狀況，均為前瞻性聲明。

The company's actual future results could differ materially from those expressed in such forward-looking statements due to a variety of risks, uncertainties, and other factors, including but not limited to, those set forth in Procaps Group's SEC filings. Procaps assumes no obligation to update any such forward-looking statements. Please also note that past performance or market information is not a guarantee of future results.

由於各種風險、不確定性和其他因素，包括但不限於 Procaps Group 向 SEC 提交的文件中所述的因素，公司未來的實際結果可能與此類前瞻性陳述中表達的結果存在重大差異。 Procaps 不承擔更新任何此類前瞻性陳述的義務。另請注意，過去的表現或市場信息並不能保證未來的結果。

At this time, I would like to turn the conference over to Melissa Angelini, Investor Relations Director of Procaps. Please go ahead, Melissa.

這次，我想把會議交給 Procaps 投資者關係總監 Melissa Angelini。請繼續，梅麗莎。

Thank you and good morning, everyone. Thank you for standing by, and welcome to the Procaps business update call. This conference is also being webcast and a link to the webcast is available on the Procaps IR website at investor.procapsgroup.com. We appreciate everyone joining us today.

謝謝大家，早上好。感謝您的耐心等待，歡迎撥打 Procaps 業務更新電話。本次會議也進行了網絡直播，Procaps IR 網站 Investor.procapsgroup.com 上提供了網絡直播的鏈接。我們感謝今天加入我們的所有人。

Please note that our press release was issued yesterday and can be found on the Procaps IR website. Please review the disclaimers included in the investor presentation.

請注意，我們的新聞稿已於昨天發布，可以在 Procaps IR 網站上找到。請查看投資者介紹中包含的免責聲明。

During this call, non-GAAP financial measures will be discussed and presented. We believe those non-GAAP disclosures enable investors to better understand Procaps' core operating performance. Please refer to the investor presentation for a reconciliation of each of these non-GAAP measures to the mostly directly comparable GAAP financial measures.

在本次電話會議期間，將討論和介紹非公認會計準則財務指標。我們相信這些非 GAAP 披露能讓投資者更好地了解 Procaps 的核心經營業績。請參閱投資者演示文稿，了解每項非公認會計準則衡量指標與大多數直接可比的公認會計準則財務衡量指標的對賬情況。

Hosting today's call, we have Ruben Minski, our CEO; and Patricio Vargas, our CFO. I will now turn the call over to Procaps CEO, Ruben Minski. Please, Ruben, go ahead.

我們的首席執行官 Ruben Minski 主持了今天的電話會議；以及我們的首席財務官帕特里西奧·巴爾加斯 (Patricio Vargas)。我現在將把電話轉給 Procaps 首席執行官 Ruben Minski。魯本，請繼續。

Thank you, Melissa, and thank you all for joining us today on our second quarter and first half of 2022 conference call. As an agenda, I wanted to provide everyone with an overview of our first half of the year's performance, as well as give an update perspective of our strategy going forward. From there, I will turn it over to Patricio, to take you through some of the more detailed specific use of (technical difficulty).

謝謝梅麗莎，也感謝大家今天參加我們的 2022 年第二季度和上半年電話會議。作為一個議程，我想向大家提供我們上半年業績的概述，並提供我們未來戰略的最新觀點。接下來，我會將其交給 Patricio，帶您了解一些更詳細的具體使用（技術難度）。

At the end of our call, Patricio and I are both happy to answer any questions you may have. And additionally, please feel free to follow up as well with a post-call with either us or Melissa.

在我們的通話結束時，帕特里西奧和我都很樂意回答您可能提出的任何問題。此外，請隨時與我們或梅麗莎進行電話後跟進。

Moving to slide 5. I wanted to share some highlights of the quarter with you. On top-line sales, our market share positions, we're doing quite well. Overall, our results show the resilience of our businesses, segments, and portfolio diversification that continues to evolve with new products and new geographies. We posted a 14% increase in net revenues for the quarter and 12% for the first half of the year, with our CDMO business growing 20% in the quarter.

轉到幻燈片 5。我想與您分享本季度的一些亮點。在營收、市場份額地位方面，我們做得相當不錯。總體而言，我們的業績顯示了我們的業務、細分市場和投資組合多元化的彈性，並隨著新產品和新地域的發展而不斷發展。我們本季度的淨收入增長了 14%，上半年增長了 12%，我們的 CDMO 業務在本季度增長了 20%。

In the B2C business, we posted an 11% growth (sic - see slide 5, "13%") in the second quarter of 2022, impacted by foreign exchange impacts, supply chain challenges, and inflationary pressures. On a constant currency basis, our first half '22 growth was 18%.

在 B2C 業務中，受外匯影響、供應鏈挑戰和通脹壓力的影響，我們在 2022 年第二季度實現了 11% 的增長（原文如此 - 參見幻燈片 5，“13%”）。按固定匯率計算，我們 22 年上半年的增長率為 18%。

Our CDMO business is doing extremely well, with an increase in sales of existing partners and the launch of new products. I'm also happy to report that our West Palm Beach facility commenced operations, and we have seen some revenues from R&D services rendered.

我們的 CDMO 業務表現非常出色，現有合作夥伴的銷售額有所增加，新產品也不斷推出。我還很高興地報告，我們的西棕櫚灘工廠已開始運營，並且我們已經看到了來自研發服務的一些收入。

The investment rationale behind this acquisition was that it was incredibly important for Procaps to have a US CDMO capability, to better service inshore the largest pharmaceutical market in the world, as well as our European customers. We are already seeing progress on that end.

