Categories: Business

Cosmos Health Reports Third Quarter 2022 Financial Results

CHICAGO, IL / ACCESSWIRE / November 15, 2022 / Cosmos Holdings (d/b/a Cosmos Well being, Inc.

) (“the Firm”) (Nasdaq:COSM)
, a worldwide healthcare group with proprietary strains of nutraceuticals and distributor of prescription drugs, branded generics, OTC drugs and medical gadgets, at present supplied a enterprise replace and reported monetary outcomes for the third quarter and 9 months ended September 30, 2022.

Third Quarter 2022 Monetary Highlights

  • Revenues had been $12.0M versus $13.6M in 3Q21. The decline in consolidated revenues was largely because of the excessive variation in FX variations between EUR and GBP to USD.
  • Gross Margins had been 14.8% versus 17.3% in 3Q21, because of the enhance within the distribution enterprise, which carries decrease gross margins.
  • Working Bills had been $2.1M versus $3.3M in 3Q21 a big lower of 34.7%, reflecting environment friendly expense administration.
  • Adjusted EBITDA was $0.5M versus $1.2M in 3Q21.

Current Enterprise Highlights

  • Closed $7.5M capital increase through public providing of 62,500,000 shares of frequent inventory (or frequent inventory equivalents) and 125,000,000 frequent warrants, at a mixed worth of $0.12 per unit. Greg Siokas, Chief Government Officer of Cosmos Well being, participated within the capital increase with $1.5M for 12,500,000 items.
  • Entered into an settlement to switch its beforehand structured warrants with new vanilla warrants. The prevailing holders of Warrants issued as of February 28, 2022 exchanged their warrants for brand spanking new warrants to buy an mixture of 21,238,254 shares of Frequent Inventory.
  • Introduced an unique settlement to market and distribute Nickelodeon’s SpongeBob and PAW Patrol youngsters’ nutritional vitamins in Greece and Cyprus, aiming to achieve out 11,000 pharmacies and 120 wholesalers in Greece and 780 pharmacies in Cyprus.
  • Executed a letter of intent for a strategic co-venture settlement with Good for Life (SMLF) to cross market services of their reciprocal markets. It’s thought of to be a big mutual helpful alternative for each firms with the first distinction being the respective markets, with Cosmos serving the EU and UK markets and Good for Life serving the North American markets.
  • Entered right into a letter of intent settlement to wholly purchase ZipDoctor Inc., a direct-to-consumer subscription-based telemedicine platform, that expects to supply its clients reasonably priced, limitless, 24/7 entry to board licensed physicians and licensed psychological and behavioral well being counselors and therapists.
  • Entered into an settlement with Virax Biolabs (VRAX), to change into the distributor of Monkeypox Virus Actual-Time PCR Detection Kits, having the unique distribution rights for Greece and Cyprus, with the chance to distribute the check kits throughout Europe on a non-exclusive foundation.
  • Entered into an unique settlement with Mediprovita GbR. Mediprovita will start promoting its Sky Premium Life SPL merchandise in Germany and Austria starting within the Fourth Quarter. The preliminary order for 20 SKUs shall be bought by way of Amazon, eBay, and Mediprovita’s personal ecommerce web site. The Firm expects to increase its relationship with Mediprovita within the close to future to incorporate the distribution of 70 SKU’s.
  • SkyPharm formally launched its first Sky Premium Life merchandise on Amazon in america. Cosmos targets having all 85 SKUs listed on Amazon by 12 months finish.
  • Entered right into a binding letter of intent to accumulate Pharmaceutical Laboratories CANA S.A., a Greek pharmaceutical firm that manufactures, sells, distributes, and markets authentic branded merchandise researched and developed by main international pharmaceutical and healthcare firms.
  • Entered into an settlement to accumulate LIFE NLB, Ltd.’s product portfolio, together with Bone-Vio® and Bone-X, associated to bone well being focusing on the human gastrointestinal microbiome.

