Haypp Group AB (publ)

Welcome to Hype Group Q1 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers 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 speakers, CEO Gavin O'Dowd and CFO Peter Deli. Please go ahead.

Good morning, everyone, and welcome to Hype Group's Q1 results. Our CFO, Peter Deli, and I, Gavin O'Dowd, will take you through today's presentation. Starting at slide three, which is the agenda for today, I will take you through an overview of hype and the Q1 performance highlights, and Peter will take us through the consumer, financial, and segment performances before having a look at the progress on our key strategic priority markets and an outlook. I would like to take you to slide five to remind you of some of the key dynamics around our business. We are a retailer of risk-reduced products with a strong focus on nicotine patches, which as of today make up approximately 70% of our sales. We have multiple storefronts per market, and we operate in six markets in Europe and in the US. Approximately 90% of our revenue comes from product sales, with the sales of media and insights to brand owners accounting for just over 10%. While jurisdictional complexity around the sale of nicotine is often viewed as a hardship, given our expertise and scale, we view it as a barrier to entry. We target to approximately double our 2024 revenue by 2028 and increase our 2024 EBIT by 3 to 4x. Moving to slide six. The scale of market growth potential in our existing geographic footprint is determined by the US and the UK. While the UK is a distant second, it has some very favorable long-term dynamics. Continuing on to slide seven, the US and the UK are also the two markets with extremely low online penetration rates, reflecting the early stages of the category lifecycle. Hence, these are two markets which we have dedicated significant resources to in recent quarters. And we will touch on this more throughout the presentation. Moving on to our quarterly performance updates and starting with slide nine. We're happy to see continued acceleration in nicotine patches, not just for the quarter as a whole, which grew 40%, but continued acceleration within the quarter. Both reporting segments performed exceptionally strong, with the growth segment reflecting the scale of the opportunity in the US and the UK. And in addition, the core segment showed that even there are high market shares, there is still opportunity for additional market share growth. In the past three years, nicotine patches have increased from 45% of our group volume to approximately 70% today. Moving to our performance highlights on slide 10. An increase in active customers was the primary driver of our growth. However, increases in the share of wallet further added to the growth. This is reflected in the higher growth rates for volumes than for consumers. Combined, these led to over 24% revenue growth at constant currency. The performance in the growth markets was exceptionally strong, with 83% increase in volume, driven by over 120% growth in the US and over 100% growth in the UK. And at constant FX, this led to 58% increase in the sales for the growth segment for the quarter. Gross profit was up 20% with a stable gross margin. This consisted of substantial increases in the median insights, which was reinvested into the consumer offer to further accelerate the flywheel. We have materially increased investment in the US and the UK in terms of capabilities. This combined with increases in marketing expenditure, while the window to do so remains open, has led to a reduction in EBIT margins, which we expect to continue for the remainder of this year before trending back towards our 2028 guidance of 5.5 percentage points. On slide 11, we show the actual performance of each of these KPIs and their relative change versus prior year. These reflect the drivers of growth, both the increase in consumers and the further increase in orders and average order size. With that, I will hand over to Peter.