此次收購背後的投資理由是，對於 Procaps 來說，擁有美國 CDMO 能力對於更好地服務全球最大的製藥市場以及我們的歐洲客戶至關重要。我們已經看到這方面取得了進展。

The construction of our gummy facility in the US has been on track, and we expect to begin operations in the first quarter of 2023. Our new divisions expect -- except, I'm sorry. For all our divisions, except for Diabetrics, we are growing at double-digit growth rates in terms of revenue in constant currency. Our growth has remained consistent across our products despite currency devaluation, as well as the launching of new products. Our new product launches have been a key driver of our growth, and I will share more light on this later on.

我們在美國的軟糖工廠的建設已步入正軌，我們預計將於 2023 年第一季度開始運營。我們的新部門預計 - 但很抱歉。對於我們所有的部門（除糖尿病部門外），按固定匯率計算，我們的收入都在以兩位數的速度增長。儘管貨幣貶值以及新產品的推出，我們的各種產品的增長仍然保持一致。我們的新產品發布是我們增長的關鍵驅動力，稍後我將分享更多相關內容。

Our renewal rate, that is the percentage of our revenues from recently launched products, is at 21%. This ratio is impacted by the phasing of some regulatory processes. As you all know very well, the launch of our product in this industry depends on the registration approval, which does not have a specific date, only a time range we believe the product would be approved. And today, we have over 170 products under registration in different stages.

我們的續訂率（即我們最近推出的產品的收入百分比）為 21%。該比率受到一些監管流程分階段的影響。大家都知道，我們的產品在這個行業推出取決於註冊批准，沒有具體的日期，只有一個我們認為產品會被批准的時間範圍。如今，我們有超過 170 種產品處於不同階段進行註冊。

As we continue to navigate through this dynamic operating environment, we remain committed to our investments to fortify our businesses portfolio, organization structure, and value chain, by increasing our production capacity, continued investment in research and development on new products, and expanding our geography footprint. On that note, as you know, during the quarter, we proudly announced the acquisition of Grupo Somar on our entrance to Mexico. This transaction represents a very significant step forward for Procaps' regional consideration, expanding our reach into the second-largest pharmaceutical market in LatAm and offers a unique opportunity to realize the significant synergies through cross-selling opportunities, leverage our innovative oral delivery technologies, and cost efficiencies.

隨著我們繼續在這個充滿活力的運營環境中前行，我們仍然致力於通過提高生產能力、持續投資新產品研發以及擴大我們的地域來加強我們的業務組合、組織結構和價值鏈的投資腳印。在這一點上，如您所知，在本季度，我們自豪地宣佈在進入墨西哥時收購了 Grupo Somar。此次交易代表了Procaps 區域考慮向前邁出了非常重要的一步，擴大了我們在拉丁美洲第二大醫藥市場的影響力，並提供了一個獨特的機會，通過交叉銷售機會、利用我們創新的口服給藥技術和成本效率。

Moving to slide 6. I want to remind you all about the strategic rationale of this transaction. As I just mentioned, our entrance into Mexico, which is the second-largest pharma market in LatAm, is an important and very important milestone for us.

轉到幻燈片 6。我想提醒大家這次交易的戰略理由。正如我剛才提到的，我們進入拉丁美洲第二大醫藥市場墨西哥對我們來說是一個非常重要的里程碑。

First, Grupo Somar is well-positioned to capitalize on the tailwinds underpinning the Mexican market and sustain a high and consistent growth rate across these different business lines. We also have growth deleveraging from Procaps' highly differentiated products portfolio in Mexico. And we expect to be strengthening our CDMO business with our know-how and patented technologies, which we expect to broaden our customer list and portfolios in Mexico.

首先，Grupo Somar 處於有利位置，可以利用支撐墨西哥市場的順風車，並在這些不同的業務領域保持高且持續的增長率。我們還通過 Procaps 在墨西哥高度差異化的產品組合實現了增長去槓桿化。我們希望通過我們的專業知識和專利技術加強我們的 CDMO 業務，從而擴大我們在墨西哥的客戶名單和產品組合。

The second is the attractive product portfolio of branded generics targeted to a private market and with leading market positions across key categories. Grupo Somar participate in segments familiar to Procaps, and both organizations complement each other's portfolio. Their well-diversified portfolio across oil segments, therapeutic areas, and customers, with no relevant product concentration, creates also a great competitive advantage for us.

第二個是針對私人市場且在關鍵類別中擁有領先市場地位的品牌仿製藥的有吸引力的產品組合。 Grupo Somar 參與 Procaps 熟悉的領域，兩個組織的產品組合相互補充。他們在石油領域、治療領域和客戶領域的多元化產品組合，沒有相關的產品集中度，也為我們創造了巨大的競爭優勢。

Third, this will also help broaden even more the diversification of our revenues. Not only with portfolio increase with a new region, and it may offset some of the negative currency devaluation challenges that we are facing, minimizing possible operational risks.

第三，這也將有助於進一步擴大我們收入的多元化。不僅隨著新地區投資組合的增加，而且它可能會抵消我們面臨的一些負面貨幣貶值挑戰，從而最大限度地減少可能的運營風險。

Fourth, increased manufacturing and research and development capabilities. Thanks to manufacturing facilities in Mexico, which include three FDA-approved facilities, one of them being esophageal capsules manufacturing plant -- manufacturing capabilities for several pharmaceutical forms that will support our growth in the region, corporate and manufacturing model to capitalize significant mid-, long-term operational synergies based upon specialization from a capacity to fuel geographical portfolio expansion to all countries where we operate. And research and development expansion by integration with Procaps research and development team, targeted at pipelines with very much of a regional reach.

