Business
Cosmos Holdings Reports 12.5% Increase in Revenue, 88.9% Increase in Gross Profit and Achieves Profitability for the First Quarter of 2022
Reports Positive Net Income of $0.2 Million and $1.2 Million of EBITDA for the First Quarter of 2022CHICAGO, IL / ACCESSWIRE / May 18, 2022 / Cosmos Holdings,
About this update from Cosmos Health Inc.
[{"type":"text","content":"Reports Positive Net Income of $0.2 Million and $1.2 Million of EBITDA for the First Quarter of 2022CHICAGO, IL / ACCESSWIRE / May 18, 2022 / Cosmos Holdings, Inc. (\"the Company\") (NASDAQ:COSM), an international pharmaceutical company with a proprietary line of nutraceuticals and distributor of branded and generic pharmaceuticals, nutraceuticals, OTC medications and medical devices, today provided a business update and reported financial results for the first quarter ended March 31, 2022.Greg Siokas, Chief Executive Officer of Cosmos Holdings, stated, \"I am pleased to report revenue increased 12.5% to $13.1 million, gross profit increased 88.9% to $1.89 million and 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), as these product sales increased 49.2% over the same period last year. Accordingly, 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 was attributable to the growth in higher margin nutraceutical sales. At the same time, we continue to carefully manage expenses and reduced operating expenses by nearly 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. We also continue to strengthen our balance sheet and ended the quarter with working capital of $11.8 million of 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 markets in the European Union, Asia and North America. Towards that end, we launched our SPL products on Amazon Singapore and most recently on Amazon Canada. Both markets represent significant and untapped growth opportunities, providing new audiences for our proprietary SPL brand, which has been well received across Europe. We look forward to launching our high-quality nutraceutical products into other new international markets this year, by leveraging our robust global logistics and distribution capabilities.\"\"We remain committed to continued innovation thro...