Interim Report Q2: Strong progress in the transformation to a rapidly growing product category

2023-08-11 07:45

Press release 11 August 2023

April – June 2023
• Net sales increased with 23 per cent to SEK 768.8 m (627.6). In constant currency, Net sales increased by 23 per cent.
• 35 per cent volume growth in the Nicotine pouches category during the quarter.
• The gross margin amounted to 12.9 per cent (12.5).
• Adjusted EBIT amounted to SEK 20.4 m (14.6), corresponding to an adjusted EBIT margin of 2.7 per cent (2.3).
• Operating profit totalled SEK –3.9 m (5.0), including items affecting comparability of SEK –14.3 m (0.3).
• Profit for the quarter to SEK 0.4 m (10.5).
• Earnings per share before dilution amounted to SEK 0.02 (0.36).
• Number of orders increased to 1,069 thousand (926) with an average order value of SEK 676 (638).
• Active customers amounted to 486 thousand (412) at the end of the period.

Net sales for the second quarter increased with 23 per cent to SEK 768.8 m (627.6). In constant currency, Net sales increased by 23 per cent. Gross Profit increased to SEK 98.8 m (78.5), corresponding to a gross margin of 12.9 per cent (12.5), driven by a strengthened position in the value chain both in the Core and Growth business unit as well as benefits of
scale. Adjusted EBIT for the second quarter increased with 40 per cent to SEK 20.4 m (14.6). 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 2.7 per cent (2.3). Items affecting comparability amounted to SEK –14.3 m (0.3), due to adjustments for warrant program-related compensations.

"The Nicotine Pouches category, while still in its infancy, continues to be the fastest growing harm-reduced category across both Europe and the US. Haypp Group continues to make strong progress in the transformation to this rapidly growing product category. Nicotine pouches volume grew by 35 per cent during the second quarter. Nicotine Pouches now account for more than 50 per cent of the total volume during a quarter for the first time. Net sales for the Group increased by 23 per cent in constant currency during the second quarter to SEK 2,881 m on an LTM-basis. All in all, 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, CEO Haypp Group.

The full Q2 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 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-q2-2023.

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 it 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 11 August 2023 at CEST 07:45 am.

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

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