Haypp Group (HAYPP) Planet MicroCap Showcase: VEGAS 2025 summary

Market trends and positioning

• Benefiting from the shift to risk-reduced nicotine products, with nicotine pouches outpacing vaping and heat-not-burn categories.

• Largest global retailer of nicotine pouches, with 14x the online scale of the next competitor.

• Holds dominant online market shares: 80%-85% in Sweden, Norway, and Germany, and 80% in the U.S. online channel.

• U.S. market is a key growth focus due to regulatory changes and rising demand.

• Operates in highly regulated markets, leveraging scale for compliance and expansion.

Business model and growth drivers

• Operates as an online marketplace, selling all major brands and providing industry insights.

• Media and insights business generates 10% of revenue, supporting competitive pricing.

• Assortment is a key differentiator, with 800 SKUs in Europe and rapid product innovation.

• Organic search dominates customer acquisition due to advertising restrictions, keeping marketing costs below 1% of revenue.

• Automated warehouses and scale enable 20%-50% price discounts versus offline retail.

Financial performance and outlook

• Revenue has grown 20% annually since IPO, with profit growing at double that rate.

• Nicotine pouches now drive growth, expanding at 40% per year, while traditional snus declines.

• Targets for 2024-2028: double revenue and quadruple profit, with 18%-25% CAGR.

• EBITDA margin around 6%, with CapEx below 2% except during platform upgrades.

• Healthy balance sheet, low debt, and opportunistic stock loading to manage tax changes.