Procaps Group Reports Fourth Quarter and Fiscal Year 2021 Financial Results Fiscal Year 2021 Net Revenues Increased 23.6% to $409.7 Million, with Adjusted EBITDA Up 17.8% Year-Over-Year to $99.7 Million Strong Double Dig

Group Reports Fourth Quarter and Fiscal Year 2021 Financial Results

Fiscal Year 2021 Net Revenues Increased 23.6%

to $409.7 Million, with Adjusted EBITDA Up 17.8% Year-Over-Year to $99.7 Million

Strong Double Digit 2021 Revenue Growth in All

Business Units Driven by Market Share Gains and New Product Launches

Company to Host Business Update Call on Thursday

May 5, 2022, at 10 a.m. Eastern Time

MIAMI - April 29, 2022 - Procaps

Group S.A. (NASDAQ: PROC) ("Procaps"), a leading integrated LatAm healthcare and pharmaceutical conglomerate, today announced

its financial results for the fourth quarter and fiscal year ended December 31, 2021.

"Our performance in 2021 exceeded our

initial projections across all our business units as we achieved record financial milestones with sales breaking the $400 million mark,

driven by market share gains and new product launches," said Rub n Minski, CEO of Procaps.

"Looking forward to 2022, we expect to

see continued growth from our business units, as well as launching high-quality products across the regions we operate. We are investing

to support our product launches and building the right internal capabilities to execute our regional consolidation strategy."

Full Year 2021 and Operational Highlights

Product Development & Market

Key 2021 and Subsequent Corporate Highlights

Key Financial Highlights for the Fiscal

Year Ended December 31, 2021

Management Commentary

Procaps Chief Executive Officer, Rub n

"2021 was highlighted by our financial and

operational momentum and the successful completion of key milestones that we believe position the company for global success in 2022.

"During the year we continued the pace of

new product launches and product rollouts to new regions, as well as improvements to our inventory rotations, which combined to deliver

24% revenue growth during the year, including significant increases across all five of our business units. Increased investment in product

development and new launches enabled stronger 2021 sales.

"Our reach into North America expanded in

2021, highlighted by our entrance to the U.S. capital markets with the listing of our shares on the Nasdaq. We are now expanding production

capacity in the United States, including a recently acquired pharmaceutical production facility located in West Palm Beach, Florida, which

is expected to increase our product development capabilities by more than 70% for our iCDMO business unit. Combined with the planned construction

of a new gummy manufacturing facility in Miramar, Florida, expected to be fully operational by 2023, we are executing on our commitment

to deliver better health and nutrition to the world through Innovative oral delivery systems.

"2021 was a milestone year for Procaps,

to continue our growth trajectory and strengthen our global capabilities. We believe our innovative pharmaceutical solutions and new expansion

initiatives will increase shareholder value and I look forward to providing additional updates on our successes in the months to come.

"In 2022 we are focused on executing a multi-prong

growth strategy that we expect will continue to deliver double-digit growth in our core markets with strong cash generation to the bottom

line. We believe our capital position also enables us to focus on strategic roll-ups and consolidation in the region that we anticipate

will drive an accelerated competitive position and value creation," concluded Minski.

Procaps Chief Financial Officer, Patricio Vargas,

"We ended 2021 with record topline performance

and Adjusted EBITDA with double-digit growth.

"We are executing on our strategy designed

to deliver strong growth and establishing the necessary building blocks behind our growth drivers including: the hiring of strategic human

capital, investing in our disruptive brands and capacity expansion, all of which we believe are necessary to achieve our 2022 targets.

We are putting in place the plans to turn our top line into sustainable bottom-line results.

"As discussed with our third quarter 2021

financial results, as a result of our business combination, there were a number of one-time charges that affected our bottom line and

equity classification. In order to maintain best practices with financial reporting and IFRS parameters, we utilized the extended reporting

period in 2021 to reclassify some accounting metrics to set the template for 2022.

"We have reclassified approximately $12M

of factoring and reverse factoring arrangements previously classified as part of Trade and other payables into Borrowings, the impact

of which is reflected in the financial information included in this press release and which will be reflected in our annual audited financial

statements to be included in our annual report on Form 20-F to be filed with the SEC.

"We expect to provide more information on

our first quarter 2022 financial results in the coming weeks and look forward to engaging with investors in the U.S. and abroad at investor

conferences and non-deal roadshows during the second quarter of 2022," concluded Vargas.

Fiscal Year 2021 Financial Results

Net revenues for the year ended December 31, 2021,

totaled $409.7 million, compared to net revenues of $331.5 million for the year ended December 31, 2020, representing a growth of 23.6%

year-over-year. Net revenue by strategic business unit ("SBU") is shown below:

The increase in net revenue was attributed to

growth across all SBUs.

Gross profit increased by $44.4 million, or 23.2%,

to $235.7 million for the year ended December 31, 2021, compared to $191.3 million for the year ended December 31, 2020. This increase

was primarily attributable to strong topline growth.

Gross margin remained relatively consistent in

the year ended December 31, 2021, compared to the year ended December 31, 2020, at 57.5%.

Net loss for the year ended December 31, 2021

was $100.9 million, negatively impacted by $123.0 million of non-cash items related to the business combination, and the impact of the

put options which were terminated in connection with the closing of the business combination.

increased by 17.8% to $99.7 million for the year ended December 31, 2021, compared to $84.6 million for the year ended December 31, 2020.

This increase was driven by the strong demand across branded Rx and OTC businesses from both our existing products as well as from our

continued rollout of new product launches and increased demand in our iCDMO business.

Total net debt as of

December 31, 2021, totaled $181.3 million, of which approximately 98.6% consisted of long-term obligations. Net Debt-to-Fiscal Year 2021

Adjusted EBITDA ratio as of December 31, 2021 was 1.8x.

Cash totaled $72.1 million

on December 31, 2021, as compared to $4.2 million on December 31, 2020. The increase in cash during the year is a result of a net cash

proceeds related to the closing of the business combination which is expected to fund future growth opportunities.

Key Fourth Quarter 2021 Financial Highlights

See under the heading "Use of Non-IFRS Financial Measures" for a discussion of Adjusted EBITDA and a reconciliation

of net income, which the Company believes is the most comparable IFRS measure, to Adjusted EBITDA.

Use of Non-IFRS Financial Measures

Our management uses and discloses EBITDA, Adjusted

EBITDA, Adjusted EBITDA margin, and Net Debt-to-Adjusted EBITDA ratio, which are non-IFRS financial information to assess our operating

performance across periods and for business planning purposes. We believe the presentation of these non-IFRS financial measures is useful

to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying

operating results and provide additional insight and transparency on how we evaluate our business. These non-IFRS measures are not meant

to be considered in isolation or as a substitute for financial information presented in accordance with International Financial Reporting

Standards ("IFRS") issued by the International Accounting Standards Board and should be viewed as supplemental and in addition

to our financial information presented in accordance with IFRS.

We define EBITDA as profit (loss) for the period

before interest expense, net, income tax expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted

to exclude certain isolated costs incurred as a result of the COVID-19 pandemic, certain transaction costs incurred in connection with

the business combination ("Business Combination") with Union Acquisition Corp. II ("Union"), certain listing expenses