FY24 Appendix 4E

• US revenue declined due to Rite Aid bankruptcy and exiting low-profit regions/SKUs
• Divested non-US assets to Prestige Consumer Healthcare for $9.45M gain
• Repaid $8.2M debt facility with divestment proceeds, focused on US operations

The Hydration Pharmaceuticals Company Limited (ASX: HPC) reported on its activities and cash flows for the 12 months ending 31 December 2024 (FY2024). Revenue was down 25.5% to $3,204,940 and loss after tax attributable to members was down 132.9% to $2,667,533. The decline in US revenue was predominantly due to the Rite Aid bankruptcy process and the company exiting lowest profitability regions, SKUs and retailers. On 2nd October 2024, the group announced the completion of the divesture of non-US assets to Prestige Consumer Healthcare Inc and associated subsidiaries for a total consideration of approximately US$9.45m, resulting in a gain on disposal before income tax of US$7.96m. The group retained full ownership of its US-based operations. The group also executed a variation to the Facility Agreement with PURE Asset Management, providing A$1.7m in new funding. With the funds from the divesture, the group repaid its existing A$8.2m debt facility owed to PURE Asset Management. The company is focused on achieving scale and cashflow breakeven in the US, targeting profitability in the future.

The company reported preliminary sales figures for US ecommerce sales in January 2025 showing double digit growth against the prior year comparative period.

The company is focused on driving growth and unlocking value from its US-based assets and operations, with emerging benefits for US operations from strategic focus on high-margin SKUs and streamlined approach to continuing operations. The company is well positioned to leverage its intellectual property in the US market across manufacturing, logistics and distribution to drive growth through established ecommerce channels, supported by a strong balance sheet.