November 5, 2025: Q3 2025 Results1
LFL (like-for-like) adjustment: excluding the impact of the ZYN shortage, discontinuation of tobacco sales and state closures in the US
– Net sales: up +15% kr.952.1 million in Q3 2025 (reported: +0.8%; in constant FX: +3%)
– Drivers of net sales growth (+15%): nicotine pouches +18%, vapes -2%, snus -5%
– Gross margin: up +4.5pp to 18.8%, driven by the increased contribution of Media & Insights and further supported by scale benenits
– Overheads +51% to kr.126 million, driven by the set-up of U.S. local team capabilities, further strengthening of Media & Insights teams and activities to increase online channel and Haypp brand awareness
– Adjusted EBITDA: up +4.3% kr.53Million; EBITDA margin: up +0.2pp to 5.6%
– Adjusted EBIT: up +0.9% kr33.4 million; EBIT margin: unchanged 3.5%, driven by increased gross profit and partially offset by the increased overheads, mainly connected to the U.S. business, increased PR spending in Europe and a strengthened marketing team
– Operating profit: up -50% kr.6.2 million, including items affecting comparability of kr.-17.2 million (kr.0.56 per share; kr.0.47 per share after-tax)
– Profit: down -73.3% to kr4.5 million; EPS: kr.0.25 (kr0.72 adjusted for San Francisco settlement; kr.0.57 in Q3 2024)
– Number of orders: down -4% 1.23 million with an average order value of up +0.3% to kr689
– Active consumers: down -7.1% to 574k
– Leverage remains low: 0.4 x LTM adj. EBITDA
Operational Highlights
– The benefits of ZYN’s return to the U.S. sites (on the second week of September 2025) to be realised in Q4 2025 with strong intial sales
– NP volume: +21% (reported: +9%); 68% of the total oral nicotine volume. Growth nearly 10pp higher than H1 2025
– Market breakdown: Core (71%; Sweden & Norway), Growth (25%; US, UK and others), Emerging (4%; other new nicotine products)
– Core markets: The slowdown in Core markets (net sales +4.3%) largely driven by a 18% decline of snus revenue in Sweden (with minimal gross profit contribution), of which 6 pp was due to a tax change
– Growth markets: Net sales down -14%, driven by the impact of the ZYN shortage, discontinuation of tobacco sales and state closures in the US. Net sales up +39% like-for-like basis
– Emerging markets: Nearly 100% year-over-year growth in Sweden and Germany vape and heated tobacco sales. now representing over 70% of the segment. UK vape and heated tobacco sales to be discontinued in Q4 2025 due to the lack of enforcement of UK regulations across the entire spectrum of market participants
– Settlement of the San Francisco litigation and recognition of an item affecting comparability of kr.17 million in addition to the kr.11 million already reserved. Litigation in Sweden continues with the time frame for resolution approximately 3-9 months away
Summary: ZYN is back to the Haypp’s U.S. sites, which removes an important uncertainity for Haypp in the key U.S. market (- which will drive 65% of the additional sales in the 2025-28 period). However, the current market chatter is focused on the increased competition in the nicotine pouch space – both for brand owners and online retailers. Increased competition drives increased commerical investments and puts pressure on retail prices and the value chain. In Q3 2025, Haypp’s gross margins were unaffected (i.e. unchanged at 19% sequentially) – which means that mix improvement (i.e. lower weight of low-margin tobacco/snus portfolio) compensated for the margin squeeze. However, the increased commerical investments is at worrying levels: personnel costs and external costs are up +59% and +45%, respectively, while the revenue is up only +0.8%. We expect the mushrooming of online platforms (nicotine pouch retailers) and the need for increased commerical investments to weigh on Haypp shares until Haypp proves that it can survive and thrive despite the increased competition and uncertain regulatory landscape. Haypp’s future growth depends on the U.S. market, more than anywhere else, and U.S. is a market where companies lose or earn a lot of money faster than anywhere else.
