Half Year 2024 Haleon PLC Earnings Call Transcript
Key Points
- Haleon PLC (HLN) reported strong organic sales growth, particularly in the Oral Health and VMS segments.
- The company successfully managed inventory reductions and proactively addressed potential FDA decisions, ensuring product availability for the cold and flu season.
- Haleon PLC (HLN) has shown significant market share gains in North America, despite challenging trading conditions.
- The company has maintained a strong cash flow, enabling a share buyback program and reducing net debt-to-EBITDA to below 2.9 times.
- Haleon PLC (HLN) is actively managing its portfolio, including successful divestments and potential bolt-on M&A opportunities to enhance shareholder value.
- North American sales were down slightly in the first half, impacted by inventory reductions and proactive measures related to phenylephrine products.
- The company's profit guidance for the second half is expected to be lower due to phasing of cost inflation, increased A&P spending, and higher R&D expenses.
- The US segment experienced a decline in margin, attributed to volume declines and increased A&P investments.
- The China JV extension indicates ongoing complex negotiations, which could imply potential challenges in finalizing agreements.
- The company's gross margin expansion is partially driven by easing inflation and productivity gains, but benefits from site closures like Maidenhead have not yet materialized.
Good morning, everyone, and welcome to Haleon half-year 2024 Q&A call. I'm Sonya Ghobrial, Head of Investor Relations, and I'm joined this morning by Brian McNamara, our Chief Executive Officer; and Tobias Hestler, our Chief Financial Officer.
Just to remind listeners on the call that in the discussions today, the company may make certain forward-looking statements, including those refer to our estimates, plans and expectations. Please refer to this morning announcement and the company's UK and SEC filings for more details, including factors that could lead actual results to differ materially from those expressed in or implied by such forward-looking statements.
We've posted today's presentation on the website this morning with prepared remarks and a video running through the results in detail. So hopefully, you've all had the chance to see that ahead of this call. With that, we'll restrict to end the call with Q&A from my last time. Thank you.
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