Cosmos Health Reports Q1 2025 Results: Adjusted Profitability Achieved as Gross Profit Rises 54% to $2.05M; Operating Cash Burn Down 95%, or $3.2M, to $0.19M; Approaching Cash Flow Breakeven

CHICAGO, May 15, 2025 (GLOBE NEWSWIRE) -- Cosmos Health Inc. ("Cosmos Health" or the "Company") $(COSM)$, a diversified, vertically integrated global healthcare group engaged in innovative R&D, owner of proprietary pharmaceutical and nutraceutical brands, manufacturer and distributor of healthcare products, and operator of a telehealth platform, today reported financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

Income Statement

Cosmos Health delivered solid results in Q1 2025, highlighted by a significant increase in gross profit and positive performance on both an Adjusted EBITDA and Adjusted Net Income basis, reflecting a meaningful turnaround in bottom-line performance.

   -- Revenue for Q1 2025 was $13.71 million, a decrease of 5.98% from $14.58 
      million in Q1 2024, primarily reflecting the Company's strategic shift 
      toward higher-margin focus areas and a disciplined reduction of 
      promotional-dependent activities. 
 
   -- Gross profit increased by 53.70% to $2.05 million, up from $1.33 million 
      in the prior-year period, driven by an improved product mix and 
      operational leverage. Segment contributions were as follows: 
 
          -- Wholesale logistics distribution: $1.18 million 
 
          -- Owned nutraceuticals/pharmaceuticals and manufacturing: $0.87 
             million 
 
   -- Gross margin expanded by 581 basis points to 14.95%, compared to 9.14% in 
      Q1 2024, reflecting a greater focus on higher-margin segments, including 
      contract manufacturing and proprietary brands, as well as operational 
      synergies realized at Cana Laboratories. 
 
   -- Total operating expenses declined by 9.05% to $2.88 million, compared to 
      $3.17 million in Q1 2024, reflecting: 
 
          -- 17.34% reduction in salaries and wages, driven by efficiency 
             initiatives 
 
          -- 83.78% decline in sales and marketing expenses, due to a strategic 
             reduction in promotional spend 
 
          -- 14.46% decrease in general and administrative expenses, adjusted 
             for non-cash items 
 
   -- Net loss narrowed by 56.17% to $0.82 million, down from $1.87 million in 
      the prior-year period. The loss was primarily attributable to costs 
      related to the Company's Nasdaq U.S. listing. 

Return to Profitability

On an adjusted basis, Cosmos Health delivered profitable results in both EBITDA and Net Income, driven by improved gross profitability and disciplined cost management.

   -- Adjusted EBITDA increased by 157.8% to $0.37 million, compared to a loss 
      of $0.64 million in Q1 2024. 
 
   -- Adjusted Net Income improved by 139.4% to $0.28 million, versus a loss of 
      $0.71 million in the prior-year period. 

Key contributors to this performance were the Company's wholesale logistics segment (CosmoFarm) and its owned nutraceutical and pharmaceutical products portfolio, including Sky Premium Life$(R)$, which delivered strong results.

Balance Sheet

Stockholders' equity increased by $1.42 million, while the liabilities-to-assets ratio remained a modest 54.6%, reflecting continued financial discipline.

   -- Total assets increased by 5.3% to $57.2 million, up from $54.3 million as 
      of December 31, 2024, reflecting a diversified asset base with enhanced 
      liquidity, a strong inventory position, and a solid real estate and 
      intellectual property portfolio. 
 
   -- Total liabilities increased by 4.9% to $31.24 million as of March 31, 
      2025, up from $29.78 million at year-end 2024, primarily due to moderate 
      increases in lines of credit and notes payable, while accounts payable 
      and other current liabilities remained relatively stable. 
 
   -- Total stockholders' and mezzanine equity increased by 5.8% to $25.95 
      million as of March 31, 2025, up from $24.53 million as of December 31, 
      2024. 

Cash Flow Statement

Operating cash burn improved by 94.5% year-over-year, decreasing by $3.22 million to negative $0.19 million in Q1 2025 from negative $3.41 million in Q1 2024, primarily driven by improved working capital management, stronger accounts receivable collections, and lower prepaid expense outflows.

