Haleon Lifts Profit Guidance on Profit Rise

By Helena Smolak

Haleon raised its full-year profit guidance as it reported a higher first-half pretax profit despite lower revenue.

The consumer-healthcare business--which was spun out of GSK and is partly owned by Pfizer--said Thursday that it now expects its full-year organic operating profit growth to grow in the high-single digits. This compares with previously guided organic operating profit growth ahead of organic revenue growth. It still expects its 2024 organic revenue growth between 4% and 6%.

Its pretax profit in the period was GBP996 million, up from 960 million pounds ($1.232 billion), helped by lower cost inflation, and productivity savings. For the first half, it posted adjusted operating profit--one of its key metrics that strips out exceptional and other one-off items--of GBP1.29 billion, slightly beating consensus's GBP1.275 billion.

Haleon--which houses Sensodyne toothpaste and Aquafresh mouthwash as well as over-the-counter medicines Panadol and Advil--made revenue for the six months ended June 30 of GBP5.69 billion pounds, down from GBP5.74 billion a year prior. This was in line with estimates taken from a company-compiled consensus which had the figure at GBP5.69 billion, and had seen organic growth of 3.5% for the half-year.

The company also said it commenced a buyback program for the year up to GBP185 million.

The group declared an interim dividend of 2.0 pence a share.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

August 01, 2024 02:54 ET (06:54 GMT)

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