Haleon plc reported full‑year 2025 revenue of £11.03 billion, a 1.8% decline from £11.23 billion in 2024, and organic revenue growth of 3%—below the company’s medium‑term guidance of 4‑6%. The company’s adjusted operating profit grew 10.5% year‑over‑year, and gross margin expanded by 220 basis points, reflecting successful productivity initiatives and pricing power.
Segment performance was uneven. Oral Health drove growth with a 7.9% organic revenue increase, while Respiratory Health fell 1.9% in organic terms. Other segments such as Vitamins, Minerals & Supplements and Pain Relief contributed modestly to the overall mix, but the net effect was a modest top‑line lift that could not offset the decline in respiratory demand.
Profitability was bolstered by a 220‑basis‑point margin expansion, driven by higher‑margin product mix and cost controls. The company’s operating profit margin rose to 10.2% from 9.9% in the prior year, underscoring the effectiveness of its scale and efficiency programs.
For 2026, Haleon guided for organic revenue growth of 3‑5% at constant currency, a level below the Visible Alpha consensus of 4.6% and below the company’s own 4‑6% medium‑term target. The guidance reflects management’s view that a weak cold‑flu season and low consumer confidence in North America will continue to weigh on demand.
CEO Brian McNamara said, "Organic revenue growth of 3% was below our medium‑term expectations, primarily reflecting a weak cold flu season and low consumer confidence in North America. We delivered strong gross margin improvement and double‑digit organic profit growth, combined with strong cash generation." He added, "The U.S. will return to growth in 2026. And that's based on the progress we've had to date."
Analysts had expected Q4 2025 revenue of $2.77 billion and EPS of $0.04. Haleon’s full‑year revenue of £11.03 billion was slightly below the consensus estimate of £11.08 billion, indicating a modest miss relative to market expectations.
Investors reacted negatively, citing the revenue miss and the cautious 2026 outlook. The market’s response underscored concerns about continued demand weakness in key regions and the company’s need to sustain margin expansion to offset top‑line pressure.
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