Management Commentary

Greg Siokas, CEO of Cosmos Health, stated: "We are pleased with our strong first-quarter performance and the steady progress across multiple strategic areas. Gross profit and gross margins increased significantly, supported by an improved product mix and stronger operating leverage. Our continued focus on efficiency and disciplined cost management is yielding tangible results, as reflected in our return to profitability on both an Adjusted EBITDA and Adjusted Net Income basis.

Importantly, we are approaching a key milestone, having substantially reduced our operating cash burn and moving closer to operational cash flow breakeven. Moreover, we ended the quarter with higher stockholders' equity and improved liquidity, including an increased cash balance. Our balance sheet remains prudent, underpinned by modest leverage and a diversified asset base.

Operationally, we continue to advance strategic initiatives across the group. Our R&D pipeline is evolving, with multiple projects underway, including our CCX0722 weight management solution which has entered its final development phase and is progressing toward launch. We are also scaling our high-margin contract manufacturing segment through new long-term agreements, while expanding the global footprint of Sky Premium Life, our flagship nutraceutical brand. In parallel, we are growing our C-Scrub antiseptics line, including continued progress in the lucrative UK market.

Finally, I want to reaffirm my personal commitment to Cosmos. Since December 20, 2024, I have increased my personal shareholding by over 2.7 million shares, representing an investment of more than $1.3 million, which reflects my strong confidence in the Company's strategy and long-term growth potential."

 
      UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                    AND COMPREHENSIVE INCOME (LOSS) 
 
                                        Three Months Ended March 31, 
                                      -------------------------------- 
                                           2025            2024 
(in $) 
GAAP - Figures 
REVENUE                                   13,712,528      14,584,473 
GROSS PROFIT                               2,049,799       1,333,626 
TOTAL OPERATING EXPENSES                 (2,882,944)     (3,169,734) 
GAIN (LOSS) FROM OPERATIONS                (833,145)     (1,836,108) 
TOTAL OTHER INCOME (EXPENSE), NET             15,048        (30,582) 
NET GAIN (LOSS)                            (818,097)     (1,866,690) 
 
NON-GAAP Figures* 
------------------------------------ 
ADJUSTED EBITDA                              373,119       (644,048) 
ADJUSTED NET INCOME (LOSS)                   277,338       (706,955) 
 

(*) See "Definitions of Non-GAAP Measures" and "Reconciliation of Non-GAAP Measures" sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release.

Definitions of Non-GAAP Measures

We collect and analyze operating and financial data to evaluate the health of our business and assess our performance. In addition to Revenue, Income (Loss) from Operations and Net Income (Loss) under GAAP, we use: EBITDA, Adjusted EBITDA, and Adjusted Net Income (Loss). We have included these non-GAAP financial measures because they are key measures used by our management to evaluate our operating performance. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and Board of Directors. Our calculation of these non-GAAP financial measures may differ from similarly titled non-GAAP measures, if any, reported by our peer companies. These non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP.

Adjusted EBITDA

We define Adjusted EBITDA as Income (Loss) before Income Taxes, excluding (i) depreciation and amortization expense, (ii) interest income (expense), (iii) non-cash interest expense, (iv) stock-based compensation expense, (v) non-recurring and extraordinary items (vi) other income (expense), net, (vii) gain (loss) on equity investments, net, (viii) gain on extinguishment of debt, (ix) change in fair value of derivative liability (x) foreign currency transaction, net, and (xi) prior years bad debt allowances.

We have included Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans, and make strategic decisions. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and Board of Directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and non-recurring and extraordinary items.

Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP.

Adjusted Net Income (Loss)

We define Adjusted Net Income (Loss) as Adjusted EBITDA (see above) adding provision for income taxes and deducting interest expense.

Adjusted Net Income has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP.

Reconciliation of Non-GAAP Measures

Adjusted EBITDA & Adjusted Net Income (Loss)

The following table presents reconciliations of Adjusted EBITDA & Adjusted Net Income (Loss) to the most directly comparable GAAP financial measure for each of the periods indicated.

