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Haleon PLC said on Thursday reported higher profit in the first half, but cut its full-year outlook after revenue took a hit from mergers & acquisitions and slower trading in North America. The Weybridge, Surrey-based firm posted pretax profit of £1.08 billion for the six months that ended June 30, up 8% from £996 million the year prior. Revenue fell 3.8% to £5.48 billion from £5.69 billion. This was due in part to weak demand from the US, which led to a 0.4% decline in organic revenue for Haleon’s North American business. This was offset slightly by organic revenue growth of 5.2% across Europe, Middle East, Africa & Latin America, and 5% growth in the Asia-Pacific region. The consumer healthcare product maker also cited mergers & acquisitions for the first-half revenue drop, noting a negative 2.9% net M&A impact. By division, Oral Health was the strongest performer, contributing 32% of revenue and posting 7.6% organic sales growth to £1.73 billion from £1.68 billion in the first half of 2024. Reported sales were up 2.7%, making Oral Health the only branch to grow on a reported basis. Haleon lowered its full-year outlook, due to net M&A impact, which is expected to cut revenue by 2% and adjusted operating profit by 5.5%. Organic revenue growth is expected to be around 3.5%, compared with previous guidance between 4% and 6%. Adjusted operating profit growth is forecast in the high-single digits; back in April, Haleon predicted that it would be ahead of organic revenue growth. Nonetheless, the firm boosted its interim dividend by 10% to 2.2 pence per share from 2.0p on-year. ‘We expect an improving trend for organic revenue growth in the second half, with innovations supporting a positive performance in EMEA & LatAm and Asia Pacific. The consumer environment in North America is likely to remain subdued,’ commented Chief Executive Brian McNamara. ‘We remain encouraged by the opportunities for growth across the business and confident in delivering our medium-term guidance.’ Also on Wednesday, Haleon launched the second tranche of share buybacks for up to £260 million. Of this, £130 million in shares will be cancelled, while £150 million will be held in treasury to satisfy employee share plans. The buybacks are expected to complete by December 1. The firm has allocated a total of £500 million to share buybacks in 2025. Haleon shares were down 1.3% at 360.30p on Thursday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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