Haleon Q1 revenue slightly below expectations amid softening demand

Haleon the renowned consumer healthcare company known for brands like Sensodyne toothpaste and Panadol pain-reliever, disclosed first-quarter revenue figures slightly below market expectations on Wednesday. The shortfall was attributed to retailer destocking in the US and a moderation in demand for select medicines following a surge witnessed last year.

In the wake of a softer cold and flu season and a slowdown in the sales of Advil in Canada, Haleon had anticipated a challenging start to 2024. Additionally, the company noted a cooling off in demand for medicines like Contac and Fenbid, which had experienced heightened sales in China post-lockdown restrictions last year but have now stabilized.

Quarterly revenues for the period ending March 31 totalled 2.92 billion pounds ($3.64 billion), marginally below the market consensus of 2.93 billion pounds. This translated to a 2.2 per cent decline in revenue compared to the previous year.

As news of the revenue shortfall broke, shares of Haleon, listed on the FTSE 100, saw 1.8 per cent drop in early trading, marking it as one of the top losers on the blue-chip index. Despite this setback, the stock had seen a 5 per cent increase in value year-to-date as of the previous day's close.

Haleon, formed as a result of assets from GSK and Pfizer, maintains its status as the world's largest standalone consumer health company, offering a range of non-prescription drugs, vitamins, and oral care products.

While certain product categories experienced a slowdown, demand for oral health products and multivitamins remained resilient throughout the reported quarter. In light of these developments, the company reaffirmed its full-year outlook as outlined in February.

(With Reuters inputs)