四是製造和研發能力增強。得益於墨西哥的生產設施，其中包括三個經FDA 批准的設施，其中之一是食道膠囊生產廠，其多種藥物劑型的生產能力將支持我們在該地區、企業和生產模式的增長，以利用大量的中、基於專業化的長期運營協同效應，能夠推動地理投資組合擴展到我們開展業務的所有國家。通過與 Procaps 研發團隊整合進行研發擴展，目標是具有很大區域影響力的管道。

Fifth, we have a strong local management team, excellent team with ample industry experience and will stay with the company for years to come. Sixth, significant synergies through cross-selling opportunities and cost efficiencies. Finally, we expect to have approval by the Mexican authorities in Q3 of this year, and we'll start implementing our integration plan immediately afterwards.

第五，我們擁有強大的本土管理團隊，優秀的團隊，具有豐富的行業經驗，並將在未來的歲月裡留在公司。第六，通過交叉銷售機會和成本效率產生顯著的協同效應。最後，我們預計今年第三季度將獲得墨西哥當局的批准，隨後我們將立即開始實施我們的整合計劃。

Moving to slide 7. Another important driver to our future growth is research and development and new products. As I always say, I have said before, innovation around our proprietary oral delivery systems is the very much of the key to our success.

轉到幻燈片 7。我們未來增長的另一個重要驅動力是研發和新產品。正如我總是說的，我之前說過，圍繞我們專有的口服給藥系統的創新是我們成功的關鍵。

We launched over 120 products in the region during the first half of this year. A few examples: DEFEROL K, the first exclusive combination of vitamin D and K2 in Colombia and the region. We have also developed a gummy version of this product, which has contributed to its acceptance by the pediatric patients and medical community.

今年上半年，我們在該地區推出了 120 多種產品。舉幾個例子：DEFEROL K，哥倫比亞和該地區第一個維生素 D 和 K2 的獨家組合。我們還開發了該產品的軟糖版本，這有助於其被兒科患者和醫學界接受。

MENTSI is the first specialized formulated oral pharmaceutical grade mint oil used for a stomach intestinal disorders, such as irritable bowel syndrome. We have also launched an oncology line with ALUDEL, indicated as the first-line therapy for men who have prostate cancer that no longer responds to hormone therapy or surgical treatment. We continue to invest close to 5% of net revenues in research and development, and we will continue to prioritize investments in our pipeline and businesses to realize the value of many near and long-term opportunities in front of us.

MENTSI 是第一種專門配製的口服藥用級薄荷油，用於治療胃腸道疾病，例如腸易激綜合症。我們還推出了 ALUDEL 腫瘤學系列，作為對激素療法或手術治療不再有反應的前列腺癌男性的一線療法。我們繼續將淨收入的近 5% 投資於研發，並將繼續優先投資於我們的產品線和業務，以實現我們面前的許多近期和長期機會的價值。

With that, I will ask Patricio Vargas to review our financial statements before we take Q&A.

因此，我將要求帕特里西奧·巴爾加斯在進行問答之前審查我們的財務報表。

Thank you, Ruben. In the next slides, I would like to give you a little more color on the second quarter and first half 2022 results.

謝謝你，魯本。在下一張幻燈片中，我想為您提供有關 2022 年第二季度和上半年業績的更多信息。

Moving to slide 9, you can see our top-line evolution. In the chart, you can see our seasonality at play as sales increased in each quarter in 2021 and 2022.

轉到幻燈片 9，您可以看到我們的營收演變。在圖表中，您可以看到季節性因素在 2021 年和 2022 年每個季度銷售額的增長。

Looking at the 2022 figures so far, we showed a strong performance in the second quarter and six months, with a net sales growth of 14% and 12%, respectively. The increase was mainly driven by positive performance in CAN, Nextgel, and CASAND business segments.

縱觀2022年迄今為止的數據，我們在第二季度和六個月表現強勁，淨銷售額分別增長14%和12%。這一增長主要得益於 CAN、Nextgel 和 CASAND 業務部門的積極業績。

As Ruben mentioned, we are facing some challenges external to our operation, such as strong currency devaluation, especially the Colombian peso, which affects almost 50% of our revenues, global supply chain restrictions that impact availability and pricing of certain raw materials, and inflationary pressures and economic uncertainties. The diversified nature of our business helps us offset many of these challenges, which is helped by our ability to adjust prices in certain products and markets.

正如魯本提到的，我們面臨著一些運營外部的挑戰，例如貨幣強勢貶值，尤其是哥倫比亞比索，這影響了我們近50% 的收入，全球供應鏈限制影響了某些原材料的供應和定價，以及通貨膨脹壓力和經濟不確定性。我們業務的多元化性質幫助我們克服了許多挑戰，這得益於我們調整某些產品和市場價格的能力。

This strategy, however, has some natural delays, so we may experience short-term pressure in our margins as we adjust. On a constant currency basis, our revenue grew by 19% in the second quarter and 18% in the first half.

