Haypp Group AB (publ) (HAYPP) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to our Q1 2025 conference call. Our CFO, Peter Deli, and I, Gavin O'Dowd, will take you through the results. Starting with slide four, I would like to focus on three key aspects of our operational highlights and market conditions. Beginning first with our nicotine patch, Q1 volume, year-on-year growth of 35% on a like-for-like basis. The reported growth of 10% is adjusted for suspended states, predominantly California, and the larger effect of the US in shortage in the quarter. I would also like to draw your attention to the material increase in our gross margin. Our business philosophy is built around sharing our economies of scale with our consumers in the form of superior convenience and best value. And despite aggressively moving forward in both areas, hype was still able to increase its gross margin by nearly 4 percentage points to 18%, reflecting the power of our operating model. Secondly, there are some very positive changes in the US market, becoming especially evident in the last quarter or so. These changes include the recent launches of new products into the US market, which have been extremely well received by consumers. The pace of change is not only unprecedented, but continues to accelerate. This, combined with the regulatory clarity, which comes from the first marketing-granted order for nicotine pouches in January, provide a near-ideal landscape for long-term success of our operating model within the US. Thirdly, we continue to march through our infrastructure transformation on time and in full. This includes our European middleware, which is now rolled out in full, and the migration of our European stores, which, after excellent progress year to date, is now completed, except for Sweden and Switzerland. While this...