Sensodyne Toothpaste Maker Haleon Expects Profit To Be Weighted Towards Second Half Of 2025

Benzinga
28 Feb

London-based consumer healthcare group Haleon Plc (NYSE:HLN) stock is trading lower on Thursday.

Haleon, GSK Plc’s (NYSE:GSK) spun off, reported revenue of 11.23 billion pounds (US$14.19 billion) for 2024. That’s down marginally by 0.6%.

Organic revenue growth was 5.0% with +3.7% price and +1.3% volume/mix with +6.8% organic growth in the fourth quarter.

Adjusted operating profit for 2024 stood at 2.5 billion pounds, down 6.5% at constant currency.

  • Oral Health: Revenue increased by 5.6% to 3.3 billion, with organic revenue growth of 9.6%.
  • Vitamins, Minerals, and Supplements: 2024 revenues increased by 3.4% to 1.7 billion with organic growth of 7.6%, including 8.2% organic growth in Q4 2024.
  • Pain Relief: Revenue declined 3.3%, with broadly flat organic growth of 0.1%, resulting in 2.6 billion in revenue.
  • Respiratory Health: Revenue declined 3.4% to 1.7 billion, with organic revenue growth of 0.9% and (1.3)% in the fourth quarter.

2024 growth was muted compared to recent years. This reflects a combination of lapping strong cold and flu comparatives arising from significantly elevated Contac demand in China in Q1 2023 from the lifting of COVID-19-related restrictions and a softer cold and flu season in H2 2024, particularly in the US.

Digestive Health and Other revenue declined 7.2% to 2 billion.

Guidance: The company projects 2025 organic revenue to grow between 4% and 6%. Haleon expects organic revenue and operating profit growth to be weighted towards the second half of the year.

The company expects a foreign exchange translation headwind of approximately 1.0% and 2.5% to negatively impact net revenue and adjusted operating profit.

“We are well positioned to drive organic revenue growth within our medium-term guidance range, with strong organic profit growth in 2025,” CEO Brian McNamara said in a statement.

Over the medium term, Haleon expects annual organic revenue growth of 4-6%.

Price Action: HLN stock is down 4.12% at $9.78 during the premarket session at the last check Thursday.

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Image: Shutterstock

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