Haleon Reports Weak Q1 Revenues Amid Positive Organic Growth

Haleon Plc faces a decline in reported revenues for Q1 but highlights a 3.5% organic growth. CEO expresses confidence in achieving 2025 targets despite uncertain macro conditions. Investors should note the company's performance consistency across regions.

Date: 30-04-2025

AI Rating: 6

Haleon Plc's Q1 Review: Haleon Plc, the British consumer healthcare firm, announced a decline of 2.3% in reported revenues, totaling 2.85 billion pounds compared to 2.92 billion pounds from the previous year. However, the company achieved a notable organic revenue growth of 3.5%, driven by increases in both price (2.4%) and volume/mix (1.1%). This organic growth underscores the resilience and appeal of Haleon's product offerings, especially across all geographic zones.

Regional Performance: The regional breakdown reveals mixed results; North America saw reported revenues decline by 1.6%, yet managed a 1% organic growth. EMEA and LATAM, accounting for 1.19 billion pounds, experienced a decline of 4.3% on a reported basis but achieved a commendable 5% organic growth. The APAC region showed strong contributions from both reported and organic metrics, whereas emerging markets led the way with a 6.5% organic growth, predominantly due to success in India.

Outlook for Fiscal 2025: Haleon maintains its guidance for fiscal 2025, projecting an organic revenue growth between 4% and 6% along with organic operating profit set to outpace this growth. The company's outlook suggests confidence in recovering from current macroeconomic challenges, emphasizing potential for improved performance in the latter half of the year.

Key Financial Metrics: The report notably lacks specific information on Earnings Per Share (EPS), Net Income, Profit Margins, Free Cash Flow (FCF), and Return on Equity (ROE). However, the emphasis on organic growth and operational stability points towards a positive trajectory regarding profit margins in the upcoming quarters.

Stocks: HLN