Haleon reiterates full-year outlook

(Sharecast News) - Haleon reaffirmed its full-year targets on Thursday, despite third-quarter revenues narrowly missing forecasts. The consumer healthcare firm, which owns Tums, Panadol, Centrum and Sensodyne, among others, said organic revenues - which are calculated on a constant currency basis - rose 5% to £2.80bn in the three months to September end.

That was below analyst expectations for £2.83bn.

On a reported basis, group revenues fell 3.3%, while overall volumes for the quarter declined by 1.6%. Pre-tax profits nudged up to £496m from £495m.

The strongest performance was seen in oral health, the blue chip's biggest division. Organic revenues increased 9.4%, or 0.4% on a reported basis to £790m.

But digestive health fared less well, hit by retailer inventory adjustments in North America. Sales came in at £523m, up 0.9%. On a reported basis, sales fell 7.1%.

Haleon left its full-year guidance unchanged, however. It continues to expect organic revenue growth of between 7% and 8% alongside adjusted operating profit growth of between 9% and 11% on a constant currency basis.

Brian McNamara, chief executive, said: "I am pleased with our third-quarter results, which demonstrate continued strong momentum across the business.

"Despite challenging markets, we have delivered another quarter of strong organic growth, reflecting the strength of our category positions and the ongoing ability of our brands to grow or maintain share.

"While we are mindful of what remains an uncertain economic and geopolitical environment, we remain confident in our medium term guidance."

Haleon was spun out of GlaxoSmithKline in 2022, leaving the rebranded GSK focused solely on drugs.