Cosmos Health Reports Full-Year 2024 Results: Revenue Increases 2% to $54.43 Million While Operating Expenses Decline 24.2% to $19.86 Million | COSM Stock News

04/16/2025 - 12:45 PM CHICAGO, April 16, 2025 (GLOBE NEWSWIRE) -- Cosmos Health Inc. ("Cosmos Health" or the “Company'') (NASDAQ: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 full year ended December 31, 2024. Full Year 2024 Financial Highlights Income Statement: FY 2024 performance was marked by revenue growth, an increase in R&D investments, and a substantial reduction in operating expenses, while bottom-line results were impacted by the absence of non-recurring gains recognized in the prior year. Revenue increased by 2.0% to $54.43 million in FY 2024, from $53.38 million in the prior year, driven primarily by sustained organic growth and continued contributions from prior acquisitions.Gross margin was 7.92%, compared to 8.15% in FY 2023, reflecting a greater mix of revenue from the lower-margin logistics distribution segment.Total operating expenses declined by 24.16% to $19.86 million, compared to $26.18 million in FY 2023. This includes: 40.26% reduction in general and administrative expenses.71% decrease in sales and marketing expenses, following a strategic reduction in promotional spend. Total other income, net, was a loss of $0.64 million in FY 2024, compared to income of $3.29 million in FY 2023. The year-over-year decline was primarily due to the absence of non-cash gains recognized in the prior year, including: $1.91 million gain on debt extinguishment.$1.44 million bargain purchase gain related to the acquisition of Cana Laboratories. Adjusted EBITDA was negative $3.73 million, compared to positive $0.06 million in FY 2023, while Adjusted net loss widened to $4.74 million from $0.81 million. Balance Sheet: The liabilities-to-assets ratio remains a modest 55% as of year-end 2024, reflecting a balanced capital structure and continued financial discipline. Total assets decreased by 17.72% to $54.31 million as of December 31, 2024, from $66.01 million at the end of 2023, while the Company continued to maintain a well-diversified asset base, supported by the following key components: Tangible asset base, with property and equipment, net, totaling $9.69 million, largely reflecting the Company’s wholly owned real estate assets, including CosmoFarm’s logistics center and Cana Laboratories’ manufacturing facilities.Goodwill and intangible assets, net, totaling $7.76 million, representing investments in intellectual property, including acquired licenses for established pharmaceutical and nutraceutical products.Inventory position of $4.36 million, reflecting enhanced procurement discipline and improved inventory management, with higher sales achieved despite a leaner inventory base. Total liabilities decreased by 0.64% to $29.78 million as of December 31, 2024, compared to $29.97 million at year-end 2023. Key highlights include: Operating lease liabilities declined by 41%, or $346,000, following the early termination of a long-term lease at the Thessaloniki corporate offices. This move supports the Company’s cost-efficiency strategy to consolidate all corporate functions in Athens.Accounts payable decreased by $754,000, or 6%, reflecting tighter cash flow management and more proactive settlement of supplier obligations. Total stockholders’ and mezzanine equity stood at $24.53 million, versus $36.04 million as of December 31, 2023. Recent Highlights R&D and Product Innovation Advanced the pipeline with AI-driven patent filings targeting multiple sclerosis, allergic inflammation, gliomas and hematologic malignancies.Entered the final development phase for CCX0722, a proprietary weight management solution, with product launch expected in 2026.Secured two WIPO-patented anticancer drugs for prostate, ovarian, and colorectal cancers, valued at over $24.5 million, enhancing the oncology portfolio.Strengthened leadership with the appointment of Professor Dimitrios Trafalis, MD, as Head of Oncology. Manufacturing Expanded Cana Laboratories’ facilities and production capabilities.Signed long-term manufacturing contracts with Pharmex and Provident Pharmaceuticals, covering over 9.5 million units across multiple product lines, enhancing revenue visibility and supporting margin expansion. Global Commercial Expansion Expanded the Sky Premium Life nutraceutical brand with 60 new SKUs.Launched the Sky Premium Life brand in Albania, supported by a $300,000 initial order, and secured a $578,460 order in Qatar.Expanded distribution of avian influenza PCR kits across Europe and the GCC through an exclusive agreement with Virax Biolabs. Strategic & Financial Milestones