Haypp Group (HAYPP) Investor presentation summary

Business overview and market position

• World's largest online retailer of reduced risk nicotine products, primarily nicotine pouches, operating 16 e-commerce sites across 7 markets including the US, Sweden, and the UK.

• Approximately 90% of revenue comes from product sales, with the remaining 10% from media and insights services.

• Holds a leading position in providing category intelligence and insights to brand owners, regulators, and researchers.

• Integral in the value chain, leveraging consumer insights, supplier relationships, and scalable fulfillment infrastructure.

Strategic pillars and competitive advantages

• Focuses on search dominance, driving 97% of traffic organically and keeping marketing costs below 1% of revenue.

• Offers a wide and continuously improving assortment, with about one-third of current sales from products launched in the past year.

• Maintains sustainable lower prices than offline retail, accelerating online migration and consumer adoption.

• Delivers convenience through fast, accurate, and low-cost delivery, supported by automated infrastructure and low return rates.

• Compliance and regulatory sophistication provide scale advantages and reinforce its preferred partner status.

Financial performance and growth targets

• Achieved strong growth since IPO, with a 32% CAGR in nicotine pouch volume and 14% CAGR in net sales.

• Targets to more than double revenue and triple to quadruple adjusted EBIT by 2028, primarily driven by US market expansion.

• Projects 18-25% CAGR in net sales from 2024 to 2028, with adjusted EBIT margin targeted at 5.5% +/- 150 bps in 2028.

• Margin structure benefits from scale, media & insights, and operational efficiencies, deterring new entrants.