Haypp Group (HAYPP) Q2 2024 earnings summary

Executive summary

• Net sales grew 23% year-over-year in Q2 2024 to SEK 942.8m, driven by a 43% increase in nicotine pouch volumes, which now represent 61% of total volume.

• Growth markets delivered 52% net sales growth, while core markets grew 11%; emerging markets sales reached SEK 12.8m.

• The company served over 1 million consumers in the past 12 months and active customers increased to 591,000 year-over-year.

• Investments in infrastructure and capabilities, especially in emerging markets, continue to support growth.

• The Group remains on track for its 2025 targets, with robust growth in the US and continued margin expansion.

Financial highlights

• Q2 2024 net sales: SEK 942.8m (+23% y/y); H1 2024 net sales: SEK 1,820.3m (+17% y/y).

• Gross margin improved by 1.4 percentage points to 14.3% in Q2.

• Adjusted EBIT margin reached 3.7% (SEK 34.4m), up 68% from Q1 2023; adjusted EBITDA Q2: SEK 51.5m (5.5% margin).

• Cash flow from operating activities for H1 rose to SEK 189.1m from SEK 130.1m; Q2 cash flow was SEK 67.5m.

• Net debt/Adjusted EBITDA improved to 0.5x, with net debt at SEK 90.3m and equity/total assets ratio at 55.6%.

Outlook and guidance

• The Group targets SEK 5bn net sales and 5%-7% adjusted EBIT margin for core and growth segments by 2025.

• Next material uptick in EBIT margin expected in early 2025, driven by supplier negotiations.

• Reinvestment of 1–2 percentage points of adjusted EBIT margin into Emerging segment through 2024–2025.

• No capital returns to shareholders planned for 2024 or 2025; focus remains on organic growth.

• Growth expected to be led by nicotine pouches, with snus remaining flat.