Farmacosmo S p A : Group Revenues For The Semester Amount To €36.7 Million (+17% YoY) Driven By The Online Retail Channel (+33% YoY)

PRESS RELEASE

GROUP REVENUES FOR THE SEMESTER

AMOUNT TO €36.7 MILLION (+17% YoY) DRIVEN BY THE

ONLINE RETAIL CHANNEL (+33% YoY)

ALL KPIs FOR THE SEMESTER ARE GROWING:

ORDERS: +35% YoY |TOTAL CUSTOMERS: +45% YoY

LOYAL CUSTOMERS: +30% YoY

THE INTEGRATION OF ACQUIRED PORTALS CONTINUES:

• A SINGLE LOGISTICS CENTER FOR FARMACOSMO-BAUCOSMESI-
  PROFUMERIAWEB
• INTEGRATED BUSINESS MODEL FOR FARMACOSMO-PHÀRMASI-
  PROFUMERIAWEB

SIGNIFICANT RESULTS OF INITIATIVES LAUNCHED DURING 2023:

BAU COSMETICS REVENUE +136% YoY AMOUNTING TO

APPROXIMATELY €260,000

CONTACTU OVER 500 THERAPIES ADMINISTERED AS OF TODAY

APPROVAL OF THE 2022 SUSTAINABILITY REPORT, CONFIRMING THE GROUP'S STRONG COMMITMENT TO INTEGRATE ESG THEMES IN ITS STRATEGY TO AN INCREASING EXTENT

Naples, July 24 2023

Farmacosmo S.p.A. ("Company," "Farmacosmo"), a company operating in the Health, Pharma & Beauty sector, listed on the Euronext Growth Milan market of Borsa Italiana, announces that the Board of Directors, meeting today, has reviewed certain management data (revenues and key business KPIs of the Company) not subject to accounting review, as of June 30, 2023.

Fabio de Concilio, President and CEO of Farmacosmo, commented: "We are very pleased with the results achieved in the first semester, which confirm the soundness of the strategic choices made after the listing. The farmacosmo.it portal continues to grow in the semester, with all KPIs showing improvement: in the

PRESS RELEASE

second quarter, the average cart value exceeded 100 Euros for the first time, reaching 108 Euros in July. The integration work of the other portals continues: starting from July 1st, the logistics of ProfumeriaWeb.com is hosted in Nola, and we are also working on the renewal of the portal, which will be launched in the coming months. The pharmasi.it portal, thanks to its unique strategic center for marketing policies and an integrated business model, experienced strong acceleration during the second quarter of 2023, registering a 100% year- on-year increase in June alone. Lastly, Baucosmesi.it, acquired in February 2023, recorded triple-digit revenue growth (+136% YoY), reaching approximately 260,000 Euros in less than five months. Moreover, several cost synergies have already been implemented, such as tariff adjustments to match those of farmacosmo.it, catalog expansion, and a continuously strengthening brand awareness of the portal, confirming the strategic value of entering the pet market through a well-established brand with high added value. After rebranding the physical pharmacies in Turin and Verbania under the Farmacosmo brand, we have implemented the integration of Fidelity cards between the farmacosmo.it portal and the pharmacies. This integration will enhance the customer journey, improving their shopping experience. Our omnichannel strategy allows customers to use physical stores as pickup points for online purchases, avail of return services in pharmacies, including items bought on the portal, enjoy shorter delivery times, and benefit from high-value-added extra services. We have also introduced computerized totems where customers can order products from other proprietary portals, especially Bau Cosmesi and ProfumeriaWeb. Furthermore, ContactU, our telepsychology service launched in early April 2023, has integrated a new version of the platform since mid-May and now offers parental and couples' telepsychology services through a network of over 100 active professionals. We have conducted more than 500 therapies, and we have recently started offering B2B services called 'Psychological Well-being in the Workplace' with three companies.Today, we have approved and presented our Sustainability Report for 2022 to our stakeholders, confirming the Group's strong commitment to increasingly integrate ESG themes into our growth strategy. We are aware that our growth must align with solutions that bring well-being to the society we live in. All our efforts are focused on the well-being and health of individuals and communities."

In the first half of 2023, total revenues amounted to 36.7 million Euros, showing a growth of 17% compared to the same period of the previous year. The growth is primarily driven by the retail component, which increased by 33% YoY. On the other hand, the B2B segment experienced a decline of 17% YoY. As of June 30, 2023, the B2B revenue represents 33% of the total (compared to 56% at the time of the listing). The Group's strategy continues to focus on its core business areas

with higher profitability: retail and digital services.

