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Haleon Cuts Full-Year Revenue Forecast After Weak Flu Season

Weaker seasonal demand, a China import-rule reclassification halting Centrum shipments, an accelerated Brazil sales model will lower near-term revenue.

The company logo for Haleon and the trading info is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2022.  REUTERS/Brendan McDermid

Overview

  • Haleon trimmed its full-year organic revenue growth guidance to about 2.5% on Thursday after third-quarter organic sales rose 2.6%, missing analyst expectations.
  • The company said softer demand for cough, cold and flu products reduced orders in North America and was the main driver of the quarterly shortfall.
  • Haleon suspended shipments of Centrum multivitamins into China after a change in raw-material classification constrained over-the-counter imports and hurt sales there.
  • Management warned the decision to accelerate a new go-to-market model in Brazil to align with a local tax change will cost an estimated £15–20 million of net revenue in the fourth quarter.
  • Oral-health brands and mid-single-digit growth in emerging markets, led by India, partly offset weakness but the update sent shares down more than 11% in early trading and raised investor focus on seasonal and regulatory risks.