BRITISH consumer healthcare giant Haleon said on Thursday (Feb 29) its first-quarter organic revenue growth would slow, citing a tepid cold and flu season and cooling China demand.
Despite price increases, Haleon’s roster of products has largely kept cheaper private-label competition at bay, although the cost-of-living squeeze and competition among painkiller brands are allowing rivals to catch up.
Demand in China has slowed after a strong rebound last year post-Covid-19 – a trend that has been echoed by US rival Kenvue, which forecast full-year profit below analysts’ expectations earlier this month.
In the first quarter of 2023, Haleon’s organic revenue grew by 9.9 per cent, on a 33 per cent jump in sales for its respiratory health products in the cold and flu season.
The company said it expects the overall revenue growth to be just below 4 per cent for the first quarter this year.
The world’s largest standalone consumer healthcare firm, which reported its first full-year results since it was spun off from GSK in 2022, said organic revenue would rise between 4 per cent and 6 per cent in 2024 and that adjusted operating profit would be ahead of that range.
Analysts on average expect organic revenue to grow by 4.5 per cent and adjusted operating profit by 7.1 per cent, according to a company-compiled consensus.
“In 2024, we expect the operating environment to remain challenging. We are confident, however, that we are well positioned to deliver on both guidance for 2024 and over the medium term,” CEO Brian McNamara said in a statement. REUTERS
