Haypp Group (HAYPP) Lytham Partners Spring 2025 Investor Conference summary

Key business drivers and market trends

• Benefiting from secular trends: shift to risk-reduced nicotine products and online purchasing.

• Achieved 18% CAGR in sales, with nicotine pouches as the main growth driver.

• Holds 75%-85% share of online nicotine pouch markets in core geographies.

• Operates as an online retailer, providing consumer data and media services to brand owners.

• Developed expertise in navigating complex regulatory environments, leveraging scale for compliance.

Strategic pillars and operating model

• Strategy centers on search dominance, broad assortment, competitive pricing, and convenience.

• Organic search is critical due to advertising restrictions; 97%-98% of traffic is organic.

• Runs multiple brands per market to capture top organic positions and traffic.

• 30% of daily sales come from products launched within the past year, reflecting rapid innovation.

• High product standards: over 90% of new products rejected in 2024 for not meeting criteria.

Media, insights, and value chain advantages

• Media and insights services generate a high single-digit share of group revenue with low variable cost.

• Provides leading consumer insights to industry majors, supporting product launches and regulatory submissions.

• Brand owners gain ~15% more gross margin selling through this platform versus traditional retail.

• Maintains 20%-30% price discounts in core markets and 40%-50% in growth markets, fueling online migration.

• Scale enables investment in compliance, technology, and logistics, reinforcing competitive advantages.