Procaps Group, S.A.

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. The company's actual 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. At this time, I would like to turn the conference over to Melissa Angelini, Investor Relations Director of ProCaps. Please go ahead, Melissa.

Thank you, and hello, everyone. Thank you for standing by, and welcome to the ProCaps Business Update Call. This conference call 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. Please note that our press release was issued on Monday and can also be found on the ProCAP's IR website. Please review the disclaimers included in the investor presentation. During the call, non-GAAP financial measures will be discussed and presented. We believe non-GAAP disclosures enable investors to better understand ProCAP's core operating performance. Please refer to the investor presentation for a reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measures. Hosting today's call, we have Ruben Minsky, our CEO, and Patricia Vargas, our CFO. I will now turn the call over to ProCap CEO. Please, Ruben, go ahead.

Thank you, Melissa, and thank you all for joining us today for our third quarter and first nine months of 2022 results conference call. As an agenda, I wanted to provide everyone with an overview of our performance for the period, as well as give an update perspective of our strategy going forward. From there, I will turn it over to Patricia to take you through the more detailed specifics of our financial statements. At the end of our call, Patricia and I are both very happy to answer any questions that you may have And additionally, please feel free to follow up as well with a post call with us or with Melissa. Moving to slide five, I wanted to share some highlights of the quarter and the nine months with you. Our top line sales and market share positions are right on track. I am very pleased with the results for the quarter and the year to date. We delivered solid numbers on the backdrop of significant foreign exchange and other macro headwinds. Overall, our constant currency results show the resilience of our business segments and our portfolio diversification that continues to evolve with new products and new geographies. You will also hear from Patricio that we are very committed to structuring the company for future organic and inorganic growth, investing in people, in systems, and in processes. We posted an 11% increase in net revenues in constant currency for the quarter, and 15% for the nine months, with our CDMO business growing 17% year over year. Our B2C business, we posted a 14% growth in constant currency in the nine months of the year, supported by the very positive performance of our RX and OTC products. All our divisions, except for diabetrics, are growing in terms of revenue in constant currency for the quarter and for the nine months. Our new product launches have been key drivers of our growth. Our renewal rate, that is the percentage of our revenues from products launched in the last 36 months, is at 24% year-to-date. The construction of our Gumi facilities in the U.S. is on track, and we expect to begin operations in the first quarter of next year. As we continue to navigate through the dynamic operating environment, we remain very committed to our investments to fortify our businesses, portfolio, organizational structure, and value chain by increasing our production capacity, continued investment in research and development and new products, and diversifying our geographic footprint. We also expect to close Grupo Somar's acquisition before the year's end. Moving to slide six, another important driver for our future growth is research and developments and new products. As I always have said, innovation around our proprietary order delivery systems is very much of a key to our success. As of September, we launched over 140 products in the region, continuing to execute our geo-expansion diversification strategy. The ramp-up of these products is going well. We continue to invest approximately 5% of net revenues in research and development and in pipeline and in business to realize that the value of the near and long-term opportunities are very much in front of us. Moving to slide seven, I want to take a deeper dive into explaining business segments' performance. Our top-line performance was broad-based across several therapeutic areas. In general, main drivers for growth were increased demand for both of our X and OTC products, the rollout of our existing portfolio with new product launches, the higher market penetration in the Andean region and the south of the Central America region, and the higher demand for products and services for third parties. Our top-line growth is indicative of our diversified portfolio, brand, and market share execution. The NextGel business segment is growing consistently, and the demand from regional and global business partners remains quite strong. Procaps Colombia was the business unit most impacted by the currency devaluation, as Colombia is our biggest market today. In addition to the currency devaluation, it experienced a decrease in sales for the most relevant products of the ICU units in our clinical specialty lines. Looking solely at our OTC and RX lines in Colombia, growth was substantial, about 20%, supported by the performance of products launched last year and increased demand for existing products. However, Procax Colombia as a whole grew 3% in the quarter and 9% for the first nine months on a constant currency basis. CAN, that is Central American North, was positively impacted by the rollout of new products and portfolio expansion in several therapeutic areas, such as gastrointestinal and feminine care. The low growth for this quarter is almost related to high comparison base, as in the third quarter of 2021, CAN started to increase its sales after an 18-month period of inventory normalization in the trade, which caused lower-than-normal sales in the previous quarters. Kazant, or Central America, South, and the Andean region, grew 25% in nine months in 2022 in constant basis. The increase was a result of higher demand and the rollout of new products in the region and the increased market share of existing brands. Finally, our diabetics SBU decreased 16% in nine months of 2022 and 22% in the third quarter on a constant current basis. Impacted by the delay in the launch of one of our insulin products, which was due to a problem with the device supplier, the issue has already been resolved and we are very happy that acceptance of the product looks quite promising. We were also affected by the delay in INVIMA, the Colombian Registration Office, to register products INVIMA has offered some cybersecurity issues during this year, and several registration processes got very much delayed. For Diabetrix, we were specifically waiting for a new follow-on product that was going to replace all the versions in the market, and those products were not yet launched. With that, I will ask Patricio to review our financial statements before we take on Q&A. Thank you, Ruben.