然而，這種策略有一些自然的延遲，因此我們在調整時可能會遇到利潤率的短期壓力。按固定匯率計算，我們的收入第二季度增長了 19%，上半年增長了 18%。

Moving to slide 10. I want to take a deeper dive into explaining our net sales growth. Our iCDMO business experienced a strong demand from our clients, as well as from the launch of new products and R&D services that started in our West Palm Beach facility. Net revenues grew 20% in second quarter and 11% in the first half. On a constant currency basis, net revenues grew 28% in the second quarter and 13% in the first half.

轉到幻燈片 10。我想更深入地解釋我們的淨銷售額增長。我們的 iCDMO 業務經歷了客戶的強烈需求，以及從我們西棕櫚灘工廠開始的新產品和研發服務的推出。第二季度淨收入增長 20%，上半年淨收入增長 11%。按固定匯率計算，第二季度淨收入增長 28%，上半年增長 13%。

Procaps Colombia was the business unit most impacted by the currency devaluation, as Colombia is its biggest market. It experienced a decrease in the quarter, in addition to the currency devaluation, by a decrease of COVID cases, directly impacting our clinical specialties line.

Procaps Columbia 是受貨幣貶值影響最嚴重的業務部門，因為哥倫比亞是其最大的市場。除了貨幣貶值之外，本季度的下降還包括新冠病例的減少，直接影響了我們的臨床專業產品線。

Looking at our OTC and Rx lines, growth was approximately 20%, supported by the performance of products launch last year and increased demand for existing products. Overall, although Procaps Colombia had a modest top-line growth in the first half of 4.2%, in constant currency, that increase translated to 13%.

看看我們的 OTC 和 Rx 系列，增長約為 20%，這得益於去年推出的產品的業績以及對現有產品的需求增加。總體而言，儘管 Procaps Columbia 上半年的收入略有增長 4.2%，但按固定匯率計算，增幅達到 13%。

CAN or Central America North was positively impacted by the rollout of new products and portfolio expansion in several therapeutic areas, such as gastrointestinal and feminine care. Additionally, we have a low comparison base from last year, as we are now seeing the benefits of reducing inventories at our distributor levels, which was a negative impact for last year.

CAN 或中美洲北部受到胃腸道和女性護理等多個治療領域新產品推出和產品組合擴張的積極影響。此外，與去年相比，我們的比較基數較低，因為我們現在看到了減少經銷商庫存的好處，這對去年產生了負面影響。

CASAND or Central America South and Andean Region grew 18% in first half 2022. The increase was the result of higher demand and the rollout of new products in the region, such as Ferovas, in which we use our Unigel technology, combining two different active ingredients for the treatment of mixed dyslipidemia in the elderly population. On a constant currency basis, net revenues increased 19% in the first half.

CASAND（中美洲南部和安第斯地區）在2022 年上半年增長了18%。這一增長是由於需求增加以及該地區推出新產品（例如Ferovas）的結果，我們在該產品中使用了我們的Unigel 技術，結合了兩種不同的活性物質治療老年人混合性血脂異常的成分。按固定匯率計算，上半年淨收入增長 19%。

Finally, our Diabetrics SBU decreased 20% for the semester, impacted by the closing of an important public health insurance provider in Colombia and currency devaluation. On a constant currency basis, it decreased 13% in first half. For the quarter, Diabetrics decreased 10%, and in constant currency, the decrease was 5%. Comparing with the first quarter of 2022, Diabetrics grew 30% in the second quarter, already showing signs of improvement.

最後，受哥倫比亞一家重要公共健康保險公司關閉和貨幣貶值的影響，我們的糖尿病 SBU 本學期下降了 20%。按固定匯率計算，上半年下降了13%。本季度，糖尿病業務下降了 10%，按固定匯率計算，下降了 5%。與2022年第一季度相比，第二季度糖尿病患者增長了30%，已經顯示出改善的跡象。

Moving to slide 11. On the gross profit line, we reached $120 million for the first half '22 and a 61% gross margin. This result is due to a positive exchange rate impact on costs of roughly 4% in the semester and the sale of some brands in CAN, as part of our portfolio management efforts.

轉到幻燈片 11。就毛利潤而言，22 年上半年我們達到了 1.2 億美元，毛利率為 61%。這一結果是由於匯率對本學期成本約 4% 的積極影響，以及作為我們投資組合管理工作的一部分，在 CAN 銷售了一些品牌。

Our operating expenses increased by 22% in the first half versus first half '21, due to the return of promotional events and stronger commercial efforts, increasing costs associated with higher personnel costs and costs of being a public company. We are also structuring the company for the future growth with new hires and processes improvement.

與 21 年上半年相比，我們上半年的運營費用增加了 22%，這是由於促銷活動的回歸和更強的商業努力，以及與更高的人員成本和上市公司成本相關的成本增加。我們還通過新員工和流程改進來構建公司的未來發展。

Our adjusted EBITDA increased by 13% to $37 million. Our EBITDA margin for the first half is flat when compared to the first half of last year, in spite of our investment spending behind new product launches and facilities improvement and in the new team to handle our growth plans.

我們調整後的 EBITDA 增長了 13%，達到 3700 萬美元。儘管我們在新產品推出和設施改進以及新團隊處理我們的增長計劃方面進行了投資支出，但我們上半年的 EBITDA 利潤率與去年上半年持平。

We have seen an increase in absolute adjusted EBITDA despite some unfavorable market conditions that are important to highlight. Currency devaluation generated a translation effect in our posted figures. And as our main markets are in Latin America, currency fluctuations are a part of it. We're also facing inflationary pressures on supply chain challenges. We're working on price increases, improving our product mix with new launches containing costs, so we can protect our margins going forward.

