Haleon cuts forecast as cold and flu demand weakens

Summarised from 3 outlets · Updated 29 Oct, 12:51 · Archive

Consumer healthcare firm Haleon has cut its full-year revenue growth target to 2.5 per cent after weak demand for cold and flu medicines.

Haleon, the consumer healthcare company that separated from pharmaceuticals giant GSK in 2022, cut its annual revenue growth target from a previous projection of three to five per cent to 2.5 per cent. The announcement triggered a fall in its share price of more than 11 per cent in early trading.

Third-quarter revenue grew 2.5 per cent to £2.87 billion in the three months to September 30. The company said this growth was primarily driven by higher pricing, with sales volumes up only 0.5 per cent. Weak demand for cold and flu medicines resulted in lower orders in North America, though the region saw organic revenue growth of 2.5 per cent, boosted by stronger sales of Sensodyne toothpaste and Centrum vitamins. In Europe, sales fell 0.9 per cent to £798 million, blamed on challenging trading conditions particularly in Germany and central and eastern Europe. Haleon's oral health category reported 8.8 per cent organic growth for the quarter. The company also suspended shipments of Centrum into China after a change in raw material regulations, though sales in China still grew by mid-single digits. Chief executive Brian McNamara said: 'Our third-quarter organic revenue growth of 2.6 per cent was below our expectations as we navigated softness across some of our categories including weaker cough, cold and flu consumption.'

Haleon cuts forecast as cold and flu demand weakens — Image: Independent Business

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How it is being reported

Haleon shares slide after targets cut due to weak cold and flu demandThe FTSE 100 company said revenues grew by 2.5% to £2.87 billion for the three months to September 30, compared with the same period last year.Independent Business · 29 Oct, 12:39
Haleon shares slide after targets cut due to weak cold and flu demandThe FTSE 100 company said revenues grew by 2.5% to £2.87 billion for the three months to September 30, compared with the same period last year.Evening Standard · 29 Oct, 12:39
Haleon shares crater as soft flu demand hits takingsShares in Haleon slumped after soft demand for cough, cold and flu medicines forced the consumer healthcare giant to cut its revenue target. The FTSE 100 firm lost more than 11 per cent in early trading, to 333p. Haleon had been expecting revenue growth of between three and five per cent but on Thursday trimmed [...]City AM · 29 Oct, 09:00

In this story: Haleon · GSK · Panadol · Sensodyne · Centrum · Brian McNamara · North America · Europe

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