Procaps Group SA (NASDAQ:PROC) reported Q3 FY23 revenue of $118.41 million, beating the consensus of $110.4 million and rose 7% Y/Y (+2% Y/Y in constant currency), led by the performance of RX and OTC portfolios.

Gross profit increased 1% Y/Y to $68 million, with a 58% gross margin contracting 343bps Y/Y due to higher costs and an unfavorable product mix.

Adjusted EBITDA fell 4% YY to $22 million in 3Q23, with a margin of 19% (-212 bps Y/Y).

EPS of $0.08 exceeded the consensus of $0.05.

Guidance: The company lowered its full-year guidance due to the slowdown in some markets.

Ruben Minski, CEO said, "To support increased U.S. demand of our advanced gummy technologies for the global nutraceutical industry capacity expansion in the U.S. continue as planned with the ongoing construction of a new gummy manufacturing facility in Florida."

"We expect operations to commence in 1Q24 with revenues following later in the quarter. Also in the U.S. we are exploring new products, especially high potency compounds, to take advantage of the West Palm Beach facility which has production capacity of approximately 1.8 billion softgel capsules per year for our iCDMO business unit."

Price Action: PROC shares closed higher by 13.7% at $3.98 on Tuesday.