Cosmos Holdings Reports 15.8% Year-Over-Year Growth and 27.8% Sequential Increase in Revenue for the Second Quarter of 2021
CHICAGO, Aug. 17, 2021 (GLOBE NEWSWIRE) -- Cosmos Holdings, Inc. (“the Company") (OTCQX: COSM), international pharmaceutical company with a proprietary line of branded and generic pharmaceuticals, nutraceuticals, OTC medications and an extensive, established European Union distribution network, today provided a business update and reported financial results for the second quarter ended June 30, 2021.
Greg Siokas, Chief Executive Officer of Cosmos Holdings, stated, "I am pleased to report that we achieved 15.8% year over year growth for the second quarter of 2021 and a 27.8% sequential increase in revenue versus the first quarter of 2021. We are rapidly expanding our distribution network worldwide and opening new markets for our proprietary line of branded pharmaceuticals, nutraceuticals, and food supplements. Last month, we entered into an exclusive distribution agreement with Mediprovita GbR (Mediprovita) for the distribution of our full line of proprietary nutraceuticals, Sky Premium Life, in Germany and Austria. Mediprovita has over 25 years of expertise in e-commerce and a successful track record in selling health products. That makes them the perfect partner as we establish Cosmos Holdings in the pharma retail and e-commerce markets in Germany and Austria. They will be launching our products on Amazon and eBay, followed by placing our products in ‘Bricks & Mortar’ pharma stores across Germany and Austria. We are successfully executing on our strategy of building a robust distribution network worldwide to introduce new branded pharmaceuticals and new nutraceuticals into international markets that we believe will become major drivers of our revenue growth and profitability in the coming quarters and years ahead.”
“Last week, we achieved a major milestone as we entered into a three-year distribution agreement with China-based REMAI e-Commerce Co., Ltd. (REMAI) to open a flagship store and launch our Sky Premium Life products on Alibaba’s Tmall Global, the world’s largest cross-border e-commerce marketplace with 500 million monthly active users. This was a major accomplishment as this partnership vastly expands our e-commerce distribution network into China and offers significant opportunities for geographic expansion of our proprietary supplement and nutraceutical products. REMAI is an ideal partner for the Chinese market, as they have a successful track record launching hundreds of international brands into China and we are mutually committed to a profitable, long-term partnership. REMAI plans to set up and launch Sky Premium Life’s online flagship store carrying Cosmos’ nutraceutical products on Tmall Global in Q4 of 2021. REMAI has already begun brand building and test marketing our products and we anticipate these revenues to ramp up in 2022.”
“Importantly, over the past three months I began reducing the Company’s debt and have converted $5.25 million of debt to equity, further illustrating my commitment and confidence in Cosmos’ upside potential. While we achieved strong organic growth, including both full-line wholesale products and our proprietary nutraceutical brand, Sky Premium Life, our margins temporarily declined. However, we anticipate increased sales of our branded nutraceutical products will have a positive impact on margins moving forward. It’s also important to note, SG&A included $1.9 million one-time non-cash, stock-based compensation expenses related to international consulting activities, which we believe will help accelerate our future success. Looking ahead, we are 100% focused on scaling the business, while enhancing our cash flow, as we rapidly expand our distribution network across Europe, Asia and North America. During the quarter, we appointed finance veteran Alexi Papaconstantinou to the Company's Advisory Board. Alexi’s experience in capital markets will be invaluable as we continue to aggressively expand our global footprint, both organically and through acquisitions. Enhancing our balance sheet and bringing Alexi on board, facilitates one of our main goals for this year of uplisting to the Nasdaq Capital Market, which we believe will significantly enhance shareholder value. We have made tremendous progress in the first half of the year by growing our pharmaceutical and nutraceutical business, as well as establishing our distribution network and I could not be more excited for the outlook of the business.”
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