Cosmos Health CEO says ‘momentum has accelerated’ in 2025

CEO Greg Siokas said, “In the opinion of the Company, our momentum has accelerated in 2025, reflecting the benefits of our strategic investments and the strength of our branded product portfolio. Key highlights from the first half of 2025 include: Revenue Growth: $28.46 million in H1 2025, an increase of 11.7% compared to $25.49 million in H1 2024, driven by stronger demand and the expanding contribution of higher-margin branded products. Margin Expansion: Gross profit rose to $3.21 million in H1 2025, up 53% year over year, underscoring the success of our strategic focus on nutraceuticals and contract manufacturing. Operational Leverage: Efficiency gains at Cana Laboratories and CosmoFarm enhanced scalability, enabling us to capture growth while steadily improving profitability. As various key metrics, including EPS, continue to show improvement, this brings us one step closer to our strategic goal of delivering consistent positive operating cash flow. Balance Sheet Strength Our balance sheet continued to strengthen in 2025, supporting growth while maintaining financial discipline. The increase in assets and equity highlights an improved financial position, giving Cosmos Health (COSM) greater flexibility to execute its strategy with confidence. Key financial metrics as of June 30, 2025, include: Total Assets: $61.84 million, up 13.9% from $54.31 million at year-end 2024. Stockholders’ Equity: $26.23 million, compared to $24.53 million at year-end 2024, reflecting an improved position. Liabilities: $35.60 million, primarily from financing arrangements to support growth. Liabilities-to-Assets Ratio: ~57.6%, maintaining a prudent capital structure. Beyond these figures, our valuable, wholly owned real estate assets – Cana Laboratories and CosmoFarm’s logistics center – serve not only as operational pillars but also as strategic financial resources. The EUR 2.2 million bond loan facility, bearing interest of 2.95% plus the applicable 6-month Euribor, secured earlier this year against our CosmoFarm’s distribution center, illustrates how we can unlock financing flexibility on attractive terms. Guidance to 2027 Looking ahead, Cosmos Health is targeting continued growth and profitability, driven by disciplined execution and an accelerating shift toward higher-margin segments. For 2025, our sales to date are tracking close to our published guidance, and we remain confident in our trajectory toward 2026. These goals underscore both the scalability of our platform and the momentum we are building across branded products, advanced manufacturing, and logistics. Key financial objectives by 2027 include: Revenue: Approximately $155.8 million. Adjusted EBITDA: Expected to reach $29.4 million. Positive Operating Cash Flow: A central near-term milestone, marking a turning point in Cosmos Health’s financial evolution. This trajectory will be driven by: Scaling our branded product portfolio, particularly Sky Premium Life and proprietary pharmaceuticals, which command higher margins. Expanding utilization at Cana Laboratories and U.S. facilities, unlocking the full potential of our upgraded manufacturing capacity. Enhancing CosmoFarm’s efficiency and reach, leveraging its role as a distribution hub serving over 1,500 pharmacies. Maintaining strict financial discipline, with continued focus on cost controls and operating leverage. With margins already improving and our business mix shifting toward higher-value categories, Cosmos Health is confident in its ability to achieve these targets and position the Company for sustained profitability. Reaching these milestones is expected to unlock substantial shareholder value, supported by internally generated cash flow that will enable us to reinvest in the business, pursue strategic acquisitions, and reward shareholders.”