儘管存在一些需要強調的不利市場條件，但我們看到調整後的 EBITDA 絕對值有所增加。貨幣貶值對我們公佈的數據產生了換算效應。由於我們的主要市場位於拉丁美洲，貨幣波動是其中的一部分。我們還面臨著供應鏈通脹壓力的挑戰。我們正在努力提高價格，通過推出新產品來改善我們的產品組合併控製成本，這樣我們就可以保護我們未來的利潤。

We are very happy with our results so far and optimistic about our ability to deliver growth in the long term. However, should the present challenging conditions remain in the current levels, we might face margin pressures that will be difficult for us to overcome in the short term, and could potentially negatively affect our adjusted EBITDA guidance. This negative effect could possibly be in the range of 5% to 10%, but we will keep working on different alternatives to make sure that we can offset all of these difficulties.

我們對迄今為止的業績感到非常滿意，並對我們實現長期增長的能力感到樂觀。然而，如果目前的挑戰條件保持在當前水平，我們可能會面臨短期內難以克服的利潤率壓力，並可能對我們調整後的 EBITDA 指導產生負面影響。這種負面影響可能在 5% 到 10% 之間，但我們將繼續研究不同的替代方案，以確保我們能夠抵消所有這些困難。

Finally, on slide 12. As of June 30, 2022, we have a cash balance of $38 million and a leverage profile of 2.1 times net debt to adjusted EBITDA. Cash decreased as we paid down more expensive short-term debt and expanded the CapEx compared to the previous years. Additionally, cash has also been used to increase inventories to provide support for the supply risks we have seen worldwide.

最後，在幻燈片 12 上。截至 2022 年 6 月 30 日，我們的現金餘額為 3800 萬美元，槓桿情況為調整後 EBITDA 淨債務的 2.1 倍。與前幾年相比，由於我們償還了更昂貴的短期債務並擴大了資本支出，現金減少了。此外，現金還被用來增加庫存，為我們在全球範圍內看到的供應風險提供支持。

Our capital allocation priorities remain unchanged. We will continue to prioritize investments in our pipeline and business to realize the value of the many near and long-term opportunities. (technical difficulty) We continue to develop new products and technologies to increase and complement our product pipeline.

我們的資本配置重點保持不變。我們將繼續優先考慮對管道和業務的投資，以實現許多近期和長期機會的價值。 （技術難點）我們不斷開發新產品和新技術，以增加和補充我們的產品管線。

So as you can see, we are executing a strategy designed to deliver strong growth and establish the necessary building blocks behind our growth drivers to achieve our 2022 targets. We are ready now to finalize and carry out the Somar transaction the minute we received the regulatory authorization.

正如您所看到的，我們正在執行一項戰略，旨在實現強勁增長，並為我們的增長動力奠定必要的基礎，以實現 2022 年的目標。我們現在已準備好在收到監管授權後完成並執行 Somar 交易。

With that, I will pass it back to Ruben.

這樣，我會將其傳回給魯本。

Thank you, Patricio, and thank you all for participating. As I said before, our results are indicative of the health and resilience of our business units -- a diversified portfolio that continuously evolves, a broad geographic footprint with strong positions in our largest markets, and of course, our highly motivated and dedicated employees who focus on delivering value to patients.

謝謝你，帕特里西奧，也感謝大家的參與。正如我之前所說，我們的業績表明了我們業務部門的健康狀況和復原力——不斷發展的多元化投資組合、在我們最大的市場中佔據強勢地位的廣泛地理足跡，當然還有我們積極進取、敬業的員工。專注於為患者提供價值。

We are demonstrating impressive resilience across all aspects of our business in a very challenging global environment, with variables that are not always within our control. Of course, we remain quite optimistic and confident of our growth strategy, its focus, its significant moat, and its industry expertise. Thank you so much for listening and we welcome any questions that you may have.

在充滿挑戰的全球環境中，我們在業務的各個方面展現了令人印象深刻的彈性，其中的變量並不總是在我們的控制範圍內。當然，我們對我們的增長戰略、重點、重要護城河和行業專業知識仍然非常樂觀和充滿信心。非常感謝您的聆聽，我們歡迎您提出任何問題。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。 （操作員說明）

[Miyam Preslin], BTG Pactual.

[米亞姆·普雷斯林]，BTG Pactual。

Good morning, everyone. Well, just three questions here on our side. The first one is regarding Somar acquisition. I wonder if you could give us more color on the timeframe for the conclusion of the acquisition.

大家，早安。好吧，我們這邊只有三個問題。第一個是關於索馬爾的收購。我想知道您是否能為我們提供有關完成收購的時間表的更多信息。

The second question is regarding Procaps Colombia. I mean, should we see the revenue growth resume in the division still within this year? Or should we continue to see this revenue line pressured by the unfavorable dynamics with the phaseout of COVID in the short term?

第二個問題是關於哥倫比亞 Procaps 的。我的意思是，我們是否應該在今年內看到該部門的收入恢復增長？或者我們是否應該繼續看到這條收入線受到短期內逐步淘汰新冠疫情的不利動態的壓力？

And the last one, I think Patricio talked a little bit about this matter. But can you give us again the number of the organic revenue expansion in Q2 on a constant currency basis? I mean, you disclosed in your report the 18% growth of the first half of the year. But could you give us again the number for the quarter? That's it. Thank you, guys, very much.

