Haleon Stock Earnings Reports

Haleon H1 2025 — key investor takeaways: Organic growth was solid across EMEA, LatAm and APAC, but North America underperformed (Q2 North America organic sales down ~1.8%), driven by a weak consumer environment, channel shift to value channels and e‑commerce, retailer destocking and a pronounced decline in Smokers' Health (nicotine replacement). Consumption overall is slightly ahead of the market (+0.5% vs market -0.5%), with strong share and consumption trends in Oral Health, Digestive Health (Tums, Benefiber) and Emergen‑C. Centrum and Advil were notable sources of weakness in the U.S.; management has new media and innovation plans (including reactivated Centrum Silver claims and a new Advil campaign) and expects improvements in H2 but not a material U.S. recovery this year. Smokers' Health (NRT) is ~5–6% of the U.S. business and materially depressed Q2 results (see quote below). A&P accelerated (up 6.8% to 20.8% of sales) with improved ROI (+4%) and is being targeted to support innovation, premiumization and expanded low‑income reach (India, China, Brazil). Gross margin benefited from supply‑chain productivity and SKU rationalization (+160bps), enabling continued investment and supporting the updated guidance of high‑single‑digit operating profit growth (constant currency). Management remains confident in the medium‑term strategy and the 4–6% organic growth ambition, but expects the U.S. environment and retailer destocking to keep near‑term growth subdued, with a path back to stronger growth targeted for 2026. Cash flow and operating margin progression were positive in H1 (operating profit +9.9% and +140bps), and management flagged continued focus on productivity and category performance to restore share in underperforming U.S. brands.