Cosmos Health, a diversified global healthcare group, has reported its financial results for the full year ended December 31, 2024. The company’s performance was marked by revenue growth, increased R&D investments, and a significant reduction in operating expenses. However, the bottom-line results were impacted by the absence of non-recurring gains recognized in the prior year.
Income Statement Highlights
- Revenue increased by 2.0% to $54.43 million in FY 2024, from $53.38 million in the prior year, driven primarily by sustained organic growth and continued contributions from prior acquisitions.
- Gross margin was 7.92%, compared to 8.15% in FY 2023, reflecting a greater mix of revenue from the lower-margin logistics distribution segment.
- Total operating expenses declined by 24.16% to $19.86 million, compared to $26.18 million in FY 2023, including a 40.26% reduction in general and administrative expenses and a 71% decrease in sales and marketing expenses.
- Total other income, net, was a loss of $0.64 million in FY 2024, compared to income of $3.29 million in FY 2023, primarily due to the absence of non-cash gains recognized in the prior year.
- Adjusted EBITDA was negative $3.73 million, compared to positive $0.06 million in FY 2023, while Adjusted net loss widened to $4.74 million from $0.81 million.
Balance Sheet Highlights
| December 31, 2024 | $54.31 million |
| Year-over-year change | -17.72% |
- Total assets decreased by 17.72% to $54.31 million as of December 31, 2024, from $66.01 million at the end of 2023.
- Key components of the total asset base include:
- Tangible asset base, with property and equipment, net, totaling $9.69 million.
- Goodwill and intangible assets, net, totaling $7.76 million.
- Inventory position of $4.36 million, reflecting enhanced procurement discipline and improved inventory management.
- Total liabilities decreased by 0.64% to $29.78 million as of December 31, 2024, compared to $29.97 million at year-end 2023.
Recent Highlights
- R&D and Product Innovation:
- Cosmos Health advanced its pipeline with AI-driven patent filings targeting multiple sclerosis, allergic inflammation, gliomas, and hematologic malignancies.
- The company entered the final development phase for CCX0722, a proprietary weight management solution, with product launch expected in 2026.
- Cosmos Health secured two WIPO-patented anticancer drugs for prostate, ovarian, and colorectal cancers, valued at over $24.5 million.
- Strengthened leadership with the appointment of Professor Dimitrios Trafalis, MD, as Head of Oncology.
Manufacturing
- Cosmos Health expanded Cana Laboratories’ facilities and production capabilities.
- The company signed long-term manufacturing contracts with Pharmex and Provident Pharmaceuticals, covering over 9.5 million units across multiple product lines.
Global Commercial Expansion
- Cosmos Health expanded the Sky Premium Life nutraceutical brand with 60 new SKUs.
- The company launched the Sky Premium Life brand in Albania and secured a $300,000 initial order.
- Cosmos Health launched the Sky Premium Life brand in Qatar and secured a $578,460 order.
- Expanded distribution of avian influenza PCR kits across Europe and the GCC through an exclusive agreement with Virax Biolabs.
Strategic & Financial Milestones
- Cosmos Health strengthened its executive team with the appointment of Dimitris Moraitis as Vice President of Strategy & Operations.
- The company secured a €2.2 million (approximately $2.29 million) secured bond loan from a European bank on competitive terms.
- Cosmos Health CEO Greg Siokas acquired over 1 million common shares through multiple transactions.
- The company integrated Bitcoin and Ethereum as treasury reserve assets.
Management Commentary
“We have achieved a number of important milestones over the past year, but I believe we are still in the very early stages of what represents a key inflection point for Cosmos,” said Greg Siokas, CEO of Cosmos Health.
“On the R&D front, we are leveraging AI-driven drug repurposing technologies to advance our research agenda, and our scientists are making meaningful progress toward the commercialization of our proprietary weight loss drug.
In manufacturing, we continue to invest in our Cana Laboratories facility and are securing long-term contract manufacturing agreements, a strategic and high-margin segment for us.
We are also investing in the development of our portfolio of proprietary brands, most notably through the rapid global expansion of Sky Premium Life, our high-margin nutraceutical line, which continues to grow with the addition of new SKUs and increasing market penetration across regions.
As we’ve previously noted, our hard assets offer valuable strategic flexibility. We recently capitalized on this by securing a €2.2 million loan against our CosmoFarm logistics center on highly attractive terms.
Importantly, this is a structure we can replicate, particularly with our significantly more valuable real estate at Cana Laboratories.
Lastly, I continue to demonstrate my commitment to Cosmos. Since December 20, 2024, I have increased my personal ownership by over 1 million shares, a clear reflection of my confidence in the Company’s long-term strategy and future potential.”
Definitions of Non-GAAP Measures
We define Adjusted EBITDA as Income (Loss) before Income Taxes, excluding depreciation and amortization expense, interest income (expense), non-cash interest expense, stock-based compensation expense, non-recurring and extraordinary items, other income (expense), net, gain (loss) on equity investments, net, gain on extinguishment of debt, change in fair value of derivative liability, foreign currency transaction, net, and prior years bad debt allowances.
Adjusted Net Income is defined as Adjusted EBITDA adding provision for income taxes and deducting interest expense.
Reconciliation of Non-GAAP Measures
| Adjusted EBITDA | $59,627 | $0.06 million |
| Adjusted Net Income | $(806,849) | $0.81 million |
About Cosmos Health Inc.
Cosmos Health Inc. is a diversified 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.
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.