Haypp Group Ab · OMXSTO:HAYPP
Haypp Group Ab — Q1 2024 Earnings Presentation
17 slides from Haypp Group Ab's earnings presentation, May 3, 2024
Slide 1: Interim Report - Q1
PP GROUP Interim Report - Q1 May 3, 2024
Slide 2: Today's presenters
Today’s presenters | . Gavin: O'Dowd Peter Deli CEO CFO
Slide 3: Interim Report – Q1
eee o 5) fe) (0 {0} @, o g
Slide 4: Operational highlights
Operational highlights – – – – – – +42% vLY -14,5% 18,5 +98,9% -14% NP 13,2 13,6 12,9 11,5 11,4 11,5 SNUS 11,1 10,6 10,5 10,7 11,2 10,4 9,7 10,0 9,8 8,1 9,0 6,8 7,7 Share 37% 41% 43% 44% 46% 50% 53% 56% 58% 58% of NP 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 202
Slide 5: Introduction to our Emerging initiatives
Introduction to our Emerging initiatives – Approximately 4mn of 100mn RRP consumers worldwide in the NP product segment in the Group’s current geographic footprint – Existing infrastructure and skill set gives a boost to attracting and converting consumers looking for nicotine vaping (vapes) pro
Slide 6: Efficient logistics set-up rigged for continued expansion
Efficient logistics set-up rigged for continued expansion Phase 1: Fulfilment infrastructure Phase 2: Scalable back-end infrastructure Flexible fulfilment infrastructure serving all Haypp Group’s markets @ In-house warehouse @ 3PL warehouse Building for convenience and efficiency * Scalable supporti
Slide 7: Regulatory outlook
Regulatory outlook • • • o o • • o *Source: Company reports
Slide 8: Net sales growth drivers
• • • Easter impact on net sales growth Net sales growth drivers (%) Net sales growth drivers (excl. FX) 8% 22% 74% 17% 13% 19% 2023 FY 2024 Q1 YTD April 2024* NP SNUS Vape Q1 2024 2023 Q1 Core Growth Emerging FX 2024 Q1 *April 2024 based on internal estimates Contribution to growth
Slide 9: Adj. EBIT Q1 '23 to Q1 '24 bridge
• • • • • 6,1 0,4 0,8 5,3 1,4 0,3 3,5 1,8 2,4 3,5 2,3 Adj. EBIT Margin Marketing OPEX Depr. Adj. EBIT Core & Emerging Total Depreciation Total Q1 ’23 Q1 ’24 Growth EBITDA Group Group EBITDA EBITDA EBIT
Slide 10: Core markets
Core markets + Net sales increased 2 per cent to SEK 627.7mn (615.5) for the first quarter. In constant currency, net sales increased 3 per cent. (YTD April 8%) + Nicotine pouch (NP) sales performance was inline with volume development though overall sales growth was hindered by the snus decline. Ni
Slide 11: Growth markets
Growth markets + Net sales increased 46 per cent to SEK 241.8mn (165.8) for the first quarter, driven by a strong performance in all markets, especially the US. In constant currency, net sales increased by 46 per cent. + Nicotine pouches volume grew 52 per cent during the quarter, with US increasing
Slide 12: Emerging Markets
Emerging Markets + Performance of the division is similar to that seen in the early days of the Growth division. + Net sales for the first quarter were SEK 8.1mn in the new division, currently consisting of nicotine vaping (vapes) in the UK, Germany and Sweden. * Active customers were 9 thousand. +
Slide 13: Selected KPIs
Selected KPls 2024 2023 LTM Full-Year fey] ai 2023 Operational Number of orders (thousand) 1,196 1,121 4,501 4,426 Average order value (SEK) 684 650 681 672 Active customers (thousand) 548 501 968 953 Balance sheet Inventories (MSEK) 225.7 193.8 - 263.4 Net working capital (MSEK) 209.6 178.2 253.1 2
Slide 14: Financial targets and strategy
Financial targets and strategy
Slide 15: Financial targets
Financial targets HAYPP GROUP Profitability Dividend policy Targets for Core and Growth segments Haypp Group targets to reach net sales of at least SEK 5bn by 2025, through organic growth alone Haypp Group will prioritise growth over profitability and targets a high single digit Adjusted EBIT margin
Slide 16: Underpinning the success
Underpinning the success Performance Operating model Technology and processes Inspiring healthier enjoyment for millions IAYPP GROUP
Slide 17: Inspiring healthier enjoyment for millions