Hydralyte America unveils 80% increase in revenue for half year
Hydralyte America’s revenue reached a new record – rising to US$4.1 million for H1 FY2022, compared to US$2.3 million in the previous corresponding period.
The Hydration Pharmaceuticals Company (ASX: HPC) trading as Hydralyte America has unveiled an 80% increase in revenue for the half year ending June (H1 FY2022).
The record revenue rose to U$4.1 million for the period, compared to US$2.3 million in H1 FY2021.
Driving this was a 95% increase in e-commerce net revenue, which rose from US$900,000 to US$1.8 million.
Traditional retail net revenue jumped 69% to US$2.3 million.
Despite inflation challenges, the gross margin increased 7% to 54% for H1 FY2022.
Hydralyte America attributed the record revenue to an improved operating environment for the period.
It was also attributed to focused marketing spend and continued new product development.
Meanwhile, the margin growth was propelled by cost of good savings with volume and sales of higher margin products.
Marketing focus
As part of Hydralyte America’s marketing push, it appointed US actress Shay Mitchell as a brand ambassador.
The company described Ms Mitchell as an accomplished actress, entrepreneur and mother, with a “significant social media presence”.
According to Hydralyte America, the actress’ Instagram following three times larger than some of the most prominent athletes in the region and almost 40 times larger than some of Australia’s leading influencers.
Ms Mitchell will provide insight into Hydralyte America’s social media strategy. She will use her own social media channels to publish posts featuring Hydralyte America’s products.
Other marketing initiatives were securing a China distribution partnership and upgrades on Hydralyte America’s e-commerce website.
The sales and marketing spend for H1 FY2022 was US$3.9 million – up from US$1.6 million in H1 FY2021.
Other financials
Hydralyte America recorded a net loss for the period of US$4.2 million, which was largely due to higher marketing expenses and higher employee benefits costs.
This was partially offset by the US$1.1 million increase to gross margin.
Hydralyte America said it expects the marketing investment will drive online sales growth and year-on-year revenue rises.
The company has 12 new products in the pipeline, which it plans to launch in the US and Canada during the summer.