mos Health (US:COSM)2022-05-16 16:00Financial Performance - The Company reported revenue of $13,071,800 for Q1 2022, representing a 12.5% increase from $11,619,076 in Q1 2021, driven by organic growth from its subsidiary Cosmofarm and a 49.29% increase in sales of its branded nutritional supplements, "Sky Premium Life"[128]. - Cost of goods sold increased by 5.29% to $11,179,868 in Q1 2022, compared to $10,617,741 in Q1 2021, indicating improved margins due to higher revenue from nutraceuticals[129]. - Gross profit for Q1 2022 was $1,891,932, an increase of 88.94% from $1,001,335 in Q1 2021, attributed to higher gross profit margins from increased nutraceutical sales[131]. - The Company achieved a net income of $203,347 in Q1 2022, a significant turnaround from a net loss of $2,173,903 in Q1 2021[128]. - Operating expenses decreased by 114% to $242,251 in Q1 2022, down from a loss of $1,731,098 in Q1 2021, primarily due to reduced sales and marketing expenses[132]. Liquidity and Cash Flow - The Company had working capital of $11,831,133 as of March 31, 2022, compared to $10,950,492 as of December 31, 2021, indicating improved liquidity[137]. - As of March 31, 2022, the Company had cash of $1,010,427, a significant increase from $286,487 as of March 31, 2021[138]. - Net cash used in operating activities for the three months ended March 31, 2022, was $2,337,276, compared to $665,339 for the same period in 2021[138]. - The Company reported net cash provided by financing activities of $2,914,441 for the three months ended March 31, 2022, up from $380,118 in 2021[138]. - The Company has net cash provided by investing activities of $94,550 for the three months ended March 31, 2022, primarily from loan receivables[138]. Strategic Plans and Expansion - The Company plans to expand its nutraceutical product line, aiming to increase the number of product codes from 75 to 150 by the end of 2022[123]. - The Company operates a distribution network exceeding 1,500 pharmacies in Greece and over 40,000 pharmacies across Europe, enhancing its market reach[123]. - The Company is focused on acquiring or licensing additional pharmaceutical products to enhance its portfolio and drive growth[122]. - Geographic expansion plans include distribution in the EU, Asia, USA, and Canada through exclusive distributors and acquisitions of nutraceutical companies[139]. - The Company aims to enhance its branded pharmaceuticals through geographic expansion, particularly in the EU and UK, and by acquiring generics and OTC licenses[141]. Operational Efficiency - The Company intends to optimize operating expenses across all entities while maintaining service quality[141]. - The pharmaceutical sector in Europe presents significant growth potential, contingent on service, price, and quality alignment with customer needs[141]. - The Company is committed to strategic research and development across its business units, focusing on lower-risk assets[141]. Future Outlook - The Company anticipates that future revenue growth will be influenced by industry trends, competition, and economic conditions, including the impact of the ongoing conflict in Ukraine[130].