Q3 2024 Haypp Group AB (publ) Earnings Call Transcript
Key Points
- Haypp Group AB (FRA:8QG0) reported a significant year-on-year growth in NPQ volumes, with a 42% increase in Q3 2024.
- Nicotine pouches accounted for 63% of total volumes, showing a robust trend and a 10% increase from Q3 2023.
- Sales grew by 25% in Q3 2024, excluding FX headwinds, indicating strong performance across both growth and core markets.
- Adjusted EBIT grew by 81% to SEK 33.1 million, improving the adjusted EBITDA margin from 2.4% to 3.5% year-over-year.
- The company has maintained a healthy balance sheet with a net debt to adjusted EBITDA ratio of 0.8, showcasing financial stability.
- Haypp Group AB (FRA:8QG0) is facing legal challenges, including a complaint from the city of San Francisco regarding the sale of flavored nicotine pouches.
- The company has created a reserve for the San Francisco complaint, indicating potential financial liabilities.
- Emerging markets remain small, with an EBITDA loss of SEK 7.8 million in Q3, highlighting ongoing investment needs.
- The company has suspended sales of flavored products in California due to new legislation, impacting approximately 10% of nicotine pouch volume.
- There is uncertainty regarding the regulatory environment in the US, which could affect future operations and profitability.
This call is being recorded. Your line is muted.
Welcome to Hype Group Q3 2024.
For the first part of the conference call, the participants will be in listen-only mode during the questions and answer session. Participants are able to ask questions by dialing pound key five on their telephone keypad. Now, I will hand the conference over to the speaker's CEO gavin o'dowd and CFO Peter Dli.
Please go ahead.
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Thank you. Good morning, everybody and welcome to our Q3 2024 interim results.
Our CFO Peter Dley and I Gavin o'dowd will walk you through our results.
I would like to start by reiterating our higher purpose of inspiring healthier enjoyment. Millions.
Moving along to the operational highlights. I would like to begin with our NPQ three volumes where there was year on year growth of 42% and 93% across the two year period.
Nicotine pouches accounted for 63% of our total volumes for the quarter up 10% points versus
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