Thank you, Gavin. Good morning, everyone. Let me move to the consumer section and starting on slide 13. In this slide, we are highlighting the continued strength in our consumer base during the first quarter. Active consumers reached a new all-time high and grew by 17.8% on group level. we have two reinforcing trends, rapid growth in growth markets supported by core markets turning into growth. The real standout is the growth segment. Active consumers increased 66% year on year, driven primarily by the US and UK. Our marketing efforts in these markets are showing clear early traction with strong conversion and repeat purchase behavior. In core markets, active consumers grew 5% year on year, which is a meaningful improvement compared with the declines we saw earlier last year. This is driven by a growing number of nicotine pouch consumers and a stabilizing snooze consumer base. Overall, the momentum we are seeing in both core and growth markets gives us confidence that our consumer acquisition strategy is working, paired with sustained strong retention, and that we are building a strong foundation for continued volume and sales acceleration. Moving to slide 14. On this slide, we are showing the continued acceleration in nicotine pouch volumes across the group. Nicotine pouches now make up 69% of our total volume, compared with 45% in Q1 2023. That shift in mix is a major structural driver of our long-term margin expansion. Group nicotine pouch volumes grew 40% year on year, which is a clear step up from the mid-teen growth rates we saw through most of last year. The U.S. and U.K. remain the strongest contributors, both delivering triple-digit growth. Our core markets also performed well. Nicotine pouch volumes grew at high teen rates, taking market share, and nicotine pouch now represents more than 56% of core volume. Snooze declines continue to moderate, helped by improvements in our consumer offer to cater for mixed-category purchases in Swedish households. And while the UK vape discontinuation affected the vape and heat not burn category, we saw strong growth in Germany and Sweden. These two markets together up by 119% versus Q1 last year. Overall, the category dynamics remain very supportive and our scale positions as well to capture the ongoing shift toward reduced risk products. Moving into the financial performance section, slide 16. Before we go into the quarterly performance, I would like to touch on our increase disclosures, which we have introduced this quarter. We recognize that as our business grows and the importance of our growth segment increases, some of you may wish to have more information to better understand our performance. For this reason, we are disclosing group and segment total volume and share of nicotine pouches, gross profit by segment, group sales by revenue stream, group overhead cost breakdown by marketing fulfillment and GNA costs. We have also folded or emerging vape and heat not burn segment into the other two segments as they have moved out of introductory stage and are now being managed by the local teams. Since Vape UK was shut down, this leads Germany, which will be folded into gross markets, and Sweden, which will be folded into core markets. For transparency purposes, we will continue to provide details on their performance. See the Q1 2026 report and the published KPI file for full details and historical data. Moving to slide 17 and looking at our net sales momentum. Net sales grew by 19.6% year-on-year, and when we adjust for currency effects, growth was even stronger at 24.3%, making this the highest constant currency growth rate we've delivered in the last six quarters. The 180 million SEC absolute year-over-year growth is the highest quarterly growth we ever achieved. The negative FX translation impact is mainly driven by the SEC to US dollar translation with NOC to SEC contributing as well. On the macro level, you can see that our top line grew faster in constant currency than our volume. The positive mix impact is driven by media and insights revenue, which continues to grow faster than our product sales. What makes me particularly happy that all critical parts of our business contributed to this excellent result. Looking on the different product categories, we can see that nicotine pouch remained the key growth driver. Considering that nicotine pouches makes up almost 70% of our volume, strong growth paired with increasing share of sales creates a positive mix impact on our overall sales performance. Within nicotine pouches, US and UK are the key growth drivers with solid mid-teen growth in our core markets. Price mix for the nicotine pouch segment was negative in the quarter, driven by the U.S. business unit. Without going too much into the details now, I would like to highlight that the promotions are driven by manufacturers, and this is a margin neutral for us. There is an offset in our cost of goods sold. Our smooth sales stabilized, and after a few challenging quarters in 2025, the decline is slower than what we anticipated in our capital markets day outlook. The improved performance is mainly driven by a targeted improvement in our consumer offer in Sweden to better cater for household purchases where a mixed snooze and nicotine pouch order is common. Vape and heat not burn products reported sales increase contributed by 0.8 percentage points to the overall growth, which is an exceptional performance considering the negative impact of the UK vape and heat not burn discontinuation. Sweden and Germany volume, as I mentioned, was up by 119%. Moving on to slide 18, gross profit and gross margin. First time ever, we delivered gross profit about 200 million sec in a quarter. It's a major step up in absolute terms. Gross profit growth is in line with our net sales growth. Gross margin remained stable. A marginal increase of 0.1 percentage point was realized. Within our gross margin, we experienced two opposite impacts. The fast growth of media and insights across all four markets increased the gross margin level by 1.7%. Media and insight accounted for 11.6% of the group revenue in Q1 2026. The incremental benefits from media and insights about last year were partly invested into our consumer offer in the form of targeted pricing and free shipping offers, resulting in a 0.1 percentage point increase in our overall gross margin. On slide 19, you can see the details of our overheads. Overheads increased in the quarter, and this was fully expected. In order to better understand our overhead base, starting from this quarter, we are breaking it down into the three important elements. Marketing, fulfillment overheads, and the pure G&A. Marketing spend increased as we leaned into consumer acquisition, while the opportunity window remains open. Our paid marketing efforts are concentrated mainly to US and UK. In US and UK, we see substantial increase in our new nicotine pouch consumer acquisition rates. Fulfillment overheads reflect the labor cost, utilities, and other external costs connected to our own warehouses. This cost category grew slower than the volume. cost up by 17% versus 23% volume growth, which shows that scale benefits are counting to materialize. In G&A, you can find the salary of the office population and external costs like legal, tax advisory, audit, license fees, et cetera. The primary drivers for the increase were our organizational build out in the US and UK and central organization around AI. We also recognized costs connected to building upper operations in new geographies, which will benefit the group in the medium term. We expect overhead intensity to moderate as revenue scales through midterm. Moving on slide 20 and our adjusted EBIT. Adjusted EBIT for the quarter was 27 million SEC with a margin of 2.5%, down from 5.2% last year. This decline is fully aligned with our investment plan. We are prioritizing consumer acquisition and market share in the US and UK, and the growth segment accounts for the majority of the margin compression. We expect this investment phase to continue through 2026 with margin expansion resuming as scale benefits flow through in 2027 and 2028. Moving to slide 11, Our working capital and leverage. Working capital improved meaningfully in the quarter, with inventory normalizing after the year-end stock build. Inventory turns and net working capital growth improved, supported by strong top-line growth. Leverage remains very low at 0.2 times. We remain disciplined in managing working capital, especially as we scale in the US and UK. Moving into the segments and let me start with the growth segment on slide 23. This is where we continue to see the most significant acceleration. Active consumers grew 66% year on year and total volume increased 71%. Both the US and UK delivered exceptional performance with volumes up more than 100% in each market. This reflects strong category momentum, improved assortment, and the early benefits of organizational build-out. Net sales in the segment grew 41% or 58% at constant currency. Gross margin remained stable at around 20%, which is a strong result given the level of investment into our consumer offer. The growth markets represents 28% of our Q1 net sales, which is an increase of 4 percentage points versus Q1 2025. This shift expected to continue into the future as well. EBITDA for the segment was negative at 23 million SEG. This is expected and reflects the deliberate investment phase we are in as we build local teams and scale consumer acquisition. These investments accelerate the long-term market share capture and are already translating into strong consumer and volume growth. Overall, the growth segment is performing in line with our expectations and is the primary driver of our long-term revenue and EBIT expansion. Moving to slide 24 and our core segment. In the core segment, we delivered steady and predictable performance consistent with the role this segment plays in our portfolio. Active consumers grew 5% and total volume increased 9% driven by the nicotine pouch category and supported by improvements in the snooze consumer offer. Net sales grew 13% with rising orders per consumer clear signs that we are increasing share of wallet among our existing consumer base. Gross margin was stable at 18.1%, and EBITDA increased to 75 million. The driver for the EBITDA margin reduction is the inclusion of the vape category. The core segment continues to generate strong cash flow and remains the foundation of our margin profile. Nicotine pouch penetration in the core markets reached 56%, up 3 percentage points year on year. This shift in category mix supports long-term margin expansion and reinforces the structural advantages of our business model. With that, I hand back the word to Gavin.

