Haleon plc (LSE:HLN) reported first-quarter organic sales growth of 2.2%, coming in just below market expectations of 2.4%. The performance reflected a 0.2% decline in volumes, which was offset by a 2.4% increase in pricing.
The company said a weaker-than-usual cold and flu season reduced growth by around 1.3 percentage points, following a similar 1.5 percentage point drag in the previous quarter. When excluding this category, underlying growth was estimated at roughly 3.5%, still below Haleon’s longer-term target of 4%.
Regional performance was mixed. North America delivered 1.0% like-for-like growth, although volumes fell 2.7%. Growth in emerging markets slowed to 4.3% from 5.7% in the prior quarter, while developed markets recorded a modest 1.0% increase. Latin America sales were broadly unchanged مقارنة بالعام السابق, and the Middle East, which accounts for about 5% of total revenue, showed no measurable impact from regional tensions.
Across product categories, Oral Health was a standout performer, with double-digit growth in brands such as Sensodyne and Parodontax. However, vitamins, minerals and supplements, along with digestive health, underperformed expectations, with ENO seeing a sharp decline in Brazil. Respiratory health met forecasts, as a strong allergy season helped offset weaker demand in cold and flu products. The smokers’ health segment saw double-digit declines.
Haleon reiterated its full-year outlook, expecting organic revenue growth of 3% to 5% and high single-digit expansion in operating margins, implying a margin level approaching 24%. The company also expects foreign exchange to have a neutral effect and guided for a tax rate of around 24.5%, slightly above the 24% recorded in 2025.
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