Archives: MFN News Items

At today’s Capital Markets Day in Stockholm, Haypp Group’s CEO Gavin O’Dowd and members of the Management Team will provide a detailed update on the Group’s strategic direction and operations, as well as the market environment. Haypp Group’s financial targets for sales growth and profitability are confirmed and brought forward respectively to 2025 for the current business.

Financial targets
Topline Growth – Haypp Group expects to reach net sales of SEK 5 billion by 2025 in its existing business through organic growth only. Expansion into adjacent categories and new markets will be on top.

Profitability – While Haypp Group will continue to prioritise topline growth, it expects to reach a high single digit adjusted EBIT margin in the current Core & Growth Markets business in 2025. 

Reinvestment – In order to take advantage of its substantial revenue growth opportunities, and after its successful nicotine vaping pilot in the UK, Haypp Group plans to enter adjacent markets and RRP* categories in Europe, reinvesting approximately 1-2 percentage points of adjusted EBIT margin through 2025. These efforts will be reported in a third segment.

Dividend policy
Moreover, as the Board and management team look beyond 2025 and the substantial cash generation, Haypp will maintain its prudent custodianship of the Group’s resources and return excess cash to shareholders.
 
"We always put the consumer first. We engage with them every day to understand their needs and desires, and we know them like no other actor in the industry. Our vision to “Inspire healthier enjoyment for millions” motivates our team to provide attractive, materially lower risk nicotine options for consumers, whilst simultaneously increasing our global presence", says Haypp Group’s CEO Gavin O'Dowd.

The event starts at 2 pm CET today. The presentations will be held in English and will be streamed live and made available on Haypp Group’s website and via the following link:
https://ir.financialhearings.com/haypp-group-cmd-2023

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]

Certified Advisor
FNCA Sweden AB

* Risk Reduced Products

Archives: MFN News Items

Earlier today, the 8th of November, Haypp Group announced its financial and operating results for the third quarter. The interim report was widely covered in Swedish business media.

Ehandel.se noted Haypp Group’s strong performance through an increase in net sales by 22 per cent to SEK 768.9 million and an operating profit of SEK 7.7 million, which Market also referenced.

“Nicotine pouches volume grew by 37 per cent during the third quarter and by 39 per cent year to date, and now accounts for an all-time-high of 53 per cent of the total volume during a single quarter. All in all, Haypp Group continues to make strong progress in the transformation to this rapidly growing category, which is still in its infancy”, says Haypp Group's CEO Gavin O’Dowd.

Dagens Industri, Affärsvärlden and Privata Affärer also reported about Haypp Group’s Q3 interim report.

Ehandel.se (in Swedish): Fint som snus – Haypp ökar både försäljning och resultat

Market (in Swedish): Ökad omsättning för snusjätten Haypp

Affärsvärlden (in Swedish): Haypp Group mer än dubblar rörelseresultatet

Dagens Industri (in Swedish): Snusbolaget Haypp ökar vinsten

Privata Affärer (in Swedish): Ökad vinst för Haypp

For more in-depth comments on the Q3 interim report, CEO Gavin O’Dowd and CFO Peter Deli held a webcast through Financial hearings, which is available here.

Archives: MFN News Items

Press release 8 November 2023

July – September 2023
• Net sales increased with 22 per cent to SEK 768.9 m (630.7). In constant currency, Net sales increased by 22 per cent.
• 37 per cent volume growth in the Nicotine pouches category during the quarter.
• The gross margin amounted to 12.6 per cent (12.4).
• Adjusted EBIT amounted to SEK 18.3 m (13.7), corresponding to an adjusted EBIT margin of 2.4 per cent (2.2).
• Operating profit totalled SEK 7.7 m (3.6), including items affecting comparability of SEK –0.7 m (0.0)
• Profit for the quarter to SEK 6.1 m (6.6).
• Earnings per share before dilution amounted to SEK 0.21 (0.23).
• Number of orders increased to 1,067 thousand (946) with an average order value of SEK 683 (625).
• Active customers amounted to 496 thousand (431) at the end of the period.

