Haypp Group (HAYPP) Q2 2025 earnings summary

Executive summary

• Nicotine pouch Q2 volume grew 23% year-over-year on a like-for-like basis, with new variants gaining share and growth adjusted for Easter timing and prior year Zyn shortages in the U.S.

• Revenue increased 20% year-over-year on a like-for-like basis, with record gross margin reaching 19%–19.2%, up from 14%–14.3% in the prior year.

• U.S. market remains a key growth driver, with significant investments in team capabilities, customer acquisition, and compliance, expected to impact near-term margins.

• Regulatory environment is stable but evolving, with ongoing legal cases and new EU tax proposals for nicotine pouches.

• Cash flow from operating activities increased to SEK 137.1mn for the period, with net debt at SEK 97.4mn.

Financial highlights

• Adjusted EBIT for Q2 grew by 11% to SEK 38.3mn, with margin up to 4.2%; adjusted EBITDA margin reached 6.5%.

• Net sales for Q2 were SEK 921.5mn–948mn reported, up 17%–20% LFL in constant currency.

• Overhead costs increased, mainly due to U.S. and growth market investments, with SEK 170mn in overheads and SEK 55.2mn invested in H1.

• Net debt to adjusted EBITDA ratio stable at 0.4x; equity/total assets ratio at 59.2%.

• Cash and cash equivalents at SEK 27.2mn–27.4mn; unutilized credit facility of SEK 108mn.

Outlook and guidance

• Long-term outlook for risk-reduced nicotine products and online retail remains strong, with compliance seen as a competitive advantage.

• 2028 targets: 18%–25% CAGR revenue growth, adjusted EBIT margin 5.5% ±150bps, and no dividend planned as cash is reinvested.

• Short- to medium-term earnings expected to be impacted by increased investment, especially in the U.S.