Haleon (HLN) Q1 2026 TU earnings summary

Executive summary

• Achieved 2.2% organic revenue growth in Q1 2026, with price up 2.4% and volume/mix down 0.2%, despite a weak cold and flu season impacting growth by 130 basis points.

• Oral Health led growth at 8.3%, driven by innovation, premiumization, and geographic expansion, notably Sensodyne and parodontax.

• North America returned to growth with a 1% organic increase, supported by improved execution, shelf resets, and innovation launches.

• Emerging markets grew 4.3% organically, with strong performance in India and China, but macroeconomic headwinds in Brazil and Latin America.

• Productivity initiatives and operating model changes drove gross margin improvement and enhanced agility.

Financial highlights

• Q1 2026 revenue reached £2,857m, with 2.2% organic growth (2.4% price, 0.2% volume/mix decline).

• Oral Health grew 8.3% organically; VMS up 1.7%, led by Centrum; Pain Relief flat (-0.3%), Respiratory Health down 3.4%, Digestive Health down 0.4%, Therapeutic Skin Health up 3%.

• North America: 1% organic growth (3.7% price, 2.7% volume decline); EMEIA & LATAM: 2.1% organic growth; APAC: 4% growth, led by China and India.

• E-commerce in China grew double digit, now ~40% of China revenues.

• Translational foreign exchange had minimal impact on reported results.

Outlook and guidance

• Full-year 2026 organic revenue growth guidance maintained at 3%-5%, with high single-digit adjusted operating profit growth at constant currency.

• Sequential improvement in growth expected, driven by North America shelf resets, e-commerce expansion in China, and Latin America activations.

• Net interest cost expected at approximately £255m; tax rate about 24.5%.

• Foreign exchange translation expected to be broadly neutral for the year.

• Monitoring potential impacts from Middle East conflict and macroeconomic uncertainty, but no significant Q1 impact observed.