Haleon (HLN) 23rd annual dbAccess Global Consumer Conference summary

Strategic priorities and transformation

• Initial focus post-separation was on business continuity, growth, and building corporate functions, with leverage reduced from 4x to 2.5x and overhang from previous owners eliminated.

• Leadership team was rebuilt, with 13 of 15 members new since separation, and a new operating model introduced, streamlining to six operating units and three global categories.

• Growth is the top priority, with medium-term guidance of 4%-6%, though current year guidance is 3%-5% due to headwinds.

• Productivity initiatives target GBP 800 million in savings by 2030, with 50-80 basis points of gross margin improvement annually and significant early gains.

• Culture and simplification are emphasized, with layers removed from the organization and a focus on agility and competitiveness.

Geographic performance and investments

• In China, full ownership of the OTC business was acquired, a new plant is being built in Shanghai, and digital channels are a major focus, especially e-commerce and social commerce.

• India has seen double-digit growth, with investments in sales force, low-income products, and A&P, and strong gross margins even on low-priced packs.

• Emerging markets are expected to deliver high single-digit growth, with strong share gains and optimism for future expansion.

• Europe is stable but not a high-growth market, while Latin America faced Q1 challenges but is expected to improve with new leadership.

• Middle East and Africa are growing, with some impact from regional conflicts, but overall exposure is limited and margins remain strong.

North America and channel dynamics

• North America experienced a negative Q1 due to cold and flu, but oral health performed strongly, and market share gains are expected to continue.

• Distribution wins in major retailers like Walmart, Target, and Costco are expected to drive better growth in Q2 and beyond.

• Channel shift from drug stores to mass retailers and online is ongoing, with higher market shares online and de-stocking in the drug channel now complete.