最後一篇，我想帕特里西奧談到了這個問題。但您能否再次告訴我們第二季度按固定匯率計算的有機收入擴張的數字？我的意思是，你在報告中披露了上半年增長18%。但您能否再次向我們提供該季度的數字？就是這樣。非常感謝你們，伙計們。

Okay. Thank you for your questions. I'm only confused about the second question. I wasn't sure. The first one was the Somar timeframe. The last one was the constant currency growth for second quarter. What was the second question?

好的。謝謝您的提問。我只是對第二個問題感到困惑。我不確定。第一個是索馬爾時間框架。最後一個是第二季度貨幣持續增長。第二個問題是什麼？

Well, the second question was regarding Procaps Colombia, right? We saw the -- [get these] revenues, the top line in this division was down 4.5% in this quarter. And the reason behind is mostly because of the phaseout of COVID and the unfavorable dynamics -- with this dynamic -- with this phaseout. But I just wonder if you think that we should see this revenue growth in this line resuming within this year, or if the short term should remain under pressure for Procaps Colombia.

嗯，第二個問題是關於哥倫比亞 Procaps，對嗎？我們看到——[得到這些]收入，本季度該部門的收入下降了 4.5%。其背後的原因主要是因為新冠病毒的逐步淘汰以及這種逐步淘汰帶來的不利動態。但我只是想知道您是否認為我們應該看到該產品線的收入增長在今年內恢復，或者 Procaps Columbia 的短期是否仍面臨壓力。

Okay. Thank you. So regardless from our acquisition, this is something that is, of course, no one really knows. This is a very complex process -- always when you need to ask for regulatory approvals. We believe it should be relatively simple compared with other processes, because there's not much overlap -- there's practically no overlap between the two companies. So we think it should come relatively soon.

好的。謝謝。因此，無論我們的收購情況如何，這當然是沒有人真正知道的事情。這是一個非常複雜的過程——總是在您需要尋求監管部門批准時。我們認為，與其他流程相比，它應該相對簡單，因為沒有太多重疊——兩家公司之間實際上沒有重疊。所以我們認為它應該會相對較快到來。

Now relatively soon could be within a month, a couple of months. We have -- I can't comment much about the process, but the process has been going, I would say, according to what we anticipate. So we said in the press release that we believe in the fourth quarter, we should have news. Hopefully, it's in the earlier part of the fourth quarter. But again, we are not -- we can't guarantee that.

現在相對較快可能會在一個月、幾個月之內。我們——我無法對這個過程發表太多評論，但我想說，這個過程一直在按照我們的預期進行。因此，我們在新聞稿中表示，我們相信第四季度應該會有消息。希望是在第四季度的早些時候。但我們再次強調，我們不能保證這一點。

Regarding the second point about clinical specialties, well, that's hard to say, what's going to happen with COVID. It is true that it has come down and that has affected clinical specialties. But we have a broader array of products and we have been diversifying and reinforcing all those other products.

關於第二點關於臨床專業的問題，很難說，新冠肺炎會發生什麼。確實，它已經下降並影響了臨床專業。但我們擁有更廣泛的產品，並且我們一直在多樣化和加強所有其他產品。

So we think we will -- in time, we're going to be able to overcome that. It's just a short-term impact caused by the decrease of those type of products. So it should recover very soon from that point of view -- the constant -- sorry.

所以我們認為，隨著時間的推移，我們將能夠克服這個問題。這只是該類產品減少帶來的短期影響。因此，從這個角度來看，它應該很快就會恢復——抱歉。

Patricio, if I may just make a comment also very quickly on Procaps Colombia. I think that the most difficult part for Procaps Colombia to deal with is the devaluation of the currency. We have been able to pass some of the price increases, some of the devaluation to the final consumers, to the clients and to distributors. But this takes longer because there are some contracts still ongoing. If the devaluation stays at this level, we may have some difficulties as very well Patricio mentioned.

帕特里西奧（Patricio），請允許我很快就 Procaps Columbia 發表評論。我認為哥倫比亞Procaps最困難的部分是貨幣貶值。我們已經能夠將部分價格上漲和部分貶值轉嫁給最終消費者、客戶和分銷商。但這需要更長的時間，因為還有一些合同仍在進行中。如果貶值保持在這個水平，我們可能會遇到帕特里西奧提到的一些困難。

But the growth of the company, in constant -- in local (technical difficulty) is very, very healthy. We are growing -- the demand is quite strong. And we do feel, as Patricio once said, we have quite a mix of products that will allow us to overcome any difficulties for one particular one. Please go ahead, Patricio. Sorry.

但公司在當地（技術難度）方面的持續增長是非常非常健康的。我們正在成長——需求相當強勁。正如帕特里西奧曾經說過的那樣，我們確實感到我們擁有相當多的產品組合，這將使我們能夠克服特定產品的任何困難。請繼續，帕特里西奧。對不起。

Yeah. On the last question, the constant currency growth in the first half was 18%. And in the second quarter was 19%, one nine.

是的。關於最後一個問題，上半年貨幣不變增長率為18%。第二季度為 19%，即九分之一。

Okay. Thank you, Ruben, and thank you, Patricio. It was very helpful.

好的。謝謝你，魯本，謝謝你，帕特里西奧。這非常有幫助。

Thank you.

謝謝。

Kemp Dolliver, Brookline Capital Markets. Please go ahead.

