Haypp Group (HAYPP) ABGSC Investor Days summary

Business Overview and Market Position

• Operates as a leading global e-commerce platform for nicotine pouches, with 16 stores/sites across seven countries, focusing on direct-to-consumer sales and reduced risk products.

• Holds 80%-85% online market share in each geography, leveraging regulatory complexity and compliance as competitive moats.

• 70%-90% of revenue comes from nicotine pouch product sales, with rapid product innovation and high consumer product exploration.

• Media & Insights services now account for 11.4% of revenue, providing data and marketing solutions to suppliers and industry stakeholders.

• Largest insights provider to the industry, with data used by major manufacturers, universities, and regulators for market and health research.

Growth Strategy, Market Trends, and Financial Targets

• Targets to double revenue and triple to quadruple profit from 2024 to 2028, with 18%-25% annual top-line growth and 5.5% adjusted EBIT margin by 2028.

• Focused investments in the U.S. and U.K. markets, which show the highest growth potential and rapid volume increases.

• Nicotine pouch market is rapidly expanding, with the addressable consumer base expected to double from 2024 to 2028 and strong product innovation.

• Maintains a 40% return on capital employed and reinvests all free cash flow into expansion, with no dividend planned.

• Short-term EBIT pressure due to scaling U.S. operations, with margins expected to recover as the business grows.

Competitive Advantages and Operational Model

• Low marketing spend (1%-2% of revenue) due to strong organic search rankings, media sophistication, and multi-store strategy.

• High product assortment, with hundreds of new SKUs launched annually and strict product vetting for safety and compliance.

• Price leadership, offering significant discounts versus offline retail, especially outside Scandinavia, accelerating online migration.

• Robust compliance and age verification systems, recognized by regulators and creating barriers to entry.

• Scale enables lower inbound pricing, automation, fulfillment efficiency, and higher profitability per unit than competitors.