Haleon (HLN) H2 2025 (Q&A) earnings summary

Executive summary

• Achieved 3% organic sales growth in 2025, outperforming the market with 60% of the business gaining or maintaining share, despite a weak cold and flu season and U.S. softness.

• Significant organizational restructuring introduced new leadership roles and operating units to drive agility and growth.

• Productivity initiatives drove 10.5% organic profit growth and margin expansion, with continued investment in A&P and R&D.

• Over £1.1bn returned to shareholders in 2025; £500m share buyback announced for 2026.

• Confident in medium-term guidance, targeting strong bottom-line performance.

Financial highlights

• FY 2025 revenue: £11.0bn; organic revenue growth: 3.0% (2.3% price, 0.7% volume/mix).

• Gross margin improved by 220 basis points year-over-year, attributed to productivity programs and supply chain optimization.

• Adjusted operating profit up 10.5% organically; adjusted gross profit up 4.4% at constant currency.

• A&P and R&D investments increased by over 7% each, supporting brand growth and innovation.

• Adjusted diluted EPS grew 5.0% to 18.8p.

Outlook and guidance

• Organic sales growth guidance for 2026 is 3%-5%, with medium-term ambition of 4%-6% annual organic revenue growth and high single-digit adjusted operating profit growth.

• U.S. market expected to return to growth in 2026, supported by improved inventories and shelf resets.

• Productivity improvements expected to contribute 50-80 basis points to gross margin annually.

• Net debt/adjusted EBITDA targeted around 2.5x, with dividend growth at least in line with adjusted earnings.

• 2026 net interest cost guidance ~£255m, tax rate ~24.5%.