August 7, 2025: Q2 2025 Results1
LFL (like-for-like) adjustment: excluding the impact of the ZYN shortage, discontinuation of tobacco sales and state closures in the US
– Net sales: up +17% SEK921.5 million in Q2 2025 (reported: -2%; in constant FX: +1%)
– Drivers of net sales growth (+17%): +17% nicotine pouches, +3% vapes, -3% snus (Easter phasing affecting the comparability; ex-Easter, net sales growth is stable at 20%); Growth mainly driven by the U.S. market
– Gross margin: up 4.9pp to 19.2%
– Adjusted EBITDA: up +17% kr.60.3Million; EBITDA margin: up 1pp to 6.5%
– Adjusted EBIT: up +11.3% kr38.3 million; EBIT margin: up 0.5pp to 4.2%
– Operating profit: up +8.3% kr.10.4 million
– Profit: up from zero to kr8.6 million; EPS: kr.0.28
– Number of orders: down -6.5% 1.17 million with an average order value of up 0.3% to kr701
– Active consumers: down -9.3% to 536k
– Leverage: 0.4x LTM adj. EBITDA (remains low despite investments)
– FY25 growth to be below the LT growth target of 18%-25% per annum
Operational Highlights
– Q2 2024 as a tough comparator: Exceptional traffic in the U.S. in Q2 2024 due to ZYN shortage in retail and substantial (+121%) increase in the sales of alternative products
– NP volume: +23% (reported: +3%); 63% of the total oral nicotine volume. Double-digit volume growth in all markets, outside the U.S.
– Looking forward to offering the full range of ZYN products as soon as possible; Continue to expect re-start selling ZYN in the U.S. at some stage in H2 2025; More new nicotine pouch launches in the U.S. in Q2 2025 than all of FY24 (market fragmentation)
– Overhead base: up +39% to kr.177 million, mainly driven by the U.S. and other growth market initiatives (local team building, category awareness & PR efforts); Overheads now 13% of net sales
– Haypp continues to manage legal proceedings in two jurisdictions: (1) Stockholm, Sweden: the appeals process is ongoing and expected to take 1-6 months, (2) San Francisco, U.S.: settelement discussions are ongoing
– Market breakdown: Core (74%; Sweden & Norway), Growth (22%; US, UK and others), Emerging (4%; other new nicotine products)
Outlook
– Lower H2 2025 margins due to the U.S. investment plan
– LT targets re-iterated: revenue growth of 18%-25% per annum (with FY25 to be below this range); EBIT marhin of 5.5% +/- 1.5%
Summary: Haypp delivered a strong operational performance in Q2 2025 (i.e. 17% LFL, 20% adjusted net sales growth and margin expansion) despite the lack of ZYN supply in the U.S.. Haypp is doing a fairly good job in filling the vacuum created by ZYN through portfolio expansion (i.e. with brands other than ZYN).
Nevertheless, we should also copy & paste here what we have written below for the Q1 2025 Results. “Haypp’s valuation with or without success in the U.S. market differs multiple folds. Haypp is investing heavily into the key U.S. market and already announced that its H2 2025 profits will be affected negatively from these investments. However, Haypp is making these investments without having a clarity on the ZYN supply (i.e. will it ever re-start?). All in all, ZYN is creating too much uncertainity on Haypp’s future and the market does not like the uncertainity”.
When it comes to Haypp, always keep in that 65% of the additional sales in the 2025-28 period will come from the U.S. market and, without ZYN, achieving 18%-25% annual growth is difficult until/unless ZYN’s market dominance fades. Moreover, ZYN’s absence raises a further question: as VELO, on! or ZONE grow to size in the U.S., would they stay in Haypp’s marketplace to compete with other products and create awareness on alternatives by the traffic they generate to the Haypp store [- instead of selling through their own, exclusive online brand stores which would become the main online traffic destinaton as the brands become well-known]. Sure, we know the Swedish market, but the U.S. is not Sweden.
