01 August 2024
If you are covering Haleon’s latest financial results, please find below a comment from Chris Beckett, head of equity research at Quilter Cheviot:
“Haleon delivered solid numbers in its latest financial results today, highlighting how the business has become a consistent company with good credibility, just over a year after its listing. It continues to benefit from pricing controls, although there has been some volume growth too. The oral business, specifically Sensodyne, is doing very well, while it is encouraging to see the vitamins business bounce back after a tough post-covid hangover. That said, the business has had a weak cold and flu season which has impacted sales of products in that area. It will be interesting to note if this is simply bad luck or signs of weakening consumer confidence as we have seen from some businesses in the US. Given Haleon is doing well in Europe and Asia, and less well in the US where consumers are coming under pressure, it could easily be the latter.
“However, the business has matured well and is dealing with its corporate issues well. GSK has now exited the business, while the final tranche of the buyback announced earlier this year will not feature any of Pfizer’s ownership. This is ultimately positive for the share price as to date it has been at the mercy somewhat of those big pharmaceutical groups and what they did with their stock overhang. Pfizer is clearly wanting more value out of the business first and isn’t comfortable selling at this level and as such will be aligned with other investors in wanting the share price to rise higher.”