Thank you, Peter. I'd now like to take you through our priority markets. Moving to slide 26 and the US. I would like to touch on how the market is evolving, how we are doing, and how both are reinforcing our flag wheel. Starting with the market, which continues to outperform the expectations we laid out in our Capital Markets Day early last year. Part of this growth relates to increased average daily consumption, as more people use nicotine patches to completely switch away from more harmful products. This increase in average daily consumption moves a greater share of the market to consumption levels where the benefits of online become more appealing, particularly the price advantage, but also the breadth and assortment. The US assortment continues to expand rapidly with new products coming to market, both via the synthetic nicotine path and via the FDA's marketing granted orders. We expect the FDA to grant authorizations for more new products in the near future. These dynamics greatly reinforce our economic flywheel, as it has done in other markets, not just in terms of benefits for the consumer, but also with a notable increase in demand for our media and inside services. In preparation for the acceleration, which we are already experiencing, we have built out our local US team to manage the scale. We continue to see robust growth in customer acquisition via our organic Google rankings or SEO. However, we're also taking the opportunity to add to our new customer inflow with paid marketing across select channels while those opportunities remain open. In summary, many of the dynamics we are now seeing in the US are similar to those we experienced in our core markets at the beginning of this decade, giving us high confidence for the future. Moving to the UK in the next slide, slide 27. The tobacco and vapes bill received royal assent at the end of April, in line with our expectations, and we expect secondary legislation to iron out the remaining details over the coming quarters, with enforcement expected by mid-2027. The outcome of this legislation is expected to bring restrictions in marketing opportunities, which will solidify our online market position and reduce our marketing costs once implemented. In addition, as with all markets which place restrictions on marketing, the relative value of media on our platform increases. In addition, we expect a cap on nicotine strengths in the market at the same level as Hype have self-regulated to since entering the market. Ultra strong products are now estimated to account for circa 20% of the UK market. We have already enhanced our local team capabilities in the UK in Q1, and we will continue to accelerate the new customer inflow while the opportunity remains. Given the robust growth rates, we will automate our UK warehouse during this summer to facilitate future volumes. Moving to the next slide, slide 28. There has been little change in either European regulation or Swedish litigation since last quarter. The tobacco tax directive continues to be negotiated with a first draft expected this year. The European Commission is preparing a public consultation on the third tobacco product directive. Both of these directives are expected to undergo revision during the negotiation period for member states. Regarding the Swedish litigation, Hype is still awaiting a decision on the appeal from the Supreme Court. Hype does not expect any material impact from this decision. Moving to the penultimate slide. In summary, volumes and sales growth is accelerating, predominantly driven by new consumer acquisitions in the US and the UK. We will continue to invest in marketing to accelerate our growth while the opportunity remains. and increases in our G&A costs are expected to slow throughout 2026 and scale for future years. We are happy to confirm that we are on track for our 2028 targets. And with that, moving to the next slide to recap on those targets, which were set for 2028. We expect revenue growth of 18% to 25% cargo from 2024 at constant currency. And we also expect a 5.5% adjusted EBIT margin, plus or minus 150 basis points, subject to the investment opportunities which remain at that time. Before handing over to the operator, I'd like to thank the team for the great work in recent quarters, which led to the robust acceleration in this quarter. With that, I will hand over to the operator for questions.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Alexander Silgestrom from Pareto Securities. Please go ahead.

