The Hydration Pharmaceuticals Company Limited (ASX:HPC) Reports FY2024 Financial Results
Financial Performance
The Hydration Pharmaceuticals Company Limited reported a 25.5% decrease in revenue to $3.20 million for FY2024. The net loss attributable to members decreased by 132.9% to $2.67 million. Net cash used in operating activities fell by 47.3% to $3.02 million.
Divestiture of Non-US Assets
On 2 October 2024, the company completed the divestiture of non-US assets to Prestige Consumer Healthcare Inc for approximately US$9.45 million, resulting in a gain on disposal before tax of US$7.96 million. The Hydration Pharmaceuticals retained full ownership of its US-based operations.
Funding and Facility Variation
On 27 March 2024, the company executed a variation to its Facility Agreement with PURE Asset Management, securing A$1.7 million in new funding with the potential for two additional tranches of A$1.5 million each. A Second Warrant Deed was entered, issuing 85,000,000 warrants related to the Third Loan. The new funding was allocated to repay the existing A$8.2 million debt facility and support ongoing US operations.
Outlook
The company anticipates emerging benefits from its strategic focus on high-margin SKUs and a streamlined operational approach in the US. Preliminary sales figures for US ecommerce in January 2025 showed double-digit growth compared to the prior year. The company aims to achieve cashflow breakeven and future profitability in the US market.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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