Hydralyte

Q3 FY24 Quarterly Report and Appendix 4C: First Positive Operating Cash Flow Quarter Underpinned by Strong Financial and Operational Performance

US-focused Hydration solutions company, The Hydration Pharmaceuticals Company Limited (ASX: HPC) (“Hydralyte USA” or “the Company”) is pleased to provide the following update on its operational and financial performance for the three-month period ended 30 September 2024 (the “quarter”).


KEY HIGHLIGHTS

  • Positive net operating cash flows of US$0.6m – marks maiden positive operating cashflow quarter and validation of Company’s push to profitability
  • Revenue for the period of US$2.4m – underpinned by US$1.21m in ecommerce sales, aligned with the Company’s revised strategy of driving online sales
  • 54% reduction in adjusted EBITDA loss on PCP to -$0.6m (Q3 FY23: -$1.3m) – second consecutive record low since IPO
  • Gross margin up 7% on last quarter to 61% and +3% on PCP
  • Marketing costs as a percentage of net revenue were 24%, down 30% in the PCP
  • Divesture of non-US assets to Prestige Consumer Healthcare Inc and associated subsidiaries completed post quarter end
  • Total proceeds of ~US$9.5m (A$13.7m) included US$8.3m for all non-US territories plus US$1.2m for stock and inventory (subject to final adjustments).
  • Company retains full ownership of US-based operations, which are achieving annualised revenue of US$3.5m (unaudited, based on Q3 FY24 annualised)
  • US assets have considerable scope to grow with recently introduced cost efficiencies – Ongoing focus on achieving cashflow breakeven
  • Divesture allows for repayment of debt with objective to fund the Company on a reduced size and expense base for a minimum of twelve months
  • Near-term growth strategy will focus on scaling ecommerce channels and products - follows recent momentum on Amazon USA, which has generated five consecutive months of positive net contribution margin

Financial overview:

During the quarter, the Company continued to deliver on its stated strategy of maintaining sales, while delivering a material reduction in operating expenses.

The focus on profitability and cash preservation resulted in HPC’s maiden quarter of positive net cash from operating activities of $0.6m, compared to a loss of US$0.8m in the previous quarter, and a loss of US$1.5m in Q3 FY23. The significant improvement was a result of the continued reduction in expenses, as well as more favourable payment terms negotiated with suppliers.

Revenue for the quarter remained relatively consistent at US$2.4m underpinned by sales across North America and a reduction in marketing and advertising expenses and unprofitable SKUs in order to prioritise cash preservation and profitability. This led to improvements to net margin, cash flow, and EBITDA.

EBITDA loss decreased 54% on PCP (Q3 FY23: US$1.3m) to a record low of US$0.6m. A result of the continued strong gross profit combined with reduced expenses.


Click here for the full ASX Release

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.

HPC:AU
Hydralyte International

Hydralyte International Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Hydralyte International (ASX:HPC)

Hydralyte International


Keep reading...Show less

FDA APPROVES LUMAKRAS® IN COMBINATION WITH VECTIBIX® FOR CHEMOREFRACTORY KRAS G12C-MUTATED METASTATIC COLORECTAL CANCER

Pivotal Study Demonstrated the Combination More Than Doubled Progression-Free Survival Compared to Investigated SOC

Amgen (NASDAQ:AMGN) today announced that the U.S. Food and Drug Administration (FDA) has approved LUMAKRAS ® (sotorasib) in combination with Vectibix ® (panitumumab) for the treatment of adult patients with KRAS G12C-mutated metastatic colorectal cancer (mCRC), as determined by an FDA-approved test, who have received prior fluoropyrimidine-, oxaliplatin- and irinotecan-based chemotherapy. Approval is based on the pivotal Phase 3 CodeBreaK 300 study, which demonstrated that LUMAKRAS plus Vectibix is the first and only targeted treatment combination for chemorefractory KRAS G12C-mutated mCRC to show superior progression-free survival (PFS) compared to the investigated standard-of-care (SOC). 1*

News Provided by PR Newswire via QuoteMedia

Keep reading...Show less

FDA APPROVES LUMAKRAS® IN COMBINATION WITH VECTIBIX® FOR CHEMOREFRACTORY KRAS G12C-MUTATED METASTATIC COLORECTAL CANCER

Pivotal Study Demonstrated the Combination More Than Doubled Progression-Free Survival Compared to Investigated SOC

Amgen (NASDAQ:AMGN) today announced that the U.S. Food and Drug Administration (FDA) has approved LUMAKRAS ® (sotorasib) in combination with Vectibix ® (panitumumab) for the treatment of adult patients with KRAS G12C-mutated metastatic colorectal cancer (mCRC), as determined by an FDA-approved test, who have received prior fluoropyrimidine-, oxaliplatin- and irinotecan-based chemotherapy. Approval is based on the pivotal Phase 3 CodeBreaK 300 study, which demonstrated that LUMAKRAS plus Vectibix is the first and only targeted treatment combination for chemorefractory KRAS G12C-mutated mCRC to show superior progression-free survival (PFS) compared to the investigated standard-of-care (SOC). 1*

News Provided by PR Newswire via QuoteMedia

Keep reading...Show less
Cizzle Brands Corporation Teams up with Hockey Influencer, Coach Chippy, to launch Tropical Flow, a Special Edition Coach Chippy Inspired Flavour of CWENCH Hydration

Cizzle Brands Corporation Teams up with Hockey Influencer, Coach Chippy, to launch Tropical Flow, a Special Edition Coach Chippy Inspired Flavour of CWENCH Hydration

With a combined social media following of more than one million users, Coach Chippy is a leading influencer in youth hockey. Through his Tropical Flow flavour of CWENCH Hydration, which will be available for purchase at Pro Hockey Life, Source for Sports, Sports Excellence and other leading retailers, Coach Chippy will be creating greater visibility for CWENCH Hydration in a key demographic for the brand.

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
Sirona Biochem Showcases TFC-1326 in Stonegate Healthcare's Landmark Report

Sirona Biochem Showcases TFC-1326 in Stonegate Healthcare's Landmark Report

Sirona Biochem Corp. (TSX-V: SBM) (FSE: ZSB) (OTC: SRBCF) is excited to announce that its cutting-edge anti-aging compound, TFC-1326, has been highlighted in Stonegate Healthcare Partners' latest research report. The publication, titled "Sirona Biochem's TFC-1326 Clinical Data Versus Retinoid Clinical Data," provides an extensive evaluation of TFC-1326's clinical trial performance, setting it apart from traditional retinoid treatments.

The report outlines the remarkable benefits of TFC-1326, including:

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Biotech therapy capsule containing DNA strand surrounded by cells.

Top 4 Canadian Biotech Stocks (Updated January 2025)

Biotech is a dynamic industry that is driving scientific advancements and innovation in healthcare. In Canada, the biotech industry is home to companies pursuing cutting-edge therapies and medical technologies.

According to Grandview Research, the global biotech market is expected to grow at a compound annual growth rate of 13.96 percent between 2024 and 2030 to reach a value of US$3.08 trillion.

Here, the Investing News Network profiles the five best-performing Canadian biotech stocks based on their year-on-year gains.

Keep reading...Show less
Hydralyte International

Hydralyte International Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×