Good morning, guys, and congrats on a strong quarter, and also appreciate the increased transparency here in the presentation and the report. Maybe a first one on the M&I growth in the quarter. Is it fair to say that growth was approximately 40% year over year and could you also walk us through the main drivers here?

Good morning, Alexander. Yes, absolutely. I think 40% is there or thereabouts on this as it works through. And with MNI, it tends to grow, if we break it down into two component segments of both media and insights. Media tends to grow based on two pillars. which is as we get more consumers into the platform, the value of the existing media tends to increase in line with revenue or thereabouts. But in addition, we always develop new media products throughout the year, which we can also sell in the following calendar year. So this is the first quarter of that coming through. And then when it comes to insights, they also tend to grow on two pillars. As there's more and more players entering the market, there tends to be more players looking to buy the existing insight services from us, but we also develop our insights offering throughout the year, which also creates extra products to sell to our existing consumers. And that's why we generally see the median inside space growing at roughly twice the rate of our overall group revenue. And this is no exception.

Yeah, that's clear. Thanks. And then maybe just on the strong growth also in core markets, 14% here organically. Could you try to break out sort of the effects from... lower structural decline in snows, sort of the lapped price decreases, and also how sustainable are these growth rates. Yeah.

Yeah, so within that one, Alex, the excise regarding snus, well, that came true in Q3 2024. So we'd already lapped that by the time we'd gotten to Q1 2025 as it came true. And that is part of the overall snus decline rates that we've been experiencing in the past. But what we're dealing with here, the primary driver here, of course, there is slower declines in snus, but the primary driver of growth in the core markets is nicotine pouches itself. It is accounting for the vast majority of the uptick in the growth rates.

Okay, so then it should be quite sustainable as well, I would presume. And then maybe a follow-up also on the sort of rumored PMTA delays in the U.S. Do you have any news here? And also then the impact on the ramp-up in marketing investments into H2?

Yeah, so I think you're potentially referring to an article which was released on Reuters a few weeks ago, whereby there was an indication of a delay on it. Yeah. I think that needs to be taken in conjunction with what the FDA have been saying in other forums since then, which has been a lot more positive. And I think that may be reflected in what you may see from other of the industry's quarterly reports, which came through so far this year. So I think there's a general expectation that the FDA will start to approve more products in the not too distant future.

Okay. That sounds reassuring. And then also on the gross margins here by segment, thanks for breaking that out. I'm kind of surprised that growth markets carries higher gross margins as compared to core markets. Could you sort of explain that difference?

