Slide 1: Interim Report - Q3 November 2024
aa 4 PP GROUP Interim Report - Q3 November 2024
Slide 2: Today's presenters
Today’s presenters | avin O'Dowd = CEO Peter Deli CFO HAYPP GROUP re 7
Slide 3: Why we exist - inspiring healthier enjoyment for millions
Why we exist - inspiring healthier enjoyment for millions HAY PP GROUP
Slide 4: Interim Report – Q3
Interim Report – Q3
Slide 5: Operational highlights
Operational highlights Strong performance from all three segments with continued robust nicotine pouch volume growth – The consumer demand for less harmful nicotine products continues to increase. – Nicotine pouch volume grew 42 per cent for the Group during the quarter. – Nicotine pouches account
Slide 6: Sales growth above historical levels; Net sales growth drivers
• • Sales growth above historical Net sales growth drivers Net sales growth drivers (%) levels (excl. FX) (excl. FX) 11% 25% 44% 22% 20% 46% 2023 FY 2024 YTD Q3 2024 Q3 2023 Q3 Core Growth Emerging FX 2024 Q3 NP Snus Vape Q3 2024 Contribution NP includes goods sales, media, shipping to growth income
Slide 7: Adj. EBIT Q3 '23 to Q3 '24 bridge
• • • • 4,3 0,1 0,7 3,5 0,8 0,0 1,7 2,0 2,4 3,5 2,4 Adj. EBIT Gross Marketing Operating Depr. Adj. EBIT Adj. EBIT Core and Core and Emerging Adj. EBIT Q3 ’23 Margin costs Q3 ’24 Q3 ’23 Growth uplift Growth reinvestment Q3 ’24 Q3 ’24
Slide 8: Core markets
Core markets + Net sales increased 13 per cent to SEK 649.5 m (573.6) for the third quarter. In constant currency, net sales increased by 16 per cent. + Nicotine pouch volume grew 32 per cent during the quarter; snus continued to decline as expected. * The number of active customers increased by 7 p
Slide 9: Growth markets
Growth markets + Net sales increased 40 per cent to SEK 273.8 m (195.3) for the third quarter, mainly driven by a strong performance in the US. In constant currency, net sales increased by 44 per cent. * Nicotine pouch volume grew by 58 percent during the quarter. + The number of active customers in
Slide 10: Emerging markets
Emerging markets + Net sales for the third quarter, amounted to SEK 21.0 m from the vape segment in the Sweden, UK and Germany sequentially up by 64% vs Q2 2024 (SEK 12.8 mn). * Active customers now reached 20 thousand. + EBITDA for the business unit was SEK -7.8 m. The EBITDA margin amounted to -37
Slide 11: Selected KPIs
Selected KPls 2024 2023 LTM Full-Year Q3 Q3 2023 Operational Number of orders (thousand) 1,281 1,068 4,897 4,426 Average order value (SEK) 687 683 687 672 Active customers (thousand) 618 496 1.10 953 Balance sheet Inventories (MSEK) 237.9 175.4 - 263.3 Net working capital (MSEK) 206.2 183.4 - 253.1
Slide 12: Legal and regulatory update
Legal and regulatory update – – – –
Slide 13: California flavor regulation impact
California flavor regulation impact California US tobacco products • Upcoming legislation banning flavored nicotine and tobacco • Reduced importance to the US business over the past 5 products online. years. • Uncertain legal and operating environment. • Half of tobacco volume was flavored products
Slide 14: US portfolio fragmentation
US portfolio fragmentation Haypp Group Q3 volume breakdown Q3 US growth drivers Tobacco +49% 1% CA NP* 2% 52% 6% Zyn** Core & 81% 19% US Europe -4% 1% 0% 11% NP other brands** Growth impact 2023 Q3 Tobacco CA NP* Zyn** NP 2024 Q3 other brands** • US growing to be a significant part • US tobacco mate
Slide 15: Long term performance and outlook
Long term performance and outlook
Slide 16: 3 years since IPO…
3 years since IPO… • Rapid growth in the strategically important segment • Improved and stable profitability NP volume development Profitability (mn cans) 253% 35 4,0 adj. EBIT % 30 3,5 Adj. EBIT (mn SEK) 25 3,0 2,5 20 2,0 15 1,5 10 1,0 63% 5 31% 0,5 0 0,0 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 202
Slide 17: Outlook
HAYPP GROUP Outlook * Countinued strong commercial performance in Q3 due to a robust operating model * With tightening legislation our commitment to compliance is expected to be a significant competitive advantage * Long term fundamentals remains robust for risk reduced products, for the channel and
Slide 18: Underpinning the success
Underpinning the success Performance Operating model Technology and processes Inspiring healthier enjoyment for millions HAYPP GROUP
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