Archives: MFN News Items

Two new names, Lotta Emtefall and Jenny Mitts step into leading roles at Haypp Group and thus also the management team.

Lotta Emtefall assumes the role of General Counsel. Lotta most recently came from the position of Senior Legal Counsel at Klarna and has over 20 years of experience in business law in fast-growing companies.

Jenny Mitts is internally recruited as the new Chief Logistics Officer and has more than 20 years of experience in the logistics industry with senior positions at DHL and Dachser, among others.

For more information and contact
For general inquiries, please contact [email protected].

Haypp in brief
The Haypp Group spearheads the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.

Archives: MFN News Items

Svensk Handel's latest report describes a bleak first eight months of 2022, again featuring decreasing sales numbers for most categories within Swedish domestic online shopping. As one of only two growing categories this year, the nicotine industry continued the same path as in Svensk Handel's previous report and experienced the strongest sales growth during the period.

The online nicotine segment is one of the few categories that managed to grow this year compared to the same period last year. As explained by Svensk Handel, the reason why many categories continue to struggle during 2022 is partly due to reduced purchasing power seen during the previous six months, which has made consumers more restrictive, thereby negatively affecting average order values, and partly due to a continued return to brick and mortar after the pandemic.

"Online nicotine is a safe segment in the otherwise stormy e-commerce industry. As described in Svensk Handel's report, the increased prices have affected many categories negatively, particularly durable goods. Haypp Group's category, however, continues to grow as many consumers move away from cigarettes to, for example, cheaper and less harmful nicotine pouches", says Markus Lindblad, Head of External Affairs at Haypp Group.

According to Svensk Handel, from January to August 2022, tobacco products grew at a rate of 17 per cent against last year, a significant increase from the 8 per cent growth reported in the June-July survey. The only other category that experienced growth against 2021 was children's items and toys, at 4 per cent in both reports. Meanwhile, the August report showed that Swedish domestic e-commerce as a whole shrunk by 13 per cent, a minor improvement from the January to July period, during which it shrunk by 14 per cent compared to the corresponding period in 2021.

Svensk Handel is a Swedish trade- and employer organisation which engages in trading issues for wholesale, retail and e-commerce. 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) on Svenskhandel.se

For more information and contact

Markus Lindblad
Head of External Affairs:
+46(0)708153983
[email protected]

Niklas Alm
Head of Investor Relations:
+46(0)708244088
[email protected]

Haypp in brief
The Haypp Group spearheads the global transformation from smoking to healthier product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, we now fully take our vision to a global scale. With ten e-commerce brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers in 2021.

Archives: MFN News Items

A recent report from Lakeville shows that oral nicotine, such as snus and nicotine pouches, is essential in helping smokers quit. Access to healthier nicotine alternatives on the market improves public health at large. Therefore, a permissive EU policy regarding the sale of oral nicotine, especially nicotine pouches, would reduce the number of deaths due to smoking by 210,000 lives per year.

The new report Fighting smoking with alternative nicotine products from Lakeville shows that access to healthier nicotine alternatives significantly improves public health. In Sweden, snus and nicotine pouches are allowed and used for a long time, and only about 6 per cent of adult men smoke, compared to an average in other EU countries, where about 28 per cent of men smoke. Sweden's lower percentage of smokers means Sweden has the lowest number of male deaths linked to smoking in Europe and the lowest number of new cancer cases linked to smoking.

– The report looked into various explanations for the differences in public health linked to smoking within the EU. Oral nicotine products are the most crucial factor in explaining the differences. Snus and nicotine pouches have thus saved many Swedes from premature death and could do the same for other EU countries, says Markus Lindblad, Head of External Affairs at Haypp Group.

The report Fighting smoking with alternative nicotine products shows that regulations and prices of cigarettes do not significantly affect the number of smokers. Countries such as Ireland, Great Britain and France have substantially higher cigarette prices than Sweden, but the percentage of smokers is still much higher than in Sweden. Even in countries such as Finland and Italy, which have stricter regulations regarding smoking, the rate of smokers is much higher than in Sweden.

The report shows that an EU policy allowing the sale of oral nicotine, such as nicotine pouches, can be estimated to reduce the number of men's deaths caused by smoking by around 210,000 per year. The number of smoking-related lung cancer deaths is estimated to decrease by approximately 75,000 and the number of new smoking-related cancer cases by 175,000 per year, assuming uptake and substitution of snus and nicotine pouches among European men to the same degree as in Sweden.

– This study is focused on men because, historically, we have more data on men who use oral nicotine, mainly snus. Considering that more and more women are using nicotine pouches to quit smoking, one can realistically assume that the number of prevented deaths, in the long run, will be over 300,000 per year, says the report's author David Sundén at Lakeville.

