Hydration Pharmaceuticals Company Limited · ASX:HPC
Hydration Pharmaceuticals — The Hydration Pharmaceuticals Company — Shareholder Meeting (May 2022)
18 slides from Hydration Pharmaceuticals's shareholder meeting presentation, May 27, 2022
Slide 1: What makes us who we are?
What makes us who we are? For personal use only Low Sugar Our purpose To make better hydration More solutions and make a Electrolytes difference doing it Hydration Acceleration Formula Our ambition To own hydration Doctor in the family home Approved Rehydration THE HYDRATION PHARMACEUTICALS COMPANY
Slide 2: CEO, Board, Advisory
CEO, Board, Advisory For personal use only DISCIPLINED GOVERNANCE AND KNOWLEDGE IN GROWING CONSUMER PRODUCTS COMPANIES Oliver Baker George Livery Adem Karafili Gretta Van Riel Margaret Hardin Vanessa Dew Brandon Fishman CEO Chairman Director Director Director Advisor Advisor Former General BOD Austr
Slide 3: A North American focused company with Australian heritage
A North American focused company with Australian heritage For personal use only HYDRALYTE GLOBAL Founded in Australia 2001 TERRITORIES with liquid products Launch powder 2006 products Launch tablet 2010 Hydralyte North products America 2012 Launch in Canada Sell Australian 2014 Formation of Hydralyt
Slide 4: Hydralyte North America's Core Investment Thesis
Hydralyte North America’s Core Investment Thesis For personal use only Established business E-comm focus Canada strength • #2 position in pharmacy • Record of Gross Margin • Aligning with consumer with national distribution, improvement* macro trends 28% Share** • Strong sales growth* • Higher margi
Slide 5: Company Highlights
Company Highlights For personal use only Amazon Stores Business AMAZON Amazon Amazon North American Subscriptions Door Count Retail Sales STORE SESSIONS BY DAY Quarterly Sales through Dec 2021 1800 Q1 2022 Q1 2022 2022 2021 1600 1400 1200 2020 1000 2300 2020 800 ~$800k ($40k per ~20k $13.5m month) Q
Slide 6: Hydralyte N.A. has grown significantly over the past years – driven by online
Hydralyte N.A. has grown significantly over the past 2 years – driven by online For personal use only Hydralyte sales by Day – Amazon 2021 vs 2020 To $8-15k per day in Lifestyle Brand online sales Consumer strategy (inc.Hydralyte.com) Wellness Focus From Clinical Brand Medical first strategy THE HYD
Slide 7: Q1 2022 Wrap Up
Q1 2022 Wrap Up For personal use only • Significant improvement in gross margin • E-comm run rate around 45% of sales *https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02513351- 3A592213?access_token=83ff96335c2d45a094df02a206a39ff4
Slide 8: 2021 Results
2021 Results For personal use only -YoY revenue up 63% -Other income in 2020 is from sale of additional territories -Only portion of IPO costs hitting P&L per accounting standards. Majority of IPO costs hit equity. -Finance expenses are $1.9m from convertible notes conversion, costs of convertible n
Slide 9: Hydralyte is seasonal with Q3 (summer) the strongest sales period
Hydralyte is seasonal with Q3 (summer) the strongest sales period For personal use only 2021 vs 2022 Net Sales By Month (USD) • Q1 22 revenue up 119% quarter on the previous $800,000 corresponding quarter $749,126 $740,381 $700,000 $751,390 $656,877 • Gross margin Q1 on Q1 $600,000 2022 119% Growth
Slide 10: USA Amazon
USA Amazon Amazon USA Sales by Day, 2021 through to today For personal use only Running at summer 2021 run rate • Amazon daily sales ~$8k per day. Summer 2021 +~100% in daily sales tracking at summer 2021 levels in Q1 2022 • Sales in 2021 grew 3x alone between May and August. • Subscribers now accou
Slide 11: What we're capable of in a Hydration set.
What we’re capable of in a Hydration set. Complementary to Pedialyte and Liquid IV Hydralyte 1 Week Sales vs Liquid IV - pro rated to 2000 doors over New Year National pharmacy chain For personal use only $10,000 $9,000 $8,602 Launched Feb 2021 $8,000 $7,565 $7,000 $5,811 $6,000 $4,717 $4,933 $4,868
Slide 12: Canada Strength: 28% share of stores (July '21) and dominant brand online
Canada Strength: 28% share of stores (July ’21) and dominant brand online For personal use only Share of Canadian Pharmacy / Grocery But that was last year! Leading brand on Amazon Canada (through July 2021) Search Term ‘Electrolyte Powder’ on Amazon.ca +61% YTD 28% Shr In decline 45% share +41% Lob
Slide 13: Canadian Sales Plan.
Canadian Sales Plan. Stronger in-store presence For personal use only Increase Marketing Major Celebrity New SKUs over summer 33.1m followers 2021 – 18 units Booked for June / July 2022 2022 2021 2022 – 44 units More flavours and formats = more sales (history shows negligible cannibalization) Displa
Slide 14: Hydralyte announces partnership with super entrepreneur, Shay Mitchell
Hydralyte announces partnership with super entrepreneur, Shay 33.1m followers Mitchell For personal use only Millions of Followers 35 Social Super Star 30 Example of custom flavour 25 Critical Elements of partnership. • Social Powerhouse, has built BEIS into ~$50m in sales. Canadian, relatable. Life
Slide 15: Shay Mitchell Press Coverage
Shay Mitchell Press Coverage First Instagram Post Launched 5.16 For personal use only US 370 placements | 216.3M impressions New York Post Buzzfeed Yahoo Finance – (47,428,093) SheKnows MSN Markets Insider – (5,045,824) Marketwatch – (23,373,278) CANADA 4,072,000 impressions vitadaily.ca – (158,000)
Slide 16: Innovation update: First from the USA
Innovation update: First from the USA. Faster to market, Less Air Freight, anticipated higher margin Complementary to current supplier 2500 doors in July to launch through Rite Aid For personal use only NEW: 500ml (16oz) sticks
Slide 17: Hydralyte North America's Core Investment Thesis
Hydralyte North America’s Core Investment Thesis For personal use only Hydralyte North America is E-comm is key pillar of Canada an established business current success strength • 28% Share of • De-risked and with • Aligning with undersized market. fundamentals in place consumer macro Australia is ~
Slide 18: Thanks
Thanks For personal use only THE HYDRATION PHARMACEUTICALS COMPANY LIMITED | 18
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