Interim Report Q4: Robust Growth in 2023 while building for the future
Press release 15 February 2024
October - December 2023
• Net sales increased with 21 per cent to SEK 846.8 m (700.5). In constant currency, Net sales increased by 23 per cent.
• 46 per cent volume growth in the Nicotine pouches category during the quarter.
• The gross margin amounted to 13.4 per cent (13.9).
• Adjusted EBIT amounted to SEK 21.2 m (16.0), corresponding to an adjusted EBIT margin of 2.5 per cent (2.3).
• Operating profit totalled SEK 11.1 m (6.0).
• Profit/loss for the quarter to SEK -2.9 m (4.9).
• Earnings per share before dilution amounted to SEK -0.10 (0.17).
• Number of orders increased to 1,168 thousand (1,029) with an average order value of SEK 679 (640).
• Active customers amounted to 531 thousand (459) at the end of the period.
Net sales for the fourth quarter increased with 21 per cent to SEK 846.8 m (700.5). In constant currency, Net sales increased by 23 per cent. Gross Profit increased to SEK 113.2 m (97.1), corresponding to a gross margin of 13.4 per cent (13.9). Adjusted EBIT for the fourth quarter increased with 32 per cent to SEK 21.2 m (16.0). The increase was mainly due to increased volume as well as efficiency, partially offset by continued investments in new products and adjacent markets. The adjusted EBIT margin increased to 2.5 per cent (2.3).
"Nicotine pouches continue to drive the Group’s growth. Volume increased by 46 per cent in the fourth quarter and Nicotine pouches share of total volume accounted for 56 per cent, up 12 percentage points from 44 per cent in fourth quarter 2022 as consumers respond to the attractive, lower risk options provided by such products across Europe and the United States. Importantly, Haypp Group continues to be a leader in Youth Access Compliance, with traceable, 100 per cent compliance with adult age restrictions for products across all of our markets. We expect to continue our progress toward the SEK 5bn Group Net sales in 2025 and 5–7 per cent adjusted EBIT margin target for combined Core and Growth markets, as recently detailed in our Capital Market Day, aided by increasing economies of scale from volume growth", says Haypp Groups CEO Gavin O'Dowd.
The full Q4 report is attached in its entirety to this press release and on the company´s website: https://hayppgroup.com/investor-relations/reports-and-presentations/
Haypp Group will hold a webcast conference call in English at 09.00 am CEST today. Haypp Group will be represented by President and CEO Gavin O´Dowd and CFO Peter Deli, who will present the interim report and answer questions. To participate or for further information - https://ir.financialhearings.com/haypp-group-q4-report-2023
For more information and contact
Markus Lindblad
Head of External Affairs:
+46(0)708153983
markus.lindblad@hayppgroup.com
Niklas Alm
Head of Investor Relations:
+46(0)708244088
niklas.alm@hayppgroup.com
Before its publication, this information was inside information and is such that Haypp Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 15 February 2024 at CEST 07:45 am.
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