Cosmos Health Reports Q1 2024 Results: Continues to Deliver Strong Growth and Improved Performance with 18% YoY Revenue Increase and 39% Rise in Gross Profit
Cosmos Health Inc. (NASDAQ:COSM) reported strong Q1 2024 results, with an 18.1% revenue increase to $14.58 million and a 39.3% gross profit rise to $1.33 million compared to Q1 2023. The company's gross margin improved by 140 basis points to 9.1%. Operating expenses decreased by 12.2%, leading to a 30.7% reduction in operating loss. However, net loss increased to $1.87 million due to the absence of a one-time gain on debt extinguishment from the previous year. Cosmos Health continued its deleveraging efforts, reducing total liabilities by 7.3% while maintaining stockholders' equity near record levels at $34.55 million.
Cosmos Health Inc. (NASDAQ:COSM) ha riportato risultati solidi per il primo trimestre del 2024, con un aumento dei ricavi del 18,1% a 14,58 milioni di dollari e un aumento del 39,3% del profitto lordo a 1,33 milioni di dollari rispetto al primo trimestre del 2023. Il margine lordo dell'azienda è migliorato di 140 punti base, raggiungendo il 9,1%. Le spese operative sono diminuite del 12,2%, portando a una riduzione del 30,7% della perdita operativa. Tuttavia, la perdita netta è aumentata a 1,87 milioni di dollari a causa dell'assenza di un guadagno straordinario dalla cancellazione del debito dell'anno precedente. Cosmos Health ha continuato i suoi sforzi di deleveraging, riducendo le passività totali del 7,3%, mantenendo al contempo il capitale degli azionisti vicino ai livelli record di 34,55 milioni di dollari.
Cosmos Health Inc. (NASDAQ:COSM) reportó resultados sólidos para el primer trimestre de 2024, con un aumento del 18,1% en los ingresos a 14,58 millones de dólares y un aumento del 39,3% en el beneficio bruto a 1,33 millones de dólares en comparación con el primer trimestre de 2023. El margen bruto de la compañía mejoró en 140 puntos base al 9,1%. Los gastos operativos disminuyeron un 12,2%, lo que llevó a una reducción del 30,7% en la pérdida operativa. Sin embargo, la pérdida neta aumentó a 1,87 millones de dólares debido a la falta de una ganancia extraordinaria por la extinción de deudas del año anterior. Cosmos Health continuó sus esfuerzos de reducción de deuda, disminuyendo las pasivos totales en un 7,3%, mientras mantenía el capital de los accionistas cerca de niveles récord en 34,55 millones de dólares.
코스모스 헬스 주식회사 (NASDAQ:COSM)는 2024년 1분기 강력한 실적을 보고하며, 수익이 18.1% 증가하여 1,458만 달러에 달하고, 총 이익이 39.3% 증가하여 133만 달러에 이르렀다고 전했습니다. 지난해 1분기와 비교할 때, 회사의 총 마진이 140bp 개선되어 9.1%에 도달했습니다. 운영 비용은 12.2% 감소하여 운영 손실이 30.7% 줄어드는 결과를 가져왔습니다. 그러나, 지난 해의 일회성 부채 탕감 수익의 부재로 인해 순 손실이 187만 달러로 증가했습니다. 코스모스 헬스는 부채 축소 노력을 계속하고 있으며, 총 부채를 7.3% 줄이고 주주 자본을 3,455만 달러로 기록적인 수준에 유지하고 있습니다.
