Consumer healthcare company Haleon has reported a four per cent rise in pre-tax earnings amid strong demand for its power brands despite a soft market for at-home healthcare in the US.
Organic profit rose by 11 per cent in the six months ended June 30, with gross margin expansion due to “lower cost inflation and productivity savings”, the company said. This was partly offset by strong brand investment.
Shares in Haleon, which makes household names such as Sensodyne toothpaste, Panadol painkillers and Eno antacids, jumped about two per cent in early trades.
Reported operating profit rose by 0.9 per cent to £1.151m. It was impacted by “restructuring costs including the productivity programme,” the company said.
The healthcare company separately announced a share buyback programme of up to £185m. It is the remainder of the £500m allocated to share buybacks in 2024, Haleon said. HSBC will purchase the shares.
“Haleon reported a good first half, with solid organic revenue growth and strong organic operating profit growth, demonstrating that our strategy is delivering. Whilst as expected, comparatives impacted results, revenue growth accelerated in the second quarter with improved volume mix.
“We continue to implement change to become more agile and competitive, with the recent news of
the divestment of the NRT business outside of the US as another example of this,” chief executive officer Brian McNamara said.
The company saw particular growth in its “power brands”, oral health and vitamins. Toothpaste products Sensodyne and Parodontax as well as with multi-vitamin product Centrum both achieved double-digit growth.
“Looking ahead, we are well positioned to deliver on our full-year organic revenue growth guidance and
now expect high-single digit organic profit growth. Given the successful delivery of the strategy to date
Haleon is also well placed over the medium term,” McNamara said.
Analysts expect full-year profit growth of 7.8 per cent, according to a company-compiled poll.
Haleon also announced a dividend of 2p per share to be paid on September 19.