Haleon cuts full-year sales guidance amid weak consumer demand

Consumer healthcare company Haleon has lowered its full-year revenue growth guidance to approximately 2.5%, down from previous projections of 3% to 5%. The company reported third-quarter organic revenue growth of 2.6%, which fell below expectations due to soft demand for cough, cold, and flu products, particularly in North America.

While the oral health category remained a strong performer with 8.8% organic growth, overall sales were heavily driven by pricing rather than volume. Sales volumes grew by only 0.5%. Additionally, the company faced regulatory challenges in China, which forced a halt on imports for certain Centrum products following a change in raw material classification.

Regional performance varied, with North American revenues growing by 2.5% on an organic basis, while sales in Europe declined by 0.9% due to challenging conditions in Germany and Central and Eastern Europe. Despite the revenue downgrade, Haleon maintained its profit guidance, citing strong margins and cash generation, and announced a further £500m share buyback.