Yeah, I'd say this is more of a reflection of the dynamics within the markets. And I've often said in the past, the hardest place to sell snus or nicotine pouches online is Sweden. You have incredible penetration of stores relative to the population. And you have, for historical reasons, incredibly low traditional retail margins in the physical point of sale as it goes through. So you're generally dealing with 20 to 30 percentage points of higher retail margins for offline in the UK and the US versus what you're dealing with in Sweden and to an extent within Norway as well. So hence that creates a lot more oxygen to be able to provide even higher price gaps in the growth markets than we do in the core markets while still generating quite healthy gross margins. And this is what gives us the confidence to invest into those markets in the knowledge that even as we invest in in the form of fixed costs and overheads through it, with those healthy gross margins, we recognize that it will scale and bring itself back to profitability quite quickly.

Yeah, thanks for that as well. And then maybe just a final one on overheads. Just looking at the chart here, it seems like you're then sort of lapping GNA in Q2 and that you're lapping marketing spend as well in Q3. And then, of course, you may increase that to further gain. penetration, is there a fair assumption on how to see the development of the overheads here in 26?

I think that when you are looking at the three components of the overheads, there are different drivers behind them. This is why we felt it's important to break it out and provide more transparency on this category. Looking at the marketing piece, there, as we indicated already, As long as we see good return on the invested money, we are more than happy to boost the consumer acquisition rates, particularly in the US and UK, and keep investing, most probably even heavier during the second half of this year than what we are doing today. Looking at the fulfillment line, as we can already see, that's a fairly stable element and grew lower than our volumes. overall in the categories. So I don't see any reason to believe that that line going to change in any direction. And then going to the GNA, as Gavin alluded, we do expect the absolute growth rates of the GNA expenditure to slow down during 2026. And as our volume grows and the business scales as a percentage of revenue, we do expect this line to normalize in the mid to long term.

Yeah, that's clear. Thanks very much. That's it from my side.

Thank you, Alexander.

Thank you.

The next question comes from Marayo Adesina from Barclays. Please go ahead.

Hi, Dean. Thanks for taking my question. Just one from me on volumes. Obviously, great to see the 71% volume growth in growth markets this quarter. Just on Nielsen growth, I know it doesn't capture everything, but we have seen that volume greater category has been moderating over the last couple of prints. So just wondering your thoughts on this and if you think this is something that will be sustained.

Good morning, Araya. Yes, so when we stood up in the beginning of 2025 in our capital markets day, we gave out more conservative growth rates for the US market than perhaps was generally expected by other players in the category. We consider we're tracking well ahead. The current size of the US market is well ahead of where our expectations were when it got to that point in time. And our assumption is that the current growth rates in the US are very reflective of what we can expect for the future. So I know there may be some views that the market will accelerate again and take off once more. But I consider it that this is given the current scale of the market. I consider current overall market growth rates to be quite reasonable at this point in time. Given our relatively small share as a company, given our relatively small share within the market, What we're more interested in is the driving forces of the future growth, as in how much of it is coming from increases in average daily consumption of existing consumers versus new consumers entering into it. And what we can see is that there's more and more consumers moving up to the thresholds where our offer is quite relevant. And that's why we are seeing our growth rates within the U.S. coming in at five to six times the growth of the overall U.S. market.

OK, thanks. That's clear. And just one more on nicotine pouch taxes in the States. So obviously we heard about New York a couple of months ago, but there have been other reports of Iowa and Utah and perhaps other states considering introducing taxes on nicotine pouches. Just wondering your thoughts on this and how you expect that to develop.

Yeah, I think as the category develops, it is inevitable that taxes will be introduced at a state level across much of the U.S. We envisage that between now and this time next year, there could be close to 20 states which will introduce some form of tax on the product. And I don't consider that to be a once those taxes are reasonable, I don't consider this to be a particularly negative dynamic either for the industry and especially not for us. And at an industry level, first of all, this category is still incredibly affordable versus that of other nicotine products such as cigarettes. So I think there's lots of space to adopt the types of taxes which have been introduced. New York, which you picked out, is perhaps one of the most exceptional. It's one of the highest tax rates which is coming through and it's expected to be approximately two dollars per can at this stage. When it comes to our position on this, we tend to benefit quite well when taxes are introduced in at a state level. A shock in prices whereby prices go up by 50 cents, 80 cents a dollar from one day to the next within traditional retail tends to drive a lot of consumers to becoming much more price aware for a temporary period. And we tend to see a material uptake in our new customer inflow from those states as those taxes are introduced.

