CHICAGO, IL / ACCESSWIRE / September 18, 2024 / 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, announced today its updated guidance for the 2024-2027 period.
Key highlights of the guidance include:
Revenue is projected to increase by 163%, from $59.35 million in 2024 to $155.80 million in 2027.
Gross profit is expected to rise by 653%, from $6.25 million in 2024 to $47.06 million in 2027.
Gross profit margin is anticipated to expand by 1,970 basis points, from 10.50% in 2024 to 30.20% in 2027.
Net income is projected to increase by 402%, reaching $20.44 million in 2027, from a loss of $6.76 million in 2024.
Adjusted EBITDA is expected to grow to $29.40 million in 2027, from a loss of $1.21 million in 2024.
The above achievements are expected to stem from a combination of strategic factors, including a focus on higher-margin business segments, operational synergies, and improved cost efficiency. Specifically, the Company will prioritize the following initiatives, among others:
Expansion of Sky Premium Life's geographical footprint and product portfolio, with the introduction of new formulas, therapeutic areas, and customized offerings, supported by strategic partnerships with exclusive distributors and digital channels.
The global launch of C-sept and C-scrub, both with significant market potential and limited competition. Production is being scaled up, with additional products in development.
Expansion of generic pharmaceuticals across the EU and other international markets, with a focus on advanced generics and innovative OTC products.
Optimization of Contract Manufacturing Organization (CMO) operations, with a focus on high-demand medicines and competitive pricing.
Progress toward World Medical Organization (WMO) patent approval and completion of clinical trials for the CCX obesity pill by 2025, with commercialization expected in 2026.
Driving organic growth and integrating the pharmacy distribution network for enhanced efficiency and scalability.
Corporate reorganization focused on cost-cutting initiatives and optimizing asset and resource utilization through the integration of business units.
The complete guidance is outlined in the table below.
($) |
| 2024 |
|
| 2025 |
|
| 2026 |
|
| 2027 |
| ||||
Revenue |
|
| 59,349,546 |
|
|
| 80,670,924 |
|
|
| 125,124,323 |
|
|
| 155,802,733 |
|
Gross profit |
|
| 6,251,422 |
|
|
| 16,208,325 |
|
|
| 32,120,201 |
|
|
| 47,061,142 |
|
Gross profit margin (%) |
|
| 10.50% |
|
|
| 20.10% |
|
|
| 25.70% |
|
|
| 30.20% |
|
Income / (loss) from operations |
|
| -6,376,828 |
|
|
| 2,881,375 |
|
|
| 15,280,227 |
|
|
| 26,629,633 |
|
Income / (loss) before income taxes |
|
| -6,761,998 |
|
|
| 2,290,791 |
|
|
| 14,815,306 |
|
|
| 26,209,497 |
|
Net income / (loss) |
|
| -6,761,998 |
|
|
| 1,786,817 |
|
|
| 11,555,939 |
|
|
| 20,443,407 |
|
Adjusted EBITDA |
|
| -1,205,344 |
|
|
| 6,269,028 |
|
|
| 19,604,785 |
|
|
| 29,397,406 |
|
Adjusted EBITDA margin (%) |
|
| -2.00% |
|
|
| 7.80% |
|
|
| 15.70% |
|
|
| 18.90% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YoY Revenue Growth |
|
| 11.20% |
|
|
| 35.90% |
|
|
| 55.10% |
|
|
| 24.50% |
|
YoY Gross Profit Growth |
|
| 43.70% |
|
|
| 159.30% |
|
|
| 98.20% |
|
|
| 46.50% |
|
YoY Net Income Growth |
|
| 63.50% |
|
|
| 126.40% |
|
|
| 546.70% |
|
|
| 76.90% |
|
YoY Adj EBITDA Growth |
|
| -99.80% |
|
|
| 620.10% |
|
|
| 212.70% |
|
|
| 50.00% |
|
Greg Siokas, CEO of Cosmos Health, stated: "Cosmos is at a critical inflection point, and I am delighted to share with our shareholders more detailed guidance for the period 2024 to 2027. We are laser-focused on expanding our revenue base through high-margin segments such as CMO operations and the global growth of our proprietary brands, while also emphasizing efficiencies and cost-cutting initiatives. As a result, we now expect to be profitable and generate significant positive operating cash flow starting in 2025.
By 2027, we anticipate adjusted EBITDA to reach approximately $30 million annually, with net income surpassing $20 million. This should have a tremendously positive impact on our balance sheet, positioning us to self-fund our growth aspirations and reward our shareholders."
The Company provides EBITDA guidance that may not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities and items that are extraordinary or non-recurring, foreign currency transactions, net and prior years bad debt allowance. The exclusion of these charges and costs in future periods may have a significant impact on the Company's EBITDA, and the Company may not be able to provide a reconciliation of its EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Company believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.
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® and C-Sept®. 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, 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 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.
Investor Relations Contact:
BDG Communications
cosm@bdgcommunications.com
+44 207 0971 653
SOURCE: Cosmos Health Inc.
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