Strengthened the executive team with the appointment of Dimitris Moraitis as Vice President of Strategy & Operations.Secured a €2.2 million (approximately $2.29 million) secured bond loan from a European bank on competitive terms, with an option to upsize. The bond carries an interest rate of 2.95% plus the applicable 6-month Euribor.CEO Greg Siokas acquired over 1 million common shares through multiple transactions between December 20, 2024, and March 4, 2025.Integrated Bitcoin and Ethereum as treasury reserve assets. Management Commentary Greg Siokas, CEO of Cosmos Health, stated: "We have achieved a number of important milestones over the past year, but I believe we are still in the very early stages of what represents a key inflection point for Cosmos. On the R&D front, we are leveraging AI-driven drug repurposing technologies to advance our research agenda, and our scientists are making meaningful progress toward the commercialization of our proprietary weight loss drug. In manufacturing, we continue to invest in our Cana Laboratories facility and are securing long-term contract manufacturing agreements, a strategic and high-margin segment for us. We are also investing in the development of our portfolio of proprietary brands, most notably through the rapid global expansion of Sky Premium Life, our high-margin nutraceutical line, which continues to grow with the addition of new SKUs and increasing market penetration across regions including Europe and the Middle East. As we’ve previously noted, our hard assets offer valuable strategic flexibility. We recently capitalized on this by securing a €2.2 million loan against our CosmoFarm logistics center on highly attractive terms. Importantly, this is a structure we can replicate, particularly with our significantly more valuable real estate at Cana Laboratories. Lastly, I continue to demonstrate my commitment to Cosmos. Since December 20, 2024, I have increased my personal ownership by over 1 million shares, a clear reflection of my confidence in the Company’s long-term strategy and future potential.” CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Years Ended December 31,20242023(in $)GAAP - FiguresREVENUE54,426,40253,376,874GROSS PROFIT4,311,3234,349,569TOTAL OPERATING EXPENSES(19,856,153)(26,180,786)GAIN (LOSS) FROM OPERATIONS(15,544,830)(21,831,217)TOTAL OTHER INCOME (EXPENSE), NET(638,188)3,288,563NET GAIN (LOSS)(16,183,018)(18,542,654)NON-GAAP Figures*ADJUSTED EBITDA(3,730,955)59,627ADJUSTED NET INCOME (LOSS)(4,743,269)(806,849) (*) 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. Years Ended December 31,20242023(in $)INCOME (LOSS) BEFORE INCOME TAXES(16,183,018)(18,542,654)Adjustments (add back):Depreciation and amortization expense1,249,238614,377Interest income / (expense), net1,012,314866,476EBITDA(13,921,466)(17,061,801)Non-recurring and extraordinary items3,926,8914,128,741Stock based compensation1,689,712498,279Other income (expense), net(86,737)65,867Gain (loss) on equity investments, net(2,470)(4,584)Gain on extinguishment of debt--Change in fair value of derivative liability-(3,384)Foreign currency transaction, net121,530(198,863)Bad Debt Allowances4,541,58411,850,788Other provisions-784,584ADJUSTED EBITDA(3,730,955)59,627Interest income / (expense), net(1,012,314)(866,476)Provision for income taxes--ADJUSTED NET INCOME(4,743,269)(806,849) CONDENSED CONSOLIDATED BALANCE SHEET DATA December 31, 2024September 30, 2024December 31, 2023(in $)ASSETSCash & cash equivalents315,1053,314,8453,833,195Inventory4,355,3654,885,0154,789,054Accounts receivable, prepaid expenses and other current assets19,618,93227,101,31427,131,193Property and equipment, net9,689,50510,575,92810,455,499Goodwill and intangible assets, net7,756,5347,746,7617,684,183Loans receivable6,946,7497,398,1807,903,378Other noncurrent assets5,629,7023,497,9394,218,309TOTAL ASSETS54,311,89264,519,98266,014,811LIABILITIES AND STOCKHOLDERS' EQUITYAccounts payable and accrued expenses12,648,88212,818,14312,309,890Other current liabilities3,564,5694,769,9333,487,353Lines of credit6,985,0525,989,4256,630,273Notes payable4,119,4714,279,3404,617,510Other non-current and finance/lease liabilities2,460,9901,686,5422,926,757Stockholders' and mezzanine equity24,532,92934,976,59936,043,028TOTAL LIABILITIES AND STOCKHOLDERS'/MEZZANINE EQUITY54,311,89264,519,98266,014,811 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®, Mediterranation®, bio-bebe®, C-Sept® and C-Scrub®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) 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 StatementsWith 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 Communicationscosm@bdgcommunications.com+44 207 0971 653