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/mix down 0.2%, despite a weak cold and flu season that impacted growth by 130 basis points.

• Oral Health led growth at 8.3%, driven by innovation, premiumization, and geographic expansion, notably in Sensodyne and parodontax.

• North America returned to growth (1.0%), supported by improved execution, innovation, and shelf resets; emerging markets grew 4.3% organically.

• Productivity initiatives and supply chain improvements drove gross margin expansion, with a £65 million investment in a new oral health facility in Shanghai announced.

• On track to deliver full-year guidance amid ongoing geopolitical and macroeconomic uncertainties.

Financial highlights

• Q1 2026 revenue reached £2,857m, with organic revenue growth of 2.2% year-over-year.

• Price contributed 2.4% to growth, while volume/mix was down 0.2%.

• Oral Health grew 8.3% organically, VMS up 1.7%, Pain Relief flat (-0.3%), Respiratory Health down 3.4%, Digestive Health down 0.4%, and Therapeutic Skin Health up 3.0%.

• Emerging markets grew 4.3%, though performance was tempered by macroeconomic weakness and a soft cold and flu season.

• Share buyback program: £500m allocated for 2026, with 36% completed.

Outlook and guidance

• Full-year organic revenue growth guidance maintained at 3%-5%, with high single-digit 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.

• Medium-term guidance: 4–6% annual organic revenue growth and high single-digit adjusted operating profit growth.