Kemp Dolliver，布魯克萊恩資本市場。請繼續。

Good day and thank you. My first question relates to the contribution margin disclosures which are very helpful. Could you give us some context with regard to how those margins should play out over time? Because you have -- SBU has its own investment mode and priority of growth versus profitability. So if you can give us some perspective on what to expect, with regard to the margin behavior over the next few years, that would be very helpful.

美好的一天，謝謝。我的第一個問題涉及邊際貢獻披露，這非常有幫助。您能否為我們提供一些有關這些利潤隨著時間的推移應如何發揮作用的背景信息？因為 SBU 有自己的投資模式以及增長與盈利的優先順序。因此，如果您能給我們一些關於未來幾年的保證金行為的預期的看法，那將非常有幫助。

Thanks for your question, Kemp. We -- there are a couple of factors that will impact on the margin going forward. One, in the short term, I think we're going to be very much depending for the immediate time on the exchange rate because we have expenses in Colombian pesos. We have purchases in US dollars of raw materials. So that mix is going to be affected by that.

謝謝你的提問，坎普。我們——有幾個因素會影響未來的利潤率。第一，從短期來看，我認為我們將在很大程度上取決於匯率，因為我們的支出是哥倫比亞比索。我們以美元購買原材料。所以這種混合將會受到影響。

So it's kind of hard for me to tell you where, for instance, could be the second half. I guess for effects of your modeling, stable is something reasonable.

所以我很難告訴你下半場會在哪裡。我想對於你的建模效果來說，穩定是合理的。

Going forward, we should improve. As we grow in the different business areas and we've put more capacity at work in the plants, we're going to become more efficient so that you should expect production-wise, some efficiencies to be gained there. And both -- when you analyze Procaps standalone, and in the future, when analyzing Procaps and Somar, we have a significant capacity to reduce and improve the costs of our different raw materials. So we expect an improvement across the line in terms of expenses. So that should have a margin expansion in the next year, hopefully.

展望未來，我們應該改進。隨著我們在不同業務領域的發展，我們在工廠投入了更多的產能，我們將變得更加高效，因此您應該期望在生產方面會提高一些效率。無論是當您單獨分析 Procaps 時，還是將來分析 Procaps 和 Somar 時，我們都有強大的能力來降低和改善不同原材料的成本。因此，我們預計費用方面會有所改善。因此，明年的利潤率有望擴大。

Super. Thank you. Catalent reported earlier this week some challenges with their softgel business. And yet, your performance in the first half was much better. Could you talk about the differences in your business versus theirs, and if there's any competitive dynamics that we're seeing here that are working to your advantage?

極好的。謝謝。 Catalent 本週早些時候報告了其軟膠囊業務面臨的一些挑戰。然而，你上半場的表現要好得多。您能否談談您的業務與他們的業務之間的差異，以及我們在這裡看到的任何競爭動態是否對您有利？

Okay, that's a great question. We have found, I would say, the same difficulties. I think that they're real. These are real difficulties in the supply chain and management for our raw materials. For example, one of the issues was the gelatin increased by 40% of the price because of lack of raw materials.

好吧，這是一個很好的問題。我想說，我們也發現了同樣的困難。我認為它們是真實的。這些都是我們原材料供應鍊和管理上的現實困難。例如，問題之一是明膠因缺乏原材料而漲價40%。

But it has been -- we have been dealing with this. We have worked very much in cost efficiencies. We have worked with -- we have high demand of our gummies facilities, very high demand of some of the products from third parties.

但我們一直在處理這個問題。我們在成本效率方面做了很多工作。我們合作過——我們對我們的軟糖設施有很高的需求，對第三方的一些產品也有很高的需求。

So we are very pleased that we were able to weather the storm in the first semester. We do expect for the second semester for this to lower in the intensity and it will be able -- we will ship -- we expect to weather the storm as well for the second one. So it's a -- these are challenging times. But nevertheless, we have been able to move very quickly and cover the difficulties.

所以我們很高興我們能夠在第一學期渡過難關。我們確實預計第二學期的強度會降低，並且我們將能夠——我們預計第二學期也能渡過難關。所以這是一個充滿挑戰的時代。但儘管如此，我們還是能夠迅速採取行動並克服困難。

Do you think you're gaining share from them?

你認為你從他們那裡獲得了份額嗎？

It's very difficult to say that because there are no published public data for this. We do -- we have been moving along. We have been increasing our volume of manufacturing capsules -- of capsules when we manufacture. But it's very difficult, again, to say what type of -- there is no data published in this particular area.

很難說這一點，因為沒有公開的數據。我們確實如此——我們一直在前進。我們一直在增加膠囊的製造量——我們製造時的膠囊數量。但同樣，很難說清楚是什麼類型——在這個特定領域還沒有發布數據。

Very good. Thank you. With Grupo Somar, has the management team remained stable since the announcement of the acquisition?

非常好。謝謝。自宣布收購以來，Grupo Somar 的管理團隊是否保持穩定？

Yes, absolutely. We are extremely -- we have found very talented people there and very good leadership. And yes, we have been able to work with them, and they will be -- they will stay with us, hopefully, for years to come.

是的，一點沒錯。我們非常——我們在那裡找到了非常有才華的人以及非常好的領導力。是的，我們已經能夠與他們合作，他們也會——希望在未來的幾年裡，他們會和我們在一起。

Excellent. Thank you for your answers.

出色的。謝謝您的回答。

Thank you.

謝謝。

(Operator Instructions). Jason Kolbert, Dawson James.

