Haleon Cuts Organic Revenue Growth Outlook to 2.5% After 2.6% Quarterly Growth
Key Facts
Haleon cut its 2026 organic revenue growth outlook to around 2.5%, after recording 2.6% organic growth in the third quarter, and said quarterly performance fell short of its expectations. The consumer healthcare products maker announced the adjustment in a third-quarter trading update, attributing the weaker performance to softer consumption of cough, cold and flu products, as well as a change in the classification of raw materials for some Centrum products in China. The stock fell on Thursday, 29 October, after the announcement, according to The Wall Street Journal. The company’s shares closed at 8.66 dollars on 30 October, according to EL7 data, in a separate subsequent reading from the fall on the day of the announcement. The reduced outlook means expected organic revenue growth is now slower than the company had targeted, although it continues to expect adjusted operating profit to grow at a high-single-digit rate at constant currency.
Group organic revenue growth was 2.6% in the third quarter, comprising a 2.1% contribution from pricing and 0.5% from volume and mix, according to Haleon. Reported revenue for the period was 2.868 billion pounds sterling. By region, organic revenue rose 2.5% in North America, while it fell 0.6% in Europe. This divergence shows that overall growth was concentrated in certain regions and categories, while some businesses continued to weigh on the group’s result. Chief Executive Brian McNamara said third-quarter organic revenue growth “came in below our expectations.”
The company attributed part of the weaker performance to softer consumption of cough, cold and flu medicines, which led to lower orders in North America. The pressure was clear in the respiratory health category, where organic revenue fell 2.0% in the third quarter. By contrast, oral health grew 8.8% organically, highlighting a gap between the performance of Haleon’s major categories. In 2025, the company had forecast annual organic revenue growth of around 3.5%, assuming a normal cough, cold and flu season. This puts the current outlook cut in the context of sales’ sensitivity to seasonal demand fluctuations, after Haleon tied its earlier forecast to a return to a typical season.
In China, Haleon said a change in the regulatory classification of raw materials for over-the-counter Centrum products had halted imports of those products “until further notice.” It said Centrum products registered as foods were not affected by the change. Revenue from over-the-counter Centrum products in China was about 75 million pounds sterling in fiscal year 2025, indicating the scale of the business affected by the import halt. This regulatory pressure adds to weaker seasonal demand in North America, while the company’s statement did not specify when imports would resume. The distinction between registrations means, according to the company’s statement, that the measure affects only products registered in the impacted category.
On distribution, Haleon expected an accelerated change to its distribution model in Brazil to reduce net revenue by around 15 to 20 million pounds sterling in the fourth quarter of 2026. This expected impact comes at year-end, following the slowdown that prompted the company to cut its annual organic revenue growth outlook. The company nevertheless maintained its forecast for adjusted operating profit to grow at a high-single-digit rate at constant currency. It also announced an additional 500 million pounds sterling allocation for share buybacks, with the programme due to be completed by the announcement of fiscal-year results in February 2027. The company’s guidance thus combines weaker revenue growth, continued expectations for operating profit growth and additional share buybacks.
McNamara said, “Our main priority is to drive stronger volume growth and consistently get back on track with our medium-term growth guidance.” This priority puts increasing volumes sold at the forefront of management’s response, after pricing contributed more than volume and mix to third-quarter growth. Markets are awaiting the fiscal year 2026 results, which the company has scheduled for 25 February 2027. It has also set 29 April 2027 for its first-quarter trading update. These dates will provide a subsequent update on the year’s results and trading trajectory, according to the schedule announced by Haleon.