Okay, thanks. Super clear. That's all from me. Thank you.

Thank you very much.

The next question comes from Daniel Therrien from Deutsche Bank. Please go ahead. Daniel Therrien, your line is now unmuted. Please go ahead.

Oh, sorry. Hi, Gavin, Peter. Thank you for taking questions. I just wanted to quickly talk on a few consumer dynamics, one being, of course, active consumers were up, number of orders were up, but the average order value was slightly down. Is that just a reflection of newer consumers tend to order less, or are you also... Is that just more price heavy investment in discounts? Be the first question.

Yeah. So on that one, Daniel, you can see that while you're right, consumers are up. Orders are up slightly more. Volume is actually up slightly more again. So actually what we can see is that on average, the consumers are ordering even more in volume. So what this is when it comes to average order value, what you're seeing here is a reflection of what Peter was talking about in his space, which is that for some of the markets, the manufacturers are reducing the price to us, which in turn has been passed on to the consumer, which is reducing the average order price per can as it goes out. So that's the remaining moving part when it comes to the average order value.

Okay, awesome. And then the next question is from that slide regarding the UK and the ultra high strength users. You've mentioned that's about over 20% of current volumes in the market. If that law does come into place and over 20 MG pouches are banned, how do you see those consumers transitioning? Are they likely to turn towards illicit sourcing or do you think they will move back down towards regulated or approved nicotine concentration levels?

Yeah, so I think, so in summary, I think they will move back into the lower nicotine space. And let me give some context behind that. Many of these products which are brand that has been over 20 milligrams are products which have been developed a number of years ago. And while they carry excessively high amounts of nicotine, they're not always the best when it comes to nicotine delivery relative to the strength that sits within them. There is a range of products which have been coming from very credible manufacturers over the last two to three years, which are operating well below the 20 milligram limit, which delivers nicotine at a pace which can more than meet the needs of those consumers when it comes to satisfaction rates. So I think both as the consumer was going to mature and understand the category a little bit more, they were likely to start to move back down anyway. So I don't believe that these consumers will remain within the illicit part of the category. I think the vast majority of them will move back down into what will be the legal part of the category because there's no necessary nicotine release patterns that require them to stay where they are. The products, the sub-20 milligram products have improved so much in the last couple of years that will more than meet their satisfaction needs.

Perfect. Okay. And then last quick question, just conscious on slide seven, that's the penetration slide from the CMD. So you may not want to give updated numbers on where online penetration in the US and UK sit at the moment, but it would be helpful to know if there's What's that level of disconnect between the level of penetration and the number of consumers that are consuming at that critical threshold level that warrants turning towards the online channel?

Yeah, so it tends to be, there's an even more fundamental question which often goes through my mind on this one as regards to what is a consumer. Of course, within some of the numbers which come out from the market on the consumer space includes people who may use one or two pouches a week down to people who may use a can a day as it goes through. So there's quite a spectrum here even on the definition of consumers. And then, of course, the share of the market, which is online, tends to be skewed much more towards consumers, which are more heavily which are more heavy users. So you can definitely see that dynamic running through this one, Daniel. But we can see that definitely growing as regards to both the share of consumers, the average daily consumption increasing and hence increasing. the share of the consumer number and the share of consumption, which the online offer is relevant for. And that's why we're seeing the levels of growth rates as one of the main drivers, why we're seeing the levels of growth rates that we're experiencing in the US and the UK at this point in time. So we can see these rates growing rapidly at the moment and we expect them to. We don't have updated data, which is which is sufficiently accurate for us to be comfortable sharing. But we do certainly get a sense that this is this is growing quite rapidly, as in online, as a share of the market is growing quite rapidly at this stage.

And so, because you mentioned both your share of the share of online channels growing and the number of consumers at that high level of consumption is both growing. I was more so asking, are you making progress and closing that gap?

Absolutely. So I think we're, I think the share of online is, I think those two are growing pretty much in line with each other, Daniel.

Okay.

Okay. Yeah.

Perfect. Thank you. Thank you, Daniel.

There are no more questions at this time, so I hand the conference back to the speakers for any written questions and closing comments.

There are no written questions at this point in time, so I'd like to thank you all for your time this morning. It's greatly appreciated, and I look forward to seeing you all for our Q2 results in August. Thank you very much.