Haleon PLCHLN
▼ NegativeDemandrelevance
Sluggish European demand and weak respiratory sales raise concerns about meeting medium-term sales targets.
Impact on stocks 1
Health Care
Haleon PLCHaleon shares fell as much as 3.3% on Thursday after sluggish European demand and weak respiratory sales raised doubts about its ability to meet medium-term sales targets, overshadowing better-than-expected first-half profit. The British consumer health company reported first-half organic revenue growth of 2.6%, in line with forecasts, but will need a stronger second half to hit its 4% to 6% medium-term target. North American organic revenue growth reached 3.1% in the second quarter, ahead of expectations, while European growth was nearly flat and respiratory sales fell 6.5%, a steeper decline than the 3.4% drop in the first quarter. First-half adjusted operating profit of £1.36 billion topped expectations of £1.32 billion, but Jefferies analysts said stronger underlying sales growth was needed. CEO Brian McNamara expressed confidence in a stronger second half, driven by emerging markets and a recovery in cough-and-cold demand, and said the company could absorb rising freight and other costs without raising prices.
Haleon PLCSluggish European demand and weak respiratory sales raise concerns about meeting medium-term sales targets.