By Karim Hammam
Consumer healthcare group Haleon lowered its full-year sales guidance after weaker demand for cold and flu remedies hit quarterly performance, sending shares lower in early trading.
Revenue and Guidance
The FTSE 100 company reported revenue growth of 2.5% to £2.87 billion for the three months ended September 30 compared with the same period last year. Organic revenue growth was 2.6%. Haleon now expects full-year sales growth of around 2.5%, down from a previous forecast of 3% to 5%. The company said the growth was driven primarily by higher pricing, with sales volumes rising only 0.5%.
Regional Performance
North America revenue grew 1.5%, or 2.5% on an organic basis, supported by stronger sales of Sensodyne and Centrum products, though the region saw lower orders for cough, cold and flu medicines. In Europe, sales fell 0.9% to £798 million, which the group attributed to challenging trading conditions, particularly in Germany and central and eastern Europe. The oral health category delivered 8.8% organic growth for the quarter.
CEO Comments
Chief executive Brian McNamara said third-quarter organic revenue growth was below expectations due to softness in some categories, including weaker cough, cold and flu consumption. He noted strong performance in oral health and progress in the North America turnaround plan, adding that the company is taking action to improve performance despite challenging markets.
