Haypp Group (HAYPP) Q4 2024 earnings summary

Executive summary

• Nicotine pouch like-for-like volume grew 37% in Q4 2024 (reported 16%), with gross margin rising to 17% from 13% in Q4 2023, reflecting strong business model and positive US market trends.

• Full-year 2024 like-for-like growth was 20–21%, with nicotine pouch volumes up 41% LFL for the year, now representing 62% of group volume.

• Regulatory clarity and FDA authorizations for flavored nicotine pouches, along with restoration of Zyn supply in early 2025, support future growth and reinforce the online channel strategy.

• Adjusted EBIT for Q4 2024 rose 72% to SEK 36.4m, with margin up to 4.0% (2.5% in Q4 2023); cash flow from operations increased to SEK 196.4m.

• U.S. market dynamics are rapidly shifting, with new product launches, increasing brand fragmentation, and evolving regulatory requirements.

Financial highlights

• Like-for-like net sales for Q4 2024 up 23% to SEK 915.2m; full year net sales reached SEK 3,679.8m, up 16% reported and 21% LFL.

• Gross margin improved to 17% in Q4 2024 (from 13.4%); full year gross margin at 15% (from 12.7%).

• Adjusted EBIT margin at 4% for the group in Q4, 5.1% for core and growth business; adjusted EBITDA margin rose to 5.6% for the year.

• Net debt to adjusted EBITDA ratio closed at 0.8x, with closing cash and equivalents at SEK 35.2m.

• Cash flow from operating activities for Q4 2024 at SEK 196.4m; active customers increased to 1,146 thousand for the year.

Outlook and guidance

• Long-term prospects for risk-reduced nicotine products and the online channel remain very positive, with regulatory environment improving and FDA authorizing 20 nicotine pouch varieties.

• Mutually beneficial agreements with brand owners for 2025 are expected to drive further margin expansion.

• US supply and regulatory headwinds are expected to resolve, supporting volume recovery and margin improvement in 2025.

• Updated long-term outlook to be provided at Capital Markets Day on April 3, 2025.

• Targeting SEK 5bn net sales by 2025 and high single-digit adjusted EBIT margin in Core & Growth Markets.