Haleon (LSE:HLN) lowered its full-year organic revenue growth forecast on Thursday following third-quarter trading that fell below company expectations, while announcing an additional £500 million share repurchase programme. Shares in the consumer healthcare group declined approximately 12.5%, reaching a three-week low.
The decline contrasted with a 0.5% rise in the FTSE 100 during the session, as the company reported reduced demand for cough, cold and flu products alongside growth in its Oral Health business.
Haleon Revises Full-Year Revenue Outlook
Haleon now expects organic revenue growth of approximately 2.5% for 2026, reflecting its latest assessment of trading conditions.
The company maintained its forecast for high-single-digit adjusted operating profit growth at constant exchange rates and expects net interest costs of £255 million for the year.
Chief Executive Brian McNamara said third-quarter performance was below expectations, with lower consumption of cough, cold and flu products affecting revenue.
McNamara also identified Oral Health performance and progress in the company’s North American turnaround as developments during the quarter. He said management remained focused on increasing volume growth and returning to consistent delivery against its medium-term growth guidance.
Oral Health Revenue Increases 8.8%
Haleon’s Oral Health division reported organic revenue growth of 8.8%, the highest rate among its product categories.
The increase was supported by double-digit revenue growth at Sensodyne and product innovation across the parodontax brand.
International revenue increased 6.9%, including high-teens growth in India, while the Asia-Pacific region recorded growth of 3.9%.
These results contrasted with declines in other product categories, particularly Respiratory Health and Vitamins, Minerals and Supplements.
Respiratory Health Revenue Declines 2%
Respiratory Health revenue decreased 2% during the quarter, reflecting lower seasonal demand for cough, cold and flu products.
According to Haleon, reduced consumption resulted in lower orders across North America and Europe.
Revenue in the Vitamins, Minerals and Supplements category declined 0.5%.
The company said the performance partly reflected disruption affecting Centrum over-the-counter products in China. A change in raw-material classification resulted in imports of the affected products being suspended until further notice.
Brazil Distribution Changes Expected to Affect Fourth-Quarter Revenue
Haleon also outlined plans to accelerate changes to its go-to-market operations in Brazil during the fourth quarter.
The company expects these adjustments to reduce group revenue by between £15 million and £20 million.
The anticipated impact forms part of Haleon’s updated trading expectations for the remainder of 2026.
Additional £500 Million Share Buyback Announced
Alongside the revised revenue outlook, Haleon announced that it had allocated a further £500 million to share repurchases.
The company expects to complete the additional buyback by the publication of its full-year financial results in February 2027.
The announcement follows a quarter in which growth across Oral Health and international markets was accompanied by lower revenue in Respiratory Health and Vitamins, Minerals and Supplements.
More About Haleon
Haleon (LSE:HLN) is a consumer healthcare company operating across Oral Health, Respiratory Health, and Vitamins, Minerals and Supplements. Its portfolio includes brands such as Sensodyne, parodontax and Centrum, with operations spanning North America, Europe, Asia-Pacific and other international markets.
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