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

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WEBVTT 00:00:01.448 -- 00:00:06.434 Good morning, everyone, and welcome to our Q1 2025 conference call. 00:00:06.434 -- 00:00:11.978 Our CFO, Peter Deli, and I, Gavin O'Dowd, will take you through the results. 00:00:12.120 -- 00:00:17.066 Starting with slide four, I would like to focus on three key aspects of our operational 00:00:17.066 -- 00:00:19.669 highlights and market conditions. 00:00:19.669 -- 00:00:24.715 Beginning first with our nicotine patch, Q1 volume, year-on-year growth of 00:00:24.715 -- 00:00:30.161 35% on a like-for-like basis. The reported growth of 10% 00:00:30.161 -- 00:00:35.369 is adjusted for suspended states, predominantly California, and the larger 00:00:35.369 -- 00:00:39.094 effect of the US in shortage in the quarter. 00:00:39.094 -- 00:00:43.982 I would also like to draw your attention to the material increase in our gross margin. 00:00:43.982 -- 00:00:48.448 Our business philosophy is built around sharing our economies of scale with our consumers 00:00:48.448 -- 00:00:51.974 in the form of superior convenience and best value. 00:00:51.974 -- 00:00:57.370 And despite aggressively moving forward in both areas, hype was still able to increase 00:00:57.370 -- 00:01:02.439 its gross margin by nearly 4 percentage points to 18%, reflecting the power of our 00:01:02.439 -- 00:01:04.819 operating model. 00:01:04.883 -- 00:01:09.491 Secondly, there are some very positive changes in the US market, becoming especially 00:01:09.491 -- 00:01:12.295 evident in the last quarter or so. 00:01:12.295 -- 00:01:17.324 These changes include the recent launches of new products into the US market, which have 00:01:17.324 -- 00:01:21.307 been extremely well received by consumers. 00:01:21.672 -- 00:01:25.519 The pace of change is not only unprecedented, but co...