Haypp Group (HAYPP) Q4 2025 earnings summary

Executive summary

• Nicotine pouch Q4 volume grew 28% year-over-year, now over two-thirds of total volume, with strong acceleration in the U.S. and U.K.; net sales rose 19% at constant rates, surpassing SEK 1 billion for the first time in a quarter.

• Growth was driven by the US ZYN re-introduction and accelerated UK volume growth, supported by a record-high active consumer base and improved retention (NPS score of 80); active consumers reached 630,000 in Q4.

• Infrastructure overhaul completed in December, enabling rapid feature deployment, scalable execution, and improved consumer experience across European sites.

• Strategic investments in the US and UK, along with regulatory preparedness, position the group for accelerated growth in 2026.

Financial highlights

• Net sales up 15% reported and 19% excluding FX impact in Q4; supplier finance discounting in the U.S. reduced reported sales by 2.6 percentage points.

• Q4 gross margin improved to 17.4% (up 0.3ppt YoY), adjusted gross margin 17.7% (up 0.6ppt YoY).

• Adjusted EBIT for Q4 was SEK 31.4 million (margin 3.0%), down 16% year-over-year.

• Overhead costs rose 29% to SEK 130 million, mainly due to U.S. team expansion and marketing/media investments.

• Cash flow from operating activities for FY 2025 was SEK 140.0 million, impacted by increased year-end inventory.

Outlook and guidance

• Long-term outlook for nicotine pouches and online channel remains highly positive, especially in the U.S. and U.K., with regulatory preparedness and operational discipline expected to drive value.

• Medium-term guidance targets 18%-25% CAGR revenue growth to 2028, with U.S. as a key driver.

• EBIT margin guidance for 2028 is 5.5% ±150 basis points; no dividend planned as surplus cash will be reinvested.