Haleon (HLN) H2 2025 earnings summary

Executive summary

• Achieved 3% organic sales growth in 2025, outperforming global categories with 60% of the business gaining or maintaining share, despite weaker category growth and low consumer confidence in key markets.

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

• Strong progress on strategic priorities: competitive growth, productivity gains, and agile culture.

• Over £1.1bn returned to shareholders in 2025; £500m allocated to share buybacks in 2026.

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

Financial highlights

• FY 2025 organic revenue growth of 3% (2.3% price, 0.7% volume/mix); Q4 organic revenue up 2.1%.

• Adjusted gross margin up 220bps at constant currency; adjusted operating profit up 10.5% organically.

• Operating profit margin at 22.9%, up 60bps at actual rates; adjusted operating margin up 160bps organically.

• Adjusted diluted EPS grew 5% to 18.8p; free cash flow reached £1.9bn.

• Reported revenue declined 1.8% due to divestments and FX headwinds.

Outlook and guidance

• 2026 organic revenue growth expected at 3%-5%, with North America returning to growth.

• High single-digit adjusted operating profit growth anticipated, driven by gross margin improvement.

• Medium-term guidance reaffirmed: 4%-6% annual organic revenue growth, high single-digit adjusted operating profit growth at constant currency, and net debt/adjusted EBITDA around 2.5x.