Sweden’s leading financial newspaper comments on the future of Haypp Group
Sweden's leading financial newspaper, Dagens Industri, comments on Haypp Group. The newspaper's analysts conclude that Haypp Group can cope with more challenging times, as it is mainly rare consumer goods e-retailers that are having a hard time as consumers become increasingly frugal.
"Haypp Group's products are more similar to those of the grocery retailers. Consumers are unlikely to stop using nicotine products, and sales should be relatively resilient even in more difficult times."
Dagens Industri also points out that Haypp Group is almost alone in the online market in Sweden and Norway:
"The market share in Sweden is estimated at 90 per cent and in Norway at 80 per cent. The company also has a strong position in the rest of Europe and the US, estimating its online market share at 30 and 55 per cent respectively."
The financial newspaper writes that Haypp Group has seen falling sales in Norway due to the return of border trade as more Norwegians are again going to Sweden to buy nicotine products after the border re-opened.
"Despite this, the company has shown for two consecutive quarters that it can deliver growth. Overall sales increased by 16 per cent in the year's first half, and organic growth was 6 per cent."
Furthermore, Dagens Industri notes that Haypp Group is a giant in tobacco-free nicotine pouches, a category expected to see high growth in the coming years.
"However, new regulations surrounding the sale and marketing of nicotine products may change the conditions in the company's operating markets. But with a strong market position, the company's growth potential looks promising, although more competitors are also likely to emerge in the growing market."
Haypp Group's profitability is also commented on; Dagens Industri points out that we have a stated strategy of prioritising growth over profitability, but that in the medium to long term, we are aiming for an adjusted EBIT margin in the high single digits.
Dagens Industri has a reputable analysis editorial team. Haypp Group welcomes that more and more analysts are following and monitoring our company. This shows an increased interest in us and the need to convert more smokers to healthier alternatives.
Read the full article (in Swedish) here.
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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 ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.