Cosmos Health Inc. (NASDAQ:COSM) a annoncé de forts résultats pour le premier trimestre 2024, avec une augmentation de 18,1% des revenus à 14,58 millions de dollars et une hausse de 39,3% du bénéfice brut à 1,33 million de dollars par rapport au premier trimestre 2023. La marge brute de l'entreprise s'est améliorée de 140 points de base, atteignant 9,1%. Les dépenses d'exploitation ont diminué de 12,2%, entraînant une réduction de 30,7% de la perte d'exploitation. Cependant, la perte nette a augmenté à 1,87 million de dollars en raison de l'absence d'un gain unique lié à l'extinction de dettes de l'année précédente. Cosmos Health a poursuivi ses efforts de désendettement, réduisant les passifs totaux de 7,3%, tout en maintenant les capitaux propres des actionnaires près de niveaux record, à 34,55 millions de dollars.
Cosmos Health Inc. (NASDAQ:COSM) hat starke Ergebnisse für Q1 2024 bekannt gegeben, mit einem Umsatzanstieg von 18,1% auf 14,58 Millionen Dollar und einem Bruttogewinnanstieg von 39,3% auf 1,33 Millionen Dollar im Vergleich zu Q1 2023. Die Bruttomarge des Unternehmens verbesserte sich um 140 Basispunkte auf 9,1%. Die Betriebskosten sanken um 12,2%, was zu einer Reduzierung des Betriebsverlusts um 30,7% führte. Allerdings stieg der Nettoverlust auf 1,87 Millionen Dollar aufgrund des Fehlens eines einmaligen Gewinns durch Debittilgung aus dem Vorjahr. Cosmos Health setzte seine Bemühungen zur Verschuldungsreduzierung fort und verringerte die Gesamtverbindlichkeiten um 7,3%, während das Eigenkapital der Aktionäre nahe Rekordhöhen von 34,55 Millionen Dollar blieb.
- 18.1% year-over-year revenue increase to $14.58 million
- 39.3% increase in gross profit to $1.33 million
- Gross margin improvement of 140 basis points to 9.1%
- 12.2% decrease in operating expenses
- 30.7% reduction in loss from operations
- 7.3% decrease in total liabilities
- Net loss increased to $1.87 million compared to $0.46 million in Q1 2023
- Adjusted EBITDA decreased to a loss of $0.53 million from a gain of $0.59 million in Q1 2023
- Adjusted Net Loss of $0.70 million compared to a gain of $0.48 million in the prior-year period
- Total Assets decreased by 5.6% to $62.35 million
- Total Stockholders' Equity decreased by 4.2% to $34.55 million
Cosmos Health's Q1 2024 results show mixed signals. On the positive side, revenue increased by
The increased loss is partly due to the absence of a one-time gain on debt extinguishment from the previous year. Operating expenses decreased by
Cosmos Health's diversification strategy appears to be yielding results, with growth driven by both organic expansion and M&A activity. The improved performance in the nutraceuticals segment and benefits from horizontal integration at Cana Laboratories suggest that the company's investments are beginning to pay off. The global distribution agreements for proprietary brands and the use of AI in drug repurposing through Cloudscreen indicate potential for future growth.
However, the company's transition to profitability remains a challenge. While revenue growth is strong, the company needs to further improve its margins and reduce operating losses to achieve sustainable profitability. The market will likely focus on the company's ability to continue its growth trajectory while managing costs and improving bottom-line results in the coming quarters.
CHICAGO, IL / ACCESSWIRE / August 20, 2024 / 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 first quarter ended March 31, 2024.