Number of deaths of smokers due to lung cancer in the EU
(Top 10 in the EU – number of deaths of men over 35 in 2020 per 100.00 inhabitants.)

  • Hungary: 164
  • Greece: 160
  • Croatia: 155
  • Poland: 141
  • Cyprus: 131
  • Romania: 126
  • Estonia: 122
  • Bulgaria: 118
  • France: 116
  • Belgium: 112
  • Sweden: 42

The Swedish model saves lives
The effect snus and nicotine pouches have had in Sweden, where a substantial proportion of smokers have switched to these products, would save hundreds of thousands of lives annually in the EU. Although higher cigarette prices have a specific effect, an opportunity to use oral nicotine instead of smoking has the most significant effect. It would lead to over 210,000 fewer deaths in the EU. More countries realise the great benefits of a harm reduction policy. In the UK, the focus has been on e-cigarettes. A survey by the organisation ASH now shows that 3.9 million Britons have switched from smoking to fully or partially using vape products instead, which will significantly affect public health over time.

More about the study
Haypp Group AB has commissioned economics doctor David Sundén at Lakeville to assess the potential of snus and nicotine pouches as an instrument to reduce public health damage from tobacco smoking in the EU. The assessment results can estimate the possible long-term health effects. More specifically, the report attempts to evaluate the ability of these products to reduce the incidence of cancer and the number of deaths linked to smoking.

The potential of snus and nicotine pouches as harm reduction instruments is assessed by calculating the reduction in smoking deaths and cancer cases under the assumption that the Swedish tobacco policy would be introduced in other EU member states.

Lakeville are experts in socio-economic analyses, investigations, and evaluations. The starting point is national economic science supplemented with statistical and other empirical analysis methods.

Read the study here: https://hayppgroup.com/app/uploads/2022/08/Fighting-smoking-with-alternative-nicotine-products.pdf

Archives: MFN News Items

Concerns in the e-commerce sector are growing ahead of the autumn. However, Haypp Group's Head of External Affairs believes several factors could benefit the nicotine market in more challenging economic times.

High inflation, energy prices, and declining consumer spending cause concerns in the e-commerce sector. In an interview in the trade magazine Market, Markus Lindblad, Head of External Affairs at Haypp Group, gives his views on the topic. Lindblad believes that some e-retailers could face a tough time this autumn and winter.

"Many companies have bought a lot for the autumn in order not to be without goods due to lessons learned from the world's covid shutdowns and logistics problems. But the situation is different now. Consumption is slowing, and many will be left with large stocks after the third quarter. It won't be pretty. Lack of liquidity means that the situation must be saved by selling off the products at heavy discounts. Then the bankruptcies come next year in quarter one and quarter two", says Lindblad to Market and continues:

"However, the countercyclical companies with a sustainable business model and a stable balance sheet will not be affected similarly."

Lindblad points out several factors that could benefit the nicotine sector in more challenging economic times.

"Consumers will continue to use nicotine but choose cheaper products to some extent. The habit is still there, but people may move to a lower price segment. More people will also enter the product category due to the high costs of smoking."

Lindblad also points out that Haypp Group turns over nearly all its stock every fortnight while maintaining a solid balance sheet.

"That's a good foundation to stand on in these times", Lindblad concludes.

Read the full article (in Swedish) here.

For more information and contact
For general inquiries, please contact [email protected].

Haypp in brief
The Haypp Group is spearheading the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.

Archives: MFN News Items

Haypp Group's CFO, Svante Andersson, presented Haypp Group's future strategy and development at a seminar at Carnegie last week.

Svante Andersson repeated Haypp Group's ambition to organically reach at least SEK 5 billion in sales by 2025 while possibly also adding acquisitions. He also pointed out that nicotine pouches had grown by 55 per cent annually and accounted for about 41 per cent of our sales in the second quarter. Haypp Group targets a high single-digit EBIT margin in the medium term.

Haypp Group's sales in Norway rose sharply during the Covid pandemic, partly due to closed borders. Andersson pointed out that the reopening of the border has reduced sales in Norway, and that growth decelerated from 100 per cent to 15-16 per cent in Q2. Excluding Norway, Haypp Group's sales would have grown by about 32 per cent year-on-year in the second quarter, Andersson pointed out.

As for new markets, Andersson said that Haypp Group has previously communicated plans to enter new markets. Haypp Group is currently present in seven markets: Sweden, Norway, the USA, Germany, Austria, Switzerland, and the UK. The Benelux was highlighted as a particularly interesting region to enter.

Watch the full presentation at Carnegie here.

For more information and contact

For general inquiries, please contact [email protected].

Haypp in brief

The Haypp Group is spearheading the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.

Archives: MFN News Items

Sweden's leading financial newspaper, Dagens Industri, comments on Haypp Group. The newspaper's analysts conclude that Haypp Group can cope with more challenging times, as it is mainly rare consumer goods e-retailers that are having a hard time as consumers become increasingly frugal.

