Cosmos Health provides business update on completed acquistions

Cosmos Health provided a business update highlighting the expected revenue growth resulting from the various companies and assets it acquired within 2023, as well as a forecast for revenue, gross profit, and EBITDA in the upcoming year, exclusively attributed to these acquisitions. In 2023, Cosmos Health completed the acquisitions, among others, of GMP-licensed pharmaceutical company Cana Laboratories, the pharmacy distribution network from Bikas GP, and telehealth company ZipDoctor. The acquisitions increased the Company’s asset base by $15.5 million, including a bargain purchase gain of $1.7 million, and carry zero debt. The Company’s efforts to integrate these acquisitions, to date, are yielding positive results. For FY 2023, they are set to contribute almost $4 million in incremental group annual revenue, an approximate 8% increase versus FY 2022. This is despite the acquisitions having contributed for less than six months in the full year, as Cana Laboratories and Bikas GP were completed towards the end of the first half of the year, and ZipDoctor at the beginning of the second quarter. On an annualized basis, these acquisitions would have contributed approximately 16% growth in company-wide annual revenue versus FY 2022. Management believes that these acquisitions have significant growth potential. For FY 2024, the Company projects, solely based on these acquisitions, total revenue to increase by more than $12.5 million, a 25% increase compared to FY 2022. The Company also expects to generate a gross profit of over $3.1 million, representing a gross margin of approximately 25%, and an EBITDA exceeding $1.3 million, equating to an EBITDA margin of at least 10.4%. Moreover, the fixed asset base of the acquired companies, including unencumbered real estate such as the 54,000 sq. ft production facility owned by Cana, provides strong financial flexibility. Going forward, Cosmos Health will continue to invest in the companies and assets it has acquired to pursue various opportunities, with Cana being at the epicenter. Cana is currently involved in a number of projects including ramping up its production capacity to accommodate the increased demand for its proprietary brands globally, including C-Sept, and is nearing the finalization of several contract manufacturing agreements with both local and multinational pharmaceutical companies. What’s more, the acquisition of more than 10 licenses for innovative and fast-moving drugs should position Cana not just as a contract manufacturing company, but as a fully integrated pharmaceutical company with capabilities spanning from drug development and production to marketing and sales.