Q2 2026: Record Net Sales & Peak Gross Margin
During the second quarter of 2026, Haypp Group achieved its highest organic volume and sales growth since its 2021 initial public offering. Total net sales reached an all-time high post-IPO level of SEK 1,177 million (consensus: SEK 1.16 billion), marking a 27.7% increase year-over-year (27.1% growth in constant currency). Growth was primarily driven by an expanding consumer base alongside higher average order sizes. Total active consumers reached 668,000, representing a 24.4% increase compared to Q2 2025. Total order volume increased by 23.4% to 1,445,000 orders.
Can volume rose by 27.9% to 31.6 million cans, with nicotine pouch volume accelerating by 45.1% to reach 22.5 million cans. Nicotine pouches now account for 71.2% of total group volume, serving as the core engine for ongoing revenue growth. Gross profit rose by 29.2% to SEK 229 million, expanding the gross margin by 0.2 percentage points to a record 19.5%. Gross profit expansion was heavily bolstered by Media & Insights income, which grew to represent 11.9% of net sales, up 0.9 percentage points year-over-year. Adjusted EBIT stood at SEK 28.6 million, down 25.2% from Q2 2025, yielding an adjusted EBIT margin of 2.4% (-1.7 percentage points year-over-year) due to deliberate investments in organizational infrastructure and consumer acquisition. Earnings per share amounted to SEK 0.00 before/after dilution (consensus: SEK 0.50).
Segment Breakdown and Financial Dynamics
The Growth segment (30% of net sales), including the US and UK markets, delivered substantial consumer and volume expansion. Active consumers in the Growth segment surged by 74.2% year-over-year to 217,000. Orders increased by 72.3% to 395,000, total product volume grew 80.0% to 10.8 million cans, and nicotine pouch volume surged by 90.8% to 10.6 million cans. Within this segment, US nicotine pouch volume grew 125% year-over-year, while UK nicotine pouch volume expanded by 113% year-over-year. In addition, Haypp launched in Saudi Arabia in July 2026 to build a foundation for future growth in the world’s second largest nicotine pouch market.
Growth segment net sales rose 57.3% (62.4% in constant currency) to SEK 351 million. However, manufacturers’ price discounts in the US and UK compressed net sales relative to unit growth. Gross profit for the Growth segment reached SEK 66 million (+21.6%), though gross margin decreased by 5.5 percentage points to 18.8% due to promotional investments in consumer offers and fulfillment cost timing relative to Q2 2025. EBITDA for the Growth segment declined to SEK -32.5 million (compared to SEK -5.5 million in Q2 2025) as overhead costs increased due to US organizational recruitment and marketing campaigns targeting high purchase intent consumers.
The Core segment (70% of net sales), representing established Nordic markets, demonstrated steady commercial performance. Active consumers in the Core segment increased by 9.3% year-over-year to 451,000. Total orders grew by 11.6% to 1,050,000, total volume grew 11.3% to 20.8 million cans, and nicotine pouch volume expanded 19.6% to 11.9 million cans. Nicotine pouches now comprise approximately 57% of Core segment volume.
Core net sales increased 18.2% (15.8% in constant currency) to SEK 826 million. Core gross profit surged 32.6% to SEK 163 million, expanding gross margin by 2.1 percentage points to 19.7%. Higher order frequency and larger average order sizes reflected an increasing share of wallet among core consumers. The decline in traditional snus volume continued to moderate, while category growth in nicotine pouches, combined with elevated flow-through from Media & Insights, drove Core EBITDA up by 33.3% to SEK 87.9 million, expanding the Core EBITDA margin by 1.2 percentage points to 10.7%.
