Sensodyne Maker Haleon Cuts Revenue Growth Forecast on Weak Flu Season, China Disruption
- On Thursday, British consumer Haleon cut its annual revenue growth outlook to around 2.5% from a previous 3% to 5% forecast, knocking its shares down nearly 14%.
- Weaker demand for cold and flu treatments in North America hampered orders, while regulatory changes regarding raw material classifications in China affected imports of Centrum multivitamins.
- Organic revenue for the three months ending September 30 rose 2.6%, missing Analysts' estimates of 3.2%, though the oral health category reported 8.8% organic growth.
- Sales in Europe fell 0.9% to £798 million due to "challenging" trading conditions in Germany, while the firm flagged a £15 million to £20 million hit from accelerating its Brazil strategy.
- Chief executive Brian McNamara said the company is "clear on where we need to improve," noting it is taking action to deliver stronger performance despite current market difficulties.
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Haleon's shares, manufacturer of brands such as Advil, Sensodyne and Centrum, collapsed 15.7% on the London Stock Exchange, after the company cut off its annual financial performance estimates. Exclusive material for subscribers. To have full access, access the material link and register.
Sensodyne maker Haleon cuts revenue growth forecast on weak flu season ...
Haleon shares crater as soft flu demand hits takings
Shares in Haleon slumped after soft demand for cough, cold and flu medicines forced the consumer healthcare giant to cut its revenue target. The FTSE 100 firm lost more than 11 per cent in early trading, to 333p. Haleon had been expecting revenue growth of between three and five per cent but on Thursday trimmed [...]
A mild cold season means a weak quarter for the company. Only the business with oral care products is a bright light.
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