27th Feb 2025 09:42
(Alliance News) - Haleon PLC on Thursday saw organic sales growth accelerate in the fourth quarter but cautioned growth in 2025 would be weighted to the second-half.
Pretax profit rose 17% to GBP1.91 billion in the financial year to December 31 from GBP1.63 billion in 2023. Operating profit climbed 11% to GBP2.21 billion from GBP2.00 billion.
But revenue eased 0.6% to GBP11.23 billion from GBP11.30 billion. Organic revenue grew 5.0% reflecting a 3.7% benefit from price and 1.3% from volume/mix, with 6.8 growth in the fourth quarter, picking up from 6.1% in the prior three months.
The Weybridge, England-based consumer products group owns Sensodyne toothpaste, Panadol and Advil painkillers, and Centrum multivitamins.
It said 'Power Brands' organic growth was 6.3% led by Sensodyne and Centrum, adding 71% of its business gained or maintained market share.
By division Oral Health, organic sales rose 9.6%, VMS sales rose 7.6%, Pain Relief sales rose 0.1%, Respiratory Health sales rose 0.9% and Digestive Health and Other sales rose 5.5%.
Including the impact of forex, Oral Health organic sales rose 5.6%, VMS sales rose 3.4%, Pain Relief sales fell 3.3%, Respiratory Health sales fell 3.4% and Digestive Health and Other sales fell 7.2%.
Haleon said it is on track to deliver annualised gross cost savings of GBP300 million with around half of this benefit delivered in 2024 with the remainder due in 2025.
These savings are expected to be partly reinvested in driving growth through increased brand investment and R&D, alongside building future capabilities in digital and data, it added.
Chief Executive Brian McNamara said: "I am pleased with our performance in 2024 and the progress we are making to build Haleon into an agile, competitive and consumer-focused organisation."
"Looking ahead, we are well positioned to drive organic revenue growth within our medium-term guidance range, with strong organic profit growth in 2025," he added.
For 2025 Haleon expects organic revenue growth of 4% to 6%, organic operating profit growth ahead of organic revenue growth with both likely to be weighted towards the second half of the year.
The company expects a foreign exchange headwind of approximately 1.0% and 2.5% to negatively impact net revenue and adjusted operating profit.
Divestments are expected to impact 2025 revenue and adjusted operating profit growth by around 2.0% and 5.5% respectively.
Haleon has allocated GBP500 million to share buybacks in 2025.
The firm proposed a 2024 total dividend of 6.6p per share, including a final dividend of 4.6p, up 10% from 6.0p in 2023.
Shares in Haleon fell 2.8% to 384.60 pence each in London on Thursday morning.
Analysts at Jefferies said: "We could expect a mild underperformer today", with a "very strong fourth quarter sales delivery offset by a broad outlook commitment, which appears more 2H-weighted."
By Jeremy Cutler, Alliance News reporter
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