Haleon plc

What they do

Haleon develops, manufactures, and markets consumer healthcare products across categories including Oral Health, Pain Relief, Respiratory Health, Digestive Health, Vitamins, Minerals & Supplements, and Therapeutic Skin Health. The company operates globally, with major brands in each category, and generates revenue through sales to retailers, pharmacies, and other partners. Its largest markets include the US, UK, and China.

Revenue drivers

• Oral Health — Includes brands like Sensodyne and parodontax. Revenue for 2025 was £3,510 million, representing a 4.0% increase from 2024 (actual currency).
• Pain Relief — Includes brands like Panadol and Advil. Revenue for 2025 was £2,866 million, up 5.4% from 2024.
• Vitamins, Minerals & Supplements (VMS) — Includes brands like Centrum and Caltrate. Revenue for 2025 was £1,982 million, a 5.6% increase from 2024.
• Respiratory Health — Includes brands like Theraflu and Otrivin. Revenue for 2025 was £1,479 million, up 1.5% from 2024.

Recent performance

For the fiscal year ended December 31, 2025, Haleon reported total revenue of £12,352 million, a 4.4% increase from 2024 (actual currency). Organic growth was 4.6%, driven by volume and price. Adjusted operating profit increased 5.0% to £3,207 million, with adjusted operating margin expanding 20 basis points. Net income attributable to owners was £1,272 million, and adjusted diluted earnings per share grew 8.4% to 92.0 pence.

Strategy

Haleon's strategy focuses on 'everyday health' categories, leveraging leading brands and innovation. Management emphasizes premiumization, digital marketing, and supply chain efficiency. The company invests in geographical expansion, particularly in emerging markets, and aims to deliver sustainable mid-single-digit organic growth and margin improvement over time.

Risks

• Regulatory and compliance risk — Haleon operates in a heavily regulated industry; changes in regulations or litigation could affect product availability and costs.
• Competitive pressure — The consumer healthcare market is competitive, with large players like P&G and J&J; pricing pressure could impact market share and margins.
• Supply chain disruption — Global supply chain issues, raw material costs, or geopolitical events could hamper production and increase costs.
• Foreign exchange exposure — Haleon generates significant revenue outside the UK; currency fluctuations affect reported results and profitability.

Outlook

Management expects continued organic revenue growth in 2026 in the range of 3% to 5%, with adjusted operating margin expansion of at least 50 basis points. They anticipate adjusted diluted EPS growth of 7% to 9% at constant currency, despite uncertain macro environment and input cost inflation.