The Hydration Pharmaceuticals Company (ASX:HPC) has reported Q1 FY2023 sales of $US2.5M, a 32% increase from the prior year's quarter, and has reduced quarterly operating costs by $US1M.

The HydraLyte creator says the reduced operating costs mark the lowest quarterly cash spend since the company's IPO in December 2021.

It also says this sets the company up to further drive sales growth through the high-demand summer period.

The Hydration Pharmaceuticals Company says sales growth during the off-peak winter season reflects its growing brand awareness and increased traction in manufacturing and distribution across its core markets in Canada and the United States.