First Quarter 2024 Financial Highlights
Income Statement:
Revenue increased by
18.1% , or$2.23 million , to$14.58 million in Q1 2024, up from$12.35 million in Q1 2023, driven by organic growth and the positive impact of 2023 M&A activity.Gross Profit increased by
39.3% , reaching$1.33 million in Q1 2024, up from$0.96 million in the prior-year period.Gross Margin improved by 140 basis points to
9.1% in Q1 2024, up from7.7% in Q1 2023, primarily due to a higher contribution from the nutraceuticals segment and benefits from horizontal integration at Cana Laboratories.Operating Expenses decreased by
12.2% to$3.17 million in Q1 2024, down from$3.61 million in Q1 2023, largely due to a32.1% reduction in general and administrative expenses and a62.8% decline in sales and marketing expenses.Loss from Operations decreased by
30.7% to$1.84 million in Q1 2024, compared to$2.65 million in Q1 2023, driven by improved gross profit and lower operating expenses.Total other Income amounted to a loss of
$0.03 million in Q1 2024, down from a gain of$2.16 million in Q1 2023, which was predominantly driven by a$1.91 million gain on the extinguishment of debt.Net Loss amounted to
$1.87 million in Q1 2024, compared to a loss of$0.46 million in Q1 2023.Adjusted EBITDA decreased to a loss of
$0.53 million in Q1 2024, compared to a gain of$0.59 million in Q1 2023.Adjusted Net Loss amounted to
$0.70 million in Q1 2024, compared to a gain of$0.48 million in the prior-year period.
Balance Sheet:
Total Assets decreased by
5.6% to$62.35 million from$66.01 million as of December 31, 2023.Ended the quarter with tangible assets of
$10.17 million , reflecting the acquisition of CosmoFarm's logistics center and Cana Laboratories' facilities.
Total Liabilities decreased by
7.3% to$27.80 million from$29.97 million as of December 31, 2023. The decrease was due to a combination of factors, including:$1.38 million or47.3% decrease in other non-current and finance/lease liabilities$0.58 million or4.7% decrease in accounts payable and accrued expenses$0.46 million or9.9% decrease in notes payable$0.20 million or3.1% decrease in lines of credit
Total Stockholders' Equity decreased by
4.2% to$34.55 million from$36.04 million as of December 31, 2023.
Management Commentary
Greg Siokas, CEO of Cosmos Health, stated: "I am extremely pleased that our solid momentum from 2023 is continuing into 2024. Cosmos has returned to strong growth mode, achieving nearly
We are beginning to see the positive impact of our various investments, including, among others, our manufacturing facilities at Cana, benefiting from both vertical and horizontal integration; our expanded pharmacy distribution network, bolstered by multiple bolt-on acquisitions; the broader reach of our proprietary brands through global distribution agreements; and advances in our R&D program utilizing cutting-edge AI for drug repurposing through Cloudscreen.
We remain committed to achieving sustained profitability through operational efficiencies, disciplined cost management, and the continued momentum of our robust sales growth."
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
| Three Months Ended March 31, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
(in $) |
|
|
|
|
|
| ||
GAAP - Figures |
|
|
|
|
|
| ||
REVENUE |
|
| 14,584,473 |
|
|
| 12,349,777 |
|
GROSS PROFIT |
|
| 1,333,626 |
|
|
| 957,077 |
|
TOTAL OPERATING EXPENSES |
|
| (3,169,734 | ) |
|
| (3,608,249 | ) |
GAIN (LOSS) FROM OPERATIONS |
|
| (1,836,108 | ) |
|
| (2,651,172 | ) |
TOTAL OTHER INCOME (EXPENSE), NET |
|
| (30,582 | ) |
|
| 2,164,011 |
|
NET LOSS |
|
| (1,866,690 | ) |
|
| (459,863 | ) |
|
|
|
|
|
|
|
|
|
NON-GAAP FIGURES |
|
|
|
|
|
|
|
|
ADJUSTED EBITDA |
|
| (532,922 | ) |
|
| 588,273 |
|
ADJUSTED NET INCOME (LOSS) |
|
| (701,594 | ) |
|
| 481,198 |
|
(*) 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). 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 expense, (iii) non-recurring and extraordinary items, (iv) stock-based compensation expense, (v) other income (expense), net, (vi) gain (loss) on equity investments, net, , (vii) change in fair value of derivative liability, (viii) foreign currency transaction, net (ix) prior years bad debt allowances, and (x) other provisions.
