Revenue growing, gross margins expanding from 7% to 15% in two quarters, cash operating burn down 95% year-over-year. The distribution business is a vehicle. The owned brands. Sky Premium Life nutraceuticals. Are the thesis. If the mix shift continues, this transitions from a low-margin distribution company to a branded consumer health company using its own logistics as the delivery channel.
Cosmos ships pharmaceutical products across Greece and Southern Europe; basically a delivery company for other people's drugs. Low margins, high volume, steady but unexciting. The interesting part: they make their own branded vitamins and supplements called Sky Premium Life, and those carry 87 percent margins instead of 5 percent. They are slowly shifting from 'we deliver other people's drugs' to 'we sell our own products through our own delivery network.' The gross margin went from 7 percent to 15 percent in two quarters; that is the shift happening in the financial statements. The trucks are the same. The warehouses are the same. The pharmacy relationships are the same. What changed is what is inside the trucks. If they keep putting more of their own products on those trucks, the margin keeps expanding and the company starts looking like a branded health company instead of a delivery service. That is the thesis.
Watch gross margin in Q4 2025 and Q1 2026 filings. Sustained improvement above 15 percent signals the owned brand mix shift is structural. A reversal toward single digits means the distribution business is still dominant and the thesis is slower than expected. Also monitor the share count; further dilution reduces the per-share value of the margin expansion that makes the investment case.