Procaps Group Reports Preliminary First Quarter 2022 Results Net Revenues Increased by 11% to U$ 86 million, with Adjusted EBITDA Up 15% Year-Over-Year to $9 Million MIAMI, FL - BARRANQUILLA, COL

Reports Preliminary First Quarter 2022 Results

Net Revenues Increased by 11% to U$ 86 million,

with Adjusted EBITDA Up 15% Year-Over-Year to $9 Million

MIAMI, FL - BARRANQUILLA, COL -

June 2, 2022 - Procaps Group S.A. (NASDAQ: PROC) ("Procaps"), a leading integrated LatAm healthcare and pharmaceutical

conglomerate, today announced its preliminary financial results for the quarter ended March 31, 2022 ("Q1-22").

Preliminary Q1-22 Results Highlights

first quarter of 2022 continued our previous year's momentum with significant demand across business units supported

by the ongoing rollout of new product launches. As previously announced, we expect that the acquisition of Grupo Somar (including Qu mica

y Farmacia, Gelcaps and related entities) from Advent International will provide us with an important presence in Mexico, the region's

second largest market, and further strengthen our future outlook. We look forward to sharing more details on our first quarter financial

results conference call in the next few weeks," said Rub n Minski, CEO of Procaps.

First Quarter 2021 Preliminary Financial

Net revenues for Q1-22 totaled $85.6 million,

representing an increase of 10.6% when compared to net revenues of $77.4 million for Q1-21.

The increase was primarily driven by positive

performances in the Procaps Colombia, CAN and CASAND business units. The increase in net revenues was partially offset by macroeconomic

headwinds, particularly the depreciation of certain local currencies in the countries where Procaps operates to the U.S. dollar and certain

global supply chain issues.

Net revenue by strategic business unit ("SBU")

Central America North (CAN)

The 35.1% increase in net revenues for the CAN

SBU from $8.3 million for Q1-21 to $11.3 million for Q1-22 was primarily due to the increased demand for both Rx and OTC products, such

as Betaduo, Nutrigel and Foskrol.

Central America South and Andean Region

The 19.8% increase in net revenue for the CASAND

SBU from $10.5 million for Q1-21 to $12.6 million for Q1-22 was primarily due to further development and the rollout of new products in

the region, such as Fortzink, Derovit and Vitybell, and the continued strengthening of sales of existing brands in key growth markets,

such as Betaduo, Albisec and Alercet.

The Diabetrics SBU experienced a decrease in net

revenue of 28.9% from $6.5 million for Q1-21 to $4.6 million for Q1-22, primarily due to Coomeva, an important Colombian public health

insurance plan (Entidades Promotoras de Salud, or "EPS"), going bankrupt, which affected our sales of Diabetrics products

through governmental channels as distributors adjusted their inventories to account for the patients previously covered by Coomeva. We

believe these adjustments to be temporary and expect distributers to readjust their inventories when the patients previously covered by

Coomeva are transferred to another EPS. In addition, we also experienced certain supply chain issues with suppliers of materials, which

have been addressed in the second quarter of 2022.

The 1.4% increase in net revenue for the Nextgel

SBU from $25.0 million for Q1-21 to $25.3 million for Q1-22 was primarily due a significant increase in the CDMO for Softgel and gummies

business, which was partially offset by a decrease in the sales of Dronabinol and Progesterone products due to regulatory approvals processes

and manufacturing site changes, which we expect to be resolved by the third quarter of 2022.

The 17.4% increase in net revenues for the Procaps

Colombia SBU from $27.1 million for Q1-21 to $31.9 million for Q1-22 was primarily due to increased demand for existing Rx and OTC products,

such as Gestavit, Citragel, Muvett and B-Vit, and the rollout of new products, such as Dolofen and Calcio+Vit D3.

Adjusted EBITDA increased by 15.5% from $8.0 million

for Q1-21 to $9.2 million for Q1-22.

This increase was primarily driven by the increased

demand across branded Rx and OTC businesses from both our existing products and iCDMO business as well as from our continued rollout of

new product launches.

Adjusted EBITDA margin for Q1-22 was 10.7%, a

45.4 bps increase from Q1-21. 2

Please see below the reconciliation of EBITDA,

Adjusted EBITDA and Adjusted EBITDA margin to net income, which Procaps believes is the most comparable IFRS measure to Adjusted EBITDA

for Q1-22 and Q1-21.

Net income for Q1-22 was $16.4 million, compared

to a net loss of $17.0 million for Q1-21. The increase in net income for the period includes a U$20.2 million non-cash gain from the re-valuation

of our ordinary shares held in escrow and warrant liabilities, which the change in fair value from December 31, 2021 to March 31, 2022

is recorded as finance (expenses) income, net.

Procaps expects to report its complete first quarter

2022 financial results in the next few weeks. The preliminary financial results set forth in this release are based on the information

available to us at this time. Our actual results may vary from the estimated preliminary results presented here due to the completion

of our financial closing procedures, final adjustments and other developments that may arise between now and the time the financial results

for the quarter ended March 31, 2022 are finalized. The estimated preliminary financial results have not been audited or reviewed by our

independent registered public accounting firm. These estimates should not be viewed as a substitute for our full interim financial statements.

Accordingly, you should not place undue reliance on this preliminary data.

In conjunction with Procaps' full earnings release for the first

quarter of 2022, we will host a Business Update conference call during which management will discuss the first quarter 2022 financial

results and provide an update on current and future business initiatives. Further information regarding the call will be provided at a

Procaps Group, S.A. ("Procaps") (NASDAQ:

PROC) is a developer of pharmaceutical and nutraceutical solutions, medicines, and hospital supplies that reach more than 50 countries

in all five continents. Procaps has a direct presence in 13 countries in Latin America and more than 4,900 collaborators working under

a sustainable model. Procaps develops, manufactures, and markets over the counter (OTC) pharmaceutical products and prescription pharmaceutical

drugs (Rx), nutritional supplements and high-potency clinical solutions. For more information, visit www.procapsgroup.com or Procaps Group's

investor relations website investor.procapsgroup.com.

Use of Non-IFRS Financial Measures

Our management uses and discloses EBITDA, Adjusted

EBITDA and Adjusted EBITDA margin, 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 net income (loss) for the

period before interest (expense) income, net, income tax expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA

further adjusted to exclude certain foreign currency translation adjustments, certain transaction costs incurred in connection with the

business combination ("Business Combination") with Union Acquisition Corp. II and certain other costs, and other nonrecurring

nonoperational or unordinary items as Procaps may deem appropriate from time to time. We also report Adjusted EBITDA as a percentage of

net revenue as additional measures so investors may evaluate our Adjusted EBITDA margin. None of EBITDA, Adjusted EBITDA or Adjusted EBITDA

margin are presented in accordance with generally accepted accounting principles or IFRS and are non-IFRS financial measures.

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin

are also used by many of our investors and other interested parties in evaluating our operational and financial performance across reporting

periods. We believe that the presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provides useful information to investors

by allowing an understanding of key measures that we use internally for operational decision-making, budgeting, evaluating acquisition

targets, and assessing our operating performance. These measures have limitations as analytical tools and should not be considered in

isolation or as substitutes for analysis of our results as reported under IFRS. We strongly encourage investors to review our financial

statements in their entirety and not to rely on any single financial measure.

Because non-IFRS financial measures are not standardized,