British consumer healthcare group Haleon disappointed investors after the Sensodyne toothpaste maker said 2025 revenue growth would be weighted to the second half of the year, sending shares down by more than 3%.
The company, which makes ENO antacids and Centrum multivitamins, projected organic revenue to grow between 4% and 6% for the current year, compared with analysts' average estimate of 5.3%, according to a company-compiled consensus.
"We are well positioned to drive organic revenue growth within our medium-term guidance range, with strong organic profit growth in 2025," chief executive Brian McNamara said in a statement.
That growth, however, is expected to be weighted towards the second half of the year, finance chief Dawn Allen said in prepared video remarks after the results, as the company tries to clear inventories of its respiratory products.
Focus On Wellness
Growing consumer focus on wellness is driving demand for multivitamins and oral hygiene products and cushioning a hit from a stronger pound and a post-pandemic slowdown in uptake of cold and pain medicines at the Advil painkiller maker.
Weak demand for cough and cold products, also weighed on US rival Kenvue, which earlier this month forecast 2025 profit below Wall Street estimates.
Strong sales in Haleon's fourth quarter have been offset by its 'broad outlook commitment', Jefferies analysts said in a note, adding that the outlook was 'wise', given the uncertainties.
Haleon, spun off from drugmaker GSK in 2022, reported revenue of £11.23 billion (€13.58 billion) for the year ended 31 December 2024, in line with analysts' consensus of £11.22 billion (€€13.57 billion), as compiled by the company.
Adjusted operating profit for 2024 stood at £2.50 billion (€3 billion), also matching analysts' expectations.
