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Hydration solutions company The Hydration Pharmaceuticals Company Limited (ASX: HPC) (“Hydralyte North America” or “the Company”) is pleased to provide its half year activities report and Appendix 4D for the six month period ended 30 June 2023 (the “half year” or “1H FY2023”).
KEY HIGHLIGHTS
- Record net revenue achieved for the half of US$5.3m, representing 28% growth on prior corresponding period ('PCP') (1H FY2022: US$4.1m)
- Strong half year revenue result underpinned by monthly net sales of US$1.09m in June - demonstrating strong traction ahead of North American summer months
- Loss from ordinary activities improved 17% following ongoing review of cost base and implementation of initiatives to reduce capital expenditure
- Gross margin remains stable at 49% or US$2.6m, representing a 1% decrease from the last half (2H FY2022: 49%)
- Continued execution of strategy to decrease expenditure and extend cash reserves through significant reduction in marketing costs following heavy brand investments in FY2022
- 6 new product launches well progressed – One new product shipped in Q2 and more launching in Q3 to underpin ongoing sales growth
Financial overview:
Revenue for the half year increased 28% on PCP (1H FY2022: US$4.1m) and 7% on the previous half (2H FY2022: US$5.0m) resulting in record of US$5.3m. The rise in revenues is attributed to higher shipments into new and existing North American retailers driven by record retail shelf sell-through, new product launches and ongoing sales to retail customers through eCommerce channels.
The following chart displays the eCommerce trailing 4-quarter growth through Q2 FY2023:
The following chart displays the strong YoY growth (Q2 FY2023 beat seasonally highest Q3 FY2022):
Alongside a material increase in revenue, the Company considerably reduced sales and marketing spend for the half to US$3.7m, down from US$5.3m in 2H FY2022, while sales and marketing as a percentage of net sales decreased from 107% in 2H FY22 to 70% in 1H FY23. Digital Advertising spend was reduced to US$1.0m down from US$1.7m in 2H FY2022.
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This article includes content from The Hydration Pharmaceuticals Company Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
HITIQ Announces Exclusive Global Agreement with Shock Doctor for PROTEQT Instrumented Mouthguard
- Global Breakthrough: In a world-first exclusive, HITIQ secures an exclusive global agreement with Shock Doctor, the #1 global mouthguard brand, to provide a self-fit “boil and bite” mouthguard design incorporating PROTEQT instrumented technology revolutionizing the ease of use of cutting edge PROTEQT concussion management technology.
- Unmatched Partnership: Shock Doctor’s world-class mouthguard design expertise unites with HITIQ’s advanced sensor technology to deliver a game-changing safety solution. This agreement enables HITIQ to scale PROTEQT’s commercialisation globally, with plans to manufacture 20,000 units in 2025 and 100,000 units in 2026.
- Ready for Athletes: The co-branded mouthguard with the PROTEQT system, now in production, rolls out to community sports through partnerships with VAFA, AFL Barwon, and Westfield Sports High, with more to come.
Shock Doctor: The Ultimate Mouthguard Partner
Shock Doctor is the only company with the expertise, infrastructure and scale to provide a self-fit mouthguard that can integrate HITIQ technology thus enabling reliable worldwide distribution. The co- branded PROTEQT mouthguard, featuring HITIQ’s PROTEQT logo and Shock Doctor’s “SHOCK” branding, integrates advanced impact sensors into a high-performance design, setting a new global standard for athlete safety.
Left image: The PROTEQT HITIQ/SHOCK co branded instrumented mouthguard. Right image: Market ready PROTEQT concussion management system
PROTEQT: Redefining Safety, PROTEQT’s concussion management system detects head impacts, assesses risks, and guides recovery with precision, backed by a 7-day telehealth service using the Sports Concussion Assessment Tool (SCAT). Built on HITIQ’s proven Nexus iMG technology, validated by elite partners like the AFL and NRL, PROTEQT is ready to protect community athletes worldwide. Strategic partnerships with VAFA (HITIQ’s Official Concussion Technology Partner), AFL Barwon, and Westfield Sports High ensure rapid adoption, with more collaborations in development.
Global Impact, Unmatched Scale Shock Doctor’s design and production partner prowess enable PROTEQT’s rapid production at affordable price points, with production trials confirming a robust supply chain. This exclusive global agreement, built on World Rugby’s approval and a U.S. patent for HITIQ’s Nexus technology, positions PROTEQT as a global leader in athlete safety.
Leadership Vision
Earl Eddings, Executive Chair, HITIQ: “This world-first global agreement with Shock Doctor, the global mouthguard leader, is a defining moment. PROTEQT, now market-ready, combines our cutting-edge technology with their mouthguard excellence to transform concussion management worldwide.”
Jay Turkbas, SVP Product Development: Shock Doctor, Inc. It was a welcome challenge developing and producing the physical structure to house HITIQ’s sensor technology. Paired with Shock Doctor’s world-class design and development expertise we are proud of this groundbreaking mouthguard solution allowing HITIQ to provide PROTEQT technology that can redefine athlete safety globally.”
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This article includes content from HITIQ Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here
