Hydration Pharmaceuticals Company Limited · ASX:HPC
Hydration Pharmaceuticals — The Hydration Pharmaceuticals Company — Investor Presentation (October 2022)
19 slides from Hydration Pharmaceuticals's investor presentation, Oct 21, 2022
Slide 1: Q3 2022 Investor Presentation
For personal use only Low ASX:HPC Sugar Q3 2022 Investor Presentation More Our purpose Electrolytes To make better hydration solutions and make a difference doing it Hydration Our ambition Acceleration To own hydration Formula in the family home Doctor Approved, Rapid Rehydration
Slide 2: An experienced Board, management and advisory team
An experienced Board, management and advisory team DISCIPLINED GOVERNANCE AND KNOWLEDGE IN GROWING CONSUMER PRODUCTS COMPANIES For personal use only Oliver Baker George Livery Adem Karafili Gretta Van Riel Margaret Hardin Vanessa Dew Brandon Fishman CEO Chairman Director Director Director Advisor Ad
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: Core investment thesis
Core investment thesis For personal use only Established business E-commerce focus Canada strength • Strategy at growth • Aligning with consumer • #2 position in phase macro trends pharmacy with national • Established sales base • Higher margin distribution* in strong sales growth • Ability to test
Slide 5: Business Summary: High growth and rapid expansion focus
Business Summary: High growth and rapid expansion focus RETAIL SALES NEW INVESTOR INVESTING IN CATEGORY LEADER AND AMBASSADOR BRAND IN E-COMM IN EXPANSION For personal use only EXPLODING +49% $10.5m $6.6m Rapid sales growth Shay Mitchell 2X Marketing #1 Brand in Solid Spend Dose Hydration YTD year o
Slide 6: Recent sales highlights
Recent sales highlights Retail Sales: Amazon USA Year on Year • Another record quarter, nearing ~US$2.5m in net sales $350,000 (~A$4m). Factory sales not telling underlining retail sales YTD ~100%+ growth For personal use only $300,000 growth story which is tracking around +50% +62% for Q3 on Q3 202
Slide 7: Major market opportunity
Major market opportunity • Canadian in-store categories have doubled in size – led by Pedialyte (market leader) and Hydralyte • Canadian market is currently undersized and will grow organically – providing a significant opportunity for Hydralyte For personal use only August 2021 market August 2022 2
Slide 8: Canada sales snapshot: 2022 progress
Canada sales snapshot: 2022 progress CUSTOMER L52 SALES ($) L52 SALES PY ($) L52 ($) DIFF % CYTD SALES ($) CTYD SALES PY ($) CYTD ($) DIFF % L01 $SW L04 $SW L12W$SW AMAZON $1,321,799 $639,883 107% $1,107,163 $597,257 85% $622.78 $885.38 $1,089.87 For personal use only JEAN COUTU $160,998 $73,912 118
Slide 9: Hydralyte is best selling across major Canadian retailers
Hydralyte is best selling across major Canadian retailers Shoppers Drug Mart Weekly Sales 2021 (orange) vs 2022 (black) For personal use only $140,000 2021 Heat Wave $120,000 + $100,000 End of summer $80,000 3 x new SKUs launch nationally $60,000 Excluding heat wave week $40,000 +56% +41% +/- 13 wee
Slide 10: USA bricks and mortar sales continue to grow pleasingly
USA bricks and mortar sales continue to grow pleasingly For personal use only MULO +47% to last 52 weeks NYE New products or items have been added with US major retail groups: Source: IRI 52 Weeks MULO Accounts. MULO = all reporting major retailers. Excludes Amazon, Costco, HEB and some others
Slide 11: Re-brand to appeal to younger female audience expected to launch Q4 2022
Re-brand to appeal to younger female audience expected to launch Q4 2022 Active, working professionals, aged Our consumer aligns with Shoppers Drug Mart 30-45 years old – focused on mothers For personal use only 50% of Shay Mitchell is 25-34 Focused 50k on hydration ‘moments’ followers Exercise Cold
Slide 12: New products: Retailers ranging SKUs before samples are even available
New products: Retailers ranging SKUs before samples are even available Launched 5 July Launched July Sold out in two weeks Launch expected Q4 2022 For personal use only Lemonade tablet is the #4 Now selling ~US$1k per and 2023 in Canada in category on Amazon day Note: Timings are subject to change w
Slide 13: Shay Mitchell partnership unlocks major sales opportunities
Shay Mitchell partnership unlocks major sales opportunities Now ~35m followers (Tom Brady has 13m) For personal use only Critical partnership elements: • Social Powerhouse - built BEIS into ~US$50m+ in sales • Canadian and relatable. Lifestyle supports key usage occasion Morning Hangover • Minimum o
Slide 14: First major appearance: Influencer Event in Mid-Summer Toronto 2022
First major appearance: Influencer Event in Mid-Summer Toronto 2022 For personal use only
Slide 15: Marketing materials almost ready for USA SKU launch
Marketing materials almost ready for USA SKU launch For personal use only
Slide 16: Shay's Lemon Twist launch event
Shay’s Lemon Twist launch event • 25 of America’s top influencers hosted for a two-day event including warm weather, cocktails, work outs and hydration For personal use only • Event has the potential to deliver millions of dollars in value – one post from guest can be worth up to US$100,000
Slide 17: Timeline of Shay Mitchell partnership and product launch
Timeline of Shay Mitchell partnership and product launch For personal use only Prep (up to Nov 30) Sales/Results First appearance Photo shoot SKU launch 6ct hits stores Launch Canada July October Dec Jan May June Launch Event Canada launch USA Event event appearance appearance Lower Sale Impact High
Slide 18: In Summary
In Summary Retail Sales: Amazon USA Year on Year • Strength in Canada a solid base to expand from $350,000 YTD ~100%+ growth For personal use only $300,000 • Sales growth remains strong $250,000 $200,000 • Business has significant cash reserves to call on $150,000 • Shay Mitchell could provide unrea
Slide 19: Thank You!
For personal use only Thank You! Stay Hydrated
The Hydration Pharmaceuticals Company — Investor Presentation (October 2022) on 6ix