Q1 2026 Haypp Group AB (publ) Earnings Call Transcript
Key Points
- Haypp Group AB (FRA:8QG0) reported a 24% revenue growth at constant currency, driven by an increase in active customers and share of wallet.
- Nicotine pouch volumes grew by 40% year-on-year, now making up 69% of total volume, indicating strong market demand.
- The growth segment, particularly in the US and UK, showed exceptional performance with volumes up more than 100% in each market.
- Gross profit increased by 20% with a stable gross margin, reflecting effective cost management and strategic reinvestment.
- The company is on track to meet its 2028 targets, expecting revenue growth of 18% to 25% CAGR from 2024 at constant currency.
- EBIT margins have reduced due to increased investment in the US and UK, expected to continue for the remainder of the year.
- Adjusted EBIT for the quarter was SEK27 million, with a margin of 2.5%, down from 5.2% last year, reflecting the investment phase.
- The company faces jurisdictional complexities around the sale of nicotine, which could pose regulatory challenges.
- There is a potential impact from state-level taxes on nicotine pouches in the US, which could affect pricing dynamics.
- The discontinuation of the vape and heat-not-burn category in the UK has negatively impacted sales in that segment.
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Good morning, everyone. -- and welcome to High Group's Q1 results. Our CFO, Peter Daly, and I Gavin O'Dowd, will take you through today's presentation. Starting on slide 3, which is the agenda for today. I will take you through an overview of Haypp and the Q1 performance highlights and Peter will take us through the consumer, financial and segment performances before I progress on our key strategic priority markets, and an outlook.
I would like to take you to slide 5 to remind you of some of the key dynamics around our business. We are a retailer of risk-reduced products with a strong focus on nicotine purchase which, as of today, make up approximately 70% of our sales. We have multiple store fronts per market, and we offer -- and we operate in six markets in Europe and in the US,
Approximately 90% of our revenue comes from product sales with the sales of media & insights to brand owners accounting for just over 10%. While jurisdictional complexity around the sale of nicotine is often viewed
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