Haypp Group's product portfolio expansion has received a positive response from customers and the media.

"The core of our mission is to facilitate the transition from smoking to safer nicotine alternatives", says Markus Lindblad, Head of External Affairs. "We take great pleasure in providing these products to our UK customers and look forward to continuing to inspire healthier enjoyment." 

The initiative to expand the product portfolio reflects a global trend where an increasing number of people reject cigarettes in favour of less harmful nicotine alternatives. Customers want safer nicotine that suits every occasion, and this involves offering reduced-risk nicotine alternatives that can be used and satisfy customers at all times of the day.

"Adding vapes to our product portfolio represents an exciting development for us. We broke new ground, as a market leader should always strive to do, by being the first e-commerce actor to sell both nicotine pouches and vape products.", adds Markus Lindblad.

Here are some examples of news articles where Haypp Group or its brands are mentioned in UK media:
The Sun
The Times
The Huffington Post (UK)
The Telegraph

According to the report, e-commerce turnover experienced a continued decline in April, like in March. Swedish e-commerce in 2023 has developed somewhat weaker than in 2022 and much weaker than in 2021. However, the sales development in volume is significantly weaker, which is not fully reflected in current prices due to the continued high inflation.

“We see another weak month for e-commerce, and considering inflation, it is also significantly weaker than what is shown by the reduced turnover. Nicotine and tobacco products are with a clear margin this year’s winner so far”, says Per Ljungberg, Head of Innovation at Svensk Handel.

Only four categories demonstrated growth: nicotine and tobacco products (47 per cent), pharmaceuticals (6 per cent), clothing and footwear (5 per cent), and car, boat, or motorbike accessories (1 per cent).

“The overall development of the e-commerce sector is unfortunately not surprising with the challenges facing retailers and consumers with high inflation and tougher economic times. At the same time, our segment drives the growth in e-commerce, so being from lower levels. The growth shows the segment’s untapped market potential and, more importantly, makes less harmful nicotine enjoyment available for people, benefiting public health”, says Markus Lindblad, Head of External Affairs.

Svensk Handel is a Swedish trade- and employer organisation that engages in wholesale, retail and e-commerce trading issues. Every month Svensk Handel conducts an interview-based study to report how Swedish e-commerce has developed during the period.

Access the full report (in Swedish) here.

In a comment, Hävner believes there aren't many investment opportunities for investors who want to take advantage of the market progress of nicotine pouches following the acquisition of Swedish Match by Philip Morris International. He also points out that the nicotine market seems to be less sensitive to economic conditions and inflation:

"With the recent disappearance of the snus giant Swedish Match from the stock market, there aren't many options for investors who want to profit from the progress of the white, tobacco-free pouches. This will likely benefit Haypp, and it's probably already visible. The stock has risen by 34 per cent since the beginning of the year. Almost completely insensitive to economic conditions, inflation, and all that. And that's something people appreciate in times like these."

Haypp Group takes fourth place on the list, after Lyko (1st), Söder Sportfiske (2nd), and Rugvista (3rd).

Access the article (in Swedish) here.

Dagens Industri notes Haypp Group's strong performance through an increase in net sales by 22 per cent to SEK 781.3 million and an operating profit of SEK 7.4 million, also referenced by Privata affärer. 

One of Sweden's leading trade magazines for e-commerce reported, "The nicotine pouch product category continues to be a big seller for the e-retailer. During the first three months of the year, sales of nicotine pouches increased by 41 per cent and now account for almost half of the sales volume." 

The magazine also took note of the company's increased adjusted EBIT to SEK 18.2 million, corresponding to an adjusted EBIT margin of 2.4 per cent. Read the article (Swedish) here.

“Net sales for the group increased by 21 per cent in constant currency during the quarter to SEK 2,740 million on an LTM basis. Inflationary pressure has so far had limited impact on our overall performance, and we see an increasing demand from consumers seeking safer nicotine alternatives at attractive prices", says Gavin O’Dowd, CEO Haypp Group.

For more in-depth comments on the first quarter, Gavin O'Dowd and CFO Svante Andersson held a webcast through Financial hearings, which is available here.