"Haypp Group's products are more similar to those of the grocery retailers. Consumers are unlikely to stop using nicotine products, and sales should be relatively resilient even in more difficult times."

Dagens Industri also points out that Haypp Group is almost alone in the online market in Sweden and Norway:

"The market share in Sweden is estimated at 90 per cent and in Norway at 80 per cent. The company also has a strong position in the rest of Europe and the US, estimating its online market share at 30 and 55 per cent respectively."

The financial newspaper writes that Haypp Group has seen falling sales in Norway due to the return of border trade as more Norwegians are again going to Sweden to buy nicotine products after the border re-opened.

"Despite this, the company has shown for two consecutive quarters that it can deliver growth. Overall sales increased by 16 per cent in the year's first half, and organic growth was 6 per cent."

Furthermore, Dagens Industri notes that Haypp Group is a giant in tobacco-free nicotine pouches, a category expected to see high growth in the coming years.

"However, new regulations surrounding the sale and marketing of nicotine products may change the conditions in the company's operating markets. But with a strong market position, the company's growth potential looks promising, although more competitors are also likely to emerge in the growing market."

Haypp Group's profitability is also commented on; Dagens Industri points out that we have a stated strategy of prioritising growth over profitability, but that in the medium to long term, we are aiming for an adjusted EBIT margin in the high single digits.

Dagens Industri has a reputable analysis editorial team. Haypp Group welcomes that more and more analysts are following and monitoring our company. This shows an increased interest in us and the need to convert more smokers to healthier alternatives.

Read the full article (in Swedish) here.

For more information and contact
For general inquiries, please contact [email protected].

Haypp in brief
The Haypp Group is spearheading the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.

Archives: MFN News Items

In the run-up to the Swedish parliamentary elections, Haypp Group has been asked by Sweden's leading e-commerce trade magazine, Ehandel.se, to comment on the fate of e-commerce in the coming parliamentary term.

"Sweden has over a million users of snus and nicotine pouches, and we are always on their side. It is partly a question of people being able to choose to use an enjoyable product and partly a question of public health. We have produced an election manifesto with 16 proposals for a Sweden and a world with lower tobacco-related mortality, a long-term tax policy, and a sustainable market", says Markus Lindblad, Head of External Affairs at Haypp Group.

Regarding what the future government should focus on to contribute to a better e-commerce sector in Sweden, Haypp Group stresses that there must be competitive neutrality between physical and online trade.

"For us, it goes without saying that a government that cares about e-commerce must do everything in its power to ensure that there is competitive neutrality between physical trade and online trade. Today, this is not the case. We would be delighted if the future government removed that kind of regulation. But we would be content with no regulations being added that distort competition. That's a low bar", says Lindblad.

Read the full interview (in Swedish) here.

For more information and contact
For general inquiries, please contact [email protected].

Haypp in brief
The Haypp Group is spearheading the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.

Archives: MFN News Items

In an interview with the Swedish-based equity researcher Analyst Group, Haypp Group's CFO Svante Andersson explains the driving forces that will shape the market in the coming years and gives his perspective on Haypp Group's financial targets and challenges.

"There is a strong underlying demand for healthier alternatives to smoking, and here you have to bear in mind that there are around 1 billion smokers globally, so the market is huge. Legislators worldwide have realised that they should focus on harm reduction measures rather than bans if they want to affect public health. This has led to all major tobacco manufacturers focusing and spending considerable resources on developing healthier products where nicotine pouches are the fastest growing category," explains Svante Andersson, CFO of Haypp Group. He continues on the topic of Haypp Group's targets:

"We do not place too much emphasis on short-term targets for the current year, but we focus on the long-term perspective. We have a financial target of achieving net sales of at least SEK 5 billion in 2025. To achieve this, we will primarily focus on organic growth to feed back into our strategy. This should be seen in the light of the fact that we see continued strong growth in the category, where we expect an average of roughly 40 per cent annual growth to 2025 and a continued increase in online penetration. We see that our growth markets will grow faster than the main markets as the category is less established in the growth markets but is growing incredibly strongly, especially online."

Read the full interview (in Swedish) here.

For more information and contact
For general inquiries, please contact [email protected].

Haypp in brief
The Haypp Group is spearheading the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.

Archives: MFN News Items

Earlier today, the 12th of August, Haypp Group published its interim report for the second quarter. The report, widely picked up by Swedish business media, displayed a net sales increase of 16 per cent, and the volume of sold nicotine pouches increased by 55 per cent, of which 50 per cent organically, amounting to over 40 per cent of the total volume in the second quarter. The gross margin increased by 2.3 percentage points to 12.5 per cent, driven by a solid development in the Core markets segment. An overview of the media coverage follows below:

Haypp Group’s CEO Gavin O’Dowd was invited to participate in DiTV, the online streaming channel for Dagens Industri, the most prominent business newspaper in the Nordic region, to comment on the quarter and what can be expected going forward.

