Interim Report Q3: Strong margin uplift in the Core markets segment shows potential for future earnings
Press release 11 November 2022
• Net sales increased with 8 per cent to SEK 631 m (582). In constant currency, Net sales growth was 4 per cent.
• During the quarter, Haypp Group recorded 40 per cent year-on-year volume growth in the Nicotine Pouches category,
and the category accounts for 43 per cent of the total volume in the third quarter.
• The gross margin increased to 12.4 per cent (11.0).
• Adjusted EBIT amounted to SEK 13.7 m (10.1), corresponding to an adjusted EBIT margin of 2.2 per cent (1.7).
• Earnings per share before dilution amounted to SEK 0.23 (-0.27).
• Number of orders increased to 946 thousand (887) with an average order value of SEK 625 (624).
• Active customers increased by 13 per cent amounting to 431 thousand (382) at the end of the quarter.
Haypp Group's position in the value chain enables it to continuously release benefits of scale that drive Haypp Group's margin performance, and the gross margin increased by 1.4 percentage points to 12.4 per cent during the quarter. The Core markets business unit reached an EBITDA-margin of 8.2 per cent, a significant improvement from the 5.2 per cent in the same quarter last year, and shows the scalability of Haypp Group's business and ability to reach 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 55.3 m (-8.3) and in total during the period, and Net debt/Adjusted EBITDA was 0.8 times (0.7 per end of December).
"We are seeing a growing consumer demand for less harmful nicotine products as well as continued positive signs of an increasing interest among governments for harm reduction. We also continue to make strong progress in the transformation to the rapidly growing nicotine pouches category, which now accounts for 43 per cent of the total volume. Net sales for the group increased by 8 per cent, 4 per cent in constant currency, during the third quarter to SEK 2,489 m on an LTM-basis. 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 of Haypp Group.
The interim 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 08.30 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/44164
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 11 November 2022 at 07:45 am. CET.
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 eleven e-commerce store brands, the Haypp Group is present in eight countries, where we served more than 680,000 active consumers during 2021.