Interim Report Q4: Strong progress in the transformation to a rapidly growing category
Press release 15 february 2023
• Net sales increased with 19 per cent to SEK 700.5 m (590.5). In constant currency, Net sales increased by 15 per cent.
• During the quarter, Haypp Group recorded 42 per cent year-on-year volume growth in the Nicotine Pouches category,
and the category accounts for 44 per cent of the total volume in the fourth quarter.
• The gross margin increased with 3.1 percentage points to 13.9 per cent (10.8).
• Adjusted EBIT increased to SEK 16.0 m (11.8), corresponding to an adjusted EBIT margin of 2.3 per cent (2.0).
• Profit/loss for the quarter amounted to SEK 4.9 m (-12.7).
• Earnings per share before dilution amounted to SEK 0.17 (-0.45).
• Number of orders increased to 1,029 thousand (909) with an average order value of SEK 640 (621).
• Active customers increased with 17 per cent and amounted to 459 thousand (392) at the end of the quarter.
Net sales for the Group increased by 19 per cent, or 15 per cent in constant currency, during the fourth quarter to a full-year SEK 2,599 m. The gross margin increased by 3.1 percentage points to a higher than normal 13.9 per cent during the quarter and demonstrates a strengthened position in the value chain. The fourth quarter adjusted EBIT-margin amounted to 2.3 per cent, which is a significant improvement against last year’s corresponding numbers. Inflationary pressure has so
far had a limited impact on our overall performance, and minor product price increases from our suppliers are offset by the positive effects of increasing demand from consumers seeking safer nicotine alternatives at attractive prices. Haypp Group also continues to generate a strong underlaying cash flows and maintains a strong financial position.
"We are pleased to announce a strong fourth quarter across all of our markets, having successfully turned around our Norwegian market. We are particularly happy with our performance in the strategically important Nicotine Pouch category, which grew by 42 per cent in the fourth quarter, and have grown by 574 per cent from fourth quarter 2019 to the fourth quarter 2022, reflecting the pre-to post-pandemic trend. Nicotine pouches now account for 44 per cent of our volume. 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.
The Full-Year report 2022 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 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/46121
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 15 February 2023 at CET 07:45 am.