Haypp Group Ab · OMXSTO:HAYPP
Haypp Group Ab — Q2 2024 Earnings Presentation
19 slides from Haypp Group Ab's earnings presentation, Aug 9, 2024
Slide 1: Slide 1
Slide 2: Today's presenters
Today’s presenters | vin O'Dowd ~ CEO Peter Deli CFO HAY PP GROUP re 7
Slide 3: Why we exist - inspiring healthier enjoyments for millions
Why we exist - inspiring healthier enjoyments for millions HAYPP GROUP
Slide 4: Interim Report – Q2
Interim Report – Q2
Slide 5: Operational highlights
Operational highlights Solid performance in both Core and Growth markets with continued strong nicotine pouch volume growth – The consumer demand for less harmful nicotine products continues to increase. – Nicotine pouch volume grew 43 per cent for the Group during the quarter. – Nicotine pouches
Slide 6: Promising developments in a turbulent US market
Promising developments in a turbulent US market • Material rise in consumer traffic, combined with higher purchase intent +121% • Increased sales of other brands +101% However • Lower average dollar order size due to ZYN rationing • Retention of consumers uncertain 2022-Q1 2022-Q2 2022-Q3 2022-Q4 20
Slide 7: Regulatory outlook – several delays
Regulatory outlook – several delays • US progress on PMTA’s as shown by recent approvals of new vaping products, suggesting new NP products may be moving closer to approval. • Tobacco Products Directive even further delayed. Decisions made during Q1 indicates nicotine pouches will be regulated, rath
Slide 8: Sales growth close to 2023 levels
• Reported Net Sales for the Group increased 23 per cent to SEK 942.8 m (768.8) for the second quarter. In constant currency, net sales increased 22 per cent. • For H1, Group growth was driven by the Growth division and NP category. Sales growth close to 2023 levels Net sales growth drivers Net sale
Slide 9: Emerging reinvestment Adj. EBIT
• • • • • 4,5 0,3 0,8 0,9 3,7 3,7 0,1 1,9 1,6 2,7 2,7 Adj. EBIT Margin Marketing OPEX Depr. Adj. EBIT Adj. EBIT Core and Core and Emerging Adj. EBIT Q2 ’23 Q2 ’24 Q2 ’23 Growth uplift Growth reinvestment Q2 ’24 Q2 ’24
Slide 10: Core Markets
Core Markets * Net sales increased 11 per cent and reached SEK 653.0 m (586.8) for the second quarter. In constant currency, net sales increased by 11 per cent. + Nicotine pouch volume grew 33 per cent during the quarter, snus continued to decline as expected. + The number of active customers increa
Slide 11: Growth Markets
Growth Markets * Net sales increased 52 per cent to SEK 277.1 m (182.2) for the second quarter, driven by positive momentum in the nicotine pouches category. In constant currency, net sales increased by 50 per cent. + Nicotine pouch volume grew by 65 percent during the quarter. + The number of activ
Slide 12: Emerging Markets
Emerging Markets * Net sales for the second quarter, amounted to SEK 12.8 m from the vape segment in the UK, Germany and Sweden. + The number of active customers reached to 14 thousand. + EBITDA for the business unit was SEK -8.1m. The EBITDA margin amounted to -63.6 per cent driven by commercial in
Slide 13: Selected KPIs
Selected KPls 2024 2023 LT™M Full-Year Q2 Q2 2023 Operational Number of orders (thousand) 1,252 1,069 4,684 4,426 Average order value (SEK) 699 676 687 672 Active customers (thousand) 591 486 953 Balance sheet Inventories (MSEK) 240.1 148.5 - 263.3 Net working capital (MSEK) 169.6 156.6 - 253.1 Net
Slide 14: Financial targets and strategy
Financial targets and strategy
Slide 15: Financial targets
Financial targets Profitability Dividend policy HAYPP GROUP Original targets 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
Slide 16: 2025 outlook – growth expected to be driven by NPs
2025 outlook – growth was and is expected to be driven by NP’s On our Capital Markets Day, we confirmed our …growth expected to come from NP with SEK5 bn target snus flat Net sales (bn SEK) ~4.8-5.1 ~3.8-4.1 70% 3,2 +45% 2,6 +45% NP* +43% Snus +3% -2% -2% 30% 2022 2023 2024 E 2025 E Q4 2023 Q1 2024
Slide 17: Significant growth opportunities in maintaining market leading position
Significant growth opportunities in maintaining market leading position E
Slide 18: Underpinning the success
Underpinning the success Performance Operating model Technology and processes Inspiring healthier enjoyment for millions HAY PP GROUP
Slide 19: Slide 19