Cosmos Holdings Inc. - COSM STOCK NEWS

Cosmos Health (NASDAQ:COSM) reported Q3 2024 results showing a 3.22% revenue decrease to $12.41 million, while maintaining stable gross profit at $1.21 million. The company achieved significant cost reductions with operating expenses down 18.6% to $3.45 million. Net loss improved by 34.8% to $2.18 million compared to Q3 2023. The balance sheet strengthened with total assets up 6% to $64.52 million and cash position reaching $3.31 million. CosmoFarm achieved record revenue of approximately $43 million in the first ten months of 2024, while Amazon UK sales of proprietary brands surged by 160%.

Cosmos Health (NASDAQ:COSM) reports significant growth and transformation in its latest shareholder letter. The company achieved revenue increases of 18.1% in Q1 2024 and 6.8% in Q2 2024 year-over-year. From 2018 to June 2024, total assets grew 194% to $60.83 million, while total debt decreased 71% to $3.95 million. The company's updated 2024-2027 guidance projects revenue growth to $155.80 million and net income reaching $20.44 million by 2027. Key developments include strategic acquisitions, R&D initiatives, international brand expansion, and a strong balance sheet with stockholders' equity at $32.1 million as of Q2 2024.

Cosmos Health's subsidiary CosmoFarm reported record revenue of $43 million for the first ten months of 2024, marking an 8.62% increase from the previous year, accompanied by a 21% rise in gross profit. The growth is attributed to investments in advanced robotic systems for automated operations, expanded sales and marketing initiatives, and strategic acquisitions of distribution networks. CosmoFarm, operating from a 29,000-square-foot facility in Athens, serves over 1,500 pharmacies and is projected to exceed $52 million in annualized revenue.

Cosmos Health Inc. (NASDAQ:COSM) has reported a significant 160% increase in sales of its proprietary brands on Amazon UK for the year-to-date 2024. Sales have risen to $596,000 from $230,000 during the same period in 2023. The company's CEO, Greg Siokas, expressed satisfaction with the strong reception of their brands in the UK market and anticipates continued growth momentum. He also highlighted that the company's brands benefit from strong profit margins, which is expected to contribute to solid profitability as they expand their revenue base.

Cosmos Health (NASDAQ:COSM) has received initial purchase orders exceeding $500,000 for its C-Scrub Wash Chlorhexidine 4% in the UK market for the period from July to September 2024. The company is securing additional orders for October 2024 and beyond, anticipating substantial profitability due to high profit margins associated with C-Scrub. Cosmos Health's sales strategy targets diverse customers, including hospitals, wholesalers, and direct-to-consumer channels through online platforms like Amazon, TikTok, and eBay.

CEO Greg Siokas expressed satisfaction with the progress in bringing C-Scrub to the UK market, noting strong demand and anticipating accelerated order pace in the coming months. The company's diversified approach aims to capitalize on multiple distribution channels to maximize market penetration and sales potential.

Cosmos Health (NASDAQ:COSM) has entered an exclusive agreement with Virax Biolabs to distribute mpox virus real-time PCR detection kits across India, a market with over 1.4 billion people. This expansion follows a recent second reported case of mpox in India on September 18, 2024. The agreement positions Cosmos Health to support India's efforts in identifying and managing mpox cases, contributing to public health initiatives.

This move comes after the WHO declared a global public health emergency on August 14, 2024, due to rising mpox cases in Africa and its spread to Europe and Asia. The agreement extends Cosmos Health's partnership with Virax beyond Europe, following a recent exclusive distribution agreement for the Gulf region.

Cosmos Health (NASDAQ:COSM) has entered the development phase for CCDL24, an innovative treatment for gastrointestinal (GI) disorders. The product utilizes advanced biopolymeric grids from natural ingredients to encapsulate bioactive molecules, enhancing drug efficacy at targeted sites. Current efforts focus on improving physicochemical properties and evaluating gut microflora impact through in vitro studies and simulations.

The global gastrointestinal therapeutics market, valued at $37.6 billion in 2022, is projected to grow at a 3.3% CAGR from 2023 to 2030. This growth is driven by the increasing prevalence of GI disorders and rising demand for effective treatments. CCDL24 builds on the success of CCX0722, leveraging biocompatible hydrogels from natural sources to create biopolymeric matrices for gastrointestinal health.

Cosmos Health (NASDAQ:COSM) has released its updated guidance for 2024-2027, projecting significant growth across key financial metrics. The company anticipates revenue to increase by 163% from $59.35 million in 2024 to $155.80 million in 2027, with gross profit expected to rise by 653% from $6.25 million to $47.06 million over the same period. Net income is projected to grow by 402%, reaching $20.44 million in 2027 from a loss of $6.76 million in 2024.

The company's strategy focuses on expanding high-margin segments, including the global growth of proprietary brands like Sky Premium Life, C-sept, and C-scrub. Cosmos Health also plans to optimize its Contract Manufacturing Organization operations and progress with its CCX obesity pill. The guidance reflects a shift towards profitability, with positive operating cash flow expected from 2025 onwards.

Taglich Brothers has published an updated coverage report on Cosmos Health (NASDAQ:COSM), maintaining a Speculative Buy rating with a $4 price target, nearly 300% above the current share price. The report highlights significant growth expectations as Cosmos transitions into a vertically integrated global health organization. Key drivers include increased contract manufacturing at Cana Laboratories and expanded distribution agreements for nutraceutical and disinfectant brands in Europe and the Middle East.

Taglich forecasts FY 2024 revenue at $56.3 million, with a 22.6% increase to $69.0 million in FY 2025, alongside a projected operating profit of $20,000 and cash earnings of $1.6 million. The report suggests that Cosmos Health's valuation should improve with revenue growth and transition to profitability, as its current price-to-sales multiple (0.3X) lags behind the 2.4X sector average.