Net sales for the third quarter increased with 22 per cent to SEK 768.9 m (630.7). In constant currency, Net sales increased by 22 per cent. Gross Profit increased to SEK 97.1 m (78.2), corresponding to a gross margin of 12.6 per cent (12.4), driven by a strengthened position in the value chain both in the Core and Growth business unit as well as further benefits of scale. Adjusted EBIT for the third quarter increased with 34 per cent to SEK 18.3 m (13.7). The increase was mainly due to higher gross margin, increased volume as well as efficiency, partially offset by continued investments. The adjusted EBIT margin increased to 2.4 per cent (2.2).

“As we now put the third quarter behind us, we can look back on another quarter with strong financial development and strengthened operational positions. Net sales in constant currency increased by 22 per cent during the third quarter, to over SEK 3 billion on an LTM-basis for the first time, with improved gross as well as adjusted EBIT margin. Our Core Market segment grew by 12 per cent, in constant currency, and despite further investments in future growth delivered an EBITDA margin of 8.0 per cent. Within our Growth Markets net sales, in constant currency, increased by 65 per cent and the EBITDA margin improved with over 8 percentage points compared to the same quarter last year, and amounted to -6.5 percent. The development was attributed by higher volumes which gradually gives greater economies of scale in several areas, and profitability on a quarterly EBITDA level is expected from next year. Nicotine pouches volume grew by 37 per cent during the third quarter and by 39 per cent year to date, and now accounts for an all-time-high of 53 per cent of the total volume during a single quarter. All in all, Haypp Group continues to make strong progress in the transformation to this rapidly growing category, which is still in its infancy”, says Haypp Groups CEO Gavin O’Dowd.

The full Q3 report is attached in its entirety to this press release and on the company´s website: https://hayppgroup.com/investor-relations/reports-and-presentations/

Haypp Group will hold a webcast conference call in English at 09.00 am CEST today. Haypp Group will be represented by President and CEO Gavin O´Dowd and CFO Peter Deli, who will present the interim report and answer questions. To participate or for further information – https://ir.financialhearings.com/haypp-group-q3-report-2023

Capital Markets Day
Furthermore, Haypp Group has the pleasure to invite investors, analysts and media to a Capital Markets Day on Tuesday, November 28 in Stockholm. During the day, CEO Gavin O’Dowd and members of the Group Management Team will give an update on Haypp Group’s market, position, strategy and operations. The event will take place at Inderes Studio, Västra Trädgårdsgatan 19 in Stockholm at 2 PM – 5 PM CET, followed by a mingle. Doors will open from 1:30 PM CET.

Registration is required, both for the physical event and the livestream, via the following link:
https://hayppgroup.com/haypp-groups-capital-markets-day-2023/

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]

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 8 November 2023 at CEST 07:45 am.

FNCA Sweden AB
Certified Advisor

Archives: MFN News Items

Haypp Group, the world’s leading e-commerce company in its niche, is now launching a scholarship to create hope for the future and find new ways to make a better world without compromising on the good.

With this initiative, Haypp Group hopes to develop new methods for minimizing societal risks and increase e-commerce in the most sustainable way through universities and colleges, and thus, find new paths forward based on the vision of inspiring healthier enjoyment for millions.

“With our overarching goal of ‘inspiring to healthier enjoyment,’ we have identified two strategies for moving forward: ‘Insights for All’ and ‘Development through sustainable Growth.’ This is where universities and colleges have significant opportunities to contribute. Through the scholarship, general knowledge can increase, and it can encourage students to gain new insights into risk reduction and e-commerce,” says Markus Lindblad, Communications Director at Haypp Group.

This is new science and a broad societal discussion that will show us the way to the future. With the scholarship, Haypp hopes to increase the evidence-based information that forms the basis for decisions regarding public health. The scholarship is worth 25,000 SEK and is awarded twice a year. Decisions are made by Haypp Group’s board.

