Hydration Pharmaceuticals Company Limited · ASX:HPC
Hydration Pharmaceuticals — The Hydration Pharmaceuticals Company — Investor Presentation (February 2023)
16 slides from Hydration Pharmaceuticals's investor presentation, Feb 6, 2023
Slide 1: For personal use only
For personal use only 1 Low Sugar More Electrolytes Our purpose To make better hydration solutions and Hydration make a difference doing it Acceleration Formula Our ambition To own hydration Doctor Approved, Rapid in the family home Rehydration
Slide 2: Disclaimer
2 Disclaimer This presentation includes general information about the activities of The Hydration Pharmaceuticals Company Limited ACN 620 385 677 (HPC). The information contained in this presentation is for general information purposes only. The information contained in this presentation does not co
Slide 3: A North American focused company with Australian heritage
A North American focused company with 3 Australian heritage Founded in Australia with liquid products For personal use only 2001 HYDRALYTE GLOBAL TERRITORIES Powder products launched 2006 Hydralyte North America (ASX: HPC) Tablet format products launched 2010 2012 Launch in Canada Australian busines
Slide 4: Corporate overview
Corporate overview 4 Corporate snapshot Major shareholders (as at 3 February 2023): ASX code: HPC Woobinda Nominees Pty Ltd (Mr Dan O’Brian) 9.16% For personal use only Shares on issue: 163.8m HSBC Custody Nominees (Australia) Limited 8.56% Market capitalisation (at $0.10 per share): A$16.3m Options
Slide 5: An experienced Board, management and advisory team
5 An experienced Board, management and advisory team Disciplined governance and extensive expertise in growing consumer products companies For personal use only Oliver Baker George Livery Adem Karafili Gretta Van Riel CEO Chairman NED NED Former General Manager of Former Director of Strategy & Forme
Slide 6: Overview and investment highlights
6 Overview and investment highlights Leveraging an established market presence to deliver rapid growth For personal use only Established operations Significant Sales Growth Proven Canadian business • Strong sales growth in North America through • Sales have grown ~50% with Amazon up ~100%+ to • Top-
Slide 7: Canadian market opportunity (vs USA)
7 Canadian market opportunity (vs USA) Canadian in-store categories have doubled in size – led by Pedialyte (market leader) and Hydralyte For personal use only Canadian market is undersized and will grow organically – providing significant opportunity August 2021 market value: August 2022 market val
Slide 8: Q4 FY2022 results overview
8 Q4 FY2022 results overview For personal use only Total FY2022 revenue: Q4 FY2022 revenue: Gross margin: US$9.09m US$2.52m 48% é é é é +49% on PCP é +45% on PCP é +5% on PCP (unaudited) Amazon US subscriber growth: Canadian retail sales: Q4 FY2022 net cash used é é Up 108% Up 69% US$2.6m From 1,962
Slide 9: Revenue growth remains strong
9 Revenue growth remains strong Trailing 12 month net sales • Trailing 12 month revenue of US$9.09m up 49% on Q4 FY2021 For personal use only • Largest quarterly sales achieved to date – bucking traditional seasonal downtrend following peak North American summer months • Growth driven by: • Canadian
Slide 10: Sources of revenue
10 Sources of revenue Focused on consolidating the North American market – strong presence in Canada and a growing foothold in the US For personal use only Canada: Canada USA Online (USA + CAN) • Trailing 12 month sales: US$4.6m – +52% on PCP • Brand available in every pharmacy in the country with p
Slide 11: Management have improved gross margin
11 Management have improved gross margin For personal use only Improvement being driven by: Gross margin Gross profit • Made for channel product innovation including Amazon friendly SKUs • Pricing increases accepted by major Canadian and US bricks and mortar stores • Marketing focused on higher marg
Slide 12: Partnership with brand ambassador, Shay Mitchell
12 Partnership with brand ambassador, Shay Mitchell • Ms Mitchell is a Canadian Actress and entrepreneur with ~35.4m Instagram followers For personal use only • Co-branded product launched in December 2022 through HPC ecommerce channels and Amazon USA • SKU now being stocked by RiteAid, which has ne
Slide 13: H1 FY2023 product launches and value catalysts
13 H1 FY2023 product launches and value catalysts #1 SKU launch of 2022 was Hydralyte Liver Detox which delivered ~US$300,000 of incremental sales For personal use only Shay Mitchell launches in Launch of Liver Support Launch of Plus Apple Cider Launch of Plus Women’s Shay Mitchell Lemon Shay Mitche
Slide 14: Investment summary
14 Investment summary Trailing 12 month net sales For personal use only • Established operations in the US and Canada with additional international expansion opportunities • Well funded with existing cash at bank and untapped financial facilities to continue growth trajectory while maintaining focus
Slide 15: Thank You
Thank You For personal use only Stay Hydrated Contact: Oliver Baker Chief Executive Officer Oliver.baker@hydralyte.com Henry Jordan Six Degrees Investor Relations Henry.jordan@sdir.com.au +61 (0) 431 271 538
Slide 16: Appendix 1: Established North American sales footprint across 15k+ doors
16 Appendix 1: Established North American sales footprint across 15k + doors Products stocked with major US and Canadian retailers including (but not limited to): For personal use only Plus multiple independent bricks and mortar stores
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