Haleon makes 'solid start' to FY24
Consumer healthcare company said on Wednesday that it had made a "solid start to the year", posting better-than-expected Q1 profits despite seeing a fall in revenues.
Haleon said organic revenues were up 3.0% year-on-year, with sales volumes and product mix down 2% to somewhat offset 5% price growth. Reported revenues declined 2.2% to £2.9bn, in line with the estimates, with negative impacts of 4.6% from foreign exchange impacts and 0.6% from its disposal of Lamisil.
The FTSE 100-listed group delivered adjusted operating profits of £707.0m, up 2.3% year-on-year, better than consensus.
For the full year, Haleon noted that organic revenue growth was still expected to be in the range of 4-6%.
Chief executive Brian McNamara said: "First quarter trading was solid and in line with guidance shared when we reported FY 2023 results. Organic revenue growth of 3.0% was impacted by lapping tough comparatives in the prior year particularly in Respiratory Health and Pain Relief. Despite this, strong innovation combined with successful execution of our go-to-market strategy underpinned performance in our Power Brands which grew 5.2% with particularly strong performance in our Oral Health and VMS portfolio.
"Looking ahead, we continue to expect the operating environment to remain challenging. However, we are confident that we are well positioned to deliver on both guidance for 2024 and over the medium term."
As of 0900 BST, Haleon shares were down 1.56% at 334.20p.
Reporting by Iain Gilbert at Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.