Haypp Group Ab · OMXSTO:HAYPP
Haypp Group Ab — Q3 2021 Earnings Presentation
20 slides from Haypp Group Ab's earnings presentation, Nov 25, 2021
Slide 1: Interim report - Q3
Interim report - Q3 1 Strictly private and confidential
Slide 2: Today's presenters
Today’s presenters Gavin O’Dowd Svante Andersson CEO CFO 2 Strictly private and confidential
Slide 3: Why we exist – inspiring healthier enjoyments to millions
Why we exist – inspiring healthier enjoyments to millions 3 Strictly private and confidential
Slide 4: Focused on healthier enjoyment products
Focused on healthier enjoyment products 4 Strictly private and confidential
Slide 5: …that enable the shift from harmful consumption
…that enable the shift from harmful consumption Significantly lower smoking incidence in Sweden and Norway Rapid decline in cigarette consumption following the adoption of NP/snus Share of population who are smokers (2020) Share of population using cigarettes, by age category 35% 50% 30% -19pp -18pp
Slide 6: Attractive online market opportunity for nicotine pouches
Attractive online market opportunity for nicotine pouches SEK ~27bn ~30% SEK ~48bn ~11% ~32% Global market size1) Nicotine pouches’ Expected total global profit Online penetration Expected online CAGR of nicotine pouches and share of global market in 2020 pool1), 2) for nicotine pouches and snus in
Slide 7: Market transformation happening globally
Market transformation happening globally Strong underlying market dynamics… …resulting in attractive growth for nicotine pouches Global market for nicotine pouches and snus, SEKbn1) CAGR 2020–25 Strong underlying demand for less harmful products 60 CAGR +17% Legislation favours modern nicotine produ
Slide 8: Haypp Group operates multiple store brands across all key markets…
Haypp Group operates multiple store brands across all key markets… 1) Haypp Group brands Online market competitors (snus and nicotine pouches) Source: Company information, Arthur D. Little 8 Note: 1) Rest of European market consists of Austria, Denmark, Finland, Germany, Switzerland and the UK Stric
Slide 9: …as the leading online platform with strong foothold in nicotine pouches
…as the leading online platform with strong foothold in nicotine pouches 3) Incl. Nettotobak2) Total market share (nicotine pouches and ~10% ~15% ~4% ~2% snus)1) Total market share ~25% ~15% ~3% ~3% (nicotine pouches)1) Online market share ~90% ~80% ~30% ~55% (nicotine pouches and snus)1) Source: Co
Slide 10: Interim Report - Q3
Interim Report - Q3 10 Strictly private and confidential
Slide 11: Operational highlights
Operational highlights Core Markets – normalised environment – Continued migration from offline to online sales. Growth investments during the first half of the year were sustained also for the larger part of the third quarter. The growth investments were partly reversed during the third quarter.
Slide 12: Financial overview
Financial overview • Net sales increased 28 per cent and amounted to SEK 582 m (454) for the third quarter. The organic sales growth was 18 per cent. Acquisitions contributed with SEK 61 m. Net sales 14% • Gross margin for the third quarter amounted to 11.0 per cent (12.8). The decrease in margin wa
Slide 13: Core markets
Core markets • Net sales increased 29 per cent and amounted to SEK 501 m (389) for the third quarter. The organic sales growth was 13 per cent. • EBITDA for the business unit amounted to SEK 26 m (29). The EBITDA margin decreased by 2.2 percentage points to 5.2 per cent (7.4), due to continued focus
Slide 14: Growth markets
Growth markets • Net sales increased 25 per cent and amounted to SEK 81 m (65) for the third quarter. Comparable net sales grew by 49 per cent when excluding the effects of markets that were closed in the first quarter. • EBITDA amounted to SEK -8 m (-7), corresponding to an EBITDA margin of -9.7 pe
Slide 15: Selected KPIs
Selected KPIs 2021 2020 2021 2020 LTM 2020 Q3 Q3 Q1-Q3 Q1-Q3 Operational Number of orders (thousand) 887 636 2,488 1,776 3,202 2,490 Average order value (SEK) 624 668 626 658 632 657 Active customers (thousand) 382 280 583 452 657 541 Balance sheet Net working capital (MSEK) 32.9 22.1 13.9 3.1 Net d
Slide 16: Financial targets and strategy
Financial targets and strategy 16 Strictly private and confidential
Slide 17: Financial targets
Financial targets Growth • Haypp Group targets to reach net sales of at least SEK 5bn by 2025, predominantly through organic growth. • Haypp Group will prioritise growth over profitability and targets to reach a high single digit adjusted EBIT margin in the medium to Profitability long term. Dividen
Slide 18: Significant growth opportunities in maintaining market leading position
Significant growth opportunities in maintaining market leading position Strong category growth Increasing online penetration Leveraging our market leading positions Source: Company information, Arthur D. Little 18 Strictly private and confidential
Slide 19: Current trading
Current trading Favourable market trends – The nicotine pouch category continues to grow rapidly across both Core and Growth markets. – All large manufacturers are active and many credible new manufacturers are accelerating innovation. – Continued support from regulators around harm reduction (Cze
Slide 20: Key investment highlights
Key investment highlights 1 2 3 4 5 6 7 1 billion smokers – …symbiotic …track-record of …impressive growth …right team in …perfect for …global online fastest growing relationship with benefitting from with attractive unit place to execute online… market leader… alternative… suppliers… regulation… ec