Haleon Lifts Annual Sales Forecasts, Says Pricing & Efficiencies Offset Inflationary Pressures

Haleon PLC HLN reported 1H FY23 sales of £5.74 billion, up 10.6% Y/Y (10.4% on organic basis), with 7.5% price and 2.9% volume/mix.

1H adjusted operating profit increased 8.9% constant currency to £1.27 billion.

Power Brands +10.1% organic growth, with Sensodyne, parodontax, Panadol, Denture Care, and Otrivin standouts.

55% of businesses gained or maintained market share year to date.

Oral Health's revenue grew 10.5% to £1.59 billion, with all 3 Power Brands delivering robust growth and up double digits.

Pain Relief sales increased 12.6% to £1.41 billion, with Digestive Health & Other revenues increased 8.6% to £1.09 billion.

Also Read: Haleon Contemplates Sale of Non-Core Businesses, Including Nicotinell Brand: A Strategy Shift Towards Core Products.

In Respiratory Health, revenue increased by 22.8%, and organic revenue was up 22.0% as consumers turned to Theraflu and Contac amid rising cases of cold and flu globally.

Fenbid sales more than doubled, driven by the cessation of selling restrictions following the end of COVID-19 lockdowns in China.

"Looking ahead, whilst we continue to expect a challenging environment given further pressure on consumer spending and global geopolitical and macroeconomic uncertainties, we remain confident in the resilience of Haleon's incredible portfolio of category-leading brands," said Brian McNamara Haleon, CEO.

Guidance: Haleon expects full-year organic revenue growth of 7%-8%, compared with an earlier forecast of the top-end of the 4%- 6% range.

YE2023 adjusted operating profit growth of 9-11% constant currency.

Price Action: HLN shares are down 2.52% at $8.33 on the last check Wednesday.