Cosmos Holdings Announces 12.5% ​​Increase in Revenue, 88.9% Increase in Gross Profit and Achieves Profitability for the First Quarter of 2022

Announces positive net income of $0.2 million and EBITDA of $1.2 million for the first quarter of 2022

CHICAGO, IL/ACCESSWIRE/May 18, 2022/ Cosmos Holdings, Inc. (“the company”) (NASDAQ: COSM), an international pharmaceutical company with an exclusive line of nutraceuticals and distributor of branded and generic pharmaceuticals, nutraceuticals, over-the-counter drugs and medical devices, today provided a business update and released its financial results for the first quarter ended March 31, 2022.

Greg Siokas, CEO of Cosmos Holdings, said, “I am pleased to report that revenue increased 12.5% ​​to $13.1 million, gross profit increased 88.9% to reach $1.89 million and that we achieved profitability for the first quarter of 2022. Our growth was due in large part to increased demand for our proprietary line of nutritional supplements, Sky Premium Life® (SPL), sales of these products increased by 49.2% compared to the same period last year. As a result, our gross margin increased by 586 basis points to 14.5% compared to 8.6% for the same period last year. The increase in gross margin is attributable to higher-margin nutraceutical sales growth. At the same time, we continue to carefully manage expenses and reduce operating expenses by almost 40%. As a result, we achieved net income of $0.2 million and EBITDA of $1.2 million for the first quarter of 2022 (see reconciliation below), illustrating the scalability and earnings potential of our business. balance sheet and ended the quarter with working capital of $11.8 million as of March 31, 2022.”

“Our plan is to grow our portfolio of branded nutraceuticals and reach up to 150 SKUs by the end of 2022. At the same time, we continue to expand geographically and our strategy is to further penetrate the markets of European Union, Asia and North America. To this end, we have launched our SPL products on Amazon Singapore and, more recently, on Amazon Canada. These two markets represent significant and untapped growth opportunities, offering new audiences to our proprietary SPL brand, which has been well received across Europe. We look forward to launching our high-quality nutraceutical products in other new international markets this year, leveraging our strong global logistics capabilities. and distribution.”

“We remain committed to pursuing innovation through ongoing research and development in each business unit, with a particular focus on inherently lower risk assets. The strategy for our comprehensive online wholesale business is to grow more in Greece, expand our customer portfolio and integrate set up pharmacy sales networks through the use of B2B and B2C e-commerce platforms and exclusive distributors We continue to develop our product portfolio pharmaceutical companies, as well as expanding our OTC and nutraceutical product lines. We are improving our distribution and marketing strategies by providing third-party logistics services to pharmaceutical companies, adding loyalty programs and providing value-added services to pharmacies, such as than emergency deliveries to customers.”

“We remain focused on our goal of becoming a leading international pharmaceutical and nutraceutical company by rapidly growing our business through organic growth, including increased market penetration and geographic expansion, as well as strategic and accretive acquisitions. In turn, we expect this will enable Cosmos to accelerate growth and generate significant profitability in the years to come.”

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

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See the sections “Definitions of Non-GAAP Measures” and “Reconciliation of Non-GAAP Measures” for an explanation and reconciliations of non-GAAP measures used throughout this release.

Definitions of Non-GAAP Measures

We collect and analyze operational and financial data to assess the health of our business and evaluate our performance. In addition to revenue, operating profit (loss) and net profit (loss) under GAAP, we use: EBITDA, adjusted EBITDA and adjusted net profit (loss). We have included these non-GAAP financial measures because they are key measures used by our management to assess our operating performance. Accordingly, we believe that these non-GAAP financial measures provide useful information for investors and others to understand and evaluate our results of operations along with our management team and Board of Directors. Our calculation of these non-GAAP financial measures may differ from non-GAAP measures of the same name, if any, presented by our peer companies. These non-GAAP financial measures should not be considered in isolation or as substitutes for financial information prepared in accordance with GAAP.

Adjusted EBITDA

We define Adjusted EBITDA as income (loss) before income taxes, excluding (i) amortization expense, (ii) net interest income/(expense), (iii) non-cash interest expense, (iv) non-recurring charges and extraordinary items (v) other income (expense), net, (vi) net gain (loss) on equity investments, (vii) gain on extinguishment of debt, (viii) change in fair value of derivative liability and (ix) currency transaction, net.

We have included Adjusted EBITDA because it is a key metric used by our management team to assess our operating performance, generate future operating plans and make strategic decisions. Accordingly, we believe that Adjusted EBITDA provides useful information for investors and others to understand and evaluate our results of operations in the same way as our management team and board of directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash and non-recurring and extraordinary expenses.

Items.

Adjusted EBITDA has limitations as a financial measure, should be considered supplemental in nature, and is not intended to replace related financial information prepared in accordance with GAAP.

Adjusted net profit (loss)

We define Adjusted net income (loss) as Adjusted EBITDA (see above) excluding (i) the benefit of (provision for) income taxes, (ii) interest expense, net and adding (iii) interest income.

Adjusted net income has limitations as a financial measure, should be considered supplemental in nature, and is not intended to replace related financial information prepared in accordance with GAAP.

Reconciliation of Non-GAAP Measures

(2,039,939

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About Cosmos Holdings, Inc.

Cosmos Holdings Inc. (NASDAQ:COSM) is an international pharmaceutical company, with a proprietary line of nutraceuticals and a distributor of branded and generic pharmaceuticals, nutraceuticals, over-the-counter drugs and medical devices through a extensive distribution network established in the EU. The Company identifies, acquires, develops and markets products that improve the lives and outcomes of patients. Cosmos has developed a global distribution platform and is currently expanding across Europe, Asia and North America. Cosmos Holdings has offices and distribution centers in Thessaloniki, Greece, Athens, Greece and Harlow, UK. More information is available at www.cosmosholdingsinc.com and www.skypremiumlife.com.

Forward-looking statements
Except for historical information contained in this press release, 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, followed or otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”, “estimates”, “plans” and similar expressions or future or conditional verbs such as “shall”, “should”, “should”, “may” and “could”, are generally forward-looking in nature and not historical fact, although not all forward-looking statements include this who is before. These statements involve unknown risks and uncertainties that may individually or materially affect the matters discussed herein for a variety of reasons beyond the Company’s control, including, but not limited to, the Company’s ability to raise sufficient funding to implement its business plans, the impact of the COVID-19 pandemic and the war in Ukraine on the Company’s business, operations and economy generally, and the ability of the Company to successfully develop and market 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 on 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 with Investor Relations:
Crescendo Communications, LLC

Tel: 212-671-1020 Email: COSM@crescendo-ir.com

THE SOURCE:
Cosmos Holdings, Inc.