Administration Commentary

Greg Siokas, Chief Government Officer of Cosmos Well being, said, “The slight lower in our Consolidated Income reported in USD was primarily because of the excessive variation in FX variations of EUR and GBP to USD. In native currencies, we managed to extend our income within the third quarter of 2022 to €11.9 million and £23.2 thousand in comparison with €11.5 million and £17.8 thousand versus comparable interval final 12 months, respectively, which is an general enhance of virtually 7.5%.

In latest months we’ve made important progress in our efforts to develop our numerous companies. Our nutraceuticals phase is our strongest progress engine. The worldwide nutraceuticals market was valued at $455B in 2021 and is predicted to achieve $988B by 2030, a CAGR of 9%, pushed by the rising demand for dietary dietary supplements and practical meals. As well as, the COVID-19 pandemic has paved the best way for nutraceuticals to construct a robust presence within the international market. Our Sky Premium Life (SPL) model continues to be acquired nicely by the market. In latest months we additionally launched our SPL merchandise on Amazon Singapore and on Amazon United States and Amazon Canada. As well as, we’re within the midst of finalizing agreements with numerous companions to distribute our nutraceutical merchandise in North America and Europe. These new markets present untapped progress alternatives and new audiences for our proprietary SPL model.

In April, we launched our premium line of dietary dietary supplements, Mediterranation. The Mediterranation line makes use of natural herbs and plant extracts resembling crataegus, hibiscus, dittany of Crete, oregano, mastic and kritamos, present in particular areas in Greece and the Mediterranean. The preliminary response from our distributors and customers has been very optimistic and we count on to see rising order stream.

The Cosmos Well being model marks a brand new chapter within the Firm’s evolution and higher displays our dedication in direction of a number one, extremely scalable and modern international healthcare group based mostly on our R&D partnerships, totally licensed manufacturing amenities and quick deployment to distribution channels. That is in alignment with the Firm’s latest bulletins about our R&D partnership with CloudPharm as we execute on our objective of changing into a number one international healthcare group.

Our well being care distribution and OTC prescription drugs companies proceed to stay strong, offering Cosmos with steady money stream era. We’ve entered an settlement with Virax Biolabs to change into the distributor of Monkeypox Virus Actual-Time PCR Detection Kits, having the unique distribution rights for Greece and Cyprus, with the chance to distribute the check kits throughout Europe on a non-exclusive foundation.

To attain our progress aims, in October we efficiently accomplished a capital increase totaling $7.5M. We had nice participation from seasoned traders. I used to be glad to take part within the financing within the quantity of $1.5M, as I see first-hand the thrilling alternatives that lie forward for Cosmos. As well as, we changed our beforehand structured warrants with plain vanilla warrants, which is able to present us with extra monetary flexibility going ahead. As a administration staff, we proceed to be believers within the Firm and think about it as an undervalued funding.”

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

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(*) See “Definitions of Non-GAAP Measures” and “Reconciliation of Non-GAAP Measures” sections herein for an evidence and reconciliations of non-GAAP measures used all through this launch.

Definitions of Non-GAAP Measures

We accumulate and analyze working and monetary information to guage the well being of our enterprise and assess our efficiency. Along with Income, Revenue (Loss) from Operations and Web Revenue (Loss) underneath GAAP, we use: EBITDA, Adjusted EBITDA, and Adjusted Web Revenue (Loss). We’ve included these non-GAAP monetary measures as a result of they’re key measures utilized by our administration to guage our working efficiency. Accordingly, we consider that these non-GAAP monetary measures present helpful info to traders and others in understanding and evaluating our working leads to the identical method as our administration staff and board of administrators. Our calculation of those non-GAAP monetary measures could differ from equally titled non-GAAP measures, if any, reported by our peer firms. These non-GAAP monetary measures shouldn’t be thought of in isolation from, or as substitutes for, monetary info ready in accordance with GAAP

Adjusted EBITDA

We outline Adjusted EBITDA as Revenue (Loss) earlier than Revenue Taxes, excluding (i) depreciation and amortization expense, (ii) curiosity earnings / (expense), internet, (iii) non-cash curiosity expense, (iv) non-recurring and extraordinary objects (v) different earnings (expense), internet, (vi) achieve (loss) on fairness investments, internet, (vii) achieve on extinguishment of debt, (viii) change in honest worth of by-product legal responsibility and (ix) overseas foreign money transaction, internet.

