Haleon (HLN) H1 2026 earnings summary

Executive summary

• Achieved 2.6% organic revenue growth in H1 2026, with Q2 sequential improvement to 3.1%, driven by balanced price and volume/mix and strong performance in North America, China, and India.

• 73% of the business gained or maintained market share, reflecting competitive strength despite challenging consumer environments.

• Adjusted operating profit grew 8.2% at constant currency, supported by gross margin expansion and productivity initiatives.

• Adjusted diluted EPS grew 12.0% at AER, supported by robust free cash flow generation of £769m.

• FY 2026 guidance maintained for 3–5% organic revenue growth and high single-digit adjusted operating profit growth.

Financial highlights

• H1 2026 revenue reached £5.6bn, up 2.2% reported and 2.6% organic year-over-year.

• Adjusted gross profit rose 4.7% at constant currency, with margin up 140bps to 66.5%.

• Adjusted operating profit increased 8.2% at constant currency, margin up 120bps to 24.3%.

• Adjusted diluted EPS: 10.3p (up 12.0%); free cash flow: £769m (+£35m YoY).

• Net debt/Adjusted EBITDA improved to 2.5x, with net debt at £7.5bn as of June 2026.

Outlook and guidance

• FY 2026 guidance reaffirmed: 3–5% organic revenue growth and high single-digit adjusted operating profit growth.

• Medium-term targets: 4–6% annual organic revenue growth, high single-digit adjusted operating profit growth, and net debt/Adjusted EBITDA around 2.5x.

• Dividend expected to grow at least in line with adjusted earnings.