Consumer healthcare company Haleon has forecast high single-digit growth in organic operating profit in 2024, after reporting a 4% rise in half-year pre-tax earnings amid strong demand for its oral care products and vitamins.
Haleon, the maker of popular household products such as Sensodyne toothpaste, Panadol painkillers and Eno antacids, in May estimated its annual organic operating profit growth to be higher than its revenue forecast of between 4% and 6%.
Analysts, on average, expect full-year profit growth of 7.8%, according to a company-compiled poll.
Haleon has been banking on the strength of its businesses in oral health, vitamins, minerals and supplements in 2024 at a time some major US retailers adjust inventory levels, and as a milder flu season affected demand for some cold and flu medication.
First-Half Highlights
Haleon said half-year organic revenue grew 5.6% in its 'power brands', with toothpaste products Sensodyne and Parodontax along with multi-vitamin product Centrum achieving double-digit growth.
The company said its adjusted pre-tax profit for the six-month period ended 30 June was £1.13 billion (€1.34 billion), almost in line with market expectations of £1.14 billion (€1.4 billion).
It said the net impact of various disposals would dilute annual revenue and adjusted operating profit by about 1.5% and about 4%, respectively.
Haleon in June said it will sell its nicotine replacement therapy business outside the US to a unit of India's Dr. Reddy's for £500 million (€592.6 million).
Brian McNamara, chief executive officer, stated, “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.”
News by Reuters, additional reporting by ESM.