Below are the main business KPIs of the retail channel:

• Orders from the online retail channel in the first half of 2023 grew by over 35% compared to the same period in the previous year. The Group's total orders, combining online and offline, reached approximately 420,000.
• The total number of items sold in the first half of 2023 amounted to around 4.6 million, compared to approximately 4 million in the same period of the previous year on a like-for-like basis.
• About 11 million visitors were recorded in the first quarter of 2023, showing a growth of over 85% compared to the same period of the previous year.
• The Average Order Value of farmacosmo.it remains among the highest in the market, consolidating at 98 euros; profumeriaweb.com at 74 euros, baucosmesi.it at 40 euros, and phàrmasi.it at 60 euros.
• As of the date of this press release, the Average Order Value for farmacosmo.it in July has surpassed the 100 euro threshold, reaching 108 euros, representing a growth of 16 euros since the end of 2021.

PRESS RELEASE

With the aim of improving profitability, the Company has decided to directly purchase some highly selling products while maintaining the zero warehouse policy business model. Particularly, the focus was on seasonal summer products.

Furthermore, Farmacosmo announces that the Board of Directors, in its meeting today, has approved the Sustainability Report for the year 2022. By doing so, Farmacosmo reaffirms its commitment to place ESG issues at the center of its strategy, aiming to create value for stakeholders through a sustainable business model, while integrating ethical principles into the daily management of the company.

The general principles applied for the preparation of the Sustainability Report are based on the GRI Standards, including relevance, inclusivity, sustainability context, completeness, balance between positive and negative aspects, comparability, accuracy, timeliness, reliability, and clarity.

It is important to emphasize that Farmacosmo is not subject to the provisions of D.Lgs n. 254 of December 30, 2016, which, in implementation of Directive 2014/95/EU, requires the preparation of a Non-Financial Statement ("DNF") for public interest entities that exceed certain quantitative thresholds. Therefore, the Sustainability Report is voluntarily prepared and does not constitute a Non-Financial Statement (DNF).

The current announcement is available on the website www.farmacosmoinvestors.com, under the section "Investors/Press Releases," and it can also be found on the authorized storage mechanism "eMarket Storage" (www.emarketstorage.com).

The Sustainability Report for 2022 is available on the website www.farmacosmoinvestors.com, under the section "Sustainability."

THE COMPANY

Farmacosmo is a company operating in the Health, Pharma & Beauty sector. The company's business model is based on the circular model of the l(ea)n strategy, which is divided into three main areas of activity: Logistics, Intelligence, and Node.Logistics: efficiently manages and fulfills up to 12,000 orders per day, with delivery times as fast as 20 hours from the carrier's picking and just-in-time supply through a "zero warehouse" policy. Intelligence: This area involves defining the company's strategy, competitive positioning, and customer journey. Recurring customers in 2022 contributed to approximately 76% of the annual revenue in the retail stream. The average cart value for active retail stream customers amounts to approximately €95 (around €104 for recurring customers). Node: The Node area encompasses Research and Development activities, innovation in processes, and the IT infrastructure of the company. Over the past five years, Farmacosmo's sales value has grown by approximately 36% (CAGR 2017-2022) and reached around €64 million in 2022.The Farmacosmo ecosystem aims to achieve excellence throughout its value chain, guided by a commitment to ESG principles in all phases of the logistics process (from sustainable packaging for online orders to carbon compensation initiatives) and in valuing its employees, a strategic asset for the company.The company's dedication to ESG principles is further demonstrated by the publication of the Sustainability Report for the year 2022.

IDENTIFICATION CODES

Ordinary Share: ISIN IT0005487670 (Ticker COSMO)

Warrant Farmacosmo 2022-2025: ISIN IT0005487415 (Ticker WCOSMO)

PRESS RELEASE

FOR FURTHER INFORMATIONS
INVESTOR RELATIONS MANAGER	EURONEXT GROWTH ADVISOR	INVESTOR & MEDIA RELATIONS ADVISOR
Farmacosmo	Illimity Bank	IR Top Consulting
Via Crispi, 51 - 80121 Napoli	Via Soperga, 9 - 20124 Milano	Via Bigli, 19 - 20121 Milano
Tel. [phone]	Tel. [phone]	Tel. [phone]
Paolo [e-mail]	[e-mail]	Pietro Autelitano [e-mail]
		Domenico [e-mail]