Group overhead costs as a percentage of net sales rose to 14.8% (SEK 174 million) in Q2 2026 from 12.7% (SEK 117 million) in Q2 2025. General and administrative (G&A) expenses represented 11.3% of net sales (up +SEK 35Mn YoY), marketing spend accounted for 1.8% (up +SEK 18Mn YoY to acquire high-intent consumers), and fulfillment expenses represented 1.6% (up +SEK 4Mn YoY). Fulfillment efficiency continued to scale effectively as operations expanded. Balance sheet metrics remained stable, with inventory ending at SEK 368 million (representing an LTM turnover rate of 12.3x), driven higher by opportunistic stock accumulation, upcoming US product launches, and inventory stocking for a new Swiss warehouse. Net working capital closed at SEK 288 million (4.0x turnover rate). Net debt stood at SEK 169 million, representing a conservative leverage ratio of 0.5x Net Debt to LTM Adjusted EBITDA.
Strategic Priorities and Regulatory Landscape
In the United States, regulatory conditions are evolving favorably for Haypp Group’s direct-to-consumer business model. The US Food and Drug Administration’s (FDA) May enforcement discretion announcement is anticipated to accelerate the market introduction of improved products throughout 2026 and beyond. Available product SKUs on Haypp’s US platform could double in 2027, creating a distinct commercial advantage over physical retail outlets that face shelf-space constraints. This widening assortment enables Haypp to better communicate product differences to adult consumers, simultaneously increasing the strategic value of its Media & Insights division to manufacturing partners. In response, Haypp’s current marketing focus centers on acquiring consumers with high purchase intent through paid media, driving a 125% volume growth in Q2 2026 compared to an estimated broader US market growth rate of 15% to 20%.
In the United Kingdom, legislative initiatives are reinforcing Haypp’s market positioning. Support for secondary legislation under the Tobacco and Vapes framework remains strong, with implementation expected across late 2026 and 2027. The marketing window for consumer acquisition in the UK is projected to remain open until June 2027. Future regulatory changes – including retail licensing, stricter age verification requirements, and the removal of ultra-strong products exceeding 20mg per pouch (which currently constitute approximately 20% of the UK market) – are expected to level the playing field, reduce competitive assortment disadvantages, and enhance long-term operating margins. To support this expansion, Haypp finalized its UK team structure and fully automated its UK warehouse facility during the quarter, supporting a 113% YoY growth in UK volume.
Regarding European Union regulatory matters, discussions surrounding the Tobacco Tax Directive continue into the second half of 2026, with Sweden actively advocating for lower tax structures on snus and nicotine pouches. The European Commission is concurrently preparing revisions for the third Tobacco Products Directive. On the legal front, Haypp’s appeal regarding Snusbolaget Norden AB’s license revocation remains under consideration by the Swedish Supreme Administrative Court, with management confirming that no material financial or operational impact is expected on its Swedish business activities.
Long-Term Outlook and Financial Targets
Positioned to capture the global shift toward reduced-risk nicotine products (RRPs), Haypp Group operates 16 e-commerce websites across seven geographic markets, with product sales generating 88% of total revenue and Media & Insights contributing the remaining 12%. Significant category tailwinds support this footprint: addressable nicotine pouch consumers in the United States are projected to grow from 6.3 million in 2024 to 11.5 million by 2028, while the United Kingdom is expected to expand from 0.3 million to 1.1 million. Furthermore, 2024 online market penetration in the US (3%) and UK (7%) presents substantial upside when compared to more mature markets such as Sweden (36%) and Switzerland (49%).
While the structural profitability of the Core segment validates Haypp’s high-margin business model at scale, the primary catalyst for equity valuation relies on management’s ability to demonstrate operating leverage within the Growth segment as G&A costs stabilize through the second half of 2026. General and administrative expenses are expected to flatten at current operational levels, allowing overhead to leverage effectively against expanding order volumes.
Looking ahead, management has reiterated its full commitment to the 2028 financial targets established by the Board of Directors. Relative to 2024 baselines, Haypp Group aims to deliver a revenue compound annual growth rate (CAGR) between 18% and 25% at constant currency through 2028, effectively doubling group net sales. Operating profitability is targeted to reach an adjusted EBIT margin of 5.5% (±150 basis points) by 2028 – up from 3.9% in 2025 – representing a three-to-fourfold increase in adjusted EBIT. In accordance with the group’s capital allocation and dividend policy, all generated free cash flow will be reinvested directly into market share growth and geographic expansion, prioritizing the US and UK growth hubs.
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