Haypp Group (HAYPP) CMD 2025 summary

Strategic direction and market outlook

• Nicotine pouches now make up two-thirds of volume, growing 40% annually since IPO, with market share gains in all geographies.

• U.S. and U.K. identified as the largest growth opportunities, with U.S. online penetration in low single digits and plans to double NP consumers by 2028.

• Expansion in Europe focused on the U.K. and DACH regions, with readiness to enter new markets as regulatory clarity emerges.

• New RRP categories (vape, heat-not-burn) are being piloted in existing markets, with further investment planned.

• Ongoing digital transformation through ERP, e-commerce, and warehouse automation supports scalability and efficiency.

Financial guidance and targets

• Targeting 18%-25% annual sales growth to 2028, with SEK 7–9 billion in net sales, driven mainly by U.S. market expansion.

• Adjusted EBIT margin targeted at 5.5% ±150bps by 2028, with higher investment in growth markets expected to temporarily weigh on margins.

• Media & Insights business now high single-digit share of sales, growing at twice the group rate, and expected to further boost profitability.

• CapEx expected at 1.5%-2% of revenue post-2025, following a period of elevated investment in ERP, e-commerce, and automation.

• Healthy balance sheet with net debt/EBITDA below 1x, prioritizing organic investment and selective M&A for further growth.

Business model and technology

• Four-pillar strategy: dominate organic search, offer best assortment, maintain price leadership, and deliver superior convenience.

• Proprietary AI-driven content tool (HayppWriter) enables rapid, compliant, multi-language content updates, supporting SEO dominance.

• Automated warehouses in key markets have reduced fulfillment costs and lead times, supporting scalable growth.

• Data and insights platform used by 200+ external users daily, supporting brand partners and regulatory submissions.

• Organic search and SEO are key to customer acquisition, with 97% of traffic from unpaid sources and marketing costs at 0.5% of revenue.