May 6, 2025: Q1 2025 Results1
– Adjustment factor (LFL): ZYN sales and sales to closed states (e.g. California) in the US
– Net sales: up +22% SEK923 million in Q1 2025 (reported: +5%; in constant FX: +6%). YTD April: up +20% (impact from Easter and 2024 leap year)
– Drivers of net sales growth (+22%): +20% nicotine pouches, +3% vapes, partially offest by snus decline (-1%)
– 18.5% gross margin in Q1 2025 (vs. 14.4% in Q1 2024); gross margin improvement (+4.1pp) driven by product mix improvement, scale benefits in fulfillment and increased contribution from Media & Insights
– Adj. EBITDA: up +45.5% to SEK68.1 million, corresponding to a margin of 7.4% (up from 5.3%)
– Adj. EBIT: up +55.9% SEK47.7 million, corresponding to a margin of 5.2% (up from 3.5%)
– Operating profit: up 137.7% to SEK37.8 million; Net Profit: up +137.5% to SEK30.4 million
– EPS before dilution: up +134.9% to SEK1.01
– Number of orders: down -0.9% to 1.185 million with an average order value up +2.8% to SEK703 (i.e. SEK833 million product sales revenue – implying SEK 90 million Media & Insights revenue)
– Active customers: up +0.9% to 553k
– Lower profit in H2 2025 due to U.S. investments
Operational Highlights
– Adj. nicotine pouch (NP) volume up +35% (reported: 10%), supported with the launch of high-quality products in the US in late-2024
– Share of NP in total Haypp volume: 63% in Q1 2025
– US nicotine pouch market: Continued robust category growth, fragmentation driven by the launch of new products, volume of the products launched in 2024 is up +74% on a sequential basis, volume adjusted for ZYN is up more than +100% year-on-year basis
Legal & Regulatory Update
– Litigation against the Stockholms stad Licensing Committee’s decision to revoke Haypp’s tobacco products license is ongoing. Haypp expects a positive resolution in the next 6-18 months
– Haypp’s view on the expected settlement costs with the City of San Francisco lawsuit remained unchanged
– The Norwegian Parliament proposed ban of cross-border online sales of nicotine products (no impact on Haypp)
– The Swedish Government takes a firm stand in favor of the nicotine pouch category and against the Spanish draft Royal Decree that would remove most tobacco-free nicotine pouches from the market
Summary: Haypp delivered a strong operational perfromance in Q1 2025 despite the lack of ZYN supply in the U.S. (i.e. 9.5% of the revenue in Q1 2024). Haypp is doing a fairly good job in filling the vacuum created by ZYN through portfolio expansion (i.e. with brands other than ZYN). Most of Haypp’s investor communications are focused on one core message: “we can survive & thrive without ZYN”. However, this is a hard sell after ZYN reporting +54% growth in the U.S. and Haypp disclosing that 65% of its future growth will come from the U.S. Recall that, according to ZYN-owner Philip Morris International (PMI), ZYN’s retail volume and value share in the U.S. are 61.5% and 70.5%, respectively, in Q1 2025. Moreover, the trade volume share is up to 65.6% in March 2025 in line with the improving supply sitution.
Haypp’s valuation with or without success in the U.S. market differs multiple folds. Haypp is investing heavily into the key U.S. market and already announced that its H2 2025 profits will be affected negatively from these investments. However, Haypp is making these investments without having a clarity on the ZYN supply (i.e. will it ever re-start?). All in all, ZYN is creating too much uncertainity on Haypp’s future and the market does not like the uncertainity.
Company Profile
Based in Stockholm, Sweden, Haypp Group is the world’s largest pure-play online retailer for smoke-free nicotine products. Present in seven countries with eleven e-commerce sites, Haypp Group has close to six hundred thousand active consumers at the end of Q2 2024. The Group’s e-commerce sites include haypp.com, nicokick.com, snushjem.no, snusbolaget.se, snus.com, snusmarkt.ch, northerner.com, snuslageret.no, snusnetto.com, nettotobak.com and vapeglobe.de.
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