CHICAGO - 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 nutraceutical brands, manufacturer and distributor of healthcare products, and operator of a telehealth platform, today reported its financial results for the second quarter of 2023.
Q2 and H1 2023 Financial Highlights
Revenues amounted to $12.36 million in Q2 2023 and $24.71 million in H1 2023, a slight decline of 6.4% and 5.96%, respectively, from $13.21 million and $26.28 million in the corresponding periods in 2022, in part due to unfavorable USD to EUR and GBP exchange rate movements.
Adjusted EBITDA of $0.23 million in Q2 2023 and $3.01 million in H1 2023, an increase of 182% from $1.07 million in H1 2022.
Adjusted Net Income of $0.16 million in Q2 2023, a 158% increase compared to a loss of $0.27 million in Q2 2022, and $3.01 million in H1 2023, a 3550% increase compared to a loss of $0.09 million in H1 2022.
Adjusted Net Income per share, both basic and diluted, of $0.01 in Q2 2023, compared to a loss of $0.35 in Q2 2022, and $0.28 in H1 2023 versus $0 in H1 2022.
Property and equipment, net, increased by 488% to $10.7 million, up from $1.82 million in Q4 2022.
Goodwill and intangible assets, net, increased by 435% from $0.71 million in Q4 2022 to $3.78 million in Q2 2023. The increase was largely attributable to the acquisition of licenses for established pharmaceutical and nutraceutical products.
Notes payable (current portion) decreased by 59% to $0.89 million in Q2 2023 from $2.16 million in Q4 2022, and notes payable (long-term portion) decreased by 12% to $2.52 million in Q2 2023 from $2.86 million in Q4 2022, while lines of credit decreased by 18% to $4.73 million in Q2 2023 from $5.76 million in Q4 2022.
Total stockholders' equity increased by 12.88% to $44.35 million in Q2 2023, up from $39.28 million in Q4 2022. Relative to the Company's total assets, which increased to $69.2 million, this equates to a Stockholders Equity to assets ratio in excess of 60%, indicating the Company's prudent approach to financing.
During the second quarter of 2023, the Company achieved the following milestones: Acquired Cana Laboratories S.A. ('Cana'), a Greek pharmaceutical company established in 1928, recording a material gain on bargain purchase. Cana is licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency for the manufacture of pharmaceuticals, food supplements, cosmetics, biocides, and medical devices.
Acquired the sales and distribution network owned by I.Bikas General Partnership ('Bikas'), an established pharmaceutical company operating in Greece since 1986. The network encompasses 50 well-established pharmacies and is expected to increase annual revenue by over $10 million.
Acquired the property housing the operations of wholly-owned subsidiary CosmoFarm Pharmaceuticals S.A. ('CosmoFarm'), located in the western part of Athens, Greece. The CosmoFarm property comprises an entire 3-story building, approximately 29,063 square feet, and utilizes state-of-the-art technologies to automate procurement, inventory management, and order execution.
Completed the second phase in the development of the CCX0722 product and its extensions, an innovative solution for obesity and weight management, with clinical trials scheduled to commence in Q4 2023. This milestone represents a significant step forward in bringing this transformative product to market.
Made significant progress in the expansion of nutraceutical brands, Sky Premium Life and Mediterranation, by introducing new product lines such as Terra Creta and Chios Island, ramping up production, boosting exports, broadening partnerships, and securing purchase orders from a leading international health food retail chain.
Greg Siokas, Chief Executive Officer of Cosmos Health, stated: 'We delivered solid financial results in Q2 2023. Adjusted EBITDA was once again positive, highlighting the stability of our business model, and we also generated positive Adjusted Net Income, in contrast to a loss during the corresponding period last year. Looking at the broader picture, the first half of 2023 has been particularly strong. Both Adjusted EBITDA and Adjusted Net Income exceeded the $3 million mark, with Adjusted EBITDA increasing by over 180% and Adjusted Net Income increasing by 3550%, marking a major turnaround from the loss in the corresponding period last year.
I am also pleased to report a strengthening in our financial position and building of equity. Total assets have increased, with tangible assets growing by more than 488% and goodwill and intangible assets expanding by 435%. Meanwhile, total liabilities have decreased, resulting in total stockholders' equity of $44.35 million, and a stockholder equity to asset ratio in excess of 60%, indicating our prudent approach to financing. Importantly, our book value per share exceeds $4.04.
This past quarter, we not only delivered solid financial results, but also closed transformative acquisitions like Cana and advanced in game-changing R&D. All of this was achieved while still maintaining a prudent, essentially debt-free balance sheet. As we build on this solid foundation, our eyes are fixed on the future. Our ambitious strategy focuses on key areas such as creating synergies, improving operational efficiency, pursuing vertical integration, investing in innovative R&D, expanding our brands, and strategically growing our distribution network and facilities on a global scale. We look forward to providing our investors with some exciting updates that are in the works.'
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 and headquartered in Chicago, Illinois, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary products, including nutraceuticals and food supplements under the brands 'Sky Premium Life' and 'Mediterranation.' Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency, 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, 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.
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 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.
Contact:
Email: cosm@bdgcommunications.com
Tel: +44 207 0971 653
COSMOS HEALTH INC. 