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, |
| |||||
(in $) |
| 2024 |
|
| 2023 |
| ||
INCOME (LOSS) BEFORE INCOME TAXES |
|
| (1,866,690 | ) |
|
| (487,161 | ) |
Adjustments (add back): |
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
| 319,787 |
|
|
| 102,521 |
|
Interest expense |
|
| 168,672 |
|
|
| 134,373 |
|
EBITDA |
|
| (1,378,231 | ) |
|
| (250,267 | ) |
Non-recurring and extraordinary items |
|
| 532,288 |
|
|
| 766,786 |
|
Stock based compensation |
|
| 340,194 |
|
|
| 96,888 |
|
Other income (expense), net |
|
| (191,824 | ) |
|
| (5,743 | ) |
Gain (loss) on equity investments, net |
|
| (1,755 | ) |
|
| (1,293 | ) |
Change in fair value of derivative liability |
|
| - |
|
|
| (3,384 | ) |
Foreign currency transaction, net |
|
| 161,254 |
|
|
| (196,035 | ) |
Bad Debt Allowances |
|
| - |
|
|
| 181,321 |
|
Other provisions |
|
| 5,152 |
|
|
| - |
|
ADJUSTED EBITDA |
|
| (532,922 | ) |
|
| 588,273 |
|
Interest income / (expense), net |
|
| (168,672 | ) |
|
| (134,373 | ) |
Provision for income taxes |
|
| - |
|
|
| 27,298 |
|
ADJUSTED NET INCOME |
|
| (701,594 | ) |
|
| 481,198 |
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA
|
| March 31, 2024 |
|
| December 31, 2023 |
|
| September 30, 2023 |
| |||
(in $) |
|
|
|
|
|
|
|
|
| |||
ASSETS |
|
|
|
|
|
|
|
|
| |||
Cash & cash equivalents |
|
| 865,099 |
|
|
| 3,833,195 |
|
|
| 2,360,604 |
|
Inventory |
|
| 4,871,349 |
|
|
| 4,789,054 |
|
|
| 5,960,342 |
|
Accounts receivable, prepaid expenses and other current assets |
|
| 28,550,495 |
|
|
| 27,131,193 |
|
|
| 37,353,753 |
|
Property and equipment, net |
|
| 10,170,328 |
|
|
| 10,455,499 |
|
|
| 10,249,782 |
|
Goodwill and intangible assets, net |
|
| 7,962,908 |
|
|
| 7,684,183 |
|
|
| 4,065,513 |
|
Loans receivable |
|
| 6,664,506 |
|
|
| 7,903,378 |
|
|
| 7,762,888 |
|
Other noncurrent assets |
|
| 3,260,510 |
|
|
| 4,218,309 |
|
|
| 3,772,497 |
|
TOTAL ASSETS |
|
| 62,345,195 |
|
|
| 66,014,811 |
|
|
| 71,525,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
| 11,728,191 |
|
|
| 12,309,890 |
|
|
| 12,825,486 |
|
Other current liabilities |
|
| 3,940,119 |
|
|
| 3,487,353 |
|
|
| 3,023,875 |
|
Lines of credit |
|
| 6,426,197 |
|
|
| 6,630,273 |
|
|
| 5,354,752 |
|
Notes payable |
|
| 4,162,038 |
|
|
| 4,617,510 |
|
|
| 4,230,750 |
|
Other non-current and finance/lease liabilities |
|
| 1,541,968 |
|
|
| 2,926,757 |
|
|
| 1,522,362 |
|
Stockholders' and mezzanine equity |
|
| 34,546,682 |
|
|
| 36,043,028 |
|
|
| 44,568,154 |
|
TOTAL LIABILITIES AND STOCKHOLDERS'/MEZZANINE EQUITY |
|
| 62,345,195 |
|
|
| 66,014,811 |
|
|
| 71,525,379 |
|
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® and C-Sept®. 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, 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 Company's ability to regain compliance with Nasdaq listing requirements, the impact of the COVID-19 pandemic and 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
SOURCE: Cosmos Health Inc.
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