1st Aug 2024 10:59
(Alliance News) - Haleon PLC on Thursday predicted high single-digit growth in organic operating profit in 2024, after strong demand for its oral care products and vitamins boosted first-half performance.
Haleon, the consumer healthcare firm spun-out of GSK in July 2022, makes products such as Sensodyne toothpaste and Panadol painkillers.
In the first half of 2024, pretax profit rose 3.8% to GBP996 million from GBP960 million a year prior. Revenue fell 0.8% to GBP5.69 billion from GBP5.74 billion. The interim dividend was increased by 11% to 2.0 pence per share from 1.8p.
Chief Executive Brian McNamara said: "Haleon reported a good first half, with solid organic revenue growth and strong organic operating profit growth, demonstrating that our strategy is delivering. Whilst as expected, comparatives impacted results, revenue growth accelerated in the second quarter with improved volume mix."
Haleon highlighted momentum in Oral Health and Vitamins, Minerals & Supplements, reflecting continued innovation combined with "excellent execution".
First-half organic revenue grew 3.5%, of which 4.3% price and negative 0.8% volume/mix. Second quarter organic revenue grew 4.1%, of which 3.4% price and positive 0.7% volume/mix. Power Brands contributed 5.6% of organic growth in the first half, with Sensodyne, c and Centrum up double digit.
Haleon said its 3-year GBP300 million productivity programme is on track, delivering efficiencies and supporting continued investment.
"Looking ahead, we are well positioned to deliver on our full year organic revenue growth guidance and now expect high-single digit organic profit growth. Given the successful delivery of the strategy to date Haleon is also well placed over the medium term," McNamara added.
Haleon expects 2024 organic revenue growth of 4% to 6%, unchanged from prior guidance. The firm now expects 2024 organic operating profit growth to be high-single-digit percent compared with previous guidance of growth ahead of sales.
In addition, Haleon announced a GBP185 million share buyback, the last tranche of GBP500m share buyback programme initiated in February. It will be completed by the end of the year.
Shares in Haleon rose 1.6% to 355.10 pence in London on Thursday.
By Jeremy Cutler, Alliance News reporter
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