The Haypp Group, a Swedish online retailer selling reduced-risk products (primarily nicotine pouches and snus in Scandinavia, Europe and the United States), confirmed guidance above consensus during its capital markets day on Nov. 28. The company’s stock was up 12 percent on the day.
The Haypp Group, which has a market capitalization of approximately $140 million, expects to reach net sales of SEK5 billion ($478.54 million) by 2025 in its existing business through organic growth only. Expansion into adjacent categories and new markets will be “on top,” according to the firm.
While Haypp Group will continue to prioritize top-line growth, it expects to reach a high single digit adjusted EBIT margin in the current core and growth markets business in 2025.
To take advantage of its substantial revenue growth opportunities, and after its successful nicotine vaping pilot in the U.K., the Haypp Group plans to enter adjacent markets and reduced-risk product categories in Europe, reinvesting approximately 1 percentage point to 2 percentage points of adjusted EBIT margin through 2025.
As the board and management team look beyond 2025 and the substantial cash generation, Haypp insists it will maintain its prudent custodianship of the group’s resources and return excess cash to shareholders.
“We always put the consumer first,” said Haypp Group CEO Gavin O’Dowd in a statement. “We engage with them every day to understand their needs and desires, and we know them like no other actor in the industry. Our vision to ‘Inspire healthier enjoyment for millions’ motivates our team to provide attractive, materially lower risk nicotine options for consumers whilst simultaneously increasing our global presence.”
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