（操作員說明）。傑森·科爾伯特，道森·詹姆斯。

Hi, congratulations. What a great quarter. I just wanted you to talk a little bit about some of the valuation calculations, and particularly, how accretive Grupo Somar could be if we look out beyond a year. And what I'm really trying to understand is the cross-product synergies that exist as you start to push a footprint into Mexico.

你好，恭喜你。多麼美好的一個季度啊。我只是想讓你談談一些估值計算，特別是，如果我們展望一年之後，Grupo Somar 的增值能力有多大。我真正想了解的是當你開始進軍墨西哥時所存在的跨產品協同效應。

Thank you for your question. That's something we're really happy with not only going forward. But if you look at the first year, this deal is accretive for us -- I would say marginally accretive in the first year.

謝謝你的問題。這是我們真正感到高興的事情，不僅僅是未來。但如果你看看第一年，這筆交易對我們來說是增值的——我想說第一年略有增值。

Of course, we're taking significant debt for what we had before. But even, of course, considering all of that, this is accretive. But if you go beyond the year, this starts to grow significantly, given all the cross synergies that we have. Being so complementary, the businesses, and being such a nice feat for our rollout strategy, our rollout expansion capabilities.

當然，我們現在正在為以前的債務承擔巨額債務。但當然，即使考慮到所有這些，這也是增值的。但如果你超過這一年，考慮到我們擁有的所有交叉協同效應，這一數字開始顯著增長。業務如此互補，對於我們的推出戰略和我們的推出擴展能力來說是一個很好的壯舉。

Just to remember -- to remind everyone, the way our business model works is that we register different products from certain countries into the other countries and we register, and we launch them. So bringing Somar into Procaps is basically applying the same business model to what we're doing on a bigger scale. That is taking their products and registering our markets, taking up our products, registering in Mexico.

請記住 - 提醒大家，我們的商業模式的運作方式是我們將不同的產品從某些國家註冊到其他國家，然後我們註冊，然後推出它們。因此，將 Somar 引入 Procaps 基本上是將相同的商業模式應用於我們正在做的更大規模的事情。那就是拿走他們的產品並註冊我們的市場，拿走我們的產品，在墨西哥註冊。

Of course, you have to take into consideration the timings necessary for the proper registration in each market. Each market is different, so it could go between two to four years. But accounting for that, the value that we can get for the group combined is huge. And that's why we're so happy with the acquisition.

當然，您必須考慮在每個市場正確註冊所需的時間。每個市場都不同，因此可能會持續兩到四年。但考慮到這一點，我們能為整個團隊帶來的價值是巨大的。這就是我們對此次收購如此滿意的原因。

That's what I'm trying to understand. So if I were to look at your revenues outside of Mexico and I was to do a market comparison of the size of the country versus where you're in now, it's suggestive that there is a significant double-digit growth rate. And that I would be naive to model Grupo Somar based on their revenues. Instead, I have to model it based on the size of the market opportunity times the totality of the products of both companies, right? Is that the right way to think about it?

這就是我想要理解的。因此，如果我查看你們在墨西哥以外的收入，並對該國家的規模與你們現在所在的地區進行市場比較，這表明存在顯著的兩位數增長率。如果我根據 Grupo Somar 的收入來建模，那就太天真了。相反，我必鬚根據市場機會的規模乘以兩家公司的產品總數來對其進行建模，對吧？這是正確的思考方式嗎？

It is the right way with the caveat that you need to take into consideration working capital restrictions, capacities that we may need to invest on. Timings, type of product -- it's not correct to assume that all the portfolio of both companies can be taken into other countries. There are some products that in some countries may be old products or that they may have too much competition. So we need to do a very, very careful pick of which product we're going to take into which countries.

這是正確的方法，但需要注意的是，您需要考慮營運資金限制以及我們可能需要投資的能力。時間安排、產品類型——假設兩家公司的所有產品組合都可以進入其他國家是不正確的。有些產品在某些國家可能是老產品，或者競爭太激烈。因此，我們需要非常非常仔細地選擇將哪種產品帶入哪些國家。

But that detailed analysis, we cannot do it until we are in -- working with Somar and we have the approval from the authorities. But the estimates that we have, they look very promising. Once we're in there, once we're inside the company, we will host a call at some point and an update on this and give more granularity.

但是，在我們與索馬爾合作並得到當局批准之前，我們無法進行詳細的分析。但根據我們的估計，它們看起來非常有希望。一旦我們進入那裡，一旦我們進入公司內部，我們將在某個時候主持一次電話會議並提供最新情況並提供更多細節。

Yeah. That's what I was hoping. That in six months, once you're there and familiar with both the company and the regulatory landscape in the country, that you'll be able to revise the forward-looking accretion beyond a year, which would be helpful in terms of just modeling the revenue. Suffice to say it's much greater than it is one year out.

是的。這就是我所希望的。六個月後，一旦您到達那裡並熟悉該公司和該國的監管環境，您將能夠修改一年後的前瞻性增長，這對於建模而言將很有幫助收入。可以說它比一年後的情況要大得多。

Yeah, that's correct, and we will do that. We understand it is important and if we don't give that information, it's very hard for you guys to make the analysis.

是的，這是正確的，我們會這樣做。我們知道這很重要，如果我們不提供這些信息，你們就很難進行分析。

Perfect. Thank you so much. Congratulations on this first very critical step in the process.

完美的。太感謝了。祝賀您在此過程中邁出了非常關鍵的第一步。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes our question-and-answer session, as well as our conference for today. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節以及今天的會議到此結束。感謝您參加今天的演講。您現在可以斷開連接。