Interim Report Q3: Strong financial development and advanced market positions
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:
For more information and contact
Head of External Affairs
Head of Investor Relations
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.
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