PROC - Procaps sees FY 2022 revenue below consensus oks new $5M share buyback

Latin American healthcare and pharmaceutical firm Procaps ( NASDAQ: PROC ) on Monday reported preliminary FY 2022 revenue estimates that were below consensus.

The company also announced a new $5M share buyback program and the planned transition of its current CEO Ruben Minski.

PROC estimated preliminary FY 2022 revenue of $405M to $415M. The consensus revenue estimate is $444.20M.

According to PROC, revenue growth was impacted by unfavorable currency devaluation in markets where the company operates.

PROC estimated FY 2022 adj. EBITDA margin to compress about 530 basis points to ~19% from 2021, with preliminary FY adj. EBITDA in the range of $75M to $80M.

Additionally, PROC's board authorized a new $5M share repurchase program and has accepted Alejandro Weinstein's rejoining of the board.

"We have in place the necessary capabilities to set the business up for long-term success and I am therefore happy to report that I expect to transition to Executive Chairman of the Company in early 2024," PROC CEO Ruben Minski said in a statement .

The company will conduct a search for a new CEO for the remainder of the year and has set up a search committee for the same.

Procaps ( PROC ) stock earlier closed -3.9% at $3.96.

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