"We are very happy with releasing our Q2 results today. Our primary driver of growth is nicotine pouches which have grown by and by over 50 per cent organically. In addition to that, that has converted to a very strong profit growth, where we have grown by over 57 per cent year-on-year," says Gavin O’Dowd, CEO of Haypp Group, and continues regarding the category of nicotine pouches:

"Our objective is to prioritise growth because of the incredible growth of the category itself; the category will continue to grow by about 40 per cent per annum for the foreseeable future, while we are going above and beyond that. So, it’s about maintaining that growth. With that growth, we are building our entire infrastructure for scale; that scale is generating the earnings which we see manifest itself in both our growth margins and our EBIT. And with the EBIT, as a result of the nature of our business, we tend to have a very strong cash conversion. So, the strategy doesn't alter for these conditions; we are keeping straight ahead."
The entire online stream can be found here.

Swedish business news site Breakit reported that "Haypp Group turns to net profit in the second quarter".
The full article can be found here (in Swedish).

Swedish trade magazine Ehandel.se also reported on the interim report, quoting Haypp Group's CEO Gavin O'Dowd concerning the quarter and Head of External Affairs, Markus Lindblad, on the competitive situation in the industry. The full article can be read here (in Swedish).

Some also reported on the sharp lift in share price. Dagens Industri (Swedish) Noted that the stock surged after the well-received report. Read the full article here (in Swedish).

For more in-depth comments on the second quarter, CEO Gavin O'Dowd and CFO Svante Andersson held a webcast at financial hearings, which can be found here.

For more information and contact
For general inquiries, contact [email protected].

Haypp in brief
The Haypp Group spearheads the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries, where we served more than 680,000 active consumers during 2021.

Archives: MFN News Items

Press release 12 August 2022

April-June 2022

• Net sales increased with 16 per cent to SEK 628 m (542). Organic sales growth was 6 per cent.
• During the quarter, Haypp Group recorded 55 per cent year-on-year volume growth in the Nicotine Pouches category,
and the category accounts for more than 40 per cent of the total volume in the second quarter.
• The gross margin increased to 12.5 per cent (10.2).
• Adjusted EBIT amounted to SEK 14.6 m (9.3), corresponding to an adjusted EBIT margin of 2.3 per cent (1.7).
• Operating profit totalled SEK 5.0 m (-6.9), including items affecting comparability of SEK 0.3 m (-11.5).
• Earnings per share before dilution amounted to SEK 0.36 (-0.41).
• Number of orders increased to 926 thousand (806) with an average order value of SEK 638 (622).
• Active customers amounted to 412 thousand (332) at the end of the period.

Haypp Group's position in the value chain enables to continuously release benefits of scale that drives Haypp Group's margin performance, and the gross margin increased with 2.3 percentage points to 12.5 per cent during the quarter. The Core markets business unit reached an EBITDA-margin of 8.3 per cent, a significant improvement from the 6.1 per cent the same quarter last year and shows the scalability in Haypp Group's business and ability to reach the long-time financial targets. Haypp Group also continues to generate strong cash flows and maintains a strong financial position. Cash flow from operating activities increased to SEK 31.6 m (-20.3) and in total during the period, and Net debt/Adjusted EBITDA was 1.0 times (0.6 per end of December).

"We are seeing a continued growing consumer demand for less harmful nicotine products as well as favourable regulatory development. The volume of sold nicotine pouches grew over 55 per cent during the second quarter, whereof 50 per cent organically, and corresponds to over 40 percent of the total volume in the quarter. Net sales for the group increased
by 16 per cent during the quarter to SEK 2,440 m on an LTM-basis, whereof 6 percent organically. Haypp Group is well positioned to take advantage of a rapidly growing international market over the coming years and deliver in line with our long-term financial targets", says Gavin O’Dowd, President and CEO Haypp Group.

Haypp Group will hold a webcast conference call in English at 09.00 am CET today. Haypp Group will be represented by President and CEO Gavin O´Dowd and CFO Svante Andersson, who will present the interim report and answer questions. To participate or for further information – https://financialhearings.com/event/44163

For more information and contact
Markus Lindblad
Head of External Affairs:
+46(0)708153983
[email protected]

Niklas Alm
Head of Investor Relations:
+46(0)708244088
[email protected]

FNCA Sweden AB
Certified Advisor
+46 (0)8-528 00 399, [email protected]

Before its publication, this information was inside information and is such that Haypp Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 12 August 2022 at 07:45 a.m. CET.

Haypp in brief
The Haypp Group spearheads the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries, where we served more than 680,000 active consumers during 2021.