 
                                           Three Months Ended March 31, 
                                         -------------------------------- 
                                             2025            2024 
(in $) 
INCOME (LOSS) BEFORE INCOME TAXES            (818,097)      (1,866,690) 
Adjustments (add back): 
Depreciation and amortization expense          320,439          319,787 
Interest (income) / expense, net                95,781           62,907 
EBITDA                                       (401,877)      (1,483,996) 
Non-recurring and extraordinary items          135,621          532,078 
Stock based compensation                       556,611          340,194 
Other income (expense), net                    261,730        (191,824) 
Gain (loss) on equity investments, net         (3,142)          (1,755) 
Gain on extinguishment of debt               (175,824)          161,254 
---------------------------------------  -------------  --------------- 
ADJUSTED EBITDA                                373,119        (644,048) 
Interest income / (expense), net              (95,781)         (62,907) 
---------------------------------------  -------------  --------------- 
ADJUSTED NET INCOME                            277,338        (706,955) 
---------------------------------------  -------------  --------------- 
 
 
                  CONDENSED CONSOLIDATED BALANCE SHEET DATA 
 
                          March 31, 2025  December 31, 2024    September 30, 
                             Unaudited         Audited        2024 Unaudited 
(in $) 
ASSETS 
Cash & cash equivalents          742,881            315,105          3,314,845 
Inventory                      4,736,222          4,355,365          4,885,015 
Accounts receivable, 
 prepaid expenses and 
 other current assets         20,930,780         19,618,932         27,101,314 
Property and equipment, 
 net                          10,016,068          9,689,505         10,575,928 
Goodwill and intangible 
 assets, net                   7,802,529          7,756,534          7,746,761 
Loans receivable               7,238,494          6,946,749          7,398,180 
Other noncurrent assets        5,724,970          5,629,702          3,497,939 
TOTAL ASSETS                  57,191,944         54,311,892         64,519,982 
 
LIABILITIES AND 
STOCKHOLDERS' EQUITY 
Accounts payable and 
 accrued expenses             12,542,708         12,648,882         12,818,143 
Other current 
 liabilities                   3,963,167          3,564,569          4,769,933 
Lines of credit                7,305,377          6,985,052          5,989,425 
Notes payable                  4,863,275          4,119,471          4,279,340 
Other non-current and 
 finance/lease 
 liabilities                   2,565,705          2,460,990          1,686,542 
Stockholders' and 
 mezzanine equity             25,951,712         24,532,929         34,976,599 
TOTAL LIABILITIES AND 
 STOCKHOLDERS'/MEZZANINE 
 EQUITY                       57,191,944         54,311,893         64,519,982 
 
 
 
                 CONDENSED CONSOLIDATED CASH FLOW DATA 
 
                                          Three Months Ended March 31, 
                                        -------------------------------- 
                                             2025             2024 
(in $)                                     Unaudited         Audited 
                                        --------------  ---------------- 
NET CASH USED IN OPERATING ACTIVITIES        (186,316)     (3,412,103) 
NET CASH USED IN INVESTING ACTIVITIES          (7,069)         126,454 
NET CASH PROVIDED BY FINANCING 
 ACTIVITIES                                    560,862         206,942 
 
CASH AT BEGINNING OF YEAR                      315,105       3,833,195 
CASH AT END OF YEAR                            742,881         865,099 
 
 

About Cosmos Health Inc.

Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life(R), Mediterranation(R), bio-bebe(R), C-Sept(R) and C-Scrub(R). Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices $(GMP.UK)$ and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.cana.gr, www.zipdoctor.co, www.cloudscreen.gr, as well as LinkedIn and X.

Forward-Looking Statements

With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could", are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, the impact of the war in Ukraine, on the Company's business, operations and the economy in general, and the Company's ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:

BDG Communications

cosm@bdgcommunications.com

+44 207 0971 653

(END) Dow Jones Newswires

May 15, 2025 09:30 ET (13:30 GMT)