By Pushkala Aripaka (Reuters) -Sensodyne toothpaste maker Haleon on Thursday forecast high single-digit percentage growth in its profit from 2026, helped by steady demand for its products in key markets and expected cost-cuts within its supply chain. The consumer healthcare group had earlier forecast adjusted operating profit to grow ahead of its 4%-6% organic revenue […]
Health
Haleon forecasts medium-term profit to grow by high single-digits percentage
Audio By Carbonatix
By Pushkala Aripaka
(Reuters) -Sensodyne toothpaste maker Haleon on Thursday forecast high single-digit percentage growth in its profit from 2026, helped by steady demand for its products in key markets and expected cost-cuts within its supply chain.
The consumer healthcare group had earlier forecast adjusted operating profit to grow ahead of its 4%-6% organic revenue growth target at constant currency rates in the medium term.
Thursday’s more definite outlook sent its shares nearly 4% higher, and were trading up 3% at 387 pence by 1213 GMT.
“We’ve delivered on the commitments we made since demerger and have established strong foundations as a standalone company,” CEO Brian McNamara said in a statement. “We are now focused on unlocking the full potential of this company.”
Haleon was formed in 2019 with the merger of GSK and Pfizer’s consumer healthcare businesses and later spun out and listed on the London Stock Exchange in 2022.
Haleon on Thursday said it expects 800 million pounds ($1.07 billion) in gross productivity savings over the next five years, and added that its initiatives would also reduce working capital by about 30% annually and boost cash flow.
Jefferies analysts in a note said the update from Haleon was “strong” and likely to move consensus for 2027 earnings higher by about 5%.
The company’s outlook was part of its first ever Capital Markets Day, and comes a day after Haleon, which also makes Advil painkiller and Centrum multi-vitamins, said it was confident about meeting its 2025 targets despite U.S. demand uncertainty.
“Consumer confidence remains low, especially in the U.S., but we usually do not see much trade down from store brands to private labels in consumer healthcare,” Morningstar analysts said in a note on Thursday.
“We think this is especially true for Haleon, which owns a number of well-known and well-trusted brands.”
($1 = 0.7498 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Mrigank Dhaniwala, Leroy Leo and David Evans)