Related Post

We’ve included Adjusted EBITDA as a result of it’s a key measure utilized by our administration staff to guage our working efficiency, generate future working plans, and make strategic selections. Accordingly, we consider that Adjusted EBITDA supplies helpful info to traders and others in understanding and evaluating our working leads to the identical method as our administration staff and board of administrators. As well as, it supplies a helpful measure for period-to-period comparisons of our enterprise, because it removes the impact of sure non-cash bills and non-recurring and extraordinary

Gadgets.

Adjusted EBITDA has limitations as a monetary measure, ought to be thought of as supplemental in nature, and isn’t meant as an alternative to the associated monetary info ready in accordance with GAAP.

Adjusted Web Revenue (Loss)

We outline Adjusted Web Revenue (Loss) as Adjusted EBITDA (see above) excluding (i) profit from (provision for) earnings taxes, (ii) curiosity expense, internet and including (iii) curiosity earnings.

Adjusted Web Revenue has limitations as a monetary measure, ought to be thought of as supplemental in nature, and isn’t meant as an alternative to the associated monetary info ready in accordance with GAAP.

Reconciliation of Non-GAAP Measures

Adjusted EBITDA & Adjusted Web Revenue (Loss)

The next desk presents reconciliations of Adjusted EBITDA & Adjusted Web Revenue (Loss) to essentially the most instantly comparable GAAP monetary measure for every of the durations indicated.

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About Cosmos Well being, Inc.

Cosmos Holdings Inc. d/b/a Cosmos Well being Inc. (Nasdaq: COSM) is a worldwide healthcare group that was included in 2009 and is headquartered in Chicago, Illinois. Cosmos Well being is engaged within the nutraceuticals sector by way of its personal proprietary strains of merchandise “Sky Premium Life” and “Mediterranation.” Moreover, the Firm is working within the pharmaceutical sector by way of the supply of a broad line of branded generics and OTC drugs and is concerned within the healthcare distribution sector by way of its subsidiaries in Greece and UK serving retail pharmacies and wholesale distributors. Cosmos Well being is strategically centered on the R&D of novel patented nutraceuticals (IP) and specialised root extracts in addition to on the R&D of proprietary complicated generics and modern OTC merchandise. Cosmos has developed a worldwide distribution platform and is at present increasing all through Europe, Asia, and North America. Cosmos Well being has places of work and distribution facilities in Thessaloniki and Athens, Greece and Harlow, UK. Extra info is out there at www.cosmosholdingsinc.com and www.skypremiumlife.com.

Ahead-Trying Statements

Apart from the historic info contained on this information launch, the issues described herein, could comprise forward-looking statements inside the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended. Statements preceded by, adopted by, or that in any other case, embody the phrases “believes,” “expects,” “anticipates,” “intends,” “tasks,” “estimates,” “plans” and comparable expressions or future or conditional verbs resembling “will,” “ought to,” “would,” “could” and “might”, are typically forward-looking in nature and never historic information, though not all forward-looking statements embody the foregoing. These statements, contain unknown dangers and uncertainties that will individually or materially impression the issues mentioned, herein for a wide range of causes which can be exterior the management of the Firm, together with, however not restricted to, the Firm’s capacity to boost ample financing to implement its marketing strategy, the impression of each the COVID-19 pandemic and the conflict in Ukraine on the Firm’s enterprise, operations and the financial system basically, and the Firm’s capacity to efficiently develop and commercialize its proprietary merchandise and applied sciences. Readers are cautioned to not place undue reliance on these forward- wanting statements, as precise outcomes might differ materially from these described within the forward-looking statements contained herein. Readers are urged to learn the danger components set forth within the Firm’s filings with the SEC, which can be found on the SEC’s web site (www.sec.gov). The Firm disclaims any intention or obligation to replace, or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case.

Investor Relations Contact:

Lytham Companions, LLC
Ben Shamsian
Electronic mail: [email protected]
Tel: 646-829-9701

SOURCE: Cosmos Holdings Inc.

Jacky

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