Haypp Group Ab · OMXSTO:HAYPP
Haypp Group Ab — Q2 2025 Earnings Presentation
26 slides from Haypp Group Ab's earnings presentation, Aug 7, 2025
Slide 1: Q2 2025 Report
PP GROUP Q2 2025 Report Aug 07, 2025
Slide 2: Today's presenters
Today’s presenters Gavin O’Dowd Peter Deli CEO CFO 2
Slide 3: Q2 2025 Report
3 Q2 2025 Report 3
Slide 4: Operational highlights
Operational highlights Consistent performance despite a tough comparator • NP LFL volume grew 23% in Q2 with a tough comparison in the year ago period* • Easter impact: 26% growth for the period March to June • Exceptional traffic in US due to wide-spread market shortage of Zyn in Q2 24 led to a sub
Slide 5: US market development and investment
US market development and investment Fragmentation and growth continue Boosting US capabilities and initiatives • Category growth remains robust and licit NP Building out the team to increase focus and adaptation to the volumes/sales have overtaken legal vapes market’s unique complexities • Commerci
Slide 6: Legal and regulatory update
Legal and regulatory update Litigation update Haypp Group continues to manage legal proceedings in two jurisdictions: Stockholm, Sweden and San Francisco, California – In Stockholm, the appeals process is ongoing and expected to take between 1 and 6 months – In San Francisco, settlement discussion
Slide 7: Sustained sales performance - impacted by Easter timing effect
Sustained sales performance - impacted by Easter timing effect • Easter phasing affected comparability • Excluding Easter LFL net sales growth was stable (20%) • NP remains the growth driver with the snus decline offset by Vape & HnB products Net sales growth (vs LY%) Net sales LFL* growth drivers 2
Slide 8: Financial overview – LFL sales development
Financial overview – LFL sales development • LFL growth mainly driven by US • Reported sales were negatively affected by foreign exchange movements, primarily due to the depreciation of the Norwegian kro ne and US dollar against the Swedish krona Net sales (mn SEK) -2% +17% Q2 Q2 LFL Mar-Jun LFL 943
Slide 9: Financial overview – strong gross margin expansion
Financial overview – strong gross margin expansion The Group’s gross margin expanded by nearly 5ppt vs last year to 19 per cent (SEK 177mn) driven by three factors: • Mix benefit from discontinuation of US tobacco, state closures and Zyn shortage and NP share growth • Improved Media & Insights value
Slide 10: Financial overview – Overheads investments beginning
Financial overview – Overheads investments beginning The Group’s overhead base* increased to SEK 117mn (+39% vs Q2 2024) for the second quarter mainly driven by the US and other Growth markets initiatives to enhance: • Local team capabilities • Category awareness & PR efforts 39% OH* as % 117 101 10
Slide 11: Financial overview - Profitability
Financial overview - Profitability • Adjusted EBIT for the second quarter grew by 11 per cent and amounted to SEK 38.3mn (34.5). The adjusted EBIT margin increased to 4.2 per cent (3.7) • In Q2 investment into the US organization increased combined with higher PR spend in Europe to further boost bra
Slide 12: Core Markets
Core Markets • Net sales increased 4 per cent and reached SEK 679.3mn (653.0) for the second quarter. In constant currency, net sales increased by 6 per cent, and by 9% adjusting for the phasing of Easter • Nicotine pouch volume – which is over 55% (49%) of Core volume – grew 15 per cent during the
Slide 13: Growth Markets
Growth Markets • Reported net sales decreased by 26 per cent to SEK 205.7mn (277.1) for Q2 driven by loss of US Zyn, US tobacco products and closed state sales. LFL net sales at constant currency increased by 49% • The number of active consumers decreased by 34 per cent to 115 thousand (174). This r
Slide 14: Emerging Markets
Emerging Markets • Net sales for the second quarter amounted to SEK 36.4mn with growth in all markets (UK, SE, DE) • The ban on disposable vapes in the UK created market turbulence. Offline retail’s transition to compliant products is still ongoing • The number of active consumers reached 24 thousan
Slide 15: Selected KPIs
Selected KPIs • Q2 balance sheet remained healthy with Net Debt to adj. EBITDA ratio @ 0.4x • Inventory turnover 12x times on a LTM basis Inventory levels healthy Stable working capital Leverage remains low: 0.4 x LTM adj. EBITDA Inventory (mn SEK) Net working capital (mn SEK) Net debt (mn SEK) 350
Slide 16: Outlook
6 Outlook 16
Slide 17: Outlook
Outlook Long term fundamentals remains robust for risk reduced products, for the online channel and for Haypp The Group’s operating model continues to deliver increasing value for consumers and suppliers while growing the company’s gross margin With tightening legislation Haypp’s commitment to
Slide 18: Long term target
Long term target Haypp Group’s Board of Directors adopted the following financial targets for 2028: Sales Revenue growth range of 18-25 per cent CAGR annually. 2025 growth is expected to be below this range Profitability Adjusted EBIT margin of 5.5 percent +/- 150 basis points Dividend policy
Slide 19: 9
9 19
Slide 20: Appendicies
Appendicies 07/08/2025 20 20
Slide 21: Selected KPIs
Selected KPIs 2025 2024 LTM Full-Year Q2 Q2 2024 Operational Number of orders (thousand) 1,170 1,252 4,853 4,946 Average order value (SEK) 702 699 694 690 Active customers (thousand) 536 591 1,101 1,146 Balance sheet Inventories (MSEK) 249.1 240.1 - 298.7 Net working capital (MSEK) 216.2 169.6 216.2
Slide 22: STRICTLY PRIVATE AND CONFIDENTIAL
STRICTLY PRIVATE AND CONFIDENTIAL 22
Slide 23: Haypp Group business model: Integral position in the value chain
Haypp Group business model: Integral position in the value chain Continually improving assortment of innovative products CONSUMERS SUPPLIERS Media outreach & Distribution centres E-commerce DATA Insights on Consumer CUSTOMER INSIGHTS 2025-04-03 Capital Markets Day 2025 23
Slide 24: Haypp Group focus on less harmful products
Haypp Group focus on less harmful products % risk of cigarette smoking HAYPP GROUP OFFERING 100 80 60 40 20 0 Cigarettes Cut tob. Bidis Cigarillos Water pipe Smokeless Cigars US chewing US MST Snus Heat-not-Burn Nicotine Non-tob. nic tob. tob. (RoW) tob. vaping pouches Murkett R, Rugh M and Ding B.
Slide 25: Haypp's constants across markets
Haypp’s constants across markets Consumers demand Regulators mandate • Significant, consistent value • Legal Age Access Only • Choice/assortment • Appropriate limits on nicotine strengths and restrictions on packaging & flavor descriptors • Fast, reliable delivery • Compliant with local regulation S
Slide 26: Strategy for success
Strategy for success Continuously improving Search, Assortment, Price and Convenience at scale requires the correct technology and infrastructure 2025-04-03 Capital Markets Day 2025 26