Haleon (HLN) Q1 2026 TU earnings summary

Executive summary

• Achieved 2.2% organic revenue growth in Q1 2026, with price up 2.4% and volume down 0.2%, despite a weak cold and flu season impacting growth by 130 basis points.

• Oral Health led growth, driven by innovation, premiumization, and geographic expansion, with Sensodyne and parodontax showing double-digit gains.

• North America returned to growth at 1%, supported by improved execution, innovation, and shelf resets, with strong Oral Health and VMS performance.

• Emerging markets grew 4.3% organically, led by China and India, though Latin America faced macroeconomic headwinds.

• Productivity initiatives and operating model changes drove gross margin improvement and enhanced agility.

Financial highlights

• Q1 2026 revenue reached £2,857m, with 2.2% organic growth (2.4% price, 0.2% volume decline); translational FX impact was minimal.

• Oral Health grew 8.3% globally, double the market rate; VMS up 1.7%, Pain Relief flat (-0.3%), Respiratory Health down 3.4%, Digestive Health down 0.4%, and Therapeutic Skin Health up 3%.

• OTC segment was mixed: Panadol, Benefiber, and Tums performed well, but cold and flu and Smoker's Health declined.

• North America: 1% organic growth (3.7% price, 2.7% volume decline); EMEIA & LATAM: 2.1% growth (2.6% price, 0.5% volume decline); APAC: 4% growth, led by China and India.

• Share buyback program: £500m allocated for FY26, with 36% completed.

Outlook and guidance

• Full-year 2026 organic revenue growth guidance maintained at 3%-5%, with high single-digit adjusted operating profit growth at constant currency.

• Growth momentum expected to improve through North America shelf resets, e-commerce expansion in China, and Latin America activations.

• Net interest cost expected at approximately £255m, with a tax rate of about 24.5%.

• Foreign exchange translation expected to be broadly neutral for the year.

• Monitoring macroeconomic uncertainty, especially Middle East conflict and potential supply chain cost impacts.