The scholarship can be found here: https://www.haypp.com/se/hayppstipendiet/

Archives: MFN News Items

On 8 November at 09:00 CEST, Haypp Group will host an audiocast in English. Haypp Group is represented by CEO Gavin O’Dowd and CFO Peter Deli, who will present the Interim report Q3 and answer questions. The Interim report for will be published at 07:45 CEST the same day.

To participate or for further information https://ir.financialhearings.com/haypp-group-q3-report-2023

The presentation will also be available at https://hayppgroup.com

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]

Archives: MFN News Items

Swedish e-commerce of tobacco and nicotine products continues to demonstrate strong performance compared to other product categories.

Nicotine and tobacco products have grown by 36 per cent year-to-date in 2023, compared to the same period in 2022. This contrasts with the rest of e-commerce, which has seen a 6 per cent decline between January and September 2023, with many product categories facing setbacks.

The number of consumers shopping in the category of nicotine and tobacco products online from January to September 2023 increased by nearly 20 per cent compared to the previous period in 2022. In the third quarter of 2023, turnover in this category increased by 23 per cent compared to the same quarter the previous year.

"The increase has been sustained for nine consecutive months, emphasising the countercyclical nature of nicotine and tobacco products. The increase is from low levels. However, that means the growth potential is massive through accelerated online penetration. We will continue to convert smokers to safer nicotine alternatives", says Markus Lindblad, Head of Legal & External Affairs at Haypp Group.

The Swedish Retail Federation's (Svensk Handel) E-commerce Indicator report for September shows a growth in nicotine and tobacco products compared to the same period last year, a trend that has continued for nine consecutive months.

Access the full report (Swedish) here.

Archives: MFN News Items

Haypp Group has the pleasure to invite investors, analysts and media to a Capital Markets Day on Tuesday, November 28, 2023, in Stockholm, Sweden.

During the day, CEO Gavin O’Dowd and members of the Group Management Team will give an update on Haypp Group’s market, position, strategy and operations.

The event will take place at Inderes Studio, Västra Trädgårdsgatan 19 in Stockholm at 2 PM – 5 PM CET, followed by a mingle. Doors will open from 1:30 PM CET.

The presentations will be held in English and will be streamed live and made available on Haypp Group’s website and via the following link: https://financialhearings.com/event/46839

Registration is required, both for the physical event and the livestream, via the following link:
https://hayppgroup.com/haypp-groups-capital-markets-day-2023/

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

Archives: MFN News Items

Haypp Group's sustainability efforts revolve around providing the financial market with the best information about the company's environmental impact, its societal impact, and how corporate governance is implemented. In an interview in Dagens opinion, Emma Ophus, the new Head of Sustainability and EU Affairs, discusses the overarching sustainability strategy.

"At Haypp Group, the sustainability strategy is directly aligned with our business strategy. Therefore, it involves a lot of continuously developing and improving our internal processes, collaborating with our employees and partners," says Emma.

Emma has a previous background as a political advisor in the European Parliament, and thus, she has valuable experience of working in Brussels, where the most significant challenges lie.

"It's frustrating that the regulatory development is heading in the wrong direction, and political decisions actively hinder sustainable development. In Sweden, the first risk-reducing decision was recently made in many years, which is positive. However, in the EU, many legislators are guided more by superstition than by research and facts."

"Haypp Group's sustainability work primarily revolves around providing the financial markets with the best possible information about Haypp Group's impact on the environment, the social responsibility we undertake, and how our corporate governance is implemented. The goal is to attract the right capital to Haypp Group as the sustainable investment in the future that we are. Furthermore, especially considering the addictive products we sell, we aim to objectively present the financial risks associated with our operations," says Markus Lindblad, Communications Director at Haypp Group, and continues:

"But as a company, we also need high-quality reporting on sustainability issues, not only in our daily operations but also in how we plan our business five to ten years ahead. This is where Emma, with her unique background, and our new sustainability organization, will contribute to Haypp Group's financing and how we identify and manage our future risks and opportunities. By recruiting Emma, we are taking the next step towards better dialogue with our partners."

Read the full interview with Emma (in Swedish) here.

