Haypp Group AB (publ) (HAYPP) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to Hype Group Q3 earnings call for 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers, CEO Gavin O'Dowd and CFO Peter Deli. Please go ahead. Good morning, everyone. and welcome to our Q3 2025 conference call. Our CFO, Peter Deli, and I, Gavin O'Dowd, will take you through our results. Starting at slide four, I would like to focus on four key aspects of our operational highlights, beginning first with our nicotine pouch Q3 volume year-on-year growth of 21% on a like-for-like basis. It should be noted that Q3 last year had an exceptionally high traffic base in the US, which I will provide more details on in the next slide. Secondly, like-for-like sales grew 15% for the period, impacted by accelerated decline in snooze sales during the period. Third, gross margin continues to increase to a record high of 18.8%, reflecting the strength of our operating model. And lastly, we have continued to make strides forward in our infrastructure overall, having successfully migrated our largest site onto our new infrastructure. By year end, we expect to have the two remaining smaller sites completed, bringing the overall project to an end. This new infrastructure is already enabling much more speed and agility and creates an excellent foundation for future growth. Moving to the next slide, slide five, and focusing on the US performance. Our like-for-like sales volume in the US grew 40% year on year, despite the high comparators from last year, which you can see here in the chart. In addition, we recognized the strong development in our new consumers...