RETRANSMISSION – 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") (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, 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®, 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 Unaudited	December 31, 2024 Audited	September 30, 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,
(in $)		2025 Unaudited			2024 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®, 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 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

[email protected]

+44 207 0971 653