Hydralyte

Q4 FY23 Quarterly Report and Appendix 4C: Net Cash Used in Operating Activities Down 56% YoY to Record Low

Hydration solutions company The Hydration Pharmaceuticals Company Limited (ASX: HPC) (“Hydralyte” or “the Company”) is pleased to provide the following update on its operational and financial performance for the three-month period ended 31 December 2023 (the “quarter”).

KEY HIGHLIGHTS

  • Net operating expenditure down 56% on PCP to US$1.14m (Q4 FY22: US$2.62m) and down 21% on prior quarter (Q3 FY23: US$1.46m) to lowest since listing in December 2021
  • Additional cost cutting initiatives continued post quarter end - includes payroll cuts annualised at over US$0.6m amongst others
  • Gross margin increased 12% on PCP (Q4 FY22: 48%) and 2% on last quarter (Q3 FY23: 58%) to 60%
  • YoY Gross Profit dollars up 4% to US$1.26m from US$1.21m in Q4 FY22
  • Q4 FY23 net sales of US$2.11m – a slight decrease on last quarter due to temporary out-of- stocks on effervescent tablets
  • Once-off out of stocks during the period led to estimated unfulfilled orders of ~US$0.6m, which had an estimated negative net sales impact of ~US$0.5m; out of stock actively rectified with multiple shipments received
  • Q4 FY23 sales also impacted by continued focus on high-margin revenue streams, sacrificing less profitable and lower margin revenue
  • FY23 total unaudited net sales of US$10m – a 9% increase on PCP (FY2022: US$9.09m)
  • Marketing costs as a percentage of net revenue reduced to 43% - down from 94% in Q4 FY22
  • Transition to new broker, LeBeau Excel, continues to expand addressable market in Canada and underpin 2-3% improvement in customer net margin
  • Ongoing work undertaken to launch high growth ready-to-drink (RTD) product range – manufacturing agreements and purchase orders pending
  • Continued execution of strategy to reduce expenditure and extend cash reserves through reduced marketing spend following significant investments in CY2022 to build and establish brand awareness in the North American market
Financial overview:

Revenue for the quarter was US$2.11m, which was a decrease on the PCP and previous quarter. The decline was due to multiple factors, which included temporary out of stocks and the prioritisation of improved profitability over revenue growth.

Temporary out of stocks during the period led to estimated unfulfilled orders of US$0.6m, which had a negative net sales impact of US$0.5m. The primary out of stocks were on multiple flavours of effervescent tablets and highlight the ongoing demand for HPC’s product suite.

The Company expects a swift recovery from the temporary issue and has received several shipments to improve the situation. Hydralyte expects to realise additional sales from these new shipments during the current quarter and will continue to work to capitalise on the strong demand for the Company’s products with North American retailers.

Sales through Amazon Canada increased 35% to CAD$0.5m, when compared to the PCP (Q4 FY2022 CAD$0.4m), while US Amazon sales were US$0.5, down slightly due to the Company’s ongoing shift towards improved profitability over revenue growth.

To drive more sustainable revenue growth, the Company is actively shifting product marketing investments towards higher conversion and higher margin products. This was highlighted by the decrease in marketing as a percentage of sales to 43% from PCP (Q4 FY2022 94%) and a 62% decrease in total marketing spend on the PCP (Q4 FY22: US$2.38m) to US$0.91m, in line with the Company’s cash preservation initiatives.


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
The Conversation (0)

Adicet Bio Appoints Michael Grissinger to the Board of Directors

--Mr. Grissinger brings more than four decades of leadership experience in pharmaceutical business development and strategic transactions--

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
Neuroscientific Biopharmaceuticals

Neuroscientific to Acquire Leading Stem Cell Technology

NeuroScientific Biopharmaceuticals Ltd (ASX:NSB) to acquire StemSmartTM patented Stem Cell technology (StemSmart), for the manufacture of life-changing cellular medicine, Mesenchymal Stromal Cells (MSC), from Isopogen WA Ltd (Isopogen WA).

Keep reading...Show less
New York Plastic Surgical Group and Deep Blue Med Spa Receive State and National Recognition by Allergan Aesthetics

New York Plastic Surgical Group and Deep Blue Med Spa Receive State and National Recognition by Allergan Aesthetics

New York Plastic Surgical Group and Deep Blue Med Spa have been named the #1 provider of Allergan products in New York State. In addition, they have been ranked in the top 25 nationally. This distinction places them in the top 1% of over 30,000 Allergan medical aesthetic practices throughout the country.

As a pioneer in the field of aesthetic medicine, Allergan develops and manufactures a portfolio of leading brands and products including Botox Cosmetic, the Juvéderm family of fillers, Coolsculpting, Cooltone, DiamondGlow, and SkinMedica. To receive a top placement from such an authority within the industry is not only an accomplishment, but also a demonstration of true mastery. To date, NYPS Group and Deep Blue Med Spa are proud to have had multiple providers chosen to serve as national AMI (Allergan Medical Institute) trainers.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
AbbVie Announces European Commission Approval of RINVOQ®  for the Treatment of Adults with Giant Cell Arteritis

AbbVie Announces European Commission Approval of RINVOQ® for the Treatment of Adults with Giant Cell Arteritis

  • RINVOQ is the first and only oral Janus kinase (JAK) inhibitor approved in the European Union (EU) to treat adult patients with giant cell arteritis (GCA)
  • The approval is supported by data from the pivotal Phase 3 SELECT-GCA trial which demonstrated that RINVOQ achieved the primary endpoint of sustained remission* and key secondary endpoints, including reduction in disease flares, lower cumulative steroid exposure and complete remission †1
  • This marks the eighth approved indication for RINVOQ in the EU 2

AbbVie (NYSE: ABBV) today announced that the European Commission (EC) granted marketing authorization to RINVOQ ® (upadacitinib; 15 mg, once daily) for the treatment of giant cell arteritis (GCA) in adult patients. RINVOQ is the first and only oral JAK inhibitor approved in the EU, as well as Iceland Liechtenstein and Norway for the treatment of adult patients with GCA.

"GCA is a challenging and often debilitating condition. Patients may endure headaches, jaw pain and muscle aches, with many fearing sudden and permanent vision loss," 3 said Prof. Dr. med. Wolfgang Schmidt , M.D., MACR, Waldfriede Hospital, Department of Rheumatology, Berlin, Germany , and SELECT-GCA trial investigator. "Results from the SELECT-GCA trial show that patients can achieve sustained remission and reduce their cumulative steroid exposure with RINVOQ, addressing important patient goals in the treatment of GCA."

News Provided by PR Newswire via QuoteMedia

Keep reading...Show less

Adicet Bio Reports Inducement Grants Under Nasdaq Listing Rule 5635

Adicet Bio, Inc. (Nasdaq: ACET), a clinical stage biotechnology company discovering and developing allogeneic gamma delta T cell therapies for autoimmune diseases and cancer, today announced it granted inducement awards on March 31, 2025.

Two individuals were hired by Adicet in March 2025. In the aggregate, Adicet granted new hires non-qualified stock options to purchase 38,600 shares of Adicet's common stock with an exercise price of $0.76 per share, the closing price of Adicet's common stock as reported by Nasdaq on March 31, 2025. One-fourth of the shares underlying each employee's option will vest on the one-year anniversary of each recipient's start date and thereafter the remaining three-fourths of the shares underlying each employee's option will vest in thirty-six substantially equal monthly installments, such that the shares underlying the option granted to each employee will be fully vested on the fourth anniversary of the recipient's start date, in each case, subject to each such employee's continued employment with Adicet on such vesting dates.

News Provided by Business Wire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×