27 February 2025
If you are covering Haleon's latest results, please see the following comment from Chris Beckett, head of equity research at Quilter Cheviot:
"Haleon, maker of Sensodyne and Panadol, posted a mixed set of results and the market does not appear to be taking it well, with its stock price falling between 3-4% since opening.
"There will no doubt be a few downgrades to expectations for this year. The company is now looking for 4-6% sales growth and profits ahead of that, which is in line with medium term guidance. However, it is looking likely that it will be second half weighted and there are a couple of technicalities around mergers, acquisitions and FX going against them, which may knock down market expectations somewhat.
"Haleon’s oral care category continues to benefit from the strength of the Sensodyne brand innovation, but its respiratory health sales have suffered from low cold and flu demand. Meanwhile, vitamins and supplements sales grew well thanks to double digit growth from the Centrum and Caltrade brands.
"The company’s sales growth at 7% and 10% underlying profit growth for the year is solid, and consumer health is a good subsector to be in. The stock has moved quite a way since it floated, so the reaction is understandable, but longer term this remains a good quality business with good brands.
"Haleon is no doubt facing some headwinds, some of which have been out of its control such as a soft cold and flu season particularly in North America, but those inside of the business continue to be managed relatively well."