Archives: MFN News Items

The Swedish Retail Federation's (Svensk Handel) E-commerce Indicator report for August shows a decline in e-commerce turnover. However, nicotine and tobacco products showed a growth in turnover compared to the same period last year, a trend that has continued for eight consecutive months.

According to the report, E-commerce turnover, measured in terms of Swedish consumers' e-commerce from only Swedish operators, decreased by 1 per cent compared with the same month last year and increased by 3 per cent if e-commerce from abroad is also included.

The number of online shoppers increased for the fourth consecutive month compared to last year. Still, according to the report, the average purchase amount has decreased significantly this year compared to 2022.

"Whilst many consumers continue to chase the lowest price online, they are also increasingly turning to strong brands with which they have a relationship and manage to provide the right kind of offer at the right time", says Per Ljungberg, Chief Innovation Officer at Svensk Handel.

E-commerce turnover has decreased in six out of eight months this year. Accumulated so far this year, most of the major product categories in e-commerce have declined in turnover. The most apparent exception is nicotine and tobacco products.

Only four categories showed growth in domestic e-commerce turnover from January to August 2023 compared with the same period 2022: nicotine and tobacco products (41 per cent), pharmaceuticals (11 per cent), clothing and footwear (9 per cent), and car, boat or motorbike accessories (5 per cent).

There are discussions within the e-commerce sector on why the nicotine and tobacco segment is growing so much.

Ljungberg points out that some e-commerce companies are making a good impact, exemplified by Haypp Group, while emphasising that it should be remembered that the increase is from a very low level.

"The increase has been sustained for eight consecutive months, emphasising the countercyclical nature of nicotine and tobacco products. The increase is from low levels. However, that means the growth potential is massive through accelerated online penetration. We will continue to convert smokers to safer nicotine alternatives", says Markus Lindblad, Head of Legal & External Affairs at Haypp Group.

Access the full report (in Swedish) here.

Archives: MFN News Items

On September 18, Gavin O'Dowd, CEO of Haypp Group, delivered a keynote speech at the New Approaches Conference 2023 in New York. The conference brings together public health, tobacco control, technology, and innovation experts to discuss advances in tobacco harm reduction and the move towards improved global health and appropriate regulatory systems.

O'Dowd's keynote speech was titled "Consumer Demand for Innovation in Nicotine", sharing recent data and insights from the Swedish and US markets. Haypp Group has over four thousand data points per customer and is the number one insights provider in the industry.

Some insights O'Dowd shared included flavouring and its role in converting smokers to nicotine pouches, as well as minimising youth recruitment to nicotine products.

In Sweden, there is a distinct overrepresentation of former smokers opting for fruity-flavoured nicotine products, illustrating the appeal these flavours hold for individuals transitioning away from traditional tobacco. The data shows that mint-flavoured nicotine products are particularly popular among younger demographics who've never smoked. This underscores the importance of understanding consumer behaviour to ensure products are responsibly marketed and regulations adequate and appropriate for the desired objective.

On a brighter note, fruity flavours have proven to be the most successful in aiding smokers' transition from combustion tobacco without luring younger demographics to nicotine — a promising insight for companies looking to promote healthier alternatives without attracting unintended audiences.

O'Dowd also touched upon the growing prominence of the offline and online US nicotine pouch market.

The US market has witnessed an explosive growth of +1,400% in just four years, showcasing the increasing demand and acceptance for such products. Already dwarfing its European counterparts, the US market is seven times bigger than Sweden's, making it a prime focus for global players. Despite its current dominance, the US market is still in its infancy, with massive potential for growth, especially in online sales.

Finally, O'Dowd looked into the crystal ball, presenting three predictions for the nicotine industry in the coming three years:

  • Mint, the current dominant flavour, will lose its top spot, making way for innovations in taste.
  • The most significant and transformative innovation will likely come from a small entity, having less than 100 employees, underlining the value of grassroots innovation.
  • The largest Stock Keeping Unit (SKU) has yet to hit the market, unseen products will revolutionise the industry.