Interim Report Q2: Well positioned to take advantage of a rapidly growing international market
Press release 12 August 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
Head of External Affairs:
Head of Investor Relations:
FNCA Sweden AB
+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.