Haypp Group AB (publ) (HAYPP) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to our Q4 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 Q4 volume, year-on-year growth of 28%. Nicotine pouches now accounts for over two thirds of our volume. Strong acceleration in the US supported by the return of zinc and strong acceleration in the UK were important drivers. Our growth segment now accounts for over 40% of our nicotine pouch volumes. Secondly, net sales grew 19% for the period at constant rates. despite continued decline in traditional snus. Third, gross margin percentage reached 17.4% for the quarter and gross margin amount rose by 29% in 2025 versus 2024. And lastly, we completed our infrastructure overhaul in December and we can already see rapid deployment of features in January which are valued by the consumer. Moving to the next slide in slide five. The growth in sales was underpinned by robust growth in nicotine patch active consumers, which in turn is being driven by both an acceleration in new consumers and continued improvement in our robust retention rates, reflecting record high consumer satisfaction rates. Moving to the US, I would like to cover and our performance. starting with the US environment on slide six. Category growth remains strong with circa 35% increase in volume during Q4 of an already sizable base. The FDA's pilot program to accelerate the PMTA process has already led to marketing-granted orders being granted for six products in December 2025. Other manufacturers are expected to have their products processed in the first half of